MARKET OVERVIEW – HOW IS THE GLOBAL TYRE RECYCLING MARKET GROWING?
According to TechSci Research report, the Global Tyre Recycling Market will grow from USD 7.66 Billion in 2025 to USD 9.49 Billion by 2031, registering a CAGR of about 3.63% over the forecast period. The market focuses on the industrial collection and reprocessing of end‑of‑life tyres (ELTs) into reusable raw materials such as rubber granulate, steel, and textile fibres, or for use in energy recovery.
The primary drivers sustaining this market include stringent environmental regulations enforced worldwide to minimise landfill usage and illegal dumping, thereby mandating responsible waste management. At the same time, the accelerating global shift toward a circular economy model supports growth, as industries increasingly seek sustainable, secondary raw materials to reduce reliance on virgin resources and lower overall carbon footprints.
KEY FIGURES – WHAT ARE THE CORE FORECAST METRICS?
Forecast Period: 2027–2031
Market Size (2025): USD 7.66 Billion
Market Size (2031): USD 9.49 Billion
CAGR (2026–2031): 3.63%
Fastest‑Growing Segment: Rubber
Largest Regional Market: Asia Pacific
KEY MARKET DRIVERS – WHAT IS FUELING DEMAND FOR TYRE RECYCLING?
How Are Pyrolysis and Devulcanization Changing Tyre Recycling?
Rapid technological advancements in pyrolysis and devulcanization processes are fundamentally reshaping the Global Tyre Recycling Market. These advanced thermal technologies enable recovery of high‑value raw materials such as recovered carbon black (rCB) and pyrolysis oil, moving beyond traditional mechanical shredding that mainly produces lower‑value crumb rubber.
By decomposing tyres at the molecular level, pyrolysis and devulcanization create a circular supply chain that appeals to automotive and chemical industries seeking sustainable feedstock. This shift towards high‑quality material recovery is attracting significant infrastructure investment, with new facilities designed to process tens of thousands of tonnes of ELTs annually, signalling confidence in high‑value regeneration rather than simple disposal.
Why Are Environmental Regulations and Landfill Bans Critical Growth Drivers?
Implementation of stringent environmental regulations and landfill bans acts as a second major driver. Governments increasingly enforce Extended Producer Responsibility (EPR) frameworks that hold manufacturers accountable for post‑consumer tyre management, driving:
High recovery rates for ELTs
Prevention of illegal dumping
Establishment of robust collection and utilisation systems
This regulatory pressure effectively creates a stable feedstock supply for recyclers and incentivises the development of diverse end‑use markets. Mature markets show that strict compliance can lead to very high beneficial reuse rates for used tyres, demonstrating how policy can transform waste streams into valuable industrial inputs.
KEY MARKET CHALLENGES – WHAT IS HOLDING BACK GROWTH?
Why Are Reverse Logistics Costs a Major Barrier?
The high operational cost associated with reverse logistics constitutes a primary obstacle to the expansion of the tyre recycling market. Collecting end‑of‑life tyres involves:
Retrieving bulky, low‑density waste from fragmented sources such as independent garages and remote dealerships.
Managing an inefficient volume‑to‑weight ratio during transport, which drives up fuel and labour costs per tonne.
Facing limits on how much material can be hauled per trip, raising per‑unit transport expenses.
Consequently, the expenditure required to aggregate ELTs frequently exceeds the commercial value of recovered rubber or other outputs, eroding profit margins and discouraging investment in new processing facilities, especially in geographically dispersed areas. This economic inefficiency prevents full capture of available feedstock and leaves some tyre resources unrecovered because transport costs outweigh potential revenue.
KEY MARKET TRENDS – HOW IS THE INDUSTRY EVOLVING?
Why Is Rubber‑Modified Asphalt Emerging as a Key End‑Use?
The expansion of rubber‑modified asphalt (RMA) in road infrastructure projects is a critical trend, driven by the need for high‑volume, sustainable end‑use applications that outperform traditional materials. Using ground tyre rubber in asphalt:
Enhances pavement durability and resistance to cracking.
Reduces road noise and can improve ride quality.
Creates a substantial, recurring demand sink for scrap tyres.
Recent industry data show a marked increase in ELT consumption for RMA, with double‑digit percentage growth in utilisation and hundreds of thousands of tonnes of tyres used in road projects over a relatively short period. This anchors tyre recycling in infrastructure planning and helps integrate ELT management into public works strategies.
How Are Closed‑Loop Tyre‑to‑Tyre Recycling Ecosystems Developing?
The integration of closed‑loop tyre‑to‑tyre recycling ecosystems is moving from concept to reality. Supported by large‑scale investments, these systems:
Use advanced thermochemical processes (like pyrolysis) to convert ELTs into tire pyrolysis oil and recovered carbon black.
Upgrade these outputs to meet automotive‑grade specifications for use in new tyre production.
Reduce dependence on virgin carbon black and petrochemical feedstocks, directly contributing to tyre manufacturers’ circular economy and net‑zero goals.
New facilities in Europe and other regions are explicitly designed to recycle a significant share of annual ELT generation, demonstrating the scalability and commercial appeal of tyre‑to‑tyre circularity.
SEGMENTAL INSIGHTS – WHICH END‑USE CATEGORY IS GROWING FASTEST?
Why Is the Rubber Segment the Fastest‑Growing?
The Rubber segment is anticipated to witness the most rapid expansion in the Global Tyre Recycling Market. This is fuelled by:
Increasing adoption of circular economy principles in automotive and construction industries.
Versatility of reclaimed rubber in value‑added applications such as rubberised asphalt, moulded products, flooring, and sports surfaces.
Cost advantages over virgin raw materials, especially when combined with sustainability incentives and corporate ESG targets.
Institutional and industry‑led sustainability initiatives, including those from tyre recycling associations, actively promote commercial use of derived rubber products, helping build stable, scalable end‑markets.
REGIONAL INSIGHTS – WHY DOES ASIA PACIFIC LEAD THE TYRE RECYCLING MARKET?
How Is Asia Pacific Strengthening Its Leadership?
Asia Pacific holds a dominant position in the Global Tyre Recycling Market due to:
Rapid expansion of the automotive sector and rising vehicle ownership across emerging economies.
Large volumes of end‑of‑life tyres generated each year, necessitating effective waste management.
Increasingly stringent regulatory frameworks focused on sustainability and responsible disposal.
In countries like India, authorities have introduced Extended Producer Responsibility (EPR) guidelines under environmental ministries, compelling tyre manufacturers and importers to ensure responsible ELT management. Such measures accelerate recycling activities, encourage infrastructure development and support regional market growth.
RECENT DEVELOPMENTS – WHAT STRATEGIC MOVES ARE SHAPING THE MARKET?
How Are Leading Companies and Partnerships Advancing Circularity?
In May 2025, Liberty Tire Recycling received an industry award for its collaboration with Walmart, where ELTs from the retailer’s auto care centres were transformed into consumer products such as rubber mulch and garden edging, sold back through the retailer’s stores. The initiative showcased a practical closed‑loop model diverting millions of tyres from landfills.
In September 2024, Bridgestone, Grupo BB&G and Versalis formed a strategic partnership to develop a closed‑loop ecosystem for ELT recycling, using BB&G’s thermomechanical pyrolysis to produce tyre pyrolysis oil. Versalis integrated this oil into its circular elastomer production, and Bridgestone used these elastomers to manufacture tyres with higher recycled content.
In May 2024, Circtec secured €150 million to build a large‑scale ELT pyrolysis facility in Delfzijl, Netherlands, aimed at processing around 5% of Europe’s annual ELT generation and producing renewable fuels and circular chemicals with significantly lower greenhouse gas emissions than conventional options.
In February 2024, Michelin, Antin Infrastructure Partners and Scandinavian Enviro Systems approved investment for their first ELT recycling plant in Uddevalla, Sweden, designed to process about 35,000 tonnes of tyres per year. The joint venture plans multiple facilities across Europe, using specialised pyrolysis technology to recover carbon black and oil for reintroduction into tyre manufacturing.
KEY MARKET PLAYERS – WHO ARE THE MAJOR COMPANIES IN THE GLOBAL TYRE RECYCLING MARKET?
Leading players in the Global Tyre Recycling Market include:
→ Davis Rubber Company Inc.
→ TIRE DISPOSAL & RECYCLING LLC
→ Tyre Recycling Solution SA
→ Liberty Tire Recycling LLC
→ Genan Holding A/S
→ ResourceCo Pty Ltd.
→ GRP LTD
→ Lehigh Technologies, Inc.
These companies operate across collection, processing and value‑added product manufacturing, increasingly focusing on advanced technologies, circular business models and strategic partnerships to scale tyre recycling globally.
10 BENEFITS OF THIS GLOBAL TYRE RECYCLING MARKET STUDY
Provides clear insight into market size, CAGR and forecast up to 2031.
Explains how environmental regulations and landfill bans drive ELT recycling.
Highlights technical progress in pyrolysis and devulcanization for high‑value material recovery.
Analyses the impact of reverse logistics costs on profitability and feedstock capture.
Describes growth in rubber‑modified asphalt as a major end‑use path for ELTs.
Shows how closed‑loop tyre‑to‑tyre ecosystems support circular supply chains.
Clarifies why the Rubber segment is the fastest‑growing end‑use category.
Provides regional insight into Asia Pacific’s dominance and regulatory drivers.
Details recent strategic investments and collaborations in large‑scale ELT facilities.
Supports strategic planning around infrastructure, technology, and policy alignment for stakeholders.
Frequently Asked Questions
Q1: What is the growth outlook for the Global Tyre Recycling Market according to TechSci Research?
TechSci Research reports that the Global Tyre Recycling Market will grow from USD 7.66 Billion in 2025 to about USD 9.49 Billion by 2031, at a CAGR of around 3.63%, supported by environmental regulations, circular economy initiatives and expanding high‑value applications for recycled tyre materials.
Q2: Which segment is growing fastest in the tyre recycling industry?
The Rubber segment is the fastest‑growing category, driven by wider utilisation of reclaimed rubber in rubberised asphalt, moulded products and other applications that provide cost‑effective, sustainable alternatives to virgin rubber.
Q3: Why is Asia Pacific identified as the largest regional market in TechSci Research’s analysis?
TechSci Research identifies Asia Pacific as the largest regional market due to its expanding automotive sector, rising vehicle ownership, high ELT generation and growing adoption of Extended Producer Responsibility (EPR) and sustainability regulations that encourage tyre recycling.
Q4: What are the main challenges highlighted for the Global Tyre Recycling Market?
The main challenge is the high cost of reverse logistics, including collection and transport of bulky tyres from dispersed sources. These costs can outweigh the value of recovered materials, limiting full feedstock capture and discouraging facility development in remote or fragmented regions.
Q5: How does TechSci Research cover advanced technologies and circular trends in tyre recycling?
TechSci Research emphasises pyrolysis, devulcanization, rubber‑modified asphalt, and closed‑loop tyre‑to‑tyre ecosystems as key trends, explaining how these approaches support high‑value material recovery, circular supply chains and reduced environmental impact from tyre waste.
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