The global tire recycling market was valued at USD 9.4 billion in 2024 and is projected to grow from USD 10.1 billion in 2025 to USD 17.9 billion in 2033, exhibiting a CAGR of 7.2% during the forecast period (2025–2033).

Why Is Tire Recycling Important?

The exponential increase in vehicle production and use has created a massive volume of end-of-life tires, which pose serious environmental hazards if not properly managed. Tires are non-biodegradable and can cause land, air, and water pollution if dumped in landfills or through illegal disposal. Tire recycling transforms these waste materials into valuable reusable products such as crumb rubber, tire-derived fuel, and rubberized asphalt, reducing raw material consumption and landfill burdens. This process also mitigates fire hazards and lowers greenhouse gas emissions, aligning with global sustainability initiatives.

Key Market Drivers

Several factors propel the tire recycling market’s expansion. First, rising vehicle numbers worldwide directly contribute to increased tire waste. For example, the global vehicle production reached over 67 million units in 2022, creating massive scrap tire volumes. Governments and industries respond through regulations like Extended Producer Responsibility (EPR) frameworks that make tire manufacturers responsible for their products' end-of-life management.

Technological innovation also significantly drives the market. Advanced recycling processes such as pyrolysis, which thermally decomposes tires to produce fuel oil, carbon black, and gas, and devulcanization, which reverses rubber vulcanization to yield high-quality recycled rubber, have enhanced material recovery and product quality. These innovations reduce reliance on virgin materials and support circular economy models.

The demand for recycled tire products in the infrastructure and automotive sectors is increasing. Crumb rubber and rubberized asphalt are widely used in road construction, playground surfaces, and sound barriers, offering durability and sustainable alternatives to conventional materials. The automotive industry increasingly integrates recycled rubber in new tire production and vibration-damping components, propelled by consumer preference for eco-friendly products.

Regional Market Insights

North America holds the largest share of the global tire recycling market, accounting for around 40% in 2025. The region’s market maturity stems from advanced recycling infrastructure, stringent regulatory support, and well-established tire collection systems. Public-private collaborations and innovations in recycling technologies ensure a steady supply of recycled materials, reinforced by demand from the automotive and construction industries.

Asia-Pacific stands out as the fastest-growing region, projected to grow at a CAGR of 8.0% through 2033. Rapid industrialization and expanding vehicle production in countries such as China and India drive tire waste generation and recycling demand. Governments in the region are increasingly adopting regulatory frameworks to address environmental concerns and illegal tire dumping. Additionally, Asia-Pacific benefits from cost-effective labor and growing investments in advanced recycling capabilities, making it a vibrant market for tire recycling.

Europe also holds a significant market share and steadily grows, supported by its circular economy policies and stringent environmental regulations. The European Union’s focus on sustainability encourages using recycled materials in automotive and construction sectors. Extended Producer Responsibility policies further bolster tire collection and reuse, alongside public investments in recycling innovations.

Challenges Facing the Market

Despite promising growth, the tire recycling market faces several hurdles. High-capital investment and operational costs for recycling facilities and advanced equipment like pyrolysis reactors and devulcanization systems act as significant barriers, especially in emerging economies with underdeveloped infrastructure. Fluctuating raw material and energy prices add to cost unpredictability, impacting profitability.

Supply chain disruptions due to inconsistent tire collection rates also pose challenges, particularly in regions like Africa and parts of Asia-Pacific. Maintaining regulatory compliance, especially in regions with strict environmental standards, adds further operational expenses. Overcoming these challenges requires technological advancement to reduce costs, government incentives, and improved collection infrastructure.

Market Segmentation and Applications

The tire recycling market encompasses multiple processes, including shredding and grinding, pyrolysis, retreading, and others. Retreading or refurbishing accounts for a major share of revenue, covering practices that extend tire lifespan by reconditioning used tires, mainly benefiting commercial fleets. This method reduces waste and production costs while aligning with environmental regulations.

Pyrolysis is gaining significant traction due to its ability to convert waste tires into valuable by-products efficiently and sustainably. The technological progress in pyrolysis enhances its attractiveness for large-scale recycling operations.

End-use applications are diverse, with the automotive sector leading demand for recycled rubber products used in new tires, mats, and components. Construction industry applications such as rubberized asphalt benefit from recycled tires' durability and sustainability, further boosting market adoption.

Market Outlook and Competitive Landscape

Overall, the tire recycling market is poised for strong growth driven by environmental imperatives, technological progress, and regulatory frameworks worldwide. Companies competing in this space focus heavily on innovation, strategic partnerships, and capacity expansion to meet growing demand. Leading players invest in research and development to enhance recycling technologies and expand high-value recycled product offerings.

Major market participants leverage global supply chains and collaborate closely with governments to foster circular economy initiatives. As vehicle ownership and tire waste continue to rise, the tire recycling market will remain a critical sector advancing sustainable waste management and resource recovery globally.