A recent research study published by MarkNtel Advisors has predicted around 4.8% CAGR for the Global Off-the-Road (OTR) Tire Market during 2022-27. The major factors driving the industry include massive investments in the construction sector by numerous countries worldwide, rapid urbanization, alarmingly increasing population, and the quickly expanding mining sector.
Governments of different countries are taking various initiatives & devising plans to develop & enhance their construction & mining sectors. For instance, the government of Saudi Arabia formed “Vision 2030,” under which it has launched several infrastructural development projects.
With the growing focus on reducing the reliance on the energy sector and promoting foreign investments & economic diversity, the Saudi government is making significant investments in construction activities associated with road, rail, and commercial developments, among others, which clearly indicate a burgeoning demand for heavy equipment & machinery for these projects in the future. It, in turn, would spark the production of OTR tires across the region and propel the overall market growth through 2027.
With Mounting Prevalence of UTVs and Rising Food Requirements, Agricultural Equipment to Dominate the Market
A rapid rise in the number of medium-sized farms and the growing utilization of advanced farm equipment to perform various agricultural activities efficiently are driving the demand for agricultural equipment, which hold the largest share in the Global Off-the-Road (OTR) Tire Market.
The burgeoning food requirements owing to the rapidly growing population worldwide are also increasing the production of agricultural equipment and, consequently, their tires. Moreover, governments of different countries are actively participating in enhancing the farming space, i.e., generating the need for more advanced machinery like UTVs (Utility Terrain Vehicles) to yield better productivity in different agricultural applications, thereby instigating the demand for OTR tires and propelling the market growth.
Asia-Pacific to Record a Notable Growth Rate in the Off-the-Road Tire Market
Asia-Pacific is observing a rapid expansion of the automotive industry, substantial funding in infrastructure developments, surging construction activities, a growing need for farm mechanization, & increasing oil exploration activities. These aspects, all together, are leading to growing production & sales of heavy-duty vehicles and their OTR tires in the region, especially across India & China. In addition, India is undergoing agricultural expansion & intensification, owing to which the demand for farm equipment is constantly soaring across the country, thereby augmenting the growth of the Asia-Pacific Off-the-Road (OTR) Tire Market.
The major companies in the Global Off-the-Road (OTR) Tire Market include Yokohama Rubber Co., Goodyear Tire and Rubber Company, Apollo Tyres Ltd., Bridgestone Corporation, Prometeon Tyres Group SRL, China National Tyre and Rubber, Michelin, Hankook Tyre Co. Ltd., Cooper Tires, Toyo, Continental, Balkrishna Industries Limited, and Triangle.
Key Questions Answered in the Research Study