Off The Road (OTR) Tire Market - Snapshot
Off the road (OTR) tires are designed to offer traction to vehicles in uneven terrain and improve stability and performance. OTR tires are incorporated on machinery that are utilized in construction, mining, agriculture, and industrial sectors.
Increasing population and demand for higher yield is 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 driving the OTR tire market. China and India lead the global agriculture tractor market in terms of sales and hence, are highly attractive markets for OTR tire. Developing countries such as China, India, Brazil, and Mexico are investing considerably in construction, thus employing a high numbers of construction vehicles. This, in turn, is driving the OTR tire market. China invested around US$ 9 Bn in construction projects with 16 countries across Europe, as a part of the “Belt and Road Initiative”, in 2017. 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 boost 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.
Rising commodity prices of natural rubber and demand-supply gap in the industry are challenges to the OTR tire market. Manufacturing of giant OTR tire (57’’- 63’’) requires significant capital investment, which is a key factor restraining the market.
The global OTR tire market has been segmented based on industry, tire type, rim type, aftermarket industry type, and sales channel. In terms of industry, the global OTR tire market has been classified into construction & mining, agriculture, and industrial. The agriculture segment held a major market share In Asia Pacific & North America region. In terms of industry, the agriculture segment is expected to lead the global market. Usage of agricultural tractors and equipment, in order to meet the rising consumer demand, has led to utilization of high number of OTR tires for such vehicles.
In terms of tire type, the global OTR tire market has been segregated into radial type and two other segments. 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 & 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 have high demand in Europe. Rising usage of forklifts in warehouse 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’’, 51’’-63’’ and one other segment. 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.
The construction & mining segment of the global OTR tire market has been further sub-segmented into excavator, dozer, scrapper, grader, articulated dump trucks, and other vehicles.
The agriculture segment of the global OTR tire market has been further bifurcated into tractors and agriculture equipment.
The industrial segment of the global OTR tire market has been further sub-segmented into electric warehouse truck, IC trucks, and one other segment. The electric warehouse truck sub-segment is expected to dominate the industrial segment of the OTR tire market, in terms of volume, during the forecast period.
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.
Based on aftermarket industry type, the global OTR tire market has been classified into construction & mining, agriculture, and industrial.
Key players operating in the global OTR tire market include Continental AG, Bridgestone Corporation, MICHELIN, The Good Year Tire Company, Prometeon Tyre Group S.R.L., Yokohama Tire Corporation, Sumitomo Rubber Industries, Ltd., Nokian Tyres, China National Tire & Rubber Co., Ltd., JK Tyre & Industries Ltd., Trelleborg AB, Apollo Tyres Ltd., Quindao Rhino Tyre Co., Ltd., Titan, International Inc., and Balkrishna Industries Limited, Double Coin Tyre Group Ltd., and Triangle Group Co., Ltd.
Off The Road (OTR) Tire Market - Overview
This report analyzes and forecasts the OTR tire market at the global and regional level. The market has been forecasted, based on revenue (US$ Mn) and volume (million units) from 2018 to 2026. The study involves the effect of all the factors that can contract or expand the market globally as well as regionally. The report also highlights opportunities in the OTR tire market at the global and regional level.
The report contains value chain analysis, which provides a comprehensive view of the global OTR tire market. The Porter’s Five Forces analysis for the market has also been included to help understand the competitive landscape in the market. The study encompasses market attractiveness analysis, wherein end-users are benchmarked based on their market size, growth rate, and general attractiveness.
The study provides a decisive view of the global OTR tire market by segmenting the market in terms of industry type, tire type, rim size, aftermarket industry type, sales channel, and region. These segments have been analyzed, based on present and future trends. Regional segmentation comprises current scenario along with forecast of the OTR tire market. The forecast provided is based on the compilation of the current trends as well as the expected scenario in future due to change in technological, geographical, political, and economic factors such as rising preference toward sports utility vehicles, globally, is expected to boost the demand for tires between 18” to 21” during the forecast period.
The study includes profiles of major companies operating in the global OTR tire market. The global market is dominated by a few major tire manufacturers, which include Continental AG, Bridgestone Corporation, MICHELIN, The Good Year Tire Company, Prometeon Tyre Group S.R.L., Yokohama Tire Corporation, Sumitomo Rubber Industries, Ltd., Nokian Tyres, China National Tire & Rubber Co., Ltd., JK Tyre & Industries Ltd., Trelleborg AB, Apollo Tyres Ltd., Quindao Rhino Tyre Co., Ltd., Titan, International Inc., and Balkrishna Industries Limited. Market players have been profiled in terms of attributes such as company overview, financial overview, business strategies, and recent developments. The OTR tire market is primarily driven by rising production of vehicles and high dependency of society on vehicles, which is booting the aftermarket of the tires due to rapid wear and tear of tires.
The report provides the estimated market size of OTR tire market 2017 and forecast for the next nine years. The global market size has been provided in terms of value (US$) and volume (million units). Market figures have been estimated, based on rim size, application, vehicle type, and regional segments of the OTR tire market. Market size and forecast for each major segment have been provided in terms of global and regional/country markets.
In order to compile the research report, we conducted in-depth interviews and discussions with a number of key industry participants and opinion leaders. Primary research represents the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. Secondary research also includes a search of recent trade, technical writing, internet sources, and statistical data from government websites, trade associations, and agencies. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities.
Secondary research sources that are typically referred to include, but are not limited to company websites, annual reports, financial reports, broker reports, investor presentations, and SEC filings, internal and external proprietary databases, and relevant patent and regulatory databases, national government documents, statistical databases, and market reports, news articles, press releases, and webcasts specific to companies operating in the market, National government documents, statistical databases, and market reports, American Automobile Association, European Automobile Manufacturers Association, Automotive Research Association of India, Organisation Internationale des Constructeurs d'Automobile (OICA), Factiva, etc.
Primary research involves e-mail interactions, and telephonic interviews for each market, category, segment, and sub-segment across geographies. We conduct primary interviews on an ongoing basis with industry participants and commentators in order to validate the data and analysis. Primary interviews provide firsthand information on market size, market trends, growth trends, competitive landscape, and outlook, etc. These help validate and strengthen secondary research findings. These also help develop the analysis team’s expertise and market understanding.
The global off the road (OTR) tire market has been segmented as follows:
Global Off the Road (OTR) Tire Market, by Industry
- Construction & Mining
- Articulated Dump Truck
- Rigid Dump Truck
- Motor Scrapper
- Motor Grader
- Agricultural Equipment
- Electric Rider Trucks
- Electric Warehouse Trucks
- IC Trucks
Global Off the Road (OTR) Tire Market, by Rim Size
Global Off the Road (OTR) Tire Market, by Tire Type
Global Off the Road (OTR) Tire Market, by Sales Channel
- Original Equipment Manufacturer
Global Off the Road (OTR) Tire Market, by Aftermarket Industry
- Construction & Mining
Global Off the Road (OTR) Tire Market, by Region/Country/Sub-region
- North America
- Latin America
- Asia Pacific
- Middle East & Africa