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 “Paraguay Off-The- Road (OTR) Vehicle Tire Market” is likely to grow at a CAGR of around 3% during the forecast period i.e. 2021-26, says MarkNtel Advisors. The market growth primarily attributes to positive influence of agriculture sector on the economy as the sector has a significant contribution to it. This is due to the high production of soybean in the country coupled with the surging export of soybean and other grains. However, the Paraguay economy witnessed a slump due to heavy floods and harsh weather conditions that severely affected the agriculture, livestock, and construction sectors in 2019. This, further reduced the demand for excavators, loaders, bulldozers, and agricultural equipment in the country, thus, impacting the sales of OTR tires as well.
The research report, "Paraguay 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, Shandong Linglong Tire|
|Unit Denominations||USD Million/Billion|
COVID-19 Pandemic Positively Impacted the Market Growth
In 2020, the outbreak of the Coronavirus pandemic impacted different sectors, majorly those, which already had stagnant growth for the past few years due to recession and political instability. Besides, the agricultural sector got affected to a lesser extent since the flood that came in 2019 gave a fruitful agriculture harvest in 2020 and a relatively strengthened livestock situation. In addition, the industrial sector felt a medium impact due to the presence of local & international logistical problems, limited traffic, and a halt in several activities.
Agriculture Equipment to Hold a Dominating Share
Based on the Type of Equipment, agricultural equipment acquired around 70% market share in the Paraguay OTR Tire Market during 2016-2020. It is mainly owing to the favorable climate conditions throughout the year in the country that helped in the generation of high yield and extensive export opportunities for soybean, grains, and other products in Paraguay. In 2017, the agriculture growth expanded by 5% due to the economic stability in Paraguay.
However, at the end of 2018 and 2019, the country faced worse weather conditions & economic slowdown, and a few months later, floods. The condition improved in 2020 due to favorable weather condition along with the high production of soybean. Hence, this resulted in a considerable demand for agricultural tires thereby likely to surge the market share of agricultural equipment, cites MarkNtel Advisors’ in their research report “Paraguay Off-The-Road (OTR) Vehicle Tire Market Analysis, 2021”.
Infrastructure Development to Generate OTR Tire’s Demand from Construction Sector
The construction industry held a considerable market share in the Paraguay OTR Tire market during 2016-2020 on account of the Public Private Partnership (PPP) contracts that aim to boost the portion of private capital assigned to infrastructure projects in Paraguay. In addition, around USD 342 million Foreign Direct Investment was attracted by the industrial & construction sectors in 2019 for the country’s infrastructure development and USD 4.6 billion was spent in 2020 to strengthen the economy amidst the COVID-19 in Paraguay. This has contributed to the growth of the OTR tire market during 20016-2020.
Positive Industrial Growth to Boost the Market
The agriculture sector plays a vital role in the economy of Paraguay, where the country is the world’s largest exporter of organic sugar, second-largest producer and exporter of stevia, and sixth-largest soy exporter. In order to improve the agricultural production in the country, the farmers are gradually shifting towards the adoption of advanced production practices which include farm equipment as well. The import of tractors increased from 994 in 2016 to 1,357 in 2019. However, due to the advent of COVID-19, the import of tractors reduced to 1,006. Hence, this is also anticipated to positively impact the demand for agricultural tires in the years to come, thereby, contributing to the growth of OTR tires market in Paraguay.
The political instability in the country over the past few years has slowed down the overall economic growth. The corruption and slow implementation of land reform policies by the government have been key grievances behind the most disruptive protests in recent years, which, in turn, has also affected the OTR Tire Market.
According to MarkNtel Advisors, the leading industry players in the Paraguay Off-The-Road (OTR) vehicle tire market are Bridgestone, Continental, Michelin, Goodyear, Pirelli, Yokohama, Shandong Linglong Tire, etc. Furthermore, there is a significant presence of Chinese players such as Shandong Linglong Tire, Triangle, etc., in the market due to the high preference of the consumers towards low priced tires.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Paraguay Off-The-Road (OTR) Vehicle Tire Market is forecast to grow at a CAGR of 3% during 2021-26
A. Bridgestone, Continental, Michelin, Goodyear, Pirelli, Yokohama, Shandong Linglong Tire are a few leading players in the Paraguay Off-The-Road (OTR) Vehicle Tire Market.
A. Agricultural Equipment are likely 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 Paraguay OTR Tire Market.
A. The surging Investment in tourism industry is one of the prime factors augmenting the market growth.