Tyre Recycling Market: Growth, Trends & Forecast 2031

Posted 2026-10-15 09:23:43

Discarded tyres create a waste-management challenge, but they also contain materials that can return to commercial use. Recovered rubber, steel, and carbon black support applications across construction, manufacturing, and automotive supply chains. The opportunity lies in connecting reliable collection with processing capabilities and buyers for the resulting products.

According to TechSci Research, the Tyre Recycling Market was valued at USD 7.66 billion in 2025 and is projected to reach USD 9.49 billion by 2031, with a stated CAGR of 3.63% during 2026–2031. These figures represent report estimates and forecasts, not guaranteed outcomes.

Want to explore the applications behind this market outlook? Download Free Sample Report.

For recyclers, equipment suppliers, distributors, and investors, commercial success depends on collection economics, consistent output quality, and dependable customer demand.

1. Market Overview: From Waste Tyres to Reusable Materials

The report covers the collection and processing of end-of-life tyres into reusable materials or outputs for energy recovery.

Its product categories include:

→ Recycled rubber.

→ Tyre-derived fuel.

→ Tyre-derived aggregate.

→ Recovered carbon black.

→ Steel wires.

Application coverage spans automotive, construction, manufacturing, rubber and plastics, and other uses.

Material recycling and energy recovery should remain distinct. Recovering rubber for products is different from using tyre-derived fuel, even though both can appear within broader tyre-management statistics.

The report identifies rubber as the fastest-growing product segment and Asia Pacific as the largest regional market.

Review the product and application coverage before selecting your business focus—Download Free Sample Report.

2. Key Drivers and Emerging Trends

2.1. Processing Innovation Attracts Investment

The report identifies advances in pyrolysis and devulcanization as developments influencing material recovery.

For businesses evaluating tyre recycling technology, the commercial question extends beyond processing capacity. It includes output specifications, operating costs, production consistency, and customer acceptance.

The report highlights Michelin, Antin Infrastructure Partners, and Scandinavian Enviro Systems’ February 2024 investment decision for a Swedish facility designed to process approximately 35,000 tonnes annually.

This demonstrates investment commitment, not confirmation of the facility’s operating status in 2026.

2.2. Rubber-Modified Asphalt Supports Construction Demand

Road infrastructure provides an outlet for ground tyre rubber. The report identifies rubber-modified asphalt as an important application trend.

Its discussion of rubber-modified asphalt cites the U.S. Tire Manufacturers Association’s October 2024 report: consumption in this application increased 17% between 2021 and 2023, reaching 165,000 tons.

This is U.S. evidence, not a global adoption rate. Opportunities elsewhere depend on local specifications, material consistency, contractor acceptance, and transport costs.

For recyclers, matching recovered rubber with qualified road-building applications is more useful than assuming infrastructure investment automatically creates orders.

2.3. Tyre-to-Tyre Partnerships Develop Circular Supply Chains

The report describes growing interest in returning recovered materials to new tyre production.

An example of closed-loop tyre recycling is the September 2024 partnership between Bridgestone, Grupo BB&G, and Versalis. The collaboration connects tyre pyrolysis oil with circular elastomer production for subsequent tyre manufacturing.

Such partnerships link recycling capabilities with downstream demand. However, they do not establish that every recovered material can replace virgin inputs.

Commercial adoption depends on qualification, consistency, and agreed supply requirements.

Explore how technology and partnerships connect with commercial demand—Download Free Sample Report.

2.4. Rubber Offers Multiple Commercial Outlets

Rubber is the fastest-growing segment identified in the report, supported by applications such as rubberized asphalt and moulded products.

For suppliers assessing recycled rubber market opportunities, this versatility can support customer diversification.

Nevertheless, each outlet has different processing requirements, specifications, and selling prices. Recovered material is not automatically competitive simply because it replaces a virgin resource.

Suppliers need to compare delivered cost and application suitability for each target customer.

2.5. Regulation Supports Organized Collection

Environmental requirements, landfill restrictions, and extended producer responsibility are drivers identified in the report.

Within the end-of-life tyre management market, these frameworks can support accountable collection and utilization.

The report cites 79% of U.S. end-of-life tyres being consumed by end-use markets in 2023, based on an October 2024 industry report. This is not equivalent to a material-recycling rate because end-use markets can include energy recovery.

Regulatory support also does not eliminate logistics costs or guarantee profitable processing.

3. Regional Insights: Asia Pacific Leads

The report identifies Asia Pacific as the largest regional market, supported by automotive activity, vehicle ownership, and waste-management requirements.

Companies evaluating tyre recycling in Asia Pacific should assess countries separately. Collection systems, compliance frameworks, processing capabilities, and downstream demand vary.

India’s tyre-related extended producer responsibility framework is highlighted in the report as a supporting factor.

Regional leadership should therefore guide further analysis—not replace assessment of local feedstock availability, customer access, and operating economics.

Build a clearer regional perspective before planning expansion—Download Free Sample Report.

4. Market Challenges and Competitive Positioning

Reverse logistics—the collection and transport of used tyres into processing networks—is the principal challenge identified in the report.

Bulky tyres sourced from dispersed garages and dealerships can create high transport costs. Available waste volume should not be confused with economically accessible feedstock.

For companies comparing tyre recycling businesses, relevant considerations include:

→ Collection coverage and transport efficiency.

→ Processing costs and output consistency.

→ Customer qualification and offtake arrangements.

→ Storage and environmental compliance.

→ Recovered-product selling prices.

The report profiles Liberty Tire Recycling, Genan, GRP, ResourceCo, Lehigh Technologies, and other participants.

Its Liberty Tire Recycling–Walmart example connects retail collection with recycled consumer products. This differs from tyre-to-tyre recycling, but illustrates how collection and sales channels can reinforce each other.

5. Strategic Takeaways

→ Separate material recycling from energy recovery.

→ Assess collection economics before committing to capacity.

→ Match processing outputs with customer specifications.

→ Distinguish investment announcements from operating facilities.

→ Evaluate regulation alongside local logistics and demand.

→ Build commercial plans around dependable feedstock and realistic offtake.

Explore the Tyre Recycling Market Size, Share & Forecast to review its application, regional, competitive, and technology coverage.

6. Frequently Asked Questions

6.1. What is the size and growth rate of the Tyre Recycling Market?

TechSci Research estimates the market at USD 7.66 billion in 2025 and projects USD 9.49 billion by 2031, with a stated CAGR of 3.63% during 2026–2031.

6.2. What is tyre recycling, and what products can it produce?

Tyre recycling processes end-of-life tyres into reusable materials. The report covers rubber, recovered carbon black, steel wires, tyre-derived aggregate, and tyre-derived fuel. Fuel use is an energy-recovery pathway.

6.3. Which product segment is growing fastest?

Rubber is the fastest-growing segment identified in the report, supported by construction and manufactured-product applications.

6.4. Which region leads the market?

Asia Pacific is the largest regional market identified in the report, supported by automotive activity, tyre-waste generation, and waste-management requirements.

6.5. What are the main drivers and challenges?

Drivers include environmental regulation, circular-economy initiatives, and processing innovation. The principal challenge is collection and transport cost, alongside output quality and securing buyers.

Check whether the coverage matches your sourcing or investment priorities—Download Free Sample Report.