Brazil Truck Tire Market Research Report: Forecast (2023-2028)

Market Insights & Analysis: Brazil Truck Tire Market (2023-28)

The Brazil Truck Tire Market is expected to grow at a CAGR of around 5.42% during the forecast period, i.e., 2023-28. Most of the market expansion would be propelled by the burgeoning demand for commercial vehicles owing to the flourishing e-commerce sector, the ever-rising construction activities in the country, and increased emphasis on improving the road infrastructure.

 The government of Brazil is heavily investing in expanding & improving its road infrastructure, including highways, expressways, & rural roads, in order to create more routes and increase connectivity across the country, i.e., infusing the need for a large number of trucks & commercial vehicles and, consequently, truck tires.

In addition, economic growth and various ongoing infrastructure development projects in Brazil are generating a greater need for transportation & logistics services, i.e., another prominent aspect contributing to the increased demand for trucks and their tires. Moreover, Brazil is a major exporter of various commodities like soybeans, corn, & sugar and has a robust agricultural sector that relies heavily on trucks for the transportation of farm produce to markets or ports. On the other hand, the country's mining industry, which requires trucks for the transportation of minerals & resources, also creates a significant demand for truck tires.

Furthermore, with the boom in e-commerce and online shopping, the demand for last-mile delivery services has also surged dramatically in Brazil, owing to which more & more delivery vans & trucks are being manufactured & sold in the country for the efficient distribution of goods to consumers. Hence, these aspects are set to create new avenues for the leading companies operating in the Brazil Truck Tire Market to broaden their customer base and generate significant revenue in the coming years.

Brazil Truck Tire Market Driver:

Rapidly Expanding Commercial Transportation Sector - Brazil's economy relies largely on road transportation for the movement of various kinds of goods within the country. Due to domestic consumption and international trade, the rising demand for freight transport is creating an immense need for more trucks and, in turn, truck tires. In addition, the country is substantially investing in infrastructure development associated with road construction & improvement projects, i.e., leading to increased trucking activity and thus amplifying the production & sales of truck tires.

Moreover, the flourishing industrial sector, including automotive, manufacturing, & mining sectors, which depend heavily on trucks to transport raw materials, finished products, & equipment, is another prominent aspect driving the Brazil Truck Tires Market.

Brazil Truck Tire Market Possible Restraint:

High Import Taxes and Expensive Labor & Raw Materials - High import taxes and trade barriers restrict the availability of certain truck tire brands or models in Brazil, which limits consumer choices and reduces the potential for innovation & technological advancements in the market. In addition, expensive labor & raw materials affect the overall cost structure of tire production and make it challenging for manufacturers to offer competitive prices. These aspects might hamper the growth of the Brazil Truck Tires Market through 2028.

Brazil Truck Tire Market (2023-28): Segmentation Analysis

The Brazil Truck Tire Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the level. In accordance to the analysis, the market has been further classified as:

Based on Type of Tire:

• Radial
• Bias

Of both, Radial tires currently dominate the Brazil Truck Tire Market with the largest share. It ascribes to their various benefits over bias tires, such as better fuel efficiency, longer tread life, & improved handling, i.e., due to their flexible sidewalls & sturdy belt construction. Due to these performance advantages, they are used extensively in commercial trucks & transport vehicles across Brazil and ensure optimized operations with reduced operating costs.

In addition, the construction of radial tires allows for less rolling resistance and thus results in reduced fuel consumption. In view of the increasing fuel prices, truck operators in Brazil are increasingly opting for radial tires to achieve maximum fuel efficiency with minimal operational expenses.

More & more radial truck tires are becoming available in the country, with an extensive range of brands & models to choose from. This rapidly increasing availability and the long-term cost-effectiveness of radial tires are making them an attractive choice for truck operators, i.e., stimulating the growth of the truck tire industry in Brazil.

Based on Demand Type:

• Aftermarket
• OEM

Here, aftermarket truck tires hold a prominent market share, owing mainly to the high demand for replacement tires in Brazil. As trucks accumulate mileage and wear out their original tires, there is an ongoing need for tire replacements. The tread on truck tires wears down over time and thus affects both performance & safety.

As a result, truck operators turn to the aftermarket to find suitable & affordable replacements for their worn-out tires. Aftermarket truck tires are usually sought after due to their cost advantages over OEM (Original Equipment Manufacturer) tires. Hence, truck operators, especially those in small & medium-sized businesses, choose aftermarket options to save costs without compromising on quality & performance.

Thus, the large & diverse fleet of trucks and commercial vehicles, which includes vehicles used for long-haul transportation, regional deliveries, construction, & agriculture, among various other purposes, would continue to push the demand for a wide range of aftermarket truck tire types, sizes, & specifications to cater to the varied needs of truck operators and, in turn, drive the truck tire industry over the coming years.

Brazil Truck Tire Industry Recent Developments 

• On 2 May 2023, Yokohama Rubber Co., Ltd. completed the acquisition of all outstanding shares of Trelleborg Wheel Systems Holding AB.
• On 6 September 2022, Bridgestone announced an additional investment of more than R$ 270 million in the modernization & expansion of its tire production plant in Camaçari, Bahia, Brazil, i.e., in view of the rising demand for high-performance tires.

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