Off-the-Road (OTR) Tire also known as Mud-Terrain Tires & All-Terrain Tires. The structure of these tires is typically more rigid and robust as compared to street tires. The tread blocks of these tires are aggressive-looking, designed to grip firmly on terrains with sand, mud, and rocks. Unlike others, these tires use a softer rubber, which offers a better grip on rough surfaces.
The “Uruguay Off-the-Road (OTR) Tire Market” is projected to grow at a CAGR of around 5.11% during the forecast period i.e. 2021-26, says MarkNtel Advisors. The Uruguay OTR Tire Market witnessed snowballing growth owing to increasing agriculture & construction activities, particularly in industrial, residential, & commercial sectors. The introduction of the Public-Private Partnership (PPP) model to deliver new construction projects, increasing government focus on building extensive road infrastructure, and soaring spending on the power sector, water & sanitation, etc., are further anticipated to place a lucrative opportunity for the growth of OTR tire market in the coming five years.
The research report, “Uruguay Off-the-Road (OTR) Tire Market Analysis, 2021,” depicts a deep-dive market analysis of market statistics, which mainly consists of region-wise 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, MAXAM tires, Techking Tires Ltd., Balkrishna Industries Limited (BKT), Continental AG, Fabrica Uruguaya de Neumaticos S.A. (FUNSA), Triangle, Others|
|Unit Denominations||USD Million/Billion|
COVID-19 Pandemic Impact on the Market Growth
The mobility restrictions caused due to the COVID-19 led to a sudden halt in construction activities in Uruguay throughout 2020. The turbulence in the country’s supply chain caused by the import restrictions during 2020 had negatively impacted the OTR tire sales in Uruguay.
Since Uruguay is an import-driven market for OTR tires, it saw a decline in demand for earthmoving & material handling tires because of the sluggish construction activities and the impact on the trading through seaports and cross-country borders. This, in turn, led to the decreasing sales of Off-Road Tires used in earthmoving & material handling equipment.
Agriculture segment Dominated the market
Based on the Equipment Type, Agriculture equipment tires dominated the Uruguay OTR Tire Market by acquiring more than 50% share in the last year and are anticipated to do so in the forthcoming years. This is due to the increasing agricultural exports to its neighboring countries entwined with the modernization of agriculture methods across the country.
During the COVID-19 pandemic, agriculture was the least affected sector in Uruguay. The government initiatives like Climate-Smart Agriculture and National Adaptation Plans (NAP-Ag) that aim to boost the production & export of various agricultural products in Uruguay are projected to escalate the demand for OTR tires used in agriculture equipment, cites MarkNtel Advisors’ in their research report “Uruguay Off-the-Road (OTR) Tire Market Analysis, 2021”.
Bias tire Accounted for the Significant Market Share
Based on the type of tire, the Bias tire segment accounted for around 40% market share in the Uruguay OTR tire market. The growth attributes to their extensive application in agricultural equipment, such as tractors, seeders, combines, etc. These tires are cheaper than radial tires, have high load capacity, extra layers that protect against damage, and are easy to repair. Moreover, the country lags in the advancement of tire technology, and thus the majority of applications consider bias tires due to affordability.
Strong Agriculture Sector.
The strong agriculture sector of Uruguay has contributed significantly to the growing demand for agriculture tires, which are used mainly in tractors, seeders, combines, fertilizer spreaders, etc., imported from Brazil, the US, Uruguay, and China. Agriculture makes up about 6% of Uruguay's GDP, which comprises roughly 80% of exports and plays a leading role in Uruguay’s economy. As of 2019, Uruguay was the world’s 6th largest soy exporter and 10th largest rice exporter. This growing agriculture sector of Uruguay, energized by significant investments in forestry, is expected to boost the agriculture activities in the country, which, in turn, would stimulate the demand for agro tires.
Underdeveloped Distribution Channels Across the Country
Uruguay has an underdeveloped sales & distribution channel network that makes it harder for tires to reach some parts across the country. There is a lack of online platforms to sell OTR tires in the country, due to which a small percentage of customers is lost. At the same time, weak local distribution partners’ networks across the country also hindered the extensive accessibility of OTR tires.
According to MarkNtel Advisors, the major leading players in the Uruguay Off-the-Road (OTR) Tire market are Bridgestone, MAXAM Tires, The Goodyear Tire & Rubber Company, Continental AG, Techking Tires, Double Coin Holdings, Balkrishna Industries Limited (BKT), Fabrica Uruguaya de Neumaticos S.A. (FUNSA), Sailun Latin America Group, Oriente Triangle Latin America, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The Uruguay Off-the-Road (OTR) Tire Market is forecast to grow at a CAGR of 5.11% during 2021-26.
A. Bridgestone, MAXAM Tires, The Goodyear Tire & Rubber Company, Continental AG, Techking Tires, Double Coin Holdings, Balkrishna Industries Limited (BKT), Fabrica Uruguaya de Neumaticos S.A. (FUNSA), Sailun Latin America Group, Oriente Triangle Latin America, etc., are a few of the leading players in the Uruguay Off-the-Road (OTR) Tire Market.
A. Agriculture segment is anticipated to attain the highest CAGR during the forecast period and maintain its significant market share.
A. Radial tire continues to grow at the highest CAGR during 2021-26, thereby presenting immense opportunities to market players of the Uruguay Off-the-Road (OTR) Tire Market.
A. The rising government investment in infrastructure development, soaring growth in the mining industry, and modernization in Uruguay’s agricultural techniques & methods are the major factors fueling the market growth.