According to the report, the global OTR tire market size is projected to reach US$ 26 Bn by 2027, expanding at a CAGR of 4% during the forecast period 2020 to 2027, primarily driven by an increased use of tractors globally.
Some of the leading factors that are anticipated to influence market growth include soaring demand from different industrial verticals such as agricultural, industrial, and mining & construction. Market players should align their product development activities with modern-day industrial applications. Companies should also focus on the development of new OTR tires with improved design, load capacity, and quality. Manufacturers should focus on the production of new OTR tires made from sustainable materials to shrug off mounting environmental concerns.
Asia Pacific holds a leading share of the global market, owing to high demand for OTR tires in China and India. The market in developing regions such as Latin America & Middle East & Africa is anticipated to witness expansion, owing to increased government spending on infrastructure and increased mechanization rate in agriculture in these regions.
Drivers of OTR Tire Market
Challenges for OTR Tire Market
This study on the OTR tire market analyzes the scenario for the period of 2020 to 2027, wherein, 2019 is the base year and 2018 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This VRR study on the OTR tire market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the OTR tire market gives readers an individual understanding of the market.
This study also discusses the underlying trends and the impact of various factors that are driving the OTR tire market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the OTR tire market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.
Surge in Demand from Mining & Construction Sector to Aid Market Growth
Within the OTR tire market, innovations and research & development activities play an essential role. Companies in the current market landscape are increasingly focusing on the production of new OTR tires by deploying new manufacturing techniques, adapting evolving vehicle designs, and fulfilling the requirements of their customers. In addition, amidst the swelling environmental concerns, players involved in the OTR tire market are expected to develop sustainable tread compounds and new polymers using sustainable materials. OTR tire manufacturers are expected to expand their product offerings by launching new OTR tires with high load capacity and improved tread design.
Several OTR tire manufacturers are also expected to concentrate their resources toward addressing several challenges, out of which optimizing the design of the tire to improve its load capacity and durability will remain critical. Players in the OTR tire market are deploying advanced engineering solutions to improve the overall structure and features of tires. Tire pressure management systems, automated equipment, and monitoring tools are increasingly being installed in OTR tires particularly in the mining sector. While the adoption of OTR tires will remain the highest across the agriculture sector, the demand from other sectors, including mining, construction, and industrial is expected to grow at a steady pace during the forecast period.
Focus on Data Management and Tire Monitoring Gains Momentum
The OTR tire market landscape continues to evolve at a rapid pace. Apart from introducing new tire sizes and models, market participants are likely to introduce application-specific and customized OTR tires. Manufacturers in the OTR tire market are aligning their product development activities by taking into account several factors, including type of loads, terrain, required temperature, and operating conditions. Over the past 10 to 15 years, OTR tires are increasingly being used in construction and mining sectors. Within the mining space, there is a significant demand for robust equipment and tires that can withstand hostile and harsh conditions. The soaring demand for OTR tires from the construction & mining sector is expected to boost the prospects of the OTR tires market in the near future.
Moreover, over the past few years, monitoring systems linked with OTR tires are being deployed to measure a broad range of parameters such as lateral/vertical/longitudinal forces, cycle times, average speed, percent grade, and other information that can be used to optimize road construction and resolve tire operation issues, including heat buildup, belt-edge separations, and irregular wear. Companies are expected to continue investing resources in R&D of advanced tools. For instance, tire pressure measurement systems (TPMS) are being installed in OTR tires to enhance data management and tire monitoring. Participants in the current market for OTR tires are also expected to develop OTR tires using environment-friendly materials instead of conventional oil-based synthetics and natural rubber.
Companies Likely to Launch New Tires for Different Applications
Participants in the current OTR tire market are expected to formulate growth strategies that are a blend of both expansion of the product portfolio and integration of new technologies. As applications of OTR tires continue to expand across different industries, OTR tire manufacturers are likely to launch new products that are ideal for these applications. In addition, manufacturers are also launching new OTR tires in different sizes that will improve road handling, maximize fuel savings, and offer added operational comfort. For instance, in May 2019, Michelin launched a new tractor tire that is specifically developed for heavy road applications. Companies are likely to continue rolling out new OTR tires that are durable and have applicability in the harshest of working environments. For instance, in October 2019, Maxam Tire North America Inc. announced the launch of three OTR tires for open pit mining applications.
This VRR report on the OTR tire market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. The competitive scenario of the OTR tire market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends with model mapping and announcement by the OEMs, researchers of the OTR tire market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the OTR tire market, with both a bottom-up and top-down approach.
This detailed assessment of the OTR tire market, along with an overview of the landscape, has been provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the OTR tire market is set to grow are based on carefully vetted primary and secondary sources.
Key Questions Answered in this Report on Automotive OTR Tire Market
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