OTR Tire Market
OTR Tire Market (Industry Type: Construction & Mining (Excavators, Loaders, Dozers, Articulated Dump Trucks, Rigid Dump Trucks, Motor Scrappers, and Motor Graders), Agricultural (Tractors and Agricultural Equipment), and Industrial (Electric Rider Trucks, Electric Warehouse Trucks, and IC Trucks); Rim Size: <25’’, 29’’-49’’, and 51’’-63’’; Tire Type: Radial, Bias, and Solid; and Sales Channel: OEM and Aftermarket (Construction & Mining, Agricultural, and Industrial)) - Global Industry Analysis, Size, Share, Growth Trends, and Forecast, 2019 - 2027
Press Release :
Surge in Demand from Mining & Construction Sector to Aid Market Growth
Within the OTR tire market, innovations and research & development activities play an essential role. Companies in the current market landscape are increasingly focusing on the production of new OTR tires by deploying new manufacturing techniques, adapting evolving vehicle designs, and fulfilling the requirements of their customers. In addition, amidst the swelling environmental concerns, players involved in the OTR tire market are expected to develop sustainable tread compounds and new polymers using sustainable materials. OTR tire manufacturers are expected to expand their product offerings by launching new OTR tires with high load capacity and improved tread design.
Several OTR tire manufacturers are also expected to concentrate their resources toward addressing several challenges, out of which optimizing the design of the tire to improve its load capacity and durability will remain critical. Players in the OTR tire market are deploying advanced engineering solutions to improve the overall structure and features of tires. Tire pressure management systems, automated equipment, and monitoring tools are increasingly being installed in OTR tires particularly in the mining sector. While the adoption of OTR tires will remain the highest across the agriculture sector, the demand from other sectors, including mining, construction, and industrial is expected to grow at a steady pace during the forecast period. At the back of these factors, the global OTR tire market is expected to reach ~US$ 26 Bn by the end of 2027 and witness steady growth during the forecast period.
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Focus on Data Management and Tire Monitoring Gains Momentum
The OTR tire market landscape continues to evolve at a rapid pace. Apart from introducing new tire sizes and models, market participants are likely to introduce application-specific and customized OTR tires. Manufacturers in the OTR tire market are aligning their product development activities by taking into account several factors, including type of loads, terrain, required temperature, and operating conditions. Over the past 10 to 15 years, OTR tires are increasingly being used in construction and mining sectors. Within the mining space, there is a significant demand for robust equipment and tires that can withstand hostile and harsh conditions. The soaring demand for OTR tires from the construction & mining sector is expected to boost the prospects of the OTR tires market in the near future.
Moreover, over the past few years, monitoring systems linked with OTR tires are being deployed to measure a broad range of parameters such as lateral/vertical/longitudinal forces, cycle times, average speed, percent grade, and other information that can be used to optimize road construction and resolve tire operation issues, including heat buildup, belt-edge separations, and irregular wear. Companies are expected to continue investing resources in R&D of advanced tools. For instance, tire pressure measurement systems (TPMS) are being installed in OTR tires to enhance data management and tire monitoring. Participants in the current market for OTR tires are also expected to develop OTR tires using environment-friendly materials instead of conventional oil-based synthetics and natural rubber.
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Companies Likely to Launch New Tires for Different Applications
Participants in the current OTR tire market are expected to formulate growth strategies that are a blend of both expansion of the product portfolio and integration of new technologies. As applications of OTR tires continue to expand across different industries, OTR tire manufacturers are likely to launch new products that are ideal for these applications. In addition, manufacturers are also launching new OTR tires in different sizes that will improve road handling, maximize fuel savings, and offer added operational comfort. For instance, in May 2019, Michelin launched a new tractor tire that is specifically developed for heavy road applications. Companies are likely to continue rolling out new OTR tires that are durable and have applicability in the harshest of working environments. For instance, in October 2019, Maxam Tire North America Inc. announced the launch of three OTR tires for open pit mining applications.
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The global OTR tire market is expected to grow at a steady CAGR of ~4% during the forecast period. Some of the leading factors that are anticipated to influence market growth include soaring demand from different industrial verticals such as agricultural, industrial, and mining & construction. Market players should align their product development activities with modern-day industrial applications. Companies should also focus on the development of new OTR tires with improved design, load capacity, and quality. Manufacturers should focus on the production of new OTR tires made from sustainable materials to shrug off mounting environmental concerns.
OTR Tire Market: Overview
- The global OTR tire market is expected to expand at a growth rate of ~4% between 2019 and 2027, due to expansion of construction & mining, agriculture, and industrial sectors. Recovery of the global economy post financial crisis has led to spending on infrastructure and purchase of off-road vehicles for utilization in mining and construction industries.
- Industrial and agriculture sectors in developing countries are expanding significantly and adopting off-road vehicles in order to improve and boost productivity, which in turn is driving the demand for OTR tires
Drivers of OTR Tire Market
- Increasing population and demand for higher yield are driving the demand for tractors and agriculture equipment vehicles, thereby driving the demand for OTR tires. Increase in preference for using modern equipment for farming activities has boosted the adoption of tractors, which in turn is fueling the growth of the OTR tire market.
- Developing countries, such as China, India, Brazil, and Mexico, are investing considerably in construction, thus employing a high number of construction vehicles. This, in turn, is boosting the OTR tire market. In 2017, China invested around US$ 9 Bn in construction projects with 16 Central and European Countries as a part of “Belt and Road Initiative”. Initiation of bilateral agreements and development of intercontinental routes to improve trade are expected to drive the demand for construction vehicles, which in turn is anticipated to propel the OTR tire market.
- Advent of manufacturing facilities in developing countries is fueling the demand for industrial vehicles, such as warehouse forklifts and trucks, in these countries, thereby propelling the demand for OTR tires
Challenges for OTR Tire Market
- Rising commodity prices of natural rubber and demand-supply gap in the industry are challenges to the OTR tire market. Manufacturing of giant OTR tires (57’’- 63’’) requires significant capital investments, which is a key factor restraining the market.
OTR Tire Market Segmentation
- Based on industry type, the agriculture segment dominates the global OTR tire market. Rise in adoption of modern farming activities has led to an increase in the rate of adoption of agriculture tractors and equipment. Rise in affordability of tractors and income of farmers is driving the demand for OTR tires in the agriculture segment. Countries in Asia Pacific and Latin America are developing at a rapid pace and witnessing considerable development of infrastructure. Therefore, the construction & mining segment is estimated to gain market share by the end of the forecast period.
- In terms of tire type, the global OTR tire market has been segregated into radial, bias, and solid. The radial segment is expected to expand at a significant growth rate during the forecast period. Increase in adoption of radial tires witnessed in Asia Pacific and Latin America, where bias tires have a dominant position, is expected to boost the radial segment. Solid tires are widely utilized in industrial vehicles and witness high demand in Europe. Rising usage of forklifts in warehouses and facilities is expected to boost the demand for solid tires.
- Based on rim size, the global OTR tire market has been split into < 25’’, 29” – 49”, and 51’’-63’’. The less than 25’’ segment is expected to lead the global OTR tire market, in terms of volume, OTR tires of rim size less than 25’’ are primarily used in construction & mining and industrial vehicles. The less than 25’’ segment is expected to dominate the market and is likely to expand at a significant pace during the forecast period. Demand for giant OTR (51’’-63’’) tires is expected to rise owing to the initiation of large construction and mining projects.
- In terms of sales channel, the global OTR tire market has been divided into OEM and aftermarket. The aftermarket segment is expected to lead the global OTR tire market due to the requirement of periodic replacement of OTR tires.
OTR Tire Market: Regional Analysis
- In terms of region, Asia Pacific led the global OTR tire market due to the significant usage of agriculture tractors and equipment in the region. China & India accounts for highest number for operational tractors globally and thus the region contributes to high OTR tire demand.
OTR Tire Market: Competition Landscape
- Key players operating in the global OTR tire market include
- Bridgestone Corporation,
- Continental AG,
- Yokohoma Tire Corporation,
- Sumitomo Rubber Industries, Ltd.,
- Nokian Tyres,
- Trelleborg AB,
- China National Tire & Rubber Co., Ltd.,
- Balkrishna Industries Limited,
- Apollo Tyres Ltd.,
- Qingdao Rhino Tyre Co., Ltd.,
- Titan International, Inc.,
- Double Coin Tyre Group Ltd., and
- riangle Group Co., Ltd.
OTR Tire Market – Scope of the Report
Transparency Market Research’s recent report on the OTR tire market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the OTR tire market analyzes the scenario for the period of 2019 to 2027, wherein, 2018 is the base year and 2017 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 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 OTR tire market gives readers an individual understanding of the market.
This study also discusses the underlying trends and the impact of various factors that are driving the 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 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 Automotive OTR Tire Market
- How much revenue will the 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 2027?
- What are the impact factors and there effects on the market for OTR tires?
- What regions currently contribute the maximum share to the overall OTR tire market?
- What are the indicators expected to drive the OTR tire market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies incorporated by key stakeholders in the OTR tire market to expand their geographic presence?
- What are the major advancements witnessed in the OTR tire market?
- How regulatory norms affected the market for OTR tire market?
This report answers these questions and more about the OTR tire market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
OTR Tire Market: Research Methodology
This TMR report on the OTR tire market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. The competitive scenario of the 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 with model mapping and announcement by the OEMs, researchers of the 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 OTR tire market, with both a bottom-up and top-down approach.
This detailed assessment of the OTR tire market, along with an overview of the landscape, has been provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the OTR tire market is set to grow are based on carefully vetted primary and secondary sources.
OTR Tire Market – Segmentation
This report on the OTR tire market provides information on the basis of industry type, rim size, tire type, sales channel, and region.
Construction & Mining