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.
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
- Increasing population and demand for higher yield are driving the demand for tractors and agriculture equipment vehicles, thereby driving the demand for OTR tires. Increase in preference for using modern equipment for farming activities has boosted the adoption of tractors, which in turn is fueling the growth of the OTR tire market.
- Developing countries, such as China, India, Brazil, and Mexico, are investing considerably in construction, thus employing a high number of construction vehicles. This, in turn, is boosting the OTR tire market. In 2017, China invested around US$ 9 Bn in construction projects with 16 Central and European Countries as a part of “Belt and Road Initiative”. Initiation of bilateral agreements and development of intercontinental routes to improve trade are expected to drive the demand for construction vehicles, which in turn is anticipated to propel the OTR tire market.
- Advent of manufacturing facilities in developing countries is fueling the demand for industrial vehicles, such as warehouse forklifts and trucks, in these countries, thereby propelling the demand for OTR tires
Challenges for OTR Tire Market
- Rising commodity prices of natural rubber and demand-supply gap in the industry are challenges to the OTR tire market. Manufacturing of giant OTR tires (57’’- 63’’) requires significant capital investments, which is a key factor restraining the market.
OTR Tire Market Segmentation
- Based on industry type, the agriculture segment dominates the global OTR tire market. Rise in adoption of modern farming activities has led to an increase in the rate of adoption of agriculture tractors and equipment. Rise in affordability of tractors and income of farmers is driving the demand for OTR tires in the agriculture segment. Countries in Asia Pacific and Latin America are developing at a rapid pace and witnessing considerable development of infrastructure. Therefore, the construction & mining segment is estimated to gain market share by the end of the forecast period.
- In terms of tire type, the global OTR tire market has been segregated into radial, bias, and solid. The radial segment is expected to expand at a significant growth rate during the forecast period. Increase in adoption of radial tires witnessed in Asia Pacific and Latin America, where bias tires have a dominant position, is expected to boost the radial segment. Solid tires are widely utilized in industrial vehicles and witness high demand in Europe. Rising usage of forklifts in warehouses and facilities is expected to boost the demand for solid tires.
- Based on rim size, the global OTR tire market has been split into < 25’’, 29” – 49”, and 51’’-63’’. The less than 25’’ segment is expected to lead the global OTR tire market, in terms of volume, OTR tires of rim size less than 25’’ are primarily used in construction & mining and industrial vehicles. The less than 25’’ segment is expected to dominate the market and is likely to expand at a significant pace during the forecast period. Demand for giant OTR (51’’-63’’) tires is expected to rise owing to the initiation of large construction and mining projects.
- In terms of sales channel, the global OTR tire market has been divided into OEM and aftermarket. The aftermarket segment is expected to lead the global OTR tire market due to the requirement of periodic replacement of OTR tires.
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.
Regional Analysis of OTR Tire Market
In terms of region, the global OTR tire market has been segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific is a key market for OTR tires globally. Abundance of natural rubber in the region has played an instrumental role in achieving competitive pricing of OTR tires. Rapid economic expansion witnessed by countries in Asia Pacific is expected to boost industrial activity and construction projects, thus driving the OTR tire market in the region.
Competition Landscape
- Key players operating in the global OTR tire market include
- Bridgestone Corporation,
- Continental AG,
- Yokohoma Tire Corporation,
- MICHELIN,
- Sumitomo Rubber Industries, Ltd.,
- Nokian Tyres,
- Trelleborg AB,
- China National Tire & Rubber Co., Ltd.,
- Balkrishna Industries Limited,
- Apollo Tyres Ltd.,
- Qingdao Rhino Tyre Co., Ltd.,
- Titan International, Inc.,
- Double Coin Tyre Group Ltd., and
- riangle Group Co., Ltd.
Segmentation
- OTR Tire Market, by Industry Type
- Construction & Mining
- Excavators
- Loaders
- Dozers
- Articulated Dump Trucks
- Rigid Dump Trucks
- Motor Scrappers
- Motor Graders
- Agricultural
- Tractors
- Agricultural Equipment
- Industrial
- Electric Rider Trucks
- Electric Warehouse Trucks
- IC Trucks
- OTR Tire Market, by Tire Type
- OTR Tire Market, by Rim Size
- <25’’
- 29’’-49’’
- 51’’-63’’
- OTR Tire Market, by Sales Channel
- OEM
- Aftermarket
- Construction & Mining
- Agricultural
- Industrial
- OTR Tire Market, by Region
- North America
- Europe
- Germany
- U.K.
- France
- Italy
- Spain
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- ASEAN
- Rest of Asia Pacific
- Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Rest of Latin America
Research Methodology
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
- How much revenue will the OTR tire market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2027?
- What are the impact factors and there effects on the market for OTR tires?
- What regions currently contribute the maximum share to the overall OTR tire market?
- What are the indicators expected to drive the OTR tire market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies incorporated by key stakeholders in the OTR tire market to expand their geographic presence?
- What are the major advancements witnessed in the OTR tire market?
- How regulatory norms affected the market for OTR tire market?
Otr Tire Market Size Share Growth Trends Production Consumption Revenue And Forecast 2020 To 2027