ID: MRFR/AM/3594-CR | October 2020 | Region: Global | 139 pages
Off the road tire market is estimated to reach a considerable valuation at a CAGR of 4.92% during the forecast period which is between 2021 and 2025.
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.
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.
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.
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.
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
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.
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.
Global Off the Road Tire Market, by Region, 2019
Source: MRFR Analysis
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.
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.
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
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.
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.
|Market Size||2030: Significant Value|
|CAGR||4.92% CAGR (2022 to 2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Vehicle Type, Construction Type and Distribution Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Toyo Tire & Rubber Co., Ltd. (Japan), The Titan Tire Corporation (U.S.), and Trelleborg AB (Sweden) are some reputed names in the off-the-road tire market.|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The off-the-road tire market can surge at 4.92% CAGR by 2025.
By 2025, the off-the-road tire market can attain a considerable valuation, reveals MRFR.
Toyo Tire & Rubber Co., Ltd. (Japan), The Titan Tire Corporation (U.S.), and Trelleborg AB (Sweden) are some reputed names in the off-the-road tire market.
The large scale application of off-the-road tire in mining applications can promote the market expansion.
The residence of numerous OEMs in North America can boost the regional off-the-road tire market growth.