“According to the latest research study, the demand of global tire recycling market size and share was valued at approximately $6.22 billion in 2022 and is expected to reach $6.43 billion in 2023 and is expected to reach a value of around $8.32 billion by 2032, at a compound annual growth rate (CAGR) of about 3.7 percent during the forecast period 2023 to 2032.”
Tire Recycling Market: Growth Factors and Dynamics
- Industry collaboration: Collaborative efforts among industry players are driving the tire recycling market. Companies, associations and research institutions are working together to develop innovative recycling technologies, improve recycling efficiency, and explore new applications for recycled tire materials. Such collaborations foster knowledge exchange and accelerate the growth of the market.
- Sustainable Development Goals: The tire recycling market aligns with the United Nations’ Sustainable Development Goals (SDGs). Recycling tires contribute to several SDGs, including responsible consumption and production, climate action, and sustainable cities and communities. The pursuit of these global goals by governments, organizations, and individuals further supports the growth of the tire recycling market, as it addresses pressing environmental and societal challenges.
- Environmental Awareness: Increasing concern for the environment is driving the demand for tire recycling. Improper tire disposal leads to pollution and health risks. Recycling tires reduces waste, conserves resources, and minimizes negative impacts on ecosystems.
- Government Regulations: Governments worldwide are implementing strict rules to promote tire recycling. These regulations aim to reduce tire waste in landfills and encourage recycling technologies. Compliance with these regulations is essential for tire manufacturers, retailers, and consumers.
- Demand for Recycled Tire Products: The market is witnessing a rise in demand for recycled tire products. These products are used in road construction, civil engineering, and manufacturing new tires, footwear, and consumer goods. Recycled tire products are cost-effective and durable, making them increasingly popular.
- Technological Advancements: Tire recycling technologies have improved, enhancing the efficiency of the recycling process. Innovative techniques like cryogenic grinding and pyrolysis extract valuable materials from used tires, expanding the range of recycled tire products.
- Circular Economy Initiatives: The concept of a circular economy, focusing on reusing and recycling resources, is gaining momentum. Stakeholders are adopting circular economy principles to reduce waste and promote sustainable resource use, driving the growth of tire recycling.
Tire Recycling Market: COVID-19 Analysis
The COVID-19 pandemic has had a significant impact on the tire recycling market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:
- Disruption in Supply Chain: The tire recycling market experienced significant disruptions in the supply chain due to the COVID-19 pandemic. Lockdown measures, travel restrictions, and temporary closure of recycling facilities impeded the collection and transportation of used tires, affecting the overall volume of tires available for recycling.
- The decline in Tire Demand: The economic slowdown and reduced mobility during the pandemic led to a decline in tire demand across various sectors, including automotive, construction, and industrial. With fewer tires reaching their end-of-life stage, the supply of used tires for recycling diminished, impacting the tire recycling market.
- Resumption of Operations: As restrictions eased and economic activities resumed, tire recycling facilities adapted to the new normal. They implemented safety protocols, social distancing measures, and remote work arrangements to ensure the health and well-being of their employees.
- Government Support and Incentives: Governments recognized the importance of maintaining a sustainable tire recycling industry and provided support to mitigate the impact of the pandemic. Financial assistance, grants, and incentives were offered to support the continued operations of recycling facilities and encourage the use of recycled tire products.
- Innovation and Diversification: To overcome the challenges posed by COVID-19, the tire recycling industry focused on innovation and diversification. Companies explored new recycling technologies, such as advanced pyrolysis and devulcanization processes, to improve efficiency and increase the range of recycled tire products.