Unlike normal tires, Off-the-Road (OTR) tires have deep tread patterns that provide better traction on unpaved surfaces like rocks, boulders, sand, dirt, snow, & mud. These tires comprise broader grooves between tread blocks and reinforced sidewalls, which provide higher puncture resistance. With high heat & rolling resistance and superior durability, OTR tires are utilized extensively across different sectors like construction, mining, recreation, & agriculture, among others.
The Global Off-the-Road (OTR) Tire Market is projected to grow at a CAGR of around 4.8% during the forecast period, i.e., 2022-27. Most of the market expansion is driven by the expanding fleet size of heavy-duty vehicles, especially construction & material handling equipment, across the agriculture, building & construction, and mining industries.
With increasing infrastructural developments & construction activities associated with bridges, highways, ports, dams, power plants, etc., the construction industry is rapidly expanding worldwide, i.e., generating a constant demand for heavy equipment and, consequently, for OTR tires, in order to attain excellent traction on challenging road conditions at these project sites.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: USA, Canada, Mexico|
|Europe: Turkey, United Kingdom, Germany, Italy, France, Poland, Ukraine, Hungary, Spain, Sweden, Russia|
|Asia-Pacific: China, India, Japan, South Korea, Australia, Malaysia, Philippines, Thailand, Singapore, New-Zealand, Indonesia|
|South America: Brazil, Argentina, Chile, Colombia, Cuba|
|Middle East & Africa: Saudi Arabia, UAE, Iran, South Africa, Algeria, Morocco, Nigeria, Ethiopia, Sudan, Somalia|
|Key Companies Profiled||Yokohama Rubber Co., Goodyear Tire and Rubber Company, Apollo Tyres Ltd., Bridgestone Corporation, Prometeon Tyres Group S.R.L, China National Tyre and Rubber, Michelin, Hankook Tyre Co. Ltd., Toyo, Continental, Balkrishna Industries Limited, Triangle|
|Unit Denominations||USD Million/Billion|
Moreover, the mining sector, especially across the Middle East, is also flourishing at a significant pace and contributing to the off-the-road tire market growth owing to increasing oil exploration activities that require mining equipment, which, consequently, is infusing the demand for OTR tires. Furthermore, the increasing trend of automation in several industries, the proliferating farm mechanization, and growing consumer inclination toward recreational activities on dirt bikes & quads are other prominent aspects predicted to boost the off-the-road tire industry over the forecast years.
Covid-19 Impact on the Global Off-the-Road (OTR) Tire Market
The advent of Covid-19 caused significant disruptions to several industries worldwide, and the Off-the-Road (OTR) Tire Market was no exception. With the lockdown imposition by governments worldwide to control the crisis, all business operations & construction activities came to a standstill position.
Reverse labor migration in Asia-Pacific & the Middle East and improper logistics support to construction equipment across North America, Europe, etc., were some after-effects of the pandemic that disrupted the construction industry and, in turn, hampered the demand for OTR tires. Further, the downward spiral of crude oil prices and supply glut also choked the construction activities across several economies, especially in the Middle East & Africa, which eventually negatively impacted the production & sales of OTR tires.
Based on Type of Equipment:
Of these three, Agricultural Equipment acquired the largest share in the Global Off-the-Road (OTR) Tire Market in the previous years, mainly due to a rising number of medium-sized farms and the shifting end-user preferences toward using advanced farm equipment to perform various agricultural activities efficiently.
In addition, the rapidly growing population worldwide and, consequently, accelerating requirements for higher crop yield are also propelling the off-the-road tire market growth for agricultural equipment. Moreover, various government initiatives to nourish the farming ecosystem are infusing the need for more advanced & specially designed vehicles such as Utility Terrain Vehicles (UTVs) for different agricultural purposes and, in turn, OTR tires for them, thereby fueling the overall market expansion. For instance:
Based on Demand Type:
Here, the aftermarket acquired a larger market share than OEMs. OTR tires have a relatively shorter life span than normal ones. Hence, the heavy usage of equipment used in the construction, agricultural, & mining industries results in frequent replacement of tires, thereby surging aftermarket sales of OTR tires. Moreover, the rapid rise in the number of aftermarket tire dealers across different regions worldwide is another prominent aspect contributing to the increasing sales of aftermarket OTR tires.
Of all regions globally, Asia-Pacific is projected to acquire a noteworthy share in the Off-the-Road (OTR) Tire Market during 2022-27, owing to the rapidly expanding automotive industry and massive investments in the road & other infrastructure developments, especially across India & China.
Additionally, the rising number of construction activities, booming farm mechanization rate, and the swiftly growing mining industry with massive investments in oil exploration activities across these countries are creating immense demand for heavy-duty vehicles and, in turn, OTR tires.
Moreover, the mounting demand for farm equipment in India with agricultural expansion & intensification and significantly growing industrial businesses in the country are other prominent aspects that project lucrative prospects for the Asia-Pacific Off-the-Road (OTR) Tire Market in the years ahead.
Key Driver: Rapidly Expanding Construction & Mining Sectors Worldwide
With urbanization, various emerging countries are witnessing increasing infrastructure developments like the expansion of transportation networks, massive investments in building roads, bridges, & tunnels, improved supply chain networks for enhanced trade, surging construction activities across commercial & residential sectors, and a rise in manufacturing industries.
Moreover, the mining sector is also growing at a notable pace owing to soaring oil exploration activities & increased government funding. Due to increasing labor costs, there's a dire need for increased productivity & optimum usage of all resources and, in turn, burgeoning production of construction & mining equipment globally. Hence, the growing requirements for heavy equipment across these sectors are leading to the increased production & sales of their tires, i.e., driving the Global Off-the-Road (OTR) Tire Market.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Off-the-Road (OTR) Tire Market is expected to record around 4.8% CAGR during 2022-27.
A. The increasing production of various types of heavy equipment for the rapidly expanding construction, mining, and agricultural sectors worldwide would drive the Global Off-the-Road (OTR) Tire Market during 2022-27.
A. Agricultural Equipment would create remunerative prospects for the key companies in the Global Off-the-Road (OTR) Tire Market during 2022-27.
A. Asia-Pacific is expected to emerge as a promising region for the Global Off-the-Road (OTR) Tire Market to witness profitable opportunities in the years ahead.