Tractor Tire Market: Introduction
- Agriculture tires are used as a major application on various agriculture equipment such as harvesters, sprayers, and others including tractors
- Increase in use of tractors for various agricultural activities is driving the wear of their tires, which in turn is driving the global tractor tire market
Key Drivers of Tractor Tire Market
- The global population has increased considerably. According to data published by United Nations in World Population Prospects 2019, the worldwide population has increased from 7.3 billion in 2015 to 7.7 billion in 2019, and it is projected increase to 8.5 billion by 2030. This increase in population has fueled the demand for food globally. OECD-FAO Agricultural Outlook 2019-2028 report states that the demand for agricultural products is estimated to rise by 15% in the next decade. Consequently, agricultural activities are increasing worldwide to cater to this rise in demand for food, which in turn fuels the wear & tear of tiers used in tractors. Therefore, these factors are propelling the tractor tire market across the globe.
- Agriculture is the key contributor to the national income of various countries and government agencies have initiated programs to boost penetration of technology in the agricultural sector to increase productivity. Government agencies dedicated to the agricultural sector have subsidized purchase of farm mechanization technologies. For instance, Department of Agriculture, Cooperation & Farmers Welfare in India provides up to 40% subsidy on the purchase of agricultural machinery. Furthermore, several other countries including the U.S, China, Australia, Thailand, and Indonesia are also providing grants to farmers for the purchase agricultural machinery. These favorable government policies and initiatives to increase mechanization in the agriculture sector have boosted the sale of tractors which in turn is fueling the global tractor tire market.
Challenges in Tractor Tire Market
- The vulnerability of the agricultural sector in any region to on-going climate-change scenarios is restraining farmers from investing in mechanization, which reduces the sale of tractors and hampers the demand for tractor tires. Furthermore, climate change has severely impacted rubber plantations thus, hampering the availability of raw material for the tire industry. Furthermore, agricultural equipment are being equipped with tracks to reduce the damage delivered to the soil by tires. These factors are creating challenges for the global tractor tire market.
Impact of COVID-19 pandemic on Tractor Tire Market
- The COVID-19 pandemic led to the shutdown of companies, which negatively impacted the manufacturing activities across the globe. Moreover, the lockdowns imposed by multiple government agencies to curb the spread of the pandemic have disrupted the supply chains of agricultural machinery manufacturers along with others, thus contracting the market for tractor tires. On the demand side, agricultural activities were halted in the early phases of lockdowns, which reduced the usage of agricultural machinery and lowered the demand for tiers, thereby hampering the global tractor tire market.
North America and Europe to Hold Significant Share of Tractor Tire Market
- Based on region, Asia Pacific accounted for a prominent share of the global tractor tire market owing to the high sale and manufacturing activities in the region. Multiple countries in Asia Pacific such as India, China, and Thailand have a notable agriculture sector, which further boosts the demand for tractor tires from OEMs as well as in the aftermarket. Also, the region has abundant supply of rubber raw material which has led to emergence of many tire manufacturers and thus increase the availability of tractor tires at economic rates. These factors are propelling the share held by Asia Pacific in the global tractor tire market.
Key Players Operating in Tractor Tire Market
The global tractor tire market is highly concentrated due to the presence of top manufacturers. A few of the key players operating in the tractor tire market are:
- Balkrishna Industries Limited (BKT)
- Bridgestone Corporation
- Continental AG
- China National Rubber Tire Co.
- Trelleborg AB
- Titan International, Inc.
- Sumitomo Rubber Industries Ltd.
- Pirelli & C. S.p.A.
Global Tractor Tire Market: Research Scope
Global Tractor Tire Market, by Size
- Below 13 inches
- 13 to 23 inches
- Above 23 inches
Global Tractor Tire Market, by Type
Global Tractor Tire Market, by Vehicle Type
Global Tractor Tire Market, by Sales Channel
Global Tractor Tire Market, by Region
- North America
- Nordic Region
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
Interested in this report?
Get a FREE Brochure now!