India Tire Recycling Market 2024–2033

Reports Description

The India Tire Recycling Market was valued at USD 2.25 billion in 2024 and is expected to reach USD 3.05 billion by 2033, at a CAGR of 3.51% during the forecast period 2024 – 2033.

The India tire recycling market collects, processes, and converts end-of-life tires into useful resources, including crumb rubber, pyrolysis oil, and carbon black, using recycling methods such as shredding, pyrolysis, and refurbishment.

The market study report covers the full supply chain, including tire producers, recyclers, and businesses that use recycled materials in applications such as road building, manufacturing, and consumer goods. Government restrictions, like Extended Producer Responsibility (EPR), technology improvements, and increased environmental consciousness, are expected for this industry towards the north.

India Tire Recycling Market Growth Factors

Government Regulations and Environmental Awareness Propel Growth in India’s Tire Recycling Market

Rising environmental awareness & strict government guidelines are boosting India’s tire recycling industry. As more vehicles access Indian roads, the number of rubbish tires produced grows. This growth in waste has generated concerns about environmental deterioration and resource depletion, driving consumers and businesses to look for sustainable solutions.

Government initiatives such as extended producer responsibility and a growing inclination towards sustainable practices encourage recycling, and trash management plays an important part in this shift. Such supportive policies and legislations encourage stakeholders to invest in tire recycling technologies and develop infrastructure and innovative solutions for recycling.

Growing consumer awareness about recovered and recycled products across India due to increasing environmental concerns and stringent regulations is expected to boost the demand for recovered rubber and other recycled materials from a variety of industries, moving the market forward.

Growing awareness about the economic and environmental benefits of recycled materials and products boost the end-use industries’ adoption of recycling practices. Recycled material lowers production costs and reduces dependency on virgin resources.

Additionally, technological advancements in recycling technologies are expected to increase the efficiency and quality of the tire recycling process, driving the market during the forecast period.

Growing Demand for Sustainable Materials Boosts India Tire Recycling Market

The growing demand for sustainable and environmentally friendly materials is boosting the circularity and recycling of tires to fulfill the rising need for ecologically friendly solutions in tire recycling. Birla Carbon ensures a continuous supply of high-quality SCM in large quantities by manufacturing it domestically.

The use of such materials promotes environmental goals by boosting recycled content in goods while maintaining operating efficiency. This is consistent with India’s larger sustainability efforts, in which firms like Finster Black Pvt Ltd. are playing an important role by managing the whole tire recycling process, from collecting to manufacturing.

As the need for green solutions grows, the Indian tire recycling market is expected to expand significantly, driven by technical developments, strategic collaborations, and rising environmental consciousness. Birla Carbon’s emphasis on innovation and sustainability positions the company to capitalize on this change, creating potential for additional breakthroughs in tire recycling technology and processes.

Supportive government policies, such as newly implemented waste management rules by all the Indian states, the extended producer responsibility principle, and directives of state and central pollution control boards, are mainly encouraging tire recycling companies through financial aid and grants.

Key players operating in the market are combining the EPR systems directives with the existing free market system to enhance recovery rates, reduce environmental contamination, and boost sustainable waste management practices. Thus, the above-mentioned factors are expected to drive the overall market growth during the forecast period.

India Tire Recycling Market Restraints

Lack of Technological Infrastructure and Awareness

The tire recycling business requires well-developed and advanced technological infrastructure. Many Indian companies recycle the tires with less effective, traditional methods. Lack of awareness about recycling in rural areas is also a major obstacle to market growth.

Although the Indian government has implemented regulations such as the Extended Producers Responsibility (EPR) framework, over 53.90% of tire pyrolysis facilities fail to achieve the mandated criteria. These firms usually employ old equipment, which leads to increasing pollution and ineffective recycling operations.

The classification of these units as red, green, or orange, depending on pollution levels, has resulted in the closure of several non-compliant facilities. However, the general adoption of new technologies remains slow. Furthermore, there is a general lack of understanding regarding the significance of good waste tire management, particularly in less urbanized areas.

The lack of skilled workforce to recycle tyres is also restraining the market growth. The recycling process of tyres involves the use of various advanced and modern machines and equipment. To operate such machines, a skilled workforce is needed. The cost of such a workforce is very due to their limited availability, which in turn creates a labour shortage, thereby reducing overall productivity.

Challenge from Illegal Waste Tire Imports

The illegal import of scrap tires from Western countries is creating a big challenge to India’s tire recycling industry, which is already overwhelmed with domestic tire waste. These imported tires usually end up in illegal and environmentally destructive recycling facilities, undermining efforts to create a sustainable waste management system.

The Indian government has taken extra steps to promote tire recycling and reduce illicit imports, including registering producers, importers, and recyclers. However, enforcement remains a difficulty since unlawful shipments persist. This unlawful trade harms local recyclers, reduces investment in sophisticated recycling methods, and endangers the environment. Addressing this issue is critical to long-term viability.

Furthermore, the lack of universal directives on waste management and recycling is also restraining the market’s growth. All states in India have their own rules and regulations on waste management and recycling. Stakeholders operating in the market are finding it very difficult to comply with such state-wise directives, which in turn discourages new investment in the market.

India Tire Recycling Market Opportunities

Transforming Tire Waste Management: Opportunities in Upgrading India’s Pyrolysis Plants

India’s attempts to deal with its growing tire waste issue have led to stricter regulations and a push for technical advancements in facilities that pyrolyze waste tires. Now, 53.90% of these units don’t meet government standards, which forces the authorities to enforce restorations and categorize the establishments based on their pollution index.

Increasingly stringent government actions have shunted many non-compliant plants. Many have switched to greener and more energy-efficient technologies, such as advanced pyrolysis systems and automated technologies.

Therefore, more market participants investing in pyrolysis facilities and people in rural areas being aware of tire recycling should help recover more resources and reduce the health and environmental risks of improper tire waste management.

The Indian tire recycling industry is growing due to a growing emphasis on sustainable practices and circular economy efforts. Innovations and advancements in recycling technologies, such as pyrolysis, which turns waste tires into valuable products and energy, offer greater chances for expansion.

Thus, the abovementioned factors are expected to create lucrative opportunities for the market during the forecast period.

India Tire Recycling Market: Segmentation Analysis

Pyrolysis, shredding, and refurbishing are the process-based segments of the India Tire Recycling Market. The shredding category dominated the market in 2023 and is expected to remain dominant due to the growing usage of shredding-processed tires in expanding infrastructural projects.

The shredding process is adapting across various end-use verticals due to its various benefits. The shredding process uses various advanced machines and technologies and breaks down automotive tires into smaller pieces or shreds. This technology facilitates and enhances the recycling output and enables the extraction of valuable and essential materials from waste.

Key players are heavily investing in the development and innovation of shredding technology, such as the development of high-capacity shredders, improved efficiency, and the integration of advanced sorting and separation systems for enhanced recycling outcomes.

Supportive government policies, a growing emphasis on sustainable practices, and mandatory recycling rules increase demand for shredding, as manufacturers are urged to employ recycling techniques that are both environmentally and economically beneficial.

The pyrolysis segment is expected to grow at substantial growth rates during the forecast period owing to the growing adaptation of the pyrolysis tire recycling process in many end-use industries.

The increasing recycling output by the pyrolysis process, increasing investment in pyrolysis technologies, and the growing number of pyrolysis plants in India are some of the factors propelling the market growth of this segment during the forecast period. Pyrolysis recycling technology is becoming increasingly popular because it converts end-of-life tires into oil, carbon black, and steel, which are in high demand in various sectors.

The Tire Recycling market is segmented by application into Manufacturing, Construction, Rubber Products, Automotive, and Others. Of these, the automotive industry dominated the market and is expected to continue dominating it during the forecast period owing to the rapidly expanding automotive industry in India.

Various factors, such as growing stringent regulations pertaining to automotive tire pollution, growing investment in tire recycling plants by many automotive manufacturers as part of their forward integration, growing vehicle production and sales, and rising environmental concerns, are mainly driving the market growth of this segment during the forecast period.

Automotive manufacturing companies are heavily investing in tire recycling due to the increasing economic benefits of tire recycling and growing supportive regulations. For instance, the Indian government is providing financial assistance and tax incentives to automotive manufacturers for using recycled tire products.

The construction industry segment is expected to grow at the fastest CAGR during the forecast period owing to the widespread usage of crumb rubber modified bitumen (CRMB) in road construction. CRMB is made from recycled tires. The increasing supportive government policies and funding are increasing sustainable and environmentally friendly road construction practices.

Report Scope

India Tire Recycling Market: Recent Developments

• In February 2024, Apollo Tyres Ltd introduced Pledge Your Tyres. Through these initiatives, the company has started recycling and reusing recycled rubber crumbs to create football pitches for the underprivileged. Thus, such initiatives are expected to create lucrative opportunities for market growth during the forecast period.

List of the prominent players in the India Tire Recycling Market:

• Apollo Tyres Ltd
• Bridgestone Corporation (Bandag LLC)
• Continental AG
• Liberty Tire Services LLC (Lakin Tire)
• Emanuel Tire LLC
• Genan Holdings A/S
• Green Distillation Technologies Corp. LTD
• Fornnax Technology Private Limited
• TVS TREAD
• Sun Exim
• reRubber LLC.
• Entech Inc.
• Michelin Group S.A.
• Liberty Tire Services LLC (Lakin Tire)
• Green Distillation Technologies Corporation LTD.
• Tire Recycling Solutions SA
• GRP Ltd
• Others

The India Tire Recycling Market is segmented as follows:

By Process

• Pyrolysis
• Shredding
• Refurbishing

By Product

• Tire Derived Fuel
• Crumbed Rubbers
• Refurbished Commercial Vehicle Tires
• Others

By Application

• Manufacturing
• Construction
• Rubber Products
• Automotive
• Others