Off-the-Road Tires are relatively large compared to standard tires. These tires are used mainly in heavy commercial vehicles like tractors, cranes, forklifts, bulldozers, & golf carts, among others, and are highly efficient on unpaved terrains. Additionally, OTR tires offer high-quality grip on surfaces like mud, sand, gravel, or loose dirt and flexible suspension with deep & open treads to support the vehicle's movement. The growing number of construction, mining, & agricultural activities in Brazil are driving the sales of such vehicles, which, in turn, is directly impacting the demand for Off-the-Road tires across the country.
Brazil Off the Road (OTR) Tire Market is projected to grow at a CAGR of around 3% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the rapidly increasing sales of vehicles like rigid dump trucks, reach stackers, loaders, specialty vehicles in ports, surface or underground mining, & construction sites, among others, instigating automakers to increase their production capacities. It, in turn, is playing a crucial role in stimulating the demand for OTR tires & driving the market through 2026.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Pirelli, Goodyear Tire and Rubber Company, Bridgestone Corporation, Continental, Michelin Tyres, Triangle Group, Titan, Toyo, Trelleborg, Kumho Tire, Yokohama|
|Unit Denominations||USD Million/Billion|
Besides, the mounting focus of the Brazilian government on infrastructural developments is resulting in numerous construction projects of highways, corporate spaces, residential complexes, airports, & railway stations in the country. Hence, the demand for heavy construction machinery is significantly surging and, in turn, positively influencing the Brazil Off the Road (OTR) Tire Market.
Moreover, an increasing number of mergers & acquisitions among prominent players across Brazil to expand the product portfolio, visibility, reachability, & customer base, is also anticipated to augment the overall market growth in the years to come.
Impact of Covid-19 on Brazil Off the Road (OTR) Tire Market
The advent of Covid-19 had a decelerating impact on most industries, where the Brazil Off the Road (OTR) Tire Market was no exception. With the imposition of stringent movement restrictions & frequent lockdowns by the government to curb the spread of this dreadful disease, the automotive & tire industry witnessed a catastrophe.
Since all types of construction & mining industries were suspended to avoid physical contact with the workers & curb the spread of the Coronavirus, it resulted in a temporary decline in the demand for OTR tires and displayed unprecedented challenges for the leading players.
Besides, disruptions in the supply chain due to hampered transportation & logistics further resulted in the unavailability of raw materials, increasing demand & supply gaps, fluctuations in the prices of raw materials like rubber & crude oil, and shutdown of manufacturing units, among others.
Consequently, manufacturers witnessed significant financial losses amidst the crisis. However, with the gradual improvement in the pandemic situation having a lower rate of cases, the government began to uplift the restrictions & allowed the recommencement of business operations. As a result, the leading manufacturers increased their production capacities to meet the burgeoning demand for OTR tires across the country and recover from revenue losses.
Based on End-Users:
Here, the Mining sector acquired the largest share in the Brazil Off the Road (OTR) Tire Market in recent years & is expected to prevail the same trend during the forecast period. It attributes principally to the country being a prominent producer of minerals like iron ore, tin, copper, pyrochlore, bauxite, granite, manganese, asbestos, gold, gemstones, quartz, tantalum, and kaolin, among others.
Hence, the government is investing substantially in several mining projects, which, in turn, is propelling the demand for robust mining equipment & machinery like Excavators, Graders, Loaders, Bulldozers, and Road Rollers, among others, and augmenting the demand for Off-Road tires in the country.
Besides, since the country is one of the largest mineral producers, it is expected to witness rigorous mining activities and generate growth opportunities for the leading players in Brazil Off the Road (OTR) tires market during the forecast period.
On the other hand, the Construction sector is anticipated to contribute substantially to the overall market growth over the forecast years, owing principally to the country witnessing several construction activities under the public-private partnership plan since 2017, which has boosted the demand for construction equipment. It, as a result, is directly influencing the sales of OTR tires.
Recent Developments in the Brazil Off the Road (OTR) Tire Market
Key Driver & Opportunity: Rising Infrastructural Projects
With the increasing government focus on infrastructural developments, industries like construction, mining, agriculture, etc., are witnessing massive investments with numerous projects. It, in turn, is propelling the demand for heavy vehicles & equipment and directly influencing the demand for OTR Tires. Hence, Brazil Off the Road (OTR) Tire Market is anticipated to witness an upswing in the coming years. These developments would generate growth opportunities for the leading players to develop & introduce upgrades in tire models, with new features to suffice the burgeoning requirements across the country.
Possible Restraint: Fluctuating Prices of Raw Materials & High Production Costs
With constant fluctuations in the prices of raw materials like rubber & crude oil, the leading companies in the Brazil Off-the-Road Tire Market are unable to settle the production cost. Besides, since these tires are used in heavy industries like construction, mining, agriculture, etc., manufacturers have to produce robust tires to function efficiently on changing terrain, heavy loads, different weathers, etc. However, the volatile prices are leading to the high production costs of OTR tires, making the procurement difficult for the cost-sensitive customers.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. Brazil Off the Road (OTR) Tire Market is projected to grow at a CAGR of around 3% during 2021-26.
A. The Mining sector is anticipated to emerge as an area of remunerative opportunities for the leading players in the Brazil Off-the-Road (OTR) Tire Market during 2021-26.
A. Growing investments in the mining sector, i.e., generating growth opportunities for OTR tire manufacturers to increase the production capacity & meet the mounting requirements of heavy commercial vehicles, would drive the Brazil Off-the-Road (OTR) Tires Market during 2021-26.
A. Post the Covid-19 pandemic, the leading players are anticipated to increase their OTR tire production & introduce upgrades for new vehicle models. It, in turn, shall enable Brazil Off the Road (OTR) Tires Market to regain its usual pace & witness an upswing in the coming years.