The Global Off The Road Tire Market is projected to reach USD 69.51 billion by 2028, growing at a CAGR of 8.1% during the forecast period.
Off The Road Tire Market
Off the road (OTR) tires are intended to provide irregular terrain traction for vehicles and enhance stability and efficiency. OTR tires are used in the machinery which is used in the construction, mining, agriculture, and manufacturing industries.
Global off the road tire market growth is attributed to factors such as increased demand for material handling and construction equipment. Further, national governments and several regional organizations are focusing on magnifying the benefits from the mining sector resulting in increased mining activities globally. Increasing population and greater output demand drive the demand for tractors and vehicles for agricultural equipment, driving demand for OTR tires. Increasing preference for using modern farming machinery has increased tractor adoption, which in turn drives the market for OTR tires. China and India lead the global agriculture tractor market in terms of sales and hence, are highly attractive for off the road tire markets. Developing countries such as China, India, Brazil, and Mexico are investing considerably in construction, thus employing a high number of construction vehicles. China invested around USD 9 Billion in construction projects with 16 countries across Europe, as a part of the “Belt and Road Initiative”, in 2017. It is expected that the initiation of bilateral contracts and the creation of intercontinental paths to enhance trade will drive demand for construction vehicles, which will, in turn, increase the OTR tire market. The advent of manufacturing facilities in developing countries is fueling the demand for industrial vehicles, such as warehouse forklifts and trucks, in these countries, thereby propelling the demand for off the road tire market.
The off the road tire market is challenged by rising commodity prices of natural rubber and the demand-supply gap in the sector. Giant OTR tire manufacturing needs substantial capital investment, which is a main market restraint factor.
Based on the construction type, the off the road tire market is segmented into bias, radial, and non-pneumatic. Among these, the bias segment is expected to account for the largest market share. Bias tires are constructed using cross-ply and the cords stretch from bead to bead. Bias tires are preferred over radial tires as it facilitates the entire tire to flex. The flexibility provides a smooth and comfortable ride on rough and uneven terrain. However, these tires have less traction and less control at a higher speed.
Off The Road Tire Market
Based on the vehicle type, the off the road tire market can be segmented into Earthmovers, Loaders & Dozers, Graders, Material Handling Equipment, Tractors & Agricultural Equipment. The commercial vehicles are expected to witness prominent growth during the forecast period due to the rise in demand for OTR tires in vehicles used for tractor applications and off-road construction.
On the basis of end-users, off the road tire market has been segmented into Construction, Industrial, Mining, Agriculture, Ports, and Others. The construction segment is estimated to register the highest demand during the forecast period. This can be attributed to the increasing construction activities in several regions. Countries like India, Thailand, etc. are undergoing rapid urbanization which is propelling the construction market in the region, which in turn is driving the market for OTR tires. Also, the Middle East region has witnessed the number of construction activities to boost tourism in the region. For instance, after Qatar won the bid to host the world cup in 2022, a lot of construction activities were put into action to build the stadiums which would be required to accommodate the vast crowd which will be coming in to see the world cup.
Asia Pacific region is expected to dominate the global off-the-road tire market. In the Asia Pacific region, China is a leading manufacturer of off-the-road vehicles and it also has the maximum amount of sales, thereby driving the growth of off the road tire market in the region. Countries such as India, Japan, Thailand, and Malaysia, are also experiencing a boom in the sales of off-the-road tires and vehicles, due to the growing population and rising per capita income, they are shifting towards mechanization for farming activities which has created a favorable environment for the growth of the market in the region. Also, the increasing construction activities in the region are expected to propel off the road tire market in the Asia Pacific.
Key Factors Impacting Market Growth:
- Increasing Sales of Off-Road Vehicles
- Increasing Farm Mechanization
- Government Subsidies on Agriculture Equipment
- Fluctuating Raw Material Prices
Off The Road Tire Market - Key Developments:
- In November 2017, Continental AG (Germany) re-entered the agricultural tire market with the introduction of premium radial tires for agricultural operations, Tractor70 and Tractor85.
- In April 2019, Bridgestone (Japan) announced that Australian subsidiary Bridgestone Mining Solutions Australia Pty. Ltd. (BMSA), which sells and provides services pertaining to tires for mining vehicles and conveyor belts, established the Hunter Valley Mining Solution Centre (HMSC) as a new mining solution center.
What Does This Report Provide?
This report provides a detailed understanding of the global off the road tire market from qualitative and quantitative perspectives during the forecast period. The report also provides dynamic indicators with potential impact on the market during the forecast period and an in-depth analysis of the leading companies operating in the market.
By Construction Type:
By Vehicle Type:
- Material Handling Equipment
- Tractors & Agricultural Equipment
By End User:
- By Country (US, Canada, Mexico)
- By Country (Germany, UK, France, Spain, Rest of Western Europe)
- By Country (Russia, Turkey, Rest of Eastern Europe)
- By Country (China, Japan, India, Rest of Asia Pacific)
- By Country (UAE, Qatar, Iran, Saudi Arabia, Rest of Middle East)
- By Region (South America, Africa)
Companies Covered: Continental AG, Bridgestone Corporation, MICHELIN, Good Year Tire Company, Prometeon Tyre Group S.R.L., Yokohama Tire Corporation, Sumitomo Rubber Industries Ltd., Nokian Tyres, China National Tire & Rubber Co. Ltd., JK Tyre & Industries Ltd., Trelleborg AB, Apollo Tyres Ltd., Quindao Rhino Tyre Co. Ltd., Titan, International Inc., Balkrishna Industries Limited, Double Coin Tyre Group Ltd., and Triangle Group Co. Ltd.
Years Considered In The Study
CAGR % (2019-2028)
Reasons To Buy This Report:
- Market size estimation of the global off the road tire market on a regional and global basis
- The unique research design for market size estimation and forecast
- Profiling of major companies operating in the market with key developments
- Broad scope to cover all the possible segments helping every stakeholder in the market
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