Press Release

Latin America Off-the-Road (OTR) Tire Market size to grow at a CAGR of around 2.1% during 2024-30

The Latin America Off-the-Road (OTR) Tire Market size is estimated to grow at a CAGR of around 2.1% during the forecast period, i.e., 2024-30., cites MarkNtel Advisors in the recent research report. The growth of the market is attributed to the presence of a well-established mining industry in Latin America. The rich availability of copper, lithium, gold, and iron ore has drawn further mining into the region, thereby rendering Latin America a mining hotspot. Some of the fastest-growing countries where mining activity is significantly present include Chile, Peru, and Brazil. Chile is among the largest copper-producing countries in the world. This fact has led to the expansion of copper mining within the country. Huge public and private investment in mining industries has been encouraged within the country.

Because of its rich deposits of copper, Chile is a mining ground for giants like BHP, Anglo-American, and Codelco, who are continuously building operations and facilities in-country to help push this growth. Also, several copper and silver mines exist in Peru, along with other Latin American countries, which produce a high amount of their GDP. Moreover, the governments of Latin America are also taking many initiatives and programs through which they can develop the economies of their mining sectors.Accompanied by the growth in the mining sector of the region, demand for heavy mining equipment and loading trucks has increased substantially, thereby strengthening demand for OTR tires. These tires are a must for movement on uneven paths and rough terrains at mining sites.

Also, such conditions have a continuous effect as far as wear and tear of the tires are concerned, which increases the need to replace tires, thus leading to further growth of the Latin America OTR Tire Market. Moreover, regional construction is showing a very notable growth impelled by the governmental policy for personal and social infrastructure development. The demand for transportation, residential, and commercial infrastructure development is also spurred by the increasing urban population in countries such as Brazil, Argentina, and Colombia. It has, in turn, encouraged governments to take up various projects and invest in the public-private infrastructure development of most regional countries.  These increasing government initiatives and investments in the construction industry are driving infrastructure development across Latin America. Growing construction demands heavy construction machinery such as road rollers, loaders, and dumpers, all of which require hefty amounts of OTR tires. This increasing demand is fueling the growth of the Latin America Off-the-Road Tire Market, further states the research report, “Latin America Off-the-Road (OTR) Tire Market Analysis, 2024.”

Latin America Off-the-Road (OTR) Tire Market Segmentation Analysis

Agriculture Tires to Hold Significant Market Share in the Latin America Off-the-Road (OTR) Tire Market

Based on the type of equipment tire, the market is further segregated into earthmoving equipment, material handling equipment, and agriculture equipment tires. Agriculture equipment tires dominated the market in 2024. According to the World Bank, Brazil, and Mexico had around 28% and 50% respectively of their land categorized as agricultural land. Both countries are one of the largest producers of food products. So, modernization and mechanization of farms in the countries along with other peripheral nations in the region is resulting in a consistent rise in the demand for agricultural tires.

 Earthmoving equipment accounted for a significant share of the OTR Tire market, driven by robust mining, construction, and infrastructure development in Latin America. Latin America has several large mining fields, especially in countries like Brazil, Chile, and Peru, thereby creating huge demand for heavy earthmoving equipment like excavators, loaders, and bulldozers. This means that grueling terrains and extreme conditions in mining sites or huge construction projects require strong, reliable OTR tires for the realization of the desired performance by such machines. Invariably, increasing demand due to the expansion of most mining sites and big construction projects has spurred further growth in OTR tire adoption within the region. In addition, rapid urbanization with extensions of infrastructure projects, including roadways, bridges, and the development of built-up areas, drives even higher demand for earthmoving equipment. Coupled with the demand, substantial investments in infrastructures by Brazil, Argentina, and Ecuador have driven demands for heavy-duty earthmoving equipment fitted with OTR tires that can manage tasks related to large-scale construction projects. In this respect, the surging demand is driving the expansion of the earthmoving equipment segment in the Latin America Off-the-Road Tire Market.

Brazil to Hold Major Market Share in the Latin America Off-the-Road (OTR) Tire Market

Geographically, the market is segmented into countries such as Mexico, Brazil, Argentina, Chile, Peru, Ecuador, Colombia, Guatemala, and Others. Brazil is more likely to dominate the market share, as the mining, construction, and agriculture sectors are pretty extensive in the country. Being one of the major exporters of iron ore, soybean, and sugarcane, most of the mining and agricultural machinery in Brazil require OTR tires. Major mining activities in Carajás, along with agricultural activities in Mato Grosso and São Paulo, top off a big demand for high-performance and durable OTR tires. Government investments in transport infrastructure development have also triggered building sector growth, such as the expansion of railway and port facilities. This therefore contributes to the increasing demand for OTR tires. Expansion and improvement in infrastructural development required heavy machinery with OTR tires, increasing demand in the country.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, including Pirelli & C. S.p.A., Goodyear Tire and Rubber Company, Bridgestone Corporation, Continental AG, Michelin Tyres, Triangle Group, Titan International, Toyo Tire Corporation, Yokohama TWS, and BKT Tires, among others, are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the region?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping across various countries?
6. How have the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?