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

Market Definition

Off-the-road (OTR) tires are large & durable tires with deep tread patterns designed for use on heavy-duty vehicles that provide better traction on unpaved surfaces like rocks, boulders, sand, dirt, snow, & mud. OTR tires are utilized extensively across different sectors like construction, mining, recreation, & agriculture, among others as they offer high heat & rolling resistance and superior durability. They come in many sizes and designs to suit different types of applications and vehicles such as dump trucks, loaders, bulldozers, and agricultural machinery.

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

The Nigeria Off the Road (OTR) Tire Market size is valued at around USD 70 million in 2024 and is projected to reach around USD 87 million by 2030. Along with this, the market is estimated to grow at a CAGR of around 3.8% during the forecast period i.e., 2025-30. Nigeria is located in West Africa and bordered by the Atlantic Ocean to the south. Being a coastal location, it facilitates international trade by lowering logistical costs and delays in shipping. Trade among countries needs transportation through the sandy beaches of Nigeria to load the goods on the ships utilizing heavy machinery, thereby boosting the industry for OTR tires. Also, these coastal regions are gradually attracting tourism to the country, elevating the demand for infrastructure developments like hotels, restaurants, and resorts. These construction projects necessitate heavy vehicles and equipment with specialized OTR tires for construction sites. Vehicles such as excavators, loaders, bulldozers, and road rollers require durable OTR to work in the diverse conditions of the construction sites.

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Additionally, the demand for OTR tires is driven by various government initiatives for the agriculture and farming sectors to elevate the economy. Agricultural equipment like Plows, Cultivators, Tractors, Harvesters, and Transport Trucks being used in the rugged field need specialized OTR tires.

Moreover, the evolving mining sector has driven demand for heavy-duty tires used in mining equipment. The government is taking a new look at the mining industry to diversify the economy. The government has been focusing on the environmental damage caused by old mining operations, and the illegal mining of gold by the Chinese. The growth in the mining sector also attracts various investors thus opening the doors for OTR Tire manufacturers and dealers. The construction sector empowered by government plans to build infrastructures to meet the rising population rate in the country thus driving the demand for the OTR tire in vehicles used for construction. Likewise, the IT sector necessitates infrastructure development for workplaces, roads, bridges, and residential buildings for working professionals. The infrastructure development ultimately enhances the demand for heavy vehicles and robust OTR tires. However, certain factors are impacting the Nigerian economy such as the floating of the Naira and the removal of fuel subsidies have caused high inflation in the region, and resulted in markets slowing down. Thus consumers are moving towards low-cost tire options from emerging Chinese manufacturers in the region. This has impacted the demand for OTR tires in the current times but the market is expected to recover in 2026.

Nigeria Off the Road (OTR) Tire Market Driver:

Growth of Agricultural Activities and Mechanization – The agriculture sector is a major driver of the Nigeria Off the Road (OTR) Tire Market. Nigeria's target is to reduce the dependency on imports of agricultural products, hence moving towards increasing agricultural productivity. The agriculture sector contributes approximately 22% of the total GDP of Nigeria growing by 1.13 %. This agricultural sector heavily relies on various vehicles and specialized OTR tires. The growing trend towards mechanization in Nigeria for farming purposes to enhance productivity and efficiency needs special vehicles. Vehicles that can operate in rugged terrains and under challenging conditions like Tractors, Harvesters, Plows, Cultivators, and Transport Trucks are required with specialized OTR tires. Specialized OTR tires will continue to be necessary to support the expansion and operational success of the agriculture industry. For instance,

• September 2024, The Minister of Finance and Coordinating Minister of the Economy, has announced to accelerate the implementation of the National Agricultural Growth Scheme – Agro-Pocket (NAGS-AP). The NAGS-AP initiative is designed to stimulate increased productivity and higher yields among farmers, ensuring a significant impact on food production and agricultural growth across the country.
• September 2024, The Ekiti State Ministry of Agricultural Development and Food Security and Hello Tractor have agreed on a strategic partnership to boost mechanized farming in Nigeria. It will empower smallholder farmers and lead to more efficiency in farming through mechanization like Tractors or harvesters with OTR tires.

Nigeria Off the Road (OTR) Tire Market Opportunity:

Rise in Construction Sector Driven by Government Projects – The construction sector in Nigeria is being driven by many Government initiatives like the National Integrated Infrastructure Master Plan. This plan is targeting to bring Nigeria’s infrastructure construction sector to contribute to the 70% of GDP level by 2043. The surge in construction will significantly increase the demand for robust vehicles and hence elevate the demand for OTR tires for the diverse conditions of construction sites. According to the World Bank report the population of Nigeria is increasing at the rate of 2.5 % per year and is expected to be 400 million people by 2050. For such a larger population, ranking sixth in Africa, Nigeria will need to invest 3 trillion dollars in infrastructure including roads, bridges, and also railway construction necessitating OTR tires.

Additionally, the government is also focusing on the improvement of roadways and railway infrastructure by repairing the old ones and adding new lines. The development in railways such as the Kano-Maradi Railway Line, Lagos-Ibadan, and Abuja-Kaduna rail lines, in Nigeria, amplify the demand for OTR tires in challenging terrains with heavy-duty machinery. The constantly developing infrastructure is creating lucrative growth opportunities in Nigeria's OTR tire market for companies to offer specialized OTR tires. For instances,

• In June 2024, The Government of South Korea pledged a total of $24 billion in development and trade assistance for the benefit of African nations including Nigeria. This was captured in a Joint Declaration from the 2024 Korea-Africa Summit held in Seoul, Korea.
• September 2023, The Nigerian Railway Corporation (NRC) has conducted a comprehensive inspection of the Lagos Rail Mass Transit (LRMT) Blue Line, a critical step towards securing a 3-year operational license for the electric rail system.

Nigeria Off the Road (OTR) Tire Market Challenge:

Increasing Inflation Rate of Nigeria – The inflation rate in Nigeria is increasing extremely recorded 34.02% in 2024. The inflation rate from June 2023 to June 2024 was raised by 11.40% points and 0.24% points in just one month from May 2024 to June 2024. The increasing inflation rate is a major obstacle for the Nigeria OTR Tire Market as it directly increases the tire production cost due to the rising price of raw materials. It turns to higher retail prices and as a result decrease in demand for the specialized OTR tires. Also, due to high inflation businesses and consumers are likely to lower their spending on infrastructure development, which reduces the need for OTR tire-based vehicles. The higher costs of raw materials can compress the profit margins of distributors and manufacturers, restricting them from investing in innovation or expansion. Additionally, the growth opportunity for start-up companies of OTR tires is hampered as no foreign investors are willing to enter the Nigerian market due to economic uncertainty. For instance,

• July 2023, according to the reports of The Guardian Nigeria many construction companies were struggling to maintain profitability due to increased operational costs. This situation forced some companies to reduce their fleet size, impacting demand in the tire market.

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

The Nigeria Off the Road (OTR) 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 Type of Vehicle:

• Earthmoving Equipment
  • Excavator
  • Loaders
  • Bulldozers
  • Graders
  • Road Roller
  • Others
• Agricultural Equipment
  • Tractors
  • Combined Harvester
  • Farm Trucks
  • Others
• Material Handling Equipment
  • Cranes
  • Forklifts
  • Others

In Nigeria's Off-the-Road (OTR) Tire Market agricultural equipment is the leading segment with more than 40% of the market share supported by the country's agricultural sector. More than 70% of Nigerians are engaged in the agriculture sector which comprises 70.8 million hectares of agricultural land area. The durable and reliable OTR tires are essential for agricultural equipment such as tractors, combined harvesters, and farm trucks for diverse terrains and heavy loads. As farmers are adopting mechanization to enhance productivity and efficiency, the demand for these tires is increasing. The Nigerian government is also encouraging agricultural sectors through various initiatives and schemes. The agricultural landscape of Nigeria continues to rise driven by government initiatives, and the demand for robust Road Tires is also expected to increase in the forecasted period.

Based on Sales Channel:

• Exclusive Stores
• Authorized Dealers or Distributors
• Online
• Others

The authorized dealers or distributors segment is dominating the Nigeria Off the Road (OTR) Tire Market. The segment holds approximately 50% market share of OTR tires in Nigeria. Authorized Dealers ensure the availability of a wide range of tires for construction, agricultural, and mining equipment machinery so that customers have easy access to buy from all the options. The dealers offer expert guidance, and after-sale support by making sure that the tire meets specific quality standards. They play an important role in connecting and sourcing tires from the manufacturer to the end-user and also support installation and maintenance. This segment is vital for ensuring that businesses have reliable access to high-quality tires, which are essential for the performance and safety of heavy vehicles in challenging environments.

Nigeria Off the Road (OTR) Tire Industry Recent Development:

• September 2024: Pirelli and Bosch have signed a joint development agreement. It aims at jointly creating new software-based solutions and driving functions. A sensor is integrated into tires, also known as in-tire sensors, this means greater control, comfort, and sustainability, as well as improved driving dynamics.
• July 2024: Goodyear Tire & Rubber Company announced that it signed a definitive agreement to sell its Off-the-Road ("OTR") tire business to The Yokohama Rubber Company, Limited for $905 million in cash. The transaction follows a previously announced strategic review of the OTR tire business in connection with the Goodyear Forward transformation plan.

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

1. Nigeria Off the Road (OTR) 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. Nigeria Off the Road (OTR) 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.

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