Off the road tires (OTRs) are car tires with a deep tread pattern to increase traction on abrasive terrains like sand, gravel, mud, or loose dirt. When it comes to off-road driving, off-road tires are the ideal option. A car can move over stones and rocks with ease if it has good off-road tires. Regional, local, and international service providers are working to strengthen their market positions in the global off-road tire ecosystem. Off-road tire vendors are likewise concentrating on geographically extending their businesses and enhancing their services to meet consumer requests.
What's driving the off the road tire industry?
Throughout the forecast period, it is anticipated that the value of the off the road tire industry will rise at a CAGR of 4.92%. The growth of new industries is accelerating along with the demand for industrial goods. A trend toward mechanization in the agricultural sectors may result from increased consumer income and population growth. Consequently, the demand for off-road tires may expand.
Regional expansion of the off the road tire industry
The market share is divided into different geographic regions, including Asia-Pacific, North America, South America, Europe, and the Middle East & Africa. Asia-Pacific now retains the most significant market share for off-road tires among these regions, according to the analysis of the off the road tire industry. With a market worth USD 8.5 billion, this region is expected to grow at a CAGR of roughly 5.31% during the following few years.
Some of the leading causes of the increase in demand for off-road tires in this region include industrial developments, improving construction activities, and a rise in demand for energy-efficient technology. Europe had the second-largest market share in terms of off-road tires in 2018.
Bias tires top the market with the highest CAGR
Bias tires are predicted to increase at the highest CAGR of around 6.84% among tire types throughout the forecast period. Compared to radial tires, bias tires provide a more comfortable ride on uneven terrain. Additionally, bias tires cost less than comparable radial tires. However, the industry is observing a trend of rising radial tire usage in the mining and construction sectors. Manufacturers like BKT Tire, who are heavily supplying worldwide markets, should also boost their efforts to cater to the domestic OTR tires market.
Tires with a height of more than 45 inches rule the industry
Revenue from tires with a height of more than 45 inches is anticipated to increase significantly by 2030. The key factor fueling market expansion is the rising demand for agricultural vehicles and off-road tires. The category penetration is expected to be influenced by several developments, including the mechanization and automation of agriculture, the rising use of heavy equipment, and the expansion of the mining industry. Additionally, this is evident in the actions taken by the OTR manufacturers to satisfy the escalating demand.
In 2019, the respected Japanese firm Bridgestone Corporation introduced the Battlax Adventure Cross AX41. This was made available for off-road motorbike driving. The strategy's implementation will broaden their line of products, raising the volume share of off-road tires over the forecast period.
Numerous businesses shut down due to the COVID-19 pandemic's unexpected outbreak worldwide. During the lockdown, several people lost their jobs. This caused the economy to collapse. The suspension of shipping and transportation services was caused by interference in the supply chain. Roughly 35% of the price of a tire is made up of raw ingredients. Price fluctuations between synthetic and natural rubber occur when the cost of Brent crude rises or when there is a lack of natural rubber plantations, which is a significant challenge for the the off the road tire industry.