Turning Scrap Tyres into Commercial Value: Recycling Opportunities Through 2031

End-of-life tyres are increasingly viewed as a resource rather than simply a disposal problem. Recovered rubber, steel, carbon black, and other outputs create opportunities across construction, automotive manufacturing, and industrial supply chains. The challenge is turning available waste into consistent products that customers will purchase.

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%. These figures represent report estimates and forecasts, not guaranteed outcomes.

For recyclers, equipment suppliers, investors, and material buyers, commercial success depends on connecting collection networks, processing technology, and dependable downstream demand.

1. Market Overview: From Waste Collection to Resource Recovery

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, serving applications such as rubber-modified asphalt and moulded products.

→ Tyre-derived fuel, supporting energy recovery rather than material recycling.

→ Tyre-derived aggregate, providing a construction-related utilization pathway.

→ Recovered carbon black, targeted at material-recovery applications.

→ Steel wires recovered during processing.

These routes should not be treated as equivalent. Material recycling and energy recovery produce different outputs, face different customer requirements, and contribute differently to circularity.

Discover how the report connects waste tyres with commercial applications—Download Free Sample Report.

2. Key Trends Shaping Commercial Opportunities

2.1. Advanced Processing Attracts Investment

The report identifies pyrolysis and devulcanization as important technology developments.

For companies assessing tyre recycling technology, the investment question extends beyond processing waste. It includes output quality, operating costs, customer acceptance, and reliable production.

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

This illustrates investment commitment—not confirmation of its operating status in 2026.

2.2. Rubber-Modified Asphalt Creates Infrastructure Demand

Road construction offers an outlet for ground tyre rubber. The report identifies rubber-modified asphalt as a trend supported by demand for durable pavement materials.

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

This is U.S. evidence, not a global adoption rate. Commercial opportunities elsewhere depend on local road specifications, material consistency, contractor acceptance, and transport economics.

2.3. Tyre-to-Tyre Supply Chains Gain Attention

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.

This moves the commercial discussion beyond waste diversion toward qualified industrial inputs. However, announced partnerships do not prove that every recovered output can substitute for virgin materials.

Explore the partnerships shaping circular supply chains—Download Free Sample Report.

2.4. Recycled Rubber Remains a Priority Segment

The report identifies rubber as the fastest-growing product segment, supported by construction and manufactured-goods applications.

For businesses evaluating recycled rubber market opportunities, multiple outlets can help address different customer requirements.

However, these outlets offer different economics. Processing requirements, quality expectations, delivered prices, and local demand determine their commercial value. A diversified customer base may therefore be more useful than reliance on one application.

2.5. Producer Responsibility Strengthens Collection Frameworks

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

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

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 should not be presented as a material-recycling rate because end-use markets can include energy recovery.

Regulation supports market participation, but does not eliminate collection costs or guarantee profitable processing.

3. Regional Insights: Asia Pacific Leads

The report identifies Asia Pacific as the largest regional market, linking its position to vehicle ownership, automotive activity, and waste-management requirements.

For companies evaluating tyre recycling in Asia Pacific, country-level differences remain essential. Collection systems, compliance requirements, processing capabilities, and downstream buyers vary.

India’s tyre-related extended producer responsibility framework is highlighted in the report. Its relevance lies in connecting accountable waste management with recycling activity—not assuming identical outcomes throughout the region.

4. Operational Risks and Competitive Positioning

Reverse logistics—the collection and movement of used tyres into processing networks—is a central challenge. Bulky tyres collected from dispersed garages and dealerships can create high transport costs.

Participants assessing tyre recycling market growth should evaluate feedstock availability alongside collection economics.

Important competitive considerations include:

→ Dependable collection networks.

→ Processing costs and output consistency.

→ Customer qualification and offtake arrangements.

→ Storage, transport, and environmental compliance.

→ Recovered-material selling prices.

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

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

Assess the commercial model—not just the technology—Download Free Sample Report.

5. Strategic Takeaways

→ Separate material recycling, energy recovery, and tyre-to-tyre applications.

→ Assess collection costs before committing to capacity.

→ Match recovered products to customer specifications.

→ Distinguish planned facilities from operating capacity.

→ Evaluate regulation alongside local demand and logistics.

→ Build investment cases around reliable feedstock and realistic offtake.

Explore the Tyre Recycling Market Size, Share & Forecast to assess application, regional, competitive, and technology coverage before purchasing.

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% for 2026–2031.

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

Tyre recycling processes end-of-life tyres into reusable materials such as rubber and steel. Depending on the technology, outputs can include recovered carbon black and pyrolysis oil. The report also covers tyre-derived fuel, an energy-recovery pathway.

6.3. Which product segment is growing fastest?

The report identifies rubber as the fastest-growing segment, supported by applications in rubber-modified asphalt, moulded products, construction, and manufacturing.

6.4. Which region leads the Tyre Recycling Market?

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

6.5. What are the main drivers and challenges in tyre recycling?

Drivers include environmental regulation, producer responsibility, secondary-material demand, and processing advances. Major challenges include collection and transport costs, processing economics, output consistency, and securing dependable buyers.

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