Global Tyre Recycling & Circular Economy Market Overview

The Global Tyre Recycling & Circular Economy Market is all about turning old, worn-out tyres into something useful again—think recycling, material recovery, and reuse . With around 1.8–2 billion tyres hitting end-of-life every year, managing that waste is a huge environmental and regulatory challenge. Instead of just dumping them, companies are finding ways to extract value, like making rubber crumbs, fuel, or even new products. It’s a growing, eco-friendly industry that’s becoming super important worldwide.

Old-school tyre disposal like landfilling and random stockpiling is pretty much dead in developed countries—too risky with fires, pollution, and space issues . Now, governments and tyre makers treat tyres as valuable resources, not trash, pushing circular economy ideas. They’re recycling and repurposing tyres into new products, fuel, or materials. It’s a smarter, greener way to handle tyre waste and keep the planet cleaner.

The Global Tyre Recycling & Circular Economy Market is turning old tyres into treasure—rubber granules, recycled carbon black, steel, fibres, oils, and gas—used in construction, cars, infrastructure, energy, and manufacturing . Cool tech like pyrolysis and devulcanization upgrades waste into high-value materials. Instead of trash, tyres become raw materials for new products.

According to the Phoenix Demand Forecast Engine, the Global Tyre Recycling & Circular Economy Market size is valued at USD 8.6 billion in 2025 and is projected to reach USD 15.4 billion by 2033, expanding at a CAGR of ~7.5% during 2026–2033.

Europe currently leads the market due to strict ELT regulations and high recycling penetration, while Asia-Pacific is the fastest-growing region, driven by rising tyre consumption, regulatory tightening, and investment in recycling infrastructure.

Key Drivers of Global Tyre Recycling & Circular Economy Market Growth

Rising End-of-Life Tyre Generation

Global vehicle parc expansion and shorter tyre replacement cycles are driving market growth , increasing ELT volumes year-on-year.

Stringent Environmental Regulations

Landfill bans, extended producer responsibility (EPR) laws, and waste management directives are accelerating recycling adoption.

Shift Toward Circular Economy Models

OEMs and governments are prioritizing closed-loop systems that reintegrate recycled tyre materials into new tyres and products.

Advancements in Recycling Technologies

Innovations in pyrolysis, devulcanization, and rCB production are improving economic viability and material quality.

Growing Demand for Sustainable Raw Materials

Recycled rubber and rCB are driving market growth , helping manufacturers reduce carbon footprint and dependence on virgin materials.

Global Tyre Recycling & Circular Economy Market Segmentation

1. By Recycling Process

1.1 Mechanical Recycling (Largest Segment)

1.1.1 Ambient Grinding

• Rubber crumb production

• Steel separation

1.1.2 Cryogenic Grinding

• Fine rubber powder

• High-purity granulates

1.2 Pyrolysis (Fastest-Growing Segment)

1.2.1 Thermal Pyrolysis

• Pyrolysis oil recovery

• Syngas generation

1.2.2 Advanced / Continuous Pyrolysis

• Recovered carbon black (rCB)

• High-efficiency reactors

1.3 Devulcanization

1.3.1 Mechanical Devulcanization

• Reclaimed rubber compounds

1.3.2 Chemical & Microwave Devulcanization

• High-quality rubber recovery

1.4 Energy Recovery

1.4.1 Tire-Derived Fuel (TDF)

• Cement kilns

• Industrial boilers

2. By Recovered Material Type

2.1 Recycled Rubber (Largest Segment)

2.1.1 Rubber Crumb & Granules

• Playground surfaces

• Sports flooring

2.1.2 Rubber Powder

• Asphalt modification

• Molded rubber goods

2.2 Recovered Carbon Black (Fastest-Growing)

2.2.1 Semi-Reinforcing rCB

• Tyres & rubber products

2.2.2 Specialty-Grade rCB

• Plastics & coatings

2.3 Recovered Steel

2.3.1 High-Carbon Steel

• Construction & metal recycling

2.4 Recovered Oils & Gases

2.4.1 Pyrolysis Oil

• Industrial fuel

• Chemical feedstock

3. By Application

3.1 Construction & Infrastructure (Largest Segment)

3.1.1 Asphalt & Road Construction

• Rubber-modified asphalt

3.1.2 Civil Engineering

• Shock absorption layers

3.2 Automotive & Tyre Manufacturing

3.2.1 Tyre Compounds

• Partial virgin material replacement

3.2.2 Automotive Components

• Mats, seals, gaskets

3.3 Sports & Leisure Surfaces

3.3.1 Playgrounds

• Safety flooring

3.3.2 Athletic Tracks

• Synthetic turf infill

3.4 Industrial & Energy Use

3.4.1 Cement Manufacturing

• Alternative fuels

4. By Tyre Source

4.1 Passenger Vehicle Tyres (Largest Volume)

4.1.1 Passenger Cars

• Urban recycling streams

4.2 Commercial Vehicle Tyres

4.2.1 Truck & Bus Tyres

• High material recovery value

4.3 Off-the-Road (OTR) Tyres

4.3.1 Mining & Construction Tyres

• Large-scale recycling

5. By Circular Economy Model

5.1 Open-Loop Recycling (Largest Segment)

5.1.1 Downcycled Applications

• Flooring, mats, fuel

5.2 Closed-Loop Recycling (Fastest-Growing)

5.2.1 Tyre-to-Tyre Recycling

• rCB reintegration

• Reclaimed rubber compounds

5.3 Extended Producer Responsibility (EPR) Systems

5.3.1 OEM-Led Collection Programs

• Manufacturer-funded recycling

6. By Geography

6.1 Europe (Largest Region)

Germany
France
U.K.
Italy

6.2 Asia-Pacific (Fastest-Growing Region)

China
India
Japan
Southeast Asia

6.3 North America

U.S.
Canada

6.4 Latin America

Brazil
Mexico

6.5 Middle East & Africa

Regional Insights

Europe

Strong ELT regulations, landfill bans, and mature EPR systems make Europe the global leader in tyre recycling efficiency.

Asia-Pacific

Rapid vehicle growth, rising ELT volumes, and increased investment in pyrolysis and recycling infrastructure drive the fastest growth.

North America

Well-established recycling networks and growing adoption of rCB in tyre manufacturing.

Latin America & MEA

Emerging regulatory frameworks and growing awareness support long-term growth potential.

Leading Companies in the Global Tyre Recycling & Circular Economy Market

Liberty Tire Recycling
Genan Holding
Pyrum Innovations
Scandinavian Enviro Systems
GreenMantra Technologies
Ecolomondo
Bolder Industries
Recovered Carbon Black International

Liberty Tire Recycling is the largest company in the Global Tyre Recycling & Circular Economy Market

Strategic Intelligence & Phoenix AI Insights

• ELT Volume Forecast Model – Tracks end-of-life tyre generation by region

• Material Recovery Yield Engine – Evaluates rCB and rubber recovery economics

• Circularity Index Scoring – Measures tyre-to-tyre recycling penetration

Porter’s Five Forces (Brief)

• Buyer Power: Moderate

• Supplier Power: Low

• Threat of New Entrants: Moderate

• Threat of Substitutes: Low

• Competitive Rivalry: Moderate–High

Why the Tyre Recycling & Circular Economy Market Is Critical

The Tyre Recycling & Circular Economy Market is critical due to the rapidly growing volume of end-of-life tyres and the urgent need for sustainable waste management. With billions of tyres discarded annually, recycling prevents landfill accumulation, environmental pollution, and fire hazards.

This market enables a circular economy transition by recovering valuable materials such as rubber, steel, carbon black, and oils, reducing dependence on virgin raw materials and lowering production costs. It also supports carbon reduction goals, as recycled tyre materials generate significantly lower emissions compared to new material production.

Market Forecast Snapshot (2025–2033)

Final Takeaway

The Global Tyre Recycling & Circular Economy Market is transitioning from waste management to a strategic raw-material recovery industry. As regulations tighten and OEMs commit to sustainability targets, advanced recycling technologies such as pyrolysis and devulcanization will redefine value creation. Players that enable high-quality material recovery, OEM integration, and closed-loop recycling will lead the next phase of market growth through 2033.