The construction and mining industry of Latin America has received fresh impetus with the revival of Brazilian and other regional economies. Mining contributes a significant share in the regional GDP. Therefore, announcements of fresh mining sites for exploration in Chile, Brazil, Peru, etc. are set to propel the mining industry of the region. At the beginning of 2019, the Government of Brazil announced around 20,000 new mining sites for exploration. Therefore, the demand for construction and mining equipment is set to surge during the upcoming few years.
Moreover, the exploration of budgets of other neighboring countries such as Chile and Peru has registered an uptrend in the recent past. These developments are set to boost the growth of construction and mining equipment. Eventually, catalyzing the demand for OTR vehicle tires during the forecast period.
According to the MarkNtel Advisors’ research report, “Latin America Off the Road (OTR) Tire Market Analysis, 2020”, the OTR tire market is set to surge at a CAGR of around 2.1% during 2020-25 on account of rising demand from the mining industry. Brazil had the largest market share exceeding 40% of the total OTR tire sales in 2019, followed by Mexico. The two countries would continue to dominate the market during the forecast period as well.
In 2019, Latin America produced around 45% of global copper, 50% of silver, 26% of molybdenum, 21% of zinc and 20% of gold. While numerous sites are still unexplored and the plans to exploit their potential are underway. These immense opportunities prevalent in the region are set to attract investors’ interest, which would catalyze the demand for OTR tires in the region.
Radial Tires Rising; Bias Tires Still Hold the Ground
Radial tires have made significant inroads in the OTR vehicle market in Latin America. However, Bias tires are still in use due to their durability. However, with the research and development in OTR tires industry, Radial Tires are set to become the dominant force through 2025, as revealed by MarkNtel Advisors in its research report “Latin America Off the Road (OTR) Tire Market Analysis, 2020”,
The price of OTR tires in Latin America has been registering a gradual increase owing to volatility in the cost of raw material and ongoing research and development to improve the tire quality and durability.
Michelin, Goodyear, Continental, and Bridgestone were the dominant players in the OTR tire market of Latin America. The other key players include Triangle, Zhongce Rubber, Cheng Shin, Yokohama, etc. The American and European OTR tire manufacturers are the dominant force and would continue to remain so through 2025.
“Latin America Off the Road (OTR) Tire Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decisions, hotspots, and opportunities available for Off the Road Tire Manufacturers across the globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
1. By Type of Equipment (Construction & Earthmoving Equipment, Material Handling, Agricultural Vehicle)
2. By Type of Product (Excavator, Loader, Grader, Bulldozer, Road roller, Tipper, Forklifts, Cranes ,Others)
3. By Demand (OEM Vs Replacement)
4. By Radial Vs Bias
5. By Countries (Brazil, Mexico, Colombia, Argentina, Peru, Colombia, Others)
6. By Season (All Season, Summer)
7. By Sales Channel (Online, Distributors Channel, Others)
8. By Price Category (Budget, Economy, Premium)
9. By Rim Diameter (20"- 25", 26"-35", 36"-48", Above 48")
10. By Company
Key questions answered in the study:
1. What are the current and future trends of the Latin America Off the Tire (OTR) Market?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the region?
4. How the competition has been shaping across the region followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the Latin America Off the Tire (OTR) Market?
6. What are the customer orientation, purchase behavior, and expectations from the Off the Tire (OTR) across various regions?