Pune, India, August 2020, MRFR Press Release/- Market Research Future has published a Cooked Research Report on the Global Off the Road Tire Market.
Global Off the Road Tire Market in terms of value is estimated to reach a value of USD 27.3 Billion by 2025, registering a 4.92% CAGR during the forecast period.
The report covers segmentation and drivers for a better glimpse of the market in the coming years. Off the road tires have registered a significant growth in adoption rates over the past few years in developing nations, such as China, Australia, and Brazil, owing to the rising automotive production and growing automotive aftermarket. The off the road tire market is mainly dependent upon the automobile production and sale. Thus, the fluctuation in demand for automobiles has an impact on the market. The global passenger and commercial vehicle production volume in 2019 was almost 91 million units and is projected to register a steady growth rate in the coming years
Global Off the road tire ecosystem consists of various global, regional, and local service providers that are evolving to enhance their market position. Moreover, increasing competition and rapid advances in technology to cope with increasing farm mechanization and growing construction activities are key factors that aid market growth. The companies compete based on cost, warranty, and reliability of the products to sustain in the market.
Vendors in the off the road tire market are focusing on improving their services and expanding geographically into the developing economies. Continental AG (Germany), Bridgestone (Japan), Goodyear (US), Michelin (France), and Pirelli & C S.P.A (Italy) are the leading companies in the market, which compete in terms of varied offerings, prices, and technology.
The major players may strengthen their presence worldwide through the acquisition of local and regional players for expanding their presence in those regions during the forecast period. The growing farming activities across the globe, coupled with the increasing need for residential and industrial construction is expected to fuel the growth of the off the road tire market, thereby making it an ideal time to expand the off the road tire market geographically and increase the global market share.
The top three players, namely, Continental AG, Bridgestone Corporation, and Michelin, held a nearly 28% share of the market in 2019. Continental AG provides off the road tires for industries such as agriculture, earthmoving, material handling, and underground. It offers agricultural tires for harvesters and tractors. For earthmoving, which involves construction, and underground mining, the company offers products under the ContiEarth and Contimine brands. The company serves customers in 554 locations in 61 countries and primarily operates in the Americas, Europe, and Asia.
Global Market for Off the Road Tires is segmented based on vehicle Type, Construction Type, Distribution Channel, and Region. The vehicle type segment is bifurcated into mining, agricultural vehicle, construction and industrial equipment, and others. Off the road tires have applications in the mining, construction, and agriculture industries. These tires are used in large-scale machinery at construction, mining, and other sites that often have muddy paths and no roads. The mining industry relies on heavy machinery, such as excavators, backhoe loaders, skid steer loaders, dumpers, bulldozers, motor graders, road rollers, and others. These vehicles need to operate in areas where roads are in dilapidated conditions or are non-existent, such as forests, taverns, and plateaus.
The off the road tires market has been segmented into bias, radial, and belted bias segments based on construction type. The construction type defines the features and the downsides of the tires, such as the amount of rolling resistance, the smoothness of rides, shock absorbance, and the longevity of these tires. Bias tires have nylon belts that run at 30 to 45-degree angle with the tread line. The multiple overlapping rubber plies in the tire connect the sidewall and tread. The stiff internal construction causes less contact with the ground and may result in overheating.
Based on distribution channel, the global market is bifurcated into original equipment manufacturers (OEM) and aftermarket. The aftermarket segment is leading the sales channel segment and accounted for a value share of 60.4% in 2018. The life span of off the road tires is relatively less, leading to the high requirement of tires for the vehicle during its life span. This results in a higher share of the aftermarket segment in the global off the road tires market. The processes in the OEM segment involve the procurement and installation of off the road tires while manufacturing the vehicle by industrial vehicle manufacturers.
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Based on region, the report on the off the road tire market has been segmented into North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
Asia-Pacific accounted for the largest market share of over 43.2% in 2018, with a market value of USD 8.5 billion and is expected to register the highest CAGR of 5.31% during the forecast period. Asia-Pacific has one of the largest automotive aftermarkets, owing to the rapid growth of the automotive industry in countries such as China, India, and Japan. The increased demand for off the road tires in the region can be credited to factors, such as the growing construction activities, industrial development, and the rise in demand for fuel-efficient technologies.
Europe was the second-largest market in 2018, valued at USD 5.1 billion, and it is projected to exhibit a 4.59% CAGR in the coming years. The off the road tires market in the region is one of the largest. The presence of leading global off the road tire manufacturers such as Michelin, Continental AG, Pirelli & C. SpA., and Nokian Tyres PLC is driving the market. These companies are offering low cost and technologically advanced off-road tires for increasing their market share and are contributing to the increasing use of such tires throughout the region.