The economy of Peru relies heavily on the mining industry and medium & heavy commercial vehicles, wherein OTR tires find heavy use, majorly for mining, industrial, construction, mining, and agricultural sectors. Since 2017, Peru has been witnessing various mining activities under the public-private partnership, which has boosted the demand for heavy equipment and, in turn, for OTR tires.
The Peru Off-The-Road (OTR) Tire Market is projected to grow at a CAGR of 9.95% during the forecast period, i.e., 2021-26. Due to the closure of Lima Caucho in 2020, which was the sole producer of OTR tires in Peru, the country entirely shifted toward importing OTR tires. However, the increase in construction & mining activities has notably contributed to the market growth.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Bridgestone, Continental, Michelin, Goodyear, Pirelli, Yokohama, BKT, Mitas Tyres, etc.|
|Unit Denominations||USD Million/Billion|
Moreover, the increasing vehicle fleet size and rapidly expanding infrastructure & construction sectors in the country are also driving the market. Moreover, the growing agriculture & maritime commerce across the country is positively influencing the demand for earthmoving & agricultural equipment and, in turn, for OTR tires, i.e., another prominent aspect projected to augment the overall market growth in the coming years.
However, owing to the halt in various investments on account of corruption cases related to construction firms and heavy rains powered by El Niño conditions, the market witnessed a decline in its growth in 2017. In addition, the advent of Covid-19 in 2020 further delayed construction activities & manufacturing of heavy vehicles in the country and, in turn, negatively impacted the demand for OTR tires.
Impact of Covid-19 on the Peru Off-The-Road (OTR) Tire Market
Peru was among the hardest-hit countries by Coronavirus in 2020, mainly due to the suspension of various construction & mining activities owing to the countrywide state of emergency declared in March. As a result, it significantly impacted the country's OTR Vehicle Tire Market. Moreover, the major copper mines Las Bambas & Antamina got adversely affected since they are located in the lockdown-affected regions of Apurimac & Ancash, respectively. Also, being an import-driven country with no in-house production for OTR Vehicle tires, certain restrictions imposed on the trading between the countries negatively affected the smooth flow of OTR tires import in Peru.