Off-the-Road (OTR) tires are manufactured mainly for heavy-duty vehicles for off-roading applications across the agriculture, mining, & construction sectors. The increase in disposable income & improving living standards of people, coupled with the increasing influx of tourists, have resulted in a myriad of construction activities across Latin America. As a result, there are continuous requirements for construction, mining, & industrial equipment & machinery across the region, and, consequently, for OTR tires, in order to enhance the efficiency & stability of these different types of equipment and provide them with traction on challenging terrains.
The Latin America Off-the-Road (OTR) Tire Market is projected to grow at a CAGR of around 2.02% during 2021-26. The growth of the market is driven primarily by the surging sales of off-highway vehicles and the mounting demand for agricultural, construction, & mining equipment owing to increasing infrastructure developments & mine exploration activities across Latin America.
In addition, the soaring utilization of automation & advanced technologies in OTR tires for purposes like monitoring tire pressure & temperature and preemptively addressing & resolving any potential risks using real-time data is also driving the market.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Countries Covered||Mexico, Brazil, Argentina, Chile, Peru, Ecuador, Colombia, Guatemala, Costa Rica, Uruguay, Paraguay, Bolivia, Others|
|Key Companies Profiled||
Bridgestone, Goodyear, Michelin, Continental, Triangle, Titan, CEAT, Balkrishna Tires, Zhongce Rubber, Yokohama
|Unit Denominations||USD Million/Billion|
Moreover, the increasing sales of automated machinery for several industrial processes, the rising focus on farm mechanization, and the increasing demand for OTR tractors in the agriculture sector are other crucial aspects projected to augment the overall market growth in the coming years.
Impact of Covid-19 on the Latin America Off-the-Road (OTR) Tire Market
The advent of Covid-19 severely impacted most businesses across Latin America in 2020, where the Off-the-Road Tire Market was no exception due to the imposition of lockdown & stringent movement restrictions across different countries, which negatively impacted the automotive & tire industries in the region.
The declining demand for OTR tires across Latin America in 2020 is attributed to disruptions in the raw material supply, limited imports & exports, and a halt in several mining & construction activities to avoid physical contact with the workers & curb the spread of the coronavirus.
The sudden shutdown of revenue-generating industries led to almost negligible demand for tires. Moreover, the leading companies operating in the market had to reduce their production & lay off some jobs, which, in turn, hampered the overall market growth amidst the crisis.
Based on Type of Vehicle:
Amongst these three, the earthmoving equipment captured a significant market share in the Latin America Off-the-Road Tire Market in the previous few years. It owes to the burgeoning demand for excavators, loaders, & dumpers, among others, for excavating, grading rock & soil, etc., on account of rapidly increasing mining & construction activities across the region. Moreover, various initiatives by governments of different regional countries toward attracting more Greenfield investments are also driving the demand for earthmoving equipment tires.
Numerous ongoing & upcoming industrial developments are leading quarrying & demolishing activities across the region, owing to which a steadily surging demand for earthmoving equipment is likely in the coming years. Besides, equipment rental services are also gaining immense traction across the region, for which small & medium-sized enterprises are the largest consumers, thereby contributing to the overall market growth of earthmoving equipment tires among cost-sensitive end-users.
Based on End-Users:
Amongst all end-users, the construction & mining sectors of Mexico & Brazil, respectively, hold a considerable share in the Latin America Off-the-Road Tire Market. The rapidly increasing infrastructural developments and massive investments in mining exploration projects are propelling the demand for OTR tires and, in turn, driving the market across these sectors.
Since Brazil is a prominent producer of various minerals like iron ore, tin, copper, pyrochlore, bauxite, granite, etc., it is massively investing in several mining projects. Due to this, the demand for robust mining equipment, such as Excavators, Loaders, Bulldozers, Road Rollers, Graders, etc., is burgeoning rapidly in the country, which, in turn, is augmenting the sales of OTR tires.
On the other hand, various construction projects in line with Public-Private Partnerships are leading to the rapid sales of earthmoving equipment across the region. Since these types of equipment require timely maintenance, which leads to tire repair & replacement, the demand for OTR tires in the construction sector shall witness a significant boost and create remunerative growth prospects for the overall market through 2026.
Geographically, the Latin America Off-the-Road (OTR) Tire Market expands across:
Of all countries across Latin America, Mexico is projected to contribute significantly to the growth of the OTR Tire Market during 2021-26. It attributes primarily to the expanding fleet size and the significantly rising need for agriculture, construction, & mining equipment for various ongoing construction & mining activities.
Mexico is an import-dependent industry with an absence of OEMs. The country's construction & mining sectors have witnessed steady growth in the past few years. In the coming years, some notable mining projects likely to fuel the demand for OTR tires in Mexico include; Juanicipio for Silver & Gold in Zacatecas state, Buenavista Zinc project, and Sonora project for Lithium mining.
Moreover, the agricultural sector is also contributing to the increasing sales of OTR tires in Mexico. Through the Mexican Ministry of Agriculture, Livestock, Rural Development, Fishing & Food (SAGARPA), the Mexican government provides subsidies to various individuals & companies under agricultural support programs to upkeep production & modernize the sector. Due to this, there's a continuous requirement for new agriculture equipment, which, in turn, fuels the demand for OTR tires, too. Hence, all these aspects, all together, are driving the OTR Tire Market in Mexico.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Latin America Off-the-Road (OTR) Tire Market is projected to witness around 2.02% CAGR during 2021-26.
A. The increasing construction & mining activities, i.e., leading to the mounting demand for different heavy vehicles like excavators, loaders, bulldozers, etc., is likely to drive the Latin America Off-the-Road (OTR) Tire Market during 2021-26.
A. The construction & mining sectors are anticipated to emerge as an opportunity area for the leading players in the Latin America Off-the-Road (OTR) Tire Market over the forecast years.