Global tyre recycling market grows from USD 7.66B in 2025 to USD 9.49B by 2031 at 3.63% CAGR. See what’s driving demand — pyrolysis, rubber-modified asphalt and closed-loop tyre-to-tyre recycling.

1. **How Big Is the Global Tyre Recycling Market Getting?**According to TechSci Research report, the Global Tyre Recycling Market will grow from a market size of USD 7.66 billion in 2025 to approximately USD 9.49 billion by 2031, reflecting a CAGR of 3.63% in the latest global tyre recycling market report.

On paper, that looks like modest growth. In reality, it sits on top of a huge, already‑existing waste stream: millions of tonnes of end‑of‑life tyres (ELTs) generated annually worldwide. For example, Europe alone produced about 3.9 million tonnes of ELTs in 2024, illustrating the sheer volume the industry must manage. As circular economy policies tighten and sustainable material demand rises, the tyre recycling market outlook is less about whether demand exists and more about how efficiently the system can capture and upgrade this waste into higher‑value outputs.

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1. What Is Tyre Recycling and Why Does It Matter?

The Global Tyre Recycling Market focuses on:

• Industrial collection and reverse logistics of end‑of‑life tyres (ELTs).
• Reprocessing ELTs into reusable raw materials such as rubber granulate, steel and textile fibers.
• Use of ELTs for energy recovery via pyrolysis, cement kiln co‑processing and other thermal routes.

Tyre recycling matters because:

• Landfilling and illegal dumping of tyres create fire risks, environmental contamination and long‑term liability.
• ELTs are rich in embedded energy and material value (rubber, carbon black, steel) that can displace virgin resources.
• Circular use of recovered rubber and recovered carbon black can lower lifecycle emissions and support corporate decarbonization strategies.

In short, the tyre recycling industry sits at the intersection of waste management, materials supply and climate policy.

1. Key Market Drivers

Technological Leap in Pyrolysis and Devulcanization

Historically, tyre recycling meant mechanical shredding into crumb rubber and low‑value products (e.g., basic mats, playground surfaces). Advanced technologies have changed the equation:

• Pyrolysis decomposes tyres thermally, producing recovered carbon black (rCB), pyrolysis oil and steel.
• Devulcanization breaks sulphur cross‑links, creating flexible rubber that can be reintegrated into high‑value products.

Unlike crumb rubber, these recovered materials are attractive to automotive and chemical industries as circular feedstocks. Projects like large‑scale plants in Sweden, the Netherlands and elsewhere are designed to process tens of thousands of tonnes of ELTs per year, creating industrial‑scale streams of rCB and renewable fuels. This transition from “waste disposal” to “high‑value material regeneration” is central to the current global tyre recycling market outlook.