North America Off the Road (OTR) Tire Market Research Report: Forecast (2022-27)
Market Definition
The automotive & tire sectors across North America are vast & rapidly expanding. Several countries across the region are showcasing a swift acceleration in the vehicle fleet and thus positively influencing the demand for tires. Moreover, with the extensive presence of prominent automakers & tire manufacturers, the region is anticipated to generate lucrative prospects for the tire industry in the coming years.
Market Insights
The North America Off the Road (OTR) Tire Market is projected to grow at a CAGR of around 6.42% during the forecast period, i.e., 2022-27. The growth of the market is driven primarily by the increasing government focus on infrastructural developments, i.e., displaying a swift escalation in the number of housing facilities & industries, along with the construction of roads, railways, & airports, among others. It, in turn, is augmenting the need for heavy commercial vehicles and fueling the sales of OTR tires. Besides, various ongoing & upcoming construction projects, i.e., leading to the deployment of cranes, bulldozers, etc., is another aspect infusing the demand for OTR tires and driving the market.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) | 6.42% |
| Country Covered | The United States, Canada, Mexico |
| Key Companies Profiled |
Michelin, Goodyear, Bridgestone, Continental, Zhongce Rubber, Kumho, Toyo, Yokohama, Trelleborg, Triangle Group |
| Unit Denominations | USD Million/Billion |
In addition, the region is also undergoing increasing mining activities and propelling the need for fully mechanized equipment to attain operational efficiency. The same aspect is boosting the demand for OTR tires & generating growth opportunities for the leading tire manufacturers to expand their production in the years to come.
Moreover, the growing consumer inclination toward buying dirt bikes & sports vehicles for recreational purposes is also contributing to the rapidly growing tire industry. Nevertheless, technological advancements in tires like the integration of sensors for monitoring their condition and minimizing the possibilities of accidents further project remunerative prospects for the North America Off the Road (OTR) Tire Market in the coming years.
Impact of Covid-19 on the North America Off the Road (OTR) Tire Market
The emergence of Covid-19 in 2020 severely affected various industries across North America and introduced several unprecedented challenges for the leading players in the Off the Road (OTR) Tire Market. Lockdowns and trade & movement restrictions led to the suspension of all business operations associated with the tire industry. As a result, tire manufacturers faced significant revenue losses owing to raw material shortages, supply chain disruptions, delivery & production delays, etc.
Regardless, with a gradual decline in the number of Covid-19 cases across North America, the upliftment of restrictions & recommencement of business operations enabled tire manufacturers to resume their production units to cater to the burgeoning end-user requirements across the region. Furthermore, in light of the pandemic, several tire manufacturers adopted digitalization to sell their products via e-commerce platforms and offer door-step delivery & installation of tires to their customers.
Market Segmentation
Based on the Type of Tire:
Of both, the demand for radial tires is anticipated to demonstrate the fastest growth in North America Off the Road (OTR) Tire Market during 2022-27. It attributes principally to the mounting awareness among vehicle owners about the benefits of these tires like lower fuel consumption, enhanced traction, grip, & stability, low rolling resistance, improved flotation, etc. Besides, since the region is undergoing several mining & construction activities, the demand for radial tires in OTR vehicles, owing to their high heat resistance and robust & cut-resistant treads, is rising rapidly to enhance the overall operational efficiency.
On the other hand, bias tires, with a considerably growing demand across North America, are anticipated to contribute significantly to the overall market growth through 2027, owing to their easy availability & affordability, coupled with their high load capacities.
Based on the Vehicle Type:
Here, agricultural vehicles acquired the largest market share in previous years, and the same trend is expected throughout 2027. It owes principally to the exponentially rising population, the growing influx of tourists & migrants, & their rising food consumption across the region, i.e., compelling farmers to increase crop yield and, in turn, putting immense pressure on the agriculture sector. Hence, the burgeoning demand for agricultural vehicles to reduce dependency on labor & speed up production is positively influencing the sales of OTR tires.
Besides, increasing government support in the form of massive investments in bringing automation & farm mechanization is also demonstrating swift escalation in the deployment of agriculture vehicles like tractors & combines harvesters and fueling the growth of the tire industry.
Country Landscape
Geographically, the North America Off the Road (OTR) Tire Market expands across:
Amongst them all, the US is anticipated to dominate the North America Off the Road Tire Market with the largest share during 2022-27. It owes to substantial investments by the US government in infrastructural developments across the country, i.e., portraying various ongoing & upcoming construction projects related to building smart cities, corporate offices, shopping malls, railway networks, airports, hotels, and restaurants, among others.
It, in turn, is leading to increasing requirements for heavy commercial vehicles for various construction activities and positively impacting the demand for OTR tires. Moreover, the extensive presence of the leading construction & agricultural equipment manufacturers, owing to which there's an immense fleet size of OTR vehicles, is another prominent aspect promoting the overall market expansion in the US.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The North America Off the Road (OTR) Tire Market is projected to grow at a CAGR of around 6.42% during 2022-27.
A. A swift escalation in the number of construction & mining activities across different regional countries, i.e., augmenting the demand for OTR vehicles, is the prime factor driving the North America Off the Road (OTR) Tire Market.
A. The growing adoption of sensor-based tires to monitor tire conditions and avoid the possibility of accidents is the key trend in the North America Off the Road (OTR) Tire Market.
A. Agriculture vehicles are anticipated to emerge as an area of remunerative opportunities for the leading players in the North America Off the Road (OTR) Tire Market over the forecast years.
