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The OTR tire market is driven by a variety of market factors that cumulatively dictate its dynamics. A key aspect is the global construction and mining industry, for OTR tires are particularly widely used in heavy-duty use cases within these industries. The supply of OTR tires is directly related to the increasing global infrastructure construction projects. With the development of countries, expansion in roads and other constructions projects invest heavily on road tyres.
Also, the agricultural sector is at the center of OTR Tire Market. As the agricultural industry becomes mechanized with heavy machinery used in various farming practices, there is a need for strong tires that can hold rough terrains. OTR tires are widely used in agricultural machinery like tractors and harvesters among others, which also contributes to the market growth.
Mining is another key factor contributing to the growth of OTR tire market. With mining activity increases around the world in rich resource areas, demand for tires capable of operating under harsh mining conditions rises. OTR tires are used in difficult conditions; therefore, these new wheels are indispensable for heavy load transport and crossing steep slopes.
The OTR tire market is also strongly affected by government regulations and environmental policies. Strict controls on emissions and fuel efficiency have forced manufacturers to come up with ways of creating eco-friendly tire technologies. As more and more countries emphasize sustainability, the market turns towards green OTR tires to become fuel efficient.
In addition, the macroeconomic environment and commodity price dynamics effect on OTR tire market. Economic slowdowns are known to cause fewer activities in construction and mining, which eventually affect the demand of OTR tires. On the other hand, in times of economic upswing increasing infrastructure development and production industrialization promote consumption for these specialized tires.
Advanced technologies have a vital role to play in defining the OTR tire market scene. Manufacturers make investments in research and development to incorporate the latest technology, improving productivity, reliability as well. Innovations that include enhanced tread designs, strengthened sidewalls and better rubber compounds are aimed to enlarge the market size with massive competitiveness. A key factor affecting the OTR tire industry is market competition. The fact that there are a lot of players in the market encourages competition and ensures that product development continues, while prices remain competitive.
Off The Road Tire Market Highlights:
OTR Tires / Off the Road Tire Market Overview
Off the road tire market is estimated to reach a considerable valuation at a CAGR of 4.9% during the forecast period which is between 2022 and 2030.Off the road tires are a type of vehicle tyres that uses deep tread in order to provide more friction on rough surfaces like sand, gravel, mud, or loose dirt. Off the road tyres are a perfect choice when it comes to off-road driving. Good off-road tyres enable a vehicle to run smoothly on rocks or boulders. The global off the road tire ecosystem has different regional, local, and global service providers that are planning to grow their market position. Vendors of the off the road tire market are also focusing on expanding their agencies geographically and also focusing on improving their services to satisfy customer demands.
COVID-19 Analysis
The outbreak of the COVID-19 pandemic in early 2020 has affected the growth of the off the road tire market immensely. Due to the lockdowns, the construction and industrial activities were at a halt. This pandemic also affected the supply chain by interrupting the supply of raw materials across the world. The plants manufacturing the off the road tires have also shutdown. However, it is expected that the market outlook will change in a positive way and grow at a rapid pace during the forecast period.
Market Dynamics
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Drivers
The huge increase in medium-sized farmers is fueling the demand for agricultural tires across the world. Transportation activities have also boosted with the rise in industrialization. The business to business and business to customer trade is growing day by day. This is one of the major driving factors of off the road tire market.
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Opportunities
The rise in demand for supply of radial off the road tires from mining companies in order to support their mining activities. This is one of the major opportunities that the market may create. Also, the increase in the demand for bigger off the road tires by some heavy machinery manufacturers also created a great opportunity for the OTR tires market.
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Restraints
The major factors that are affecting the growth of the road tire market are the low cost of the tires and the high cost of the R&D that is given in the unorganized markets
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Challenges
Due to the sudden outbreak of the pandemic, many businesses across the world have come to a halt. Lockdown made many individuals lose their job. This led to the downfall of the economy. Interference in the supply chain led to the stoppage of shipping services and transportation. The prices of raw materials used are approximately 35% of the tire cost. When there is a rise in the price of Brent crude or any shortage of cultivation of natural rubber, fluctuation in the price of synthetic and natural rubbers takes place, which is a major challenge that the industry faces.
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Cumulative Growth Analysis
The global off the road tire market value is expected to expand at a CAGR of 4.92% during the forecast period. As the demand for industrial products is rising, the development of new industries is also boosting. The rise in the income of consumers along with the growing population can lead to a shift in the agricultural sectors toward mechanization. This in turn can help in the growth of the off the road tire market.
Value Chain Analysis
As applications of off the road tires are constantly expanding its market across the world, the manufacturers are planning to introduce new products in order to increase their product portfolio. They are also manufacturing new off the road tires in different sizes to offer operational comfort, smooth road handling, and maximize fuel savings. These changes may help the market in increasing the off the road market revenue.
Segment Overview
The market size is segmented into three main categories. They are by vehicle type, by construction type, and by distribution channel. Here is a list of the segments of the market along with their sub-segments.
By Construction Type,
Based on construction type, the OTR tire market is segmented into 3 categories. They are bias, radial, and belted bias. The construction type refers to the downsides and features of the tires such as the smoothness of the ride, longevity of the tires, amount of rolling resistance, and shock absorbance. Bias tyres are fitted with a nylon belt that runs with the tread line at a 30 to 45-degree angle.
By Vehicle Type,
On the basis of the type of vehicle, the off the road tyre market is segmented into three parts- mining, agricultural, and industrial and construction equipment. The mining industry specifically counts on heavy machinery like skid teer loaders, excavators, bulldozers, road rollers, backhoe loaders, motor graders, and so on. These tires are mostly used in areas such as taverns, plateaus, or forests where the roads are unsurfaced.
By Distribution Channel,
On the basis of distribution channels, the OTR tyre market is segmented into aftermarket and OEM (Original Equipment Manufacturers). Presently the aftermarket segment has a huge demand and is dominating the off the road tyre market. The OTR tyres have short durability as compared to other tyres. Due to this reason, there is a higher share of the aftermarket segment.
Regional Analysis
Based on region, the market share is segmented into various regions such as Asia Pacific, North America, South America, Europe, and the Middle East and Africa. Among all these regions, According to the off the road tire market analysis, Asia Pacific holds the largest market share in the off the road tire market. This region has a market value of USD 8.5 billion and registered a CAGR of around 5.31% in the upcoming years.
Industrial developments, enhancing construction activities, and an increase in the demand for energy-efficient technologies are some of the major factors that are responsible for the rise in demand for off-road tires in this region. In 2018, Europe recorded the second largest market share in the off the road tire market.
Competitive Landscape
The companies that are responsible for the growth of the off the road tire industry include Bridgestone, Apollo Tyres Ltd., JK Tyre & Industries Ltd., Yokohama Tire Corp, and so on. These companies focus on innovative technologies that can be used to strengthen the product portfolio of the industry. Michelin launched tires with CCT or comfort casing technology. The technology reduces fatigue of the driver and also provides high stock absorption. In order to serve a large consumer base, manufacturers are mainly focusing on expanding their product portfolio. Here is the list of a few key companies that are responsible for the market growth.
List of Key Companies in the OTR Tires Market are
- Michelin (France)
- Titan International Inc. (US)
- Apollo Tyres Ltd. (India)
- Cheng Shin Tire (Taiwan)
- Bridgestone (Japan)
- Toyo Tire Corp. (Japan)
- Goodyear (US)
- Continental AG (Germany)
- Pirelli & C S.P.A (Italy)
Recent Developments
Bridgestone Corporation, a well-known company in Japan, launched Battlax Adventurecross AX41 in the year 2019. This was introduced in the market for off-road driving motorcycles. This implementation of the strategy will expand their product portfolio which in turn will increase the volume share of off the road tires during the forecast period.
Report Overview
This research report outlines the off the road tire market trends along with the factors that are affecting the growth of the market like drivers, restraints, challenges, and opportunities. This report is completely based on qualitative and quantitative research. The off the road tire market report also delivers the competitive landscape, regional analysis, COVID-19 impact on the industry, and also the segmentation of the market share based on factors like construction type, vehicle type, and distribution channel.
Report Details
- Historic period: 2018-2020
- Base Year:2021
- Forecast Period: 2022-2030
By Geographically,
- Europe
- Asia Pacific
- North America
- South America
- The Middle East and Africa
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