Brazil Off the Road (OTR) Tire Market Research Report: Forecast (2024-2030)

Market Definition

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 terrain. 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.

Market Insights & Analysis: Brazil Off-the-Road (OTR) Tire Market (2024-30):

The Brazil Off-the-Road (OTR) Tire Market size was valued at around USD 880.5 million in 2023 and is projected to reach about USD 949.4 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 1.08% during the forecast period, i.e., 2024-30. The increasing demand and sales of various heavy-duty and off-the-road vehicles in the country are the prominent factors augmenting market growth. Heavy-duty vehicles such as trucks, loaders, reach stackers, and special vehicles at ports or underground mining, etc., require high-quality and rigid OTR tires to function, which is propelling their adoption in the country.

Moreover, the growing mining activities in Brazil are creating an immense demand for various heavy-duty vehicles at mining sites for both on-surface and underground applications. The heavy machinery and vehicles working on rugged terrain and undulated lands create a significant demand for tire replacements due to their high exposure to wear and tear.

Furthermore, the programs, such as the Brazil Mining Plan 2050, are laid out by the government of Brazil to develop the mining industry in the region, which is further increasing mining activities and creating demand for heavy-duty vehicles in the country. Thus, the burgeoning mining sector in the country is creating demand for high-quality and durable OTR tires for mining equipment and vehicles, which is finally augmenting the size & volume of the OTR Tire Industry.

Moreover, the increasing consciousness of the government in the country on infrastructure development, due to the growing number of residents shifting to city regions looking for job opportunities, is fueling construction activities in the region. There is a surging demand for residential and business infrastructure in Brazil due to increasing accommodation needs. The Brazilian government is focusing on the financial enlargement and upliftment of the populace, which is below the poverty line. To cater to this, the authorities are launching infrastructure development programs, offering housing subsidies, and so on., which is pushing construction activities across Brazil. The government is also establishing smart city infrastructure such as the Connected Smart Cities 2021, Smart Mobility Program, etc., which is leading to a substantial rise in the construction industry. These construction activities require heavy construction machinery, which is operated on OTR tires.

In addition, Brazil has a vast agricultural potential with expansive farms, plantation crops, etc., which contribute significantly to the demand for OTR tires in the country. Brazil produces various high-value agricultural crops, such as coffee, avocado, soybean, etc., for both domestic and international consumption. The cultivation of these crops requires robust agriculture machinery, which relies on high-quality OTR tires. Agricultural operations such as cultivation, harvesting, threshing, plowing, etc., require robust agriculture machinery like harvesters, plows, tractors, etc. The undulating and muddy areas of agricultural lands require OTR tires to suit the heavy machinery that generates their market demand.

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 size during the forecast period.

Brazil Off-the-Road (OTR) Tire Market Driver:

Increasing Residential & Commercial Infrastructure Projects Propelling Market Growth – The increasing demand for housing and accommodation is augmenting the development of flats, housing homes, villas, etc., across urban areas. Similarly, the construction of numerous commercial spaces, which include offices, shopping malls, cafes, and many others, is surging extensively in the country because of the growing populace. Moreover, the growing government initiatives in the direction of infrastructure improvement are key to the development of schools, hospitals, and different recreational facilities in Brazil. For instance,

• In 2023, the Brazilian government announced the launch of the Great Public Works Program for national development, with infrastructure projects in the main areas of the country such as transportation, urban development, social infrastructure, water, communications, and energy.

All these infrastructure and construction activities in the residential and commercial sectors are generating a tremendous demand for various construction machinery and equipment. Machines like road rollers, loading trucks, etc., rely on heavy and durable OTR tires for functioning, which ultimately gives rise to the OTR tire demand. Moreover, the urbanization trend in Brazil, driven by the growth of cities and the expansion of road and railway networks, upsurges the demand for OTR tires for trucks, excavators, and bulldozers engaged in road construction and maintenance activities, creating the demand for OTR tires and augmenting the growth & expansion of the Brazil OTR Tire Market.

Brazil Off-the-Road (OTR) Tire Market Challenge:

Fluctuating Prices of Raw Materials Hinder Market Growth – The fluctuations in the prices of raw materials like rubber, crude oil, etc., owing to supply chain disruptions and geopolitical tensions, pose significant barriers to the growth of the OTR tire industry. Events like changes in currency rates, increasing trade and tariff rates, taxation policies, etc., affect the overall pricing of raw materials, which increases the cost of tires as well. Due to these fluctuating costs, the manufacturers have to settle for lower profit margins and the overall growth of the industry.

Moreover, the constraints in the demand and supply of these materials further hinder the manufacturing process. Besides, since these tires are used in heavy industries like construction, mining, agriculture, etc., manufacturers have to produce robust tires to function efficiently in changing terrain, heavy loads, different weather, etc. However, the volatile prices are leading to the high production costs of OTR tires, making procurement difficult for cost-sensitive customers.

Brazil Off-the-Road (OTR) Tire Market (2024-30): Segmentation Analysis

The Brazil Off-the-Road (OTR) Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at national level. Based on the analysis, the market has been further classified as:

Based on End Users

• Construction
• Industrial
• Mining
• Agriculture
• Ports

Here, the ports segment has acquired a prominent market share in the Brazil Off-the-Road (OTR) Tire Market in recent years and is expected to prevail in the same market trend during the forecast period. It is attributed principally to the country being a prominent producer and exporter of various minerals like iron ore, tin, copper, pyrochlore, bauxite, granite, etc. In addition, the country also produces a vast amount of crops, including coffee, soybeans, etc., which are exported to neighboring countries like the US, Canada, Mexico, etc. via waterways. In addition, the Brazilian government has been implementing policies aimed at modernizing port facilities and improving efficiency, such as the Programa de Parcerias de Investimentos (PPI), which encourages private investments in port infrastructure. This, in turn, is leading to the development and expansion of key ports like Santos and Paranaguá, which are among the largest in Latin America. For instance,

• In 2023, Brazil witnessed the expansion of its Natal port, incorporating an investment of about USD 250 million, which increased the port capacity to store around 130,000 to 200,000 containers per year.

Besides, since the country exports and imports a large number of commodities in bulk, the port sector is witnessing high demand for forklifts and other machinery running on ports. This, in turn, is expected to generate growth opportunities for the leading players in the Brazil-Off-the-Road (OTR) tire industry during the forecast period.

On the other hand, the construction sector is anticipated to contribute substantially to the overall market growth in the coming years, owing principally to the country witnessing several construction activities under the public-private partnership plan since 2022, which has boosted the demand for construction equipment. As a result, it is directly influencing the sales of OTR tires.

Based on Demand Type:

• OEMs
• Aftermarket

Of them both, the aftermarket segment held the largest market share in recent years and is anticipated to continue its dominance during the forecast period. The continued demand for OTR tires from various end-user industries, such as construction, agriculture, etc., is boosting segment growth. The mining, construction, and agriculture sectors have rugged and challenging conditions that damage tires when working continuously. Moreover, the heavy loads further lead to increased wear and tear of tires, which creates a regular demand for tire replacement. Thus, the increased deployment of OTR tires due to replacement proliferates aftermarket growth.

In addition, the aftermarket segment offers consumers a wide range of options related to brands, prices, and other tire specifications, which helps in customization as per their requirements and working conditions. This ease of replacement further propels the aftermarket segments' market growth in the overall OTR tire industry.

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