Allied Market Research published a report, titled, “Tire Recycling Market by Process (Pyrolysis, Shredding, Refurbishing), by Product (Crumbed Rubber, Tire Derived Fuel, Refurbished Commercial Vehicle Tires and Others), by Application (Manufacturing, Construction, Rubber Products, Automotive, and Others): Global Opportunity Analysis and Industry Forecast, 2023–2032.” According to the report, the global tire recycling industry generated $11,980.9 million in 2018 and is anticipated to generate $18,137.8 million by 2032, witnessing a CAGR of 3.3 percent from 2023 to 2032.
The purpose of tire recycling is to collect, sort and process tires that have been used or disposed of, in order to recover materials or energy that may be of value. This process utilizes a variety of methods, including shredding and grinding, as well as pyrolyzing, to break the tires down and extract materials such as rubber, steel, and fiber. These can then be used for a variety of purposes, including the production of new tires, building materials, fuel, and more. By recycling tires, waste is reduced, resources are conserved, and the environmental impact of tire disposal is minimized.
The refurbished commercial vehicle tires segment held the highest market in 2018, accounting for more than half of the global tire recycling market, and is estimated to maintain its lead position throughout the forecast period. The rise in awareness regarding the benefits of refurbished tires such as their low price, and relatively safer operations is driving the growth of the refurbished commercial vehicle tires segment. However, the crumbed rubber segment would showcase the highest CAGR of 3.9 percent from 2023 to 2032. Crumbed rubber is a major raw material used in the manufacturing of new tires, rubber mats and rugs, sealants, garden mulch, and various others.
Based on application, the automotive segment accounted for the largest share in 2018, contributing to nearly three-fifths of the global tire recycling market revenue, and is projected to rule the roost by 2032. The use of recycled tires in manufacturing rubber mats, collision bumpers, tires, and other objects is driving the growth of this segment. However, the construction segment would portray the highest CAGR of 4.5 percent from 2023 to 2032. Recycled tire products are used in manufacturing roof sealants, pipes, hoses, and various others; thus, a rise in the construction sector is expected to drive the growth of the construction segment.
Based on region, Asia-Pacific held the highest market share in 2018, accounting for nearly half of the global tire recycling market revenue, and is likely to dominate the market during the forecast period. A large population having relatively higher disposable income in the region enables people to buy vehicles, which eventually generates high volumes of tire waste, and drives the tire recycling market in the Asia-Pacific region. However, the Africa region is expected to witness the highest CAGR of 4.9 percent, from 2023 to 2032. Africa is expected to become a major consumer of vehicles, which is expected to have a positive influence on the tire recycling market.