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. OTR tires have applications in machinery that have extensive use in construction, mining, agriculture, and manufacturing industries. The Global off the road tire market will experience growth due to factors such as increased demand for material handling and construction equipment.
Further, several national governments and regional organizations are focusing on enlarging the benefits from the mining sector. The mining sector has witnessed increased mining activities globally. Increasing population and demand for high output have led to the greater adoption of tractors and vehicles for agricultural activities, thereby driving the demand for OTR tires. Increasing preference for using modern farming machinery has also increased tractor adoption, which in turn, has been driving the market for OTR tires.
A number of technological trends are creating opportunities to meet the emerging needs in the marketplace. With applications becoming more demanding with time, it is expected that new compounds, materials, and integrated value-added technologies - like embedded sensors - would help increase the durability, efficiency, and longevity of OTR tires.
Simultaneously, new opportunities seem to be opening up for smart market participants in the areas of sustainability and standardization, such as in passenger and commercial tires, which have witnessed comparatively less activity than other tire product segments.
The off the road tire market will face challenges with increasing prices of natural rubber and the demand-supply gap that exists in the sector. Large-scale OTR tire manufacturing requires substantial capital investment, which is a major market restraint.
Off The Road Tire Market, By Construction:
Based on the construction type, the off the road tire market segment includes bias, radial, and non-pneumatic. Among these, the bias segment will account for the largest market share during the forecast period. Bias tires are constructed using cross-ply, and their cords stretch from bead to bead. Bias tires are chosen over radial tires, as they help the tires to flex. Such flexibility provides a smooth and comfortable ride on rough and uneven terrains. However, these tires have less traction and less control at a higher speed.
Off The Road Tire Market, By Vehicle Type:
Based on the vehicle type, the off the road tire market can be segmented into Earthmovers, Loaders & Dozers, Graders, Material Handling Equipment, and Tractors & Agricultural Equipment. The commercial vehicles segment is expected to witness prominent growth during the forecast period due to a rise in demand for OTR tires in vehicles used for tractor applications and off-road construction.
Off The Road Tire Market, By End-user:
Based on end-users, the 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 increasing construction activities in several regions. Countries like India, Thailand, etc., are undergoing rapid urbanization, which is propelling the construction market, and in turn, is driving the market for OTR tires.
Off The Road Tire Market, By Region:
China and India are leading the global agriculture tractor market in terms of sales and hence, these two countries are highly attractive for off the road tire market. Developing countries such as China, India, Brazil, and Mexico are investing considerably in construction, thus employing a large number of construction vehicles. China invested around USD 9 Billion in construction projects across 16 countries in Europe in 2017, as a part of its “Belt and Road Initiative”.
It is expected that bilateral contracts and the creation of intercontinental paths to boost trade will increase the demand for construction vehicles. This, in turn, will provide a major thrust to the OTR tire market. The establishment of manufacturing facilities in developing countries is increasing the demand for industrial vehicles, such as warehouse forklifts and trucks, in these countries. This too is propelling the demand for off the road tires.
Some Major Developments in Off The Road Tire Market:
Some Key Findings of the Global Off The Road Tire Market Report Include:
By Construction Type:
By Vehicle Type:
By End User:
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