Off-The-Road Vehicle Tire is referred to as a heavy-duty vehicle that has higher traction and a stronger grip also known as mud-terrain tires & all-terrain tires. It includes excavators, loaders, bulldozers, forklifts, agriculture equipment, and others. These vehicles are used majorly for the construction, industrial, mining, and agricultural sector.
The “Costa Rica Off-The- Road (OTR) Vehicle Tire Market” is projected to grow at a CAGR of around 8% during the forecast period i.e. 2021-26, says MarkNtel Advisors. The market growth primarily attributes to the increased production as well as the domestic consumption necessary for improving the investment into the major sectors such as manufacturing, trade, agriculture, mining, tourism, etc. Moreover, the growing investment in the manufacturing sector and construction-related activities is expected to increase the demand for equipment such as material handling and earthmovers, which would further boost the requirement for OTR tires as well.
The research report, "Costa Rica Off-The-Road (OTR) Vehicle Tire Market Analysis, 2021," depicts a deep-dive market analysis of market statistics, which mainly consists of country’s market size, market forecast, CAGR & market share of market segmentation, competitive benchmarking, and key market drivers & restraints.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Bridgestone, CEAT, Continental, Goodyear, Double Coin, Triangle, etc.|
|Unit Denominations||USD Million/Billion|
COVID-19 Pandemic Negatively Impacted the Market Growth
The OTR Tire segment in Costa Rica has seen a diminishing demand in the second and third quarters of 2020 due to the stringent lockdown measures imposed by the government. As the Costa Rica OTR market is import-dominated, the sudden decrease in demand was primarily because construction & mining activities got suspended. Most suppliers in the Costa Rica market for OTR tires are European, American, and Chinese. So, the supply chain disruptions due to the imposed lockdown measures in Europe, America, China, and other Asia-Pacific countries restricted the smooth supply of OTR tires in Costa Rica.
Earthmoving Equipment to Hold a Dominating Share
Construction activities in Costa Rica has seen a considerable jump in the period of 2016-2019. Ministry of Public Works and Transport (MOPT) is a key body looking after the government infrastructure projects in Costa Rica. The government focus on the investment over the rail and road projects to boost connectivity would drive the demand for the earthmoving tires segment such as for constructing the roads in Costa Rica during 2020-2025, a total of USD 350 million of loan is being sanctioned by the Inter-American Development Bank (IADB).
The construction of many of the key roads in the country experienced a delay due to COVID-19 in 2020. Projects such as Route 32 was completed around 20% by March 2020 which was earlier anticipated to be 61% in this period. However, the government has initiated the funding process for the construction of roads which would propel the demand for earthmoving equipment tires, cites MarkNtel Advisors’ in their research report “Costa Rica Off-The-Road (OTR) Vehicle Tire Market Analysis, 2021”.
Foreign Direct Investments to Generate OTR Tire’s Demand from Construction Sector
The construction industry held around 60% market share in the Costa Rica OTR Tire market in 2020 and the sector is expected to dominate in the forthcoming period as well. This is highly supported by the country’s ability to attract Foreign Direct Investments due to a well-educated labor force, low levels of corruption, geographic proximity to the United States and attractive free trade zone incentives. These factors have resulted in the rising number of greenfield investments in the country which has further induced a demand for OTR tired from the construction industry. The number of greenfield investments in Costa Rica increased from 62 in 2017 to 115 in 2019.
Positive Agricultural Growth to Boost the Market
The country is involved in agricultural activities with major exports to North American and Latin American countries. Almost 10% of Costa Rica's land use is devoted to agriculture. The major produce and exported agricultural products include corns, soybeans, wheat, fresh fruits, processed fruits and vegetables, etc., and mass-produced cash crops are popular exports such as coffee, bananas and pineapple. This scale of agricultural activities has surged the demand for OTR tires for agricultural use.
The existing government regulations pose a considerable challenge for one of the major industries in South America i.e., the Mining sector. The mining sector is one of the major contributors to the premium tires segment in many of the other countries in the region. However, the restrictions on the mining activities by the government have obstructed the demand for off-the-road tires in the segment. Inline to recognize the severity of the environmental and economic harms caused by open-pit mining, the Costa Rican government had banned future open-pit mining projects and the use of toxic substances, such as cyanide and mercury, since 2010.
According to MarkNtel Advisors, the leading industry players in the Costa Rica Off-The-Road (OTR) vehicle tire market are Bridgestone, CEAT, Continental, Goodyear, Double Coin, Triangle, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Costa Rica Off-The-Road (OTR) Vehicle Tire Market is forecast to grow at a CAGR of 8% during 2021-26
A. Bridgestone, CEAT, Continental, Goodyear, Double Coin, Triangle are a few leading players in the Costa Rica Off-The-Road (OTR) Vehicle Tire Market.
A. Earthmoving Equipment are expected to attain the highest CAGR and maintain their significant market share during the forecast period.
A. Radial tire would continue to grow at the highest CAGR during 2021-26, thereby presenting immense opportunities to market players of the Costa Rica OTR Tire Market.
A. The extensive road development programs is one of the prime factors augmenting the market growth.