Off-the Road [OTR] Tire Market
Off-the Road [OTR] Tire Market (Tire Type: Radial, Bias, and Solid; Industry Type: Construction & Mining, Agriculture Tractor, and Industrial; Rim Size: <25”, 29-49”, and 51-63”; and Sales Channel: OEM and Aftermarket) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020-2030
Press Release :
Tire Prices Shrink as Production Volume Compresses amid Coronavirus Pandemic
The general market weakness due to the coronavirus crisis is being experienced globally. As manufacturers in the off-the-road (OTR) tire market currently have high inventories, they are expecting business operations to return to normal to mitigate supply and demand issues. Analysts at the Transparency Market Research (TMR) opine that the demand is estimated to ramp up, as the economy is stabilizing. As such, different market conditions pose as hurdles for manufacturers, as they scramble to strengthen their wholesale network and contingency plans.
The reduced vehicle production has compelled manufacturers in the off-the-road (OTR) tire market to negotiate their tire prices. Innovative payment and credit offers on vehicles are anticipated to pump revenue back in the automotive business. Agriculture sector is creating stable revenue streams for tire dealers.
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Bias Tires Pose Stiff Competition to Sales of Radial tires
Radial tires have more advantages as compared to its disadvantages. However, radial tires are more difficult and complicated to repair as compared to other types of tires. Moreover, bias tires pose a stiff competition to radial tires, and the former is predicted to dominate the revenue as compared to all tire types in the off-the-road (OTR) tire market.
On the other hand, repurposing radial tires is boosting the credibility of manufacturers in the off-the-road (OTR) tire market such as Bridgestone Americas’ Aiken Plant, which converts used tires into giant watering troughs for livestock. Manufacturers are increasing the availability of low-pressure tires meant for high-powered row crop applications.
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Innovations in Harvester, Tractor Tires Create Revenue Opportunities for Companies
Since agriculture is predicted to dictate the highest revenue among all industrial types in the off-the-road (OTR) tire market, manufacturers are expanding their portfolio in this sector. Michelin introduced harvester and floater tires among others, which help to maximize harvests.
Stakeholders in the off-the-road (OTR) tire market are boosting their output capacities in high performance radial tires that offer long service life and exceptional year round traction. They are increasing R&D muscle to incorporate strong and flexible sidewalls and self-cleaning hinges for optimized pulling power. In addition, manufacturers are innovating in harvester tires that deliver less pressure for less soil compaction.
Airless Radial Tires Help Eliminate Downtime, Complex Mounting in Construction
The off-the-road (OTR) tire market is projected to surpass the revenue of US$ 10.6 Bn by the end of 2030. Manufacturers are innovating in all terrain and all position radial tires to broaden their revenue streams. After agriculture, the construction industry holds promising potentials for the growth of the off-the-road (OTR) tire market. The breakthrough airless technology in radial tires for construction is eliminating the need for complex mounting equipment.
Airless radial tires are transforming the construction sector, since they omit the need for maintaining air pressure and reduce downtime during operations. These tires mimic the properties of pneumatic tires by eliminating issues of a flat tire. Companies are increasing their production for all terrain airless radial tires that provide hard surface traction.
Special Compounded Designs in Tires for Mining Benefit for Extreme Underground Services
Among tough competition in the off-the-road (OTR) tire market, the U.S. tire and rubber company Firestone is expanding its portfolio in agriculture and off road tires. Tires for the mining industry involve bias tires specifically designed for underground mining operations to deploy exceptional cut resistance and impact protection. Manufacturers are developing bias tires that are being used in extreme service shuttle trucks and LHD (load haul dump) applications.
Super heavy-duty plain tread designs are being incorporated in off road tires for mining applications that are capable of delivering resilient underground service. Special compounded designs in tires improve tread life of tires. Noise treated tractor and commercial vehicle tires are storming the off-the-road (OTR) tire market. Large footprints in tires help to reduce soil compaction.
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Though the coronavirus pandemic has not caused a significant impact on the tire industry, manufacturers remain optimistic as governments allocate heavy budgets for agricultural and other industrial sectors. The global off-the-road (OTR) tire market is slated to register a sluggish CAGR of ~3% during the forecast period. Though radial tires offer better fuel efficiency than bias tires, they are prone to disadvantages such as poor transport handling and increased vulnerability to abuse. Hence, companies should innovate in airless radial tires that help to reduce downtime and eliminate issues of complex mounting. Bias tires gain prominence in underground mining operations to deploy exceptional impact resistance.
Off-the-Road (OTR) Tire Market: Overview
- The global off-the-road (OTR) tire market is anticipated to expand at a CAGR of ~3% during the forecast period, owing to increase in construction and infrastructure development across the globe. Rising demand for industrial products is boosting the development of new industries. Moreover, expansion of existing industries is propelling the market for construction equipment.
- Expansion of industries is propelling the demand for minerals and metals, which are extracted from their ores. This is boosting the mining industry, which requires mining equipment such as shovels, loaders, haul trucks, and draglines, which, in turn, is likely to increase the demand for off-the-road tires across the globe.
Drivers of Off-the Road (OTR) Tire Market
- Rise in medium-sized farmers across globe is fueling the demand for agricultural equipment, which is fueling the demand for agriculture tires across the globe. Increase in industrialization across the globe has boosted transportation activities. Intercity transport activities, including B2B and B2C trade are growing, which drives the demand for compact and fast transport vehicles to effectively navigate around cities. This is propelling the global off-the-road (OTR) tire market.
- Growing population and rising consumer income across the globe are likely to shift agriculture sector toward mechanization, which is likely to boost the off-the-road (OTR) tire market across the globe. Rising technological development in tires, including connected tires and TreadStat rim management system, which provides information before the breakdown of the vehicle. This is anticipated to propel the off-the-road (OTR) tire market across the globe.
Challenges for Off-the-Road (OTR) Tire Market
- The COVID-19 pandemic has caused a majority of businesses across the globe to crumble, owing to forced shutdown of production and manufacturing activities. This has led the global economy to contract to its lowest growth rate. Majority of businesses in every industry are codependent and are a part of major supply chain in the market. Disruption in supply chain attributing to stoppage of transportation and shipping services, and reduced demand for vehicles across the globe is likely to cause the global automotive industry to contract in Q1 and Q2 of 2020.
- Raw material prices usually represent 35% of the tire cost. Thus, volatility in raw material prices severely affect the costing of the bias tire. Prices of raw materials, such as natural rubber and synthetic rubber, fluctuate due to shortage of natural rubber cultivation or rise in Brent crude price.
Segmentation of Off-the-Road (OTR) Tire Market
- The global off-the-road (OTR) tire market has been segmented based on tire type, industry type, rim size, sales channel, and region
- Based on tire type, the bias tire segment dominated the global off-the-road (OTR) tire market. Bias tires provide smoother ride on rough surfaces, as compared to radial tires. Additionally, bias tires are less expensive as compared to other radial tires. Followed by the bias tire segment, the radial tire segment also held a significant share of the off-the-road (OTR) tire market.
- Based on industry type, the agriculture segment held a major share of the global off-the-road (OTR) tire market. Rise in demand for agriculture tractors across the globe is likely to increase the demand for OTR tires, as they possess high load carrying capacity, which, in turn, is likely to propel the off-the-road (OTR) tire market across the globe.
Off-the-Road (OTR) Tire Market: Regional Analysis
- Based on region, the global off-the-road (OTR) tire market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Europe and Asia Pacific are projected to be highly lucrative markets during the forecast period. Rapid expansion of manufacturing industries across Asia Pacific is anticipated to propel the off-the-road (OTR) tire market across the region. Increase in government investment in construction activities is likely to increase the demand for construction vehicles, which, in turn, is likely to fuel the off-the-road (OTR) tire market across Asia Pacific and Europe.
Off-the-Road (OTR) Tire Market: Competition Landscape
- Key players operating in the global off-the-road (OTR) tire market include
- Bridgestone Corporation MICHELIN
- The Goodyear Tire & Rubber Company
- Continental AG
- YOKOHAMA Rubber CO. Ltd.
- Sumitomo Tires
- Apollo Tyres Ltd.
- Nokian Tyres
- China Rubber Tire & Rubber Co. Ltd
- Prometeon Tyre Group S.R.L.
- BKT Tire
- Qingdao Rhino Tyre Co., Ltd.
- International, Inc.
- Trelleborg AB
- Triangle Group Co. Ltd
- Key players operating at the global level are expanding their footprint by engaging in mergers and acquisitions with several players in the industry. In 2019, Apollo Tyres launched a new bias tire series, called nGR. These new tires are fuel-efficient and can lower fuel consumption by 5% to 10% and offer 25% lower rolling resistance as compared to that offered by the standard product. The recent launch of the new fuel-efficient tires is in light of the new BS-VI norm adopted in India, wherein the company is updating not only its bias tires but also the PCR tires. In 2019, MICHELIN acquired PT Multistrada Arah Sarana TBK, a bias tire manufacturer based in Indonesia. Multistrada has an annual production capacity of 250,000 truck tires, and manufactures passenger and two-wheeler tires. The acquisition of Multistrada is projected to strengthen the market reach of MICHLEIN in ASEAN countries.
Off-The-Road (OTR) Tire Market – Scope of the Report
Transparency Market Research’s recent report on the off-the-road (OTR) tire market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the off-the-road (OTR) tire market analyzes the scenario for the period of 2019 to 2030, wherein, 2019 is the base year and 2018 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of Information enclosed in the study.
This TMR study on the off-the-road (OTR) tire market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the off-the-road (OTR) tire market gives readers an individual understanding of the market.
This study also discusses the underlying trends and impact of various factors that are driving the off-the-road (OTR) tire market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the off-the-road (OTR) tire market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.
Key Questions Answered in This Report on Off-The-Road (OTR) Tire Market
- How much value will the off-the-road (OTR) tire market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2030?
- What are the impact factors and there effects on the market for off-the-road (OTR) tire market?
- What regions currently contribute the maximum share to the overall off-the-road (OTR) tire market?
- What are the indicators expected to drive the off-the-road (OTR) tire market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies by key stakeholders in the off-the-road (OTR) tire market to expand their geographic presence?
- What are the major advancements witnessed in the off-the-road (OTR) tire market?
- How regulatory norms affected the market for off-the-road (OTR) tire market?
This report answers these questions and more about the off-the-road (OTR) tire market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
Off-The-Road (OTR) Tire Market: Research Methodology
This TMR report on the off-the-road (OTR) tire market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the off-the-road (OTR) tire market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by the key players, researchers of the off-the-road (OTR) tire market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the off-the-road (OTR) tire market, with both a bottom-up and top-down approach.
This detailed assessment of the off-the-road (OTR) tire market, along with an overview of the landscape is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the off-the-road (OTR) tire market is estimated to expand are based on carefully vetted primary and secondary sources.
Off-The-Road (OTR) Tire Market – Segmentation
This report on the off-the-road (OTR) tire market provides information on the basis of tire type, industrial type, rim size, sales channel, and region.