'Green' tire demand rising steadily

LEATHERHEAD, England (Feb. 14, 2013) — The global market for low rolling-resistance "green" tires is forecast to grow more than 11 percent a year through 2017 to a value of $70.6 billion, according to a new Smithers Rapra market report.

Leatherhead-based Smithers Rapra estimates in its report "The Future of Green Tires to 2017" that 28 percent of the more than 1.5 billion tires produced annually are considered "green" — i.e., optimized for low rolling resistance and/or using materials, especially elastomers, derived from renewable (sustainable) resources.

The consultancy values the global market at $160 billion and estimates it will grow about 5 percent a year to reach $203 billion by 2017, by which time green products will account for 35 percent of the market, or $70.6 billion.

Smithers Rapra cites concern over greenhouse gas emissions and resource availability as the main drivers behind this growth.

For instance, fillers such as carbon black and precipitated silica — which contribute to tires' reduced rolling resistance — are not yet sourced from sustainable resources, Smithers Rapra said, and efforts to address this are still in their infancy.

Precipitated silica does have the advantage of being derived from a non-oil source and thus can be regarded as more sustainable than carbon black, Smithers Rapra said.

Unlike low rolling resistance, many of the other sustainability improvements offer no apparent cost advantage to the consumer and often demand a premium.

The study examines this market with qualitative and quantitative market forecasts, showing key analysis, trends and drivers. Forecasts to 2017 are broken down by geographic region, with production and consumption trends highlighted, the research firm said.

The 116-page report costs $6,300.