- OTR tires for the agriculture tractors segment are estimated to be the largest market.
- Infrastructure development and government subsidies on equipment would drive the Asian Oceania OTR tires market.
- Asia Oceania is estimated to be the largest market during the period of study.
The OTR Tires Market is projected to grow at a CAGR of 4.64% during the forecast period to reach $7.68 Billion by 2025.
The market for OTR tires is projected to grow due to the increasing demand for agriculture tractors, construction & mining equipment fueled by mechanization and high infrastructural development in developing countries. Due to increased machine hours, the tire replacement time has seen a slight decline in recent times. Retreaded tires cost 1/3rd of the price of new tires and have good durability. Thus, the market for retreaded tires is projected to grow significantly in the near future.
The key companies profiled in the study areas Continental (Germany), Bridgestone (Japan), Michelin (France), Goodyear (US), Pirelli (Italy), Sumitomo (Japan), Yokohama (Japan), Hankook Tire (South Korea), Nokian Tyres (Finland), and CEAT (India)
North America is estimated to be the fastest-growing market for OTR tires during the forecast period. The North American economy has finally recovered from the setbacks of recession. In North America, the growth of the Off The Road Tire Market will be driven by infrastructure development, availability of state-of-the-art technology, increasing demand for green vehicles, and the presence of a large base of tier-1 companies and OEMs.
Asia Oceania is estimated to be the largest market during the period of study. The market growth in Asia Oceania can be attributed to the increasing demand for agriculture and construction equipment. Due to the growing population and rising per capita income, countries such as China and India are shifting towards mechanization for farming activities, which is projected to boost the market for OTR tires in the region.
The study segments the global market by application and region. The construction and mining equipment market is estimated to grow at the highest rate during the forecast period. The growth will be driven by the increasing demand in Asia Oceania and North America. OTR tires for the agriculture tractors segment are estimated to be the largest market during the forecast period due to the increasing demand from developing countries and the Asia Oceania region. Increased industrial automation is also projected to influence the market of OTR tires for industrial applications.
Among all the applications agriculture tractors segment is expected to account for the largest market share in 2017. The <30 hp tractors segment is estimated to have the largest demand for OTR tires during the forecast period. China and India are estimated to be the key markets for tractors in the power output range up to 100 hp. The growth in the Chinese market can be attributed to the significant rise in the agricultural mechanization level; whereas, in India, factors such as small farm sizes and price sensitivity play a vital role.
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