GREEN TIRES MARKET ANALYSIS

Market Challenges And Opportunities

Lack of awareness is one of the major factors restraining growth of the market

Factors restraining growth of the market is lack of awareness regarding the benefits of green tires among manufacturers in emerging economies such as India and China. Thus, auto manufacturers in these countries are not able to incorporate these tires in vehicles, which further restricts adoption of green tires in this particular region.  Moreover, high cost of green tries is another factor affecting growth of the market. For instance, according to the  Coherent Market Insights analysis, the price of  Michelin's XL ICE XI3 GNX(Green Tire) was US$ 111.97/tire and the prices of MRF ZEC(Normal Tire) US$ 23.92/tire.

Increasing demand for fuel efficient vehicles and government initiatives for environment protection are major factors driving growth of the market

Growing demand for fuel efficient vehicles, due to low availability of convectional fuel is one of the major driving factors for growth of the market. This green tire helps in reducing consumption of fuel, as it creates less amount of friction while moving the vehicle on road. This reduces rolling resistance of the tire, which further lessens fuel consumption of vehicles. This factor in turn helps in reducing fuel consumption by 5–15%. According to the California Energy Commission (CEC) analysis, the adoption of low-rolling resistance tires could save 1.5–4.5% of all gasoline consumption. Thus, adoption green tire will positively help in reducing consumption of fuel, which in turn helps in propelling growth of the green tires market during the forecasted period (2018–2026).

Moreover, increasing government initiative for environment protection is another factor propelling growth of the market. For instance, the U.S. Environmental Protection Agency (EPA) enacted the Clean Air Act in 1963. The aim of the act is to control air pollution. As per the Motor Vehicle Air Pollution Control Act 1965 authorized the federal government to set standards for controlling the emission of pollutants from automobiles. Therefore, adoption green tire solution will help in saving fuel nearly by 0.2 litres per 100 kilometres and reduce CO₂ emissions nearly by 4 grams per kilometre. Therefore, stringent government rules and regulations towards controlling emission of harmful gases will positively help in propelling growth of the market.

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