Chile Off-the-Road (OTR) Tire Market Research Report: Forecast (2025-2030)

Market Definition

The off-the-road tires are a special type of tire customized for off-road surfaces. They are commonly installed in giant vehicles such as bulldozers, cranes, tractors, loaders, and more. These tires are best for unpaved surfaces such as sand, mud, and gravel, as they have deep treads to provide more traction.

Market Insights & Analysis: Chile Off-the-Road (OTR) Tire Market (2025-30):

The Chile Off-the-Road Tire Market size was valued at around USD 176 million in 2024 and is projected to reach USD 218 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 3.18% during the forecast period, i.e., 2025-30. The market is driven by several significant factors such as rising activities in the mining and construction industry, along with technological advancements and increased collaboration among OEMs. The demand for OTR tires has also been uplifted by the agriculture sector of the country.

*Boost strategic growth with in-depth market analysis - Get a free sample preview today!

The agricultural industry is flourishing in the nation due to its long, narrow geography, which marks great diversity of soil as well as climate. This permits the growth of a variety of crops throughout the year.  As per the USDA, Chilean agriculture’s contribution rose from an estimated USD 20.6 billion in 2020 to USD 28.9 billion in 2023. Such a rise in the sector is due to the expanding farming activities in the country and a surge in agri-food exports. Surging agricultural activities will require harsh terrain vehicles like tractors that are attached to OTR tires, thereby surging the demand in the coming years.

Moreover, increasing trade, substantial investments, and strategic expansion projects are expanding Chile's port activities. The Chilean government invested USD 4 billion in a port expansion project, San Antonio's "Puerto Exterior", anticipated to be the largest port project in Chile. With such expansion of ports, the marine trade activities will also grow, and increase the need for heavy vehicles, which in turn will accelerate the need for OTR tires. Additionally, the surging adoption of the retreaded or recycled off-road tires by end-users owing to cost-effectiveness and reduced waste generation is anticipated to restrict the OTR tires market's growth.

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

Increasing Construction Activities in the Country Fueling Market Demand – The country is recording a considerable rise in construction activities due to many new projects aligned in the coming years. The country is also working on replenishing its aged infrastructure, like roads, ports, bridges, and more, to ensure modern and safe infrastructure. The country has recorded various public and private investments in the construction of buildings, highways, railways, ports, and airports. For instance, in 2024, the Public Works Ministry planned to invest USD 16.6 billion in 43 concession projects in Chile over 5 years from 2024 to 2028. The initiation of these projects will make use of large construction vehicles such as earthmoving equipment, rollers, cranes, and more for longer durations.

The rugged terrain and long continuous usage necessitate the use of specialized OTR tires for heavy machinery and equipment, which maintain grip and balance and are suitable for the harsh surroundings of mining sites. Hence, the industry is anticipated to drive the growth of the OTR tire market in the forecasted period.

Chile Off-the-Road (OTR) Tire Market Opportunity:

Increasing Demand for Heavy Electric Vehicles – The demand for heavy vehicles powered by electric technology is rising gradually, driven by environmental sustainability needs. The government in Chile recently announced its electromobility strategy, according to which, large (>560kW) mobile machinery is targeted to be 100% ZEV by 2035, while smaller equipment (>19kW), which would include forklifts, has to be done by 2040. Considering the environmental sustainability requirements, several mining sites have already started deploying electric equipment. For instance, in 2024, SQM, a Chilean mining company, deployed two electric trailers, including one with a fully electric tank trailer for transporting lithium brine. This will, in turn, offer huge growth opportunities to the off-the-road tire manufacturers by tapping the new, increasing electric vehicle market.

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

Increasing Demand for Retreading Off-the-Road Tires – The increasing adoption of retreading or recycled Off-the-Road Tires acts as a challenging factor for new tire manufacturers by reducing demand. Chile is a leader in pushing for greener tires with a new law that mandates that from 2023 through 2026, 25% of all mining tires must be recycled. This rises to 75% in 2027 and 100% by 2030. Estimates put stockpiles of used OTR tires in the country at 500,000 tons.

Considering the government requirement, several existing players have begun to establish their recycling plants in Chile, such as Michelin has recently established its first earthmover tire recycling plant in Chile. Retreading or recycling tires increases the lifespan of off-the-road tires and hence allows the end-use businesses to reuse their tires despite making new purchases.

Moreover, the retreading tires are available at around 35%-55% lower prices in comparison to the new tires, encouraging end-users to consider the former option. This inclination of end-users towards retreading tires owing to the cost benefit, pressurizes new tire manufacturers to reduce the prices of new tires or introduce innovative features to gain a competitive edge from retreading tire providers.  Hence, the increasing acceptance of retreading tires might reduce the replacement rate of new off-the-road tires in the country, thereby restraining the market’s demand.

Chile Off-the-Road (OTR) Tire Market Trend:

Integration of Smart Tire Technology in OTR Tires – Technological advancements in heavy-duty vehicles, such as rising automation and digitalization, are significantly impacting off-road tire design. Automation in heavy-duty vehicles that are used in industries like mining, agriculture, and construction requires quick and continuous operations with reduced human effort. To enhance the smartness of these vehicles, the OTR tires attached are also required to be smart and capable of analyzing and indicating tire health with negligible human intervention. Such requirements have compelled OTR manufacturers to integrate advanced technologies into the tires. This has led the market players to either develop or collaborate with tech conglomerates to introduce tires with suitable sensors and smart systems.

For instance, OTR Engineered Solutions and Pressure Systems International (P.S.I.), a global leader in tire inflation systems, have partnered to bring tire pressure monitoring systems (TPMS) to the off-the-road tire market. OTR will offer P.S.I.’s TireView® system in its full line of pneumatic tire and wheel assemblies.  Similarly, Continental has introduced the ContiTerminal system that will utilize inbuilt sensors in tires, and will help in optimizing OTR tires’ life and prevent breakdowns. With more advancements in tire technologies, the end-users' high-tech tire needs will be met, thereby increasing the requirement for such off-the-road tires.

Chile Off-the-Road (OTR) Tire Market (2025-30): Segmentation Analysis

The Chile Off-the-Road-Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the national level. Based on the analysis, the market has been further classified as:

Based on End-User:

• Construction
• Industrial
• Mining
• Agriculture
• Ports

Chile is an agriculture-based economy with a sizeable investment and population employed in agricultural activities. According to the USDA, Chile is one of the 10 largest exporters of agricultural goods in the world, with 28% of Chile’s overall trade and 11% of its GDP in 2024. The agricultural policy changes in Chile in 2020-24 had a significant impact on the income of the agrarians as well as the ease of purchasing the key agricultural equipment, such as tractors, combines, etc.

According to the Organization for Economic Development (OECD), the Chilean government focused on four strategic areas: institutional modernization, producer association, sustainability, water use as well and strengthening rural development. Around 0.3% of the GDP is allocated to agriculture, and general services account for 51% of total public expenditures in the sector. The government is further expected to boost the expenditure in the agriculture sector to increase the crop yield as well as to support horticulture in the country.

In 2024, the Government of Chile allocated around USD 13 billion towards agricultural expansion. Moreover, around USD0.20 billion is allocated towards supporting growers in the modernization of their farms, including the availability of loans and finances for capex on agricultural equipment.

Based on Type of Equipment:

• Earth Moving Equipment
  • Excavator
  • Grader
  • Loader
  • Bulldozer
  • Road roller
• Material Handling Equipment
  • Crane
  • Forklifts
• Agricultural Equipment
  • Tractors
  • Combines
  • Others

In 2024, agricultural equipment led by tractors completely dominated the market with a market share of around 70%. However, the earthmoving equipment category’s y-o-y growth is expected to outperform the agriculture sector during the forecast period. In the type of equipment segment, earthmoving equipment holds 25% of the share in the Chile Off-the-Road Tire Market. The rising migration from Venezuela and Haiti has resulted in an increased population in Chile. This has elevated the requirement for proper accommodation facilities, as a result, real estate developers are constructing residential apartments & complexes in the country. The Government proposed an “Emergency Housing Plan” which would require the building of 260,000 houses by 2030, which would cover at least 40% of the housing requirement. These residential construction increases need for earthmoving vehicles in Chile owing to their usage in construction for various activities like site preparation, excavation & land development.

Moreover, increasing mining activities will also generate demand for this equipment for transporting material and waste extracted from the site. The exhaustive usage of these vehicles on rough surfaces of construction sites results in higher damage and wear and tear to the tires, increasing the need for replacements. Therefore, the construction and mining contractors ensure frequent tire replacement of these vehicles to maintain their efficiency. This consequently uplifts the Off-the-Road Tire demand and enlarges the size of the Chile Off-the-Road Tire Market.

Chile Off-the-Road (OTR) Tire Industry Recent Development:

• February 2025: Goodyear Tire & Rubber Company completed the previously announced divestiture of its OTR tire segment to Yokohama Rubber Company, Limited, valued at approximately USD 905 million.

Gain a Competitive Edge with Our Chile Off-the-Road (OTR)Tire Market Report

1. Chile Off-the-Road Tire Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Chile Off-the-Road Tire Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

*Reports Delivery Format - Market research studies from MarkNtel Advisors are offered in PDF, Excel and PowerPoint formats. Within 24 hours of the payment being successfully received, the report will be sent to your email address.