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 “Ecuador Off-The- Road (OTR) Vehicle Tire Market” is likely to grow at a CAGR of around 2% during the forecast period i.e. 2021-26, says MarkNtel Advisors. The market growth primarily attributes to the burgeoning mechanization of farms along with mushrooming private investments in infrastructure development projects. The factors such as presence of a diverse climate allows the production of wide range of crops, free trade zones, relaxed labour laws, and tourism potential helps in attracting investors in the country. Furthermore, in order to attract foreign direct investments, the country approved the Productive Promotion and Attraction of Foreign Investment Law in 2018. Hence, this is expected to increase the requirement for OTR vehicle thereby positively impacting the growth of OTR tires market as well.
The research report, "Ecuador 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, Continental, Michelin, Goodyear, Pirelli, Yokohama, CST Tire|
|Unit Denominations||USD Million/Billion|
COVID-19 Pandemic Positively Impacted the Market Growth
The outbreak of the COVID-19 pandemic impacted all economic sectors. The construction sector was paralyzed from mid-March to end of May 2020 due to protocols of physical distancing along with the delay and stoppage within the entire production chain. However, as Ecuador is an import-driven country, no significant impact of COVID-19 was witnessed in the OTR tire imports. The country registered a decline in OTR tire shipments during February, March, and April 2020. The dip in shipments during these three months was compensated by the massive increase in the shipments in the Q4, 2020.
Earthmoving Equipment to Hold Dominant Market Share
Based on the type of equipment, earthmoving equipment acquired around more than 70% market share in the Ecuador OTR tire market in 2020. This is due to the rising investments in the construction and mining activities where various mining projects are in the advanced exploration stage such as the Cascabel project, concessioned to Australia's SolGold, and the Llurimagua project. Thus, this is expected to augment the demand for OTR tire in the coming 5 years.
After a state of recession in 2016, the earthmoving equipment market recovered in 2017 via the injection of huge financial & infrastructure resources.The improvement in market on the back of the rising greenfield investment and surging private sector engagement was seen after 2017 and the same trend is expected to help in the growth of earthmoving equipment tire market in the forthcoming period as well, cites MarkNtel Advisors’ in their research report “Ecuador Off-The-Road (OTR) Vehicle Tire Market Analysis, 2021”.
Radial Tires Attained Significant Market Share
The radial tires held more than 50% market share in the Ecuador OTR Tire market in 2020. Radial tires find their major application in the earthmoving equipment such as loaders, excavators, etc., as they are fuel-efficient and more durable as compared to bias tires. Hence, the major contribution of earthmoving equipment in the Ecuador OTR tire market has positively impacted the market share of radial tires as well.
Positive Mining Growth to Boost the Market
Mining is one of the essential areas with the most elevated development projection in Ecuador. The country aims to make the mining sector one of the crucial pillars of its economy and attract foreign investment by introducing various projects in the next decade. In 2016, the country had around 790 thousand hectares under concession to mining companies, and in 2018 it reached 3 million hectares. The mining industry of the country is becoming the most prominent investment destinations. Various foreign companies are investing in the country such as Anglo American, BHP, Grupo México, and Lumina Gold. The rising investments would generate an increased demand for OTR tires in the years to come.
The replacement demand for the OTR tires is high from the earthmoving, material handling, and agricultural tires in the country, owing to the absence of OEMs. However, the abundant presence of retreading companies in the region is a critical aspect that attracts customers toward retreading, as OTR tires are expensive than retreading. Besides, the government is also promoting tire retreading to protect the environment & reduce costs in the acquisition of new tires which poses a challenge for the growth of Ecuador OTR tire market.
According to MarkNtel Advisors, the leading industry players in the Ecuador Off-The-Road (OTR) vehicle tire market are Bridgestone, Continental, Michelin, Goodyear, Pirelli, Yokohama, CST Tire etc. The Ecuador OTR tire market is dominated by Chinese players such as Maxam Tires, CST, Tecking, Advanced Tires, Triangle, etc., on account of the high inclination of the consumers towards OTR tires with low price.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Ecuador Off-The-Road (OTR) Vehicle Tire Market is forecast to grow at a CAGR of 2% during 2021-26
A. Bridgestone, Continental, Michelin, Goodyear, Pirelli, Yokohama, CST Tire are a few significant players in the Ecuador Off-The-Road (OTR) Vehicle Tire Market.
A. Earthmoving Equipment are projected 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 Ecuador OTR Tire Market.
A. The surging investments by the government is one of the prime factors augmenting the market growth.