Off-the-Road (OTR) Tires are used majorly in heavy commercial vehicles like tractors, cranes, forklifts, bulldozers, & golf carts, among others. They offer high-quality grip on surfaces like mud, sand, gravel, etc., along with deep & open treads to support the vehicle's movement. The OTR tire industry in Chile is driven by the growing number of construction, mining, & agricultural activities in the country.
Chile's tire industry is dependent entirely on the aftermarket category, owing to the absence of automobile OEMs in the country. Favorable policies & reforms are positively impacting the construction sector in the country, i.e., driven primarily by increasing foreign investments. It, in turn, is leading to soaring requirements for earthmoving & construction equipment to suffice the growing number of construction, mining, & agricultural activities, thereby fueling the demand for OTR tires and driving the tire industry.
The Chile Off-the-Road (OTR) Tire Market is expected to grow at around 3.23% CAGR during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the mounting demand for earthmoving & construction equipment tires for infrastructural & residential construction activities in the country, coupled with massive investments by the government of Chile in the mining sector and construction activities associated with roads, railways, residential & commercial buildings, seaport & airport expansion, etc. Moreover, the burgeoning requirement for tractors and the increasing expenditure on various agricultural programs to boost farm mechanization are also driving the market.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Yokohama Rubber Co., Goodyear Tire and Rubber Company, Bridgestone Corporation, Continental, Michelin Tires, CST, Triangle Group, Trelleborg, etc.|
|Unit Denominations||USD Million/Billion|
Chile is an import-driven country with limited OEMs (Original Equipment Manufacturers). The mining sector is one of the most prominent industries in the country, with a myriad of Copper & Silver mines that generate significant demand for OTR tires for earthmoving & construction equipment. There are various upcoming projects & notable investments planned for the mining industry, which would boost the demand for earthmoving equipment tires in Chile and drive the market over the forecast period. For instance:
Impact of Covid-19 on the Chile Off-the-Road (OTR) Tire Market
With the advent of Covid-19 in 2020, the Chile Off-the-Road (OTR) Tire Market observed a demand slump due to a halt in economy generating activities like construction & mining, coupled with supply chain disruptions among the major OTR tire manufacturing countries. Moreover, the market witnessed a further decline in its growth due to the reducing demand for raw materials like copper, silver, etc.
However, with the gradually decreasing Covid-19 cases and upliftment of restrictions, the demand for OTR tires witnessed a substantial hike in 2021, owing to the economic normalization and resumed requirement for construction equipment & earthmovers.
Goodyear Tire and Rubber Company