Tire recycling market thrives on regulatory mandates and rising automotive output, driven by the U.S. (81% recycling rate, 4 million tons annually) and Asia-Pacific’s rapid adoption of pyrolysis and advanced applications like rubberized asphalt.
Chicago, April 01, 2025 (GLOBE NEWSWIRE) — The global tire recycling market was valued at US$ 13.92 billion in 2024 and is anticipated to reach US$ 19.24 billion by 2033, growing at a CAGR of 3.80% during the forecast period 2025–2033.
The demand for tire recycling market is experiencing significant growth worldwide, driven by the increasing volume of end-of-life tires (ELTs) generated annually. Global tire production has reached approximately 2.5 billion units per year. In the United States alone, about 280 million scrap tires are generated annually. This massive volume of waste tires necessitates efficient recycling solutions. The European Union (EU) has achieved a tire collection rate of 95%, with 1.37 million tons of ELTs collected in 2019 In Japan, the tire recycling rate has consistently exceeded 90% since 2010, with 1 million tons of tires recycled annually automotive industry’s expansion, particularly in emerging economies, is fueling this growth. China, for instance, generates over 320 million waste tires annually, while India produces approximately 112 million waste tires each year These numbers underscore the urgent need for comprehensive tire recycling solutions globally. The implementation of extended producer responsibility (EPR) programs in over 30 countries has further boosted recycling efforts, with some nations achieving collection rates as high as 80-90%.
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Key Findings in Tire Recycling Market
| Market Forecast (2033) | US$ 19.24 billion |
| CAGR | 3.80% |
| Largest Region (2024) | Asia Pacific (35%) |
| By Product | Crumb Rubber (30%) |
| By Process | Mechanical Recycling (59%) |
| By Application | Automotive (35%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Sales of Recycled Tires is Reaching New Heights
The global tire recycling market is projected to reach substantial values in 2024, reflecting the industry’s growth and importance. In terms of volume, it’s estimated that over 1.8 billion tires will be recycled globally in 2024. This figure represents a significant portion of the total waste tires generated worldwide. The United States, as a leading market, is expected to recycle approximately 4.5 million tons of tires in 2024, equivalent to about 290 million passenger tire equivalents.
In Europe, the tire recycling industry is projected to process over 3.6 million tons of end-of-life tires in 2024 China, with its massive automotive market, is anticipated to recycle more than 5 million tons of waste tires in the same year. These projections highlight the substantial scale of tire recycling operations globally and the increasing capacity of the industry to handle the growing volume of waste tires.
Market Response to Current Economic Conditions and Demand
The tire recycling market is demonstrating resilience in the face of current economic challenges. Despite global economic uncertainties, the industry has maintained a steady growth trajectory. For instance, the use of recycled rubber in asphalt has increased by 25% over the past five years, with over 1,000 miles of roads now built using rubberized asphalt in the United States annually This trend indicates a growing acceptance and demand for recycled tire products in infrastructure projects.
In response to economic pressures, tire recycling companies are diversifying their product offerings. The production of tire-derived fuel (TDF) has seen a 15% increase in the past two years, with over 130 million tires now used annually for energy recovery in the United States Additionally, the use of crumb rubber in molded products has grown by 30% since 2020, creating new market opportunities for recycled tire materials These adaptations demonstrate the industry’s ability to pivot and find new applications for recycled tire products in challenging economic conditions.
Concerns Facing Tire Recycling Companies: Challenges Ahead
Tire recycling market companies are grappling with several concerns that pose challenges to their operations and future growth. One primary worry is the fluctuating prices of recycled materials. For instance, the price of crumb rubber has varied by up to 30% in the past year, ranging from $200 to $260 per ton This volatility affects profitability and makes long-term planning difficult. Additionally, the high capital costs associated with recycling facilities are a significant barrier, with a typical tire recycling plant requiring an investment of $5-10 million for equipment alone industry is also facing challenges related to the quality of recycled materials. Contamination rates in collected tires can be as high as 5-10%, necessitating additional processing and increasing costs Furthermore, the logistics of collecting and transporting end-of-life tires efficiently remains a persistent challenge, with transportation costs accounting for up to 20% of the total recycling cost in some regions. These concerns collectively contribute to a complex operating environment for tire recycling companies, requiring strategic planning and adaptability to navigate successfully.
Top 5 Countries Lucrative for Tire Recycling: Market Leaders
- China: Leading the global tire recycling market with an annual tire recycling capacity of over 5 million tons. The country processes approximately 320 million waste tires each year. United States: Recycling about 4.5 million tons of tires annually, with a recovery rate exceeding 80% The U.S. has over 110 tire recycling facilities across the country. Germany: As a leader in the European Union, Germany recycles over 600,000 tons of tires annually, achieving a recycling rate of 98%
- India: With a rapidly growing automotive sector, India generates about 112 million waste tires annually. The country has set a target to recycle 75% of its waste tires by 2025.
- Japan: Known for its advanced recycling technologies, Japan recycles over 1 million tons of tires annually, with a recycling rate consistently above 90% countries offer lucrative opportunities for tire recycling companies due to their combination of market size, regulatory support, technological advancement, and growth potential.
Impact of Economic Conditions on Tire Recycling Demand
The demand for tire recycling market is being affected by current economic conditions in complex ways. While economic uncertainties have led to a slight decrease in new tire sales, with a 5% drop reported in 2023 compared to the previous year the focus on sustainability has maintained steady demand for recycled tire products. The construction industry’s use of recycled tire materials has increased by 10% in the past year, with over 200,000 tons of crumb rubber used in various construction applications
Furthermore, the energy sector’s use of tire-derived fuel has remained stable, with cement kilns consuming approximately 350,000 tons of TDF annually in Europe alone This consistent demand has helped offset potential declines in other sectors. The automotive industry’s push towards sustainability has also contributed to increased use of recycled rubber in new tire production, with some manufacturers incorporating up to 5% recycled content in their new tires These trends indicate that while economic conditions are challenging, the fundamental drivers of tire recycling demand remain strong.
Key Products Derived from Tire Recycling: Value Creation
- Crumb Rubber: Accounts for approximately 70% of recycled tire material by weight. The U.S. tire recycling market alone produces over 1.5 million tons of crumb rubber annually Tire-Derived Fuel (TDF): Represents about 50% of scrap tire usage in the United States, with over 130 million tires used for TDF annually Rubberized Asphalt: Over 1,000 miles of roads in the U.S. are built using rubberized asphalt each year, consuming approximately 12 million scrap tires.
- Steel Wire: Approximately 10-15% of a tire’s weight is steel, with over 350,000 tons of steel recovered from tires annually in Europe Rubber Mulch: The U.S. market for rubber mulch uses about 20 million scrap tires annually, with applications in landscaping and playgrounds products demonstrate the diverse applications of recycled tire materials, contributing to the circular economy and reducing waste.
Major Applications of Tire Recycling: Industry Impact
- Construction and Infrastructure: Approximately 12 million scrap tires are used annually in the U.S. tire recycling market for civil engineering applications Rubberized asphalt can extend road life by up to 50% and reduce road noise by up to 5 decibels.
- Energy Production: In the U.S., about 43% of scrap tires are used for TDF, providing a cost-effective and environmentally friendly energy source. A single cement kiln can use up to 6 million tires per year as fuel
- Automotive and Industrial Products: Recycled rubber is used in the production of new automotive parts, with some manufacturers incorporating up to 5% recycled content in new tires.
- Sports and Recreational Surfaces: A typical artificial turf field uses about 20,000 ground tires, providing shock absorption and improving playing conditions
- Landscaping and Agriculture: Rubber mulch can last up to 10 times longer than traditional wood mulch and is used in over 50,000 playgrounds across the U.S. applications demonstrate the versatility of recycled tire materials and their significant impact across various sectors.
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Major Trends in Tire Recycling: Future Directions
Circular Economy Integration: Major tire manufacturers in the tire recycling market aim to use up to 50% sustainable materials in their products by 2030, with some already incorporating 5-10% recycled content in new tires.
- Advanced Recycling Technologies: Pyrolysis facilities are increasing, with global capacity expected to reach 1.2 million tons of annual tire processing by 2025 Digitalization and Automation: AI and machine learning in recycling operations have the potential to increase recycling rates by up to 20%, with some facilities reporting a 15% improvement in sorting efficiency
- Sustainable Product Development: The use of recycled rubber in high-value products has increased by 30% since 2020, with over 200 new patents filed for recycled rubber applications in the past year Regulatory Pressure and Extended Producer Responsibility: Over 30 countries have implemented EPR schemes for tires, with some achieving collection rates as high as 95%
These trends highlight the dynamic nature of the tire recycling market and its potential for significant growth and innovation in the coming years.
Global Tire Recycling Market Major Players:
- Liberty Tire Service
- Continental AG
- reRubber, LLC.
- Entech Inc.
- Michelin Group S.A.
- Wastefront AS
- Genan Holding A/S
- Tire Disposal and Recycling, Inc.
- Bridgestone Corporation
- Tire Recycling Solutions SA
- Contec S.A.
- Emanuel Tire, LLC
- Re-Match Holding A/S
- Champlin Tire Recycling Inc.
- Apollo Tyres Ltd.
- Crumb Rubber Manufacturers (CRM)
- Other Prominent Players
Key Segmentation:
By Product
- Crumb Rubber
- Tire-Derived Fuel (TDF)
- Reclaimed Rubber
- Carbon Black
- Others
By Process
- Mechanical Recycling
- Pyrolysis
- Devulcanization
- Others
By Application
- Automotive
- Manufacturing
- Construction
- Rubber Products
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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