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OTR Tires Market Size to Grow at a CAGR of 3.5% During 2021-2026

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OTR Tires Market Size to Grow at a CAGR of 3.5% During 2021-2026

August 27
20:13 2021
OTR Tires Market Size to Grow at a CAGR of 3.5% During 2021-2026
OTR Tires Market
The Use of Commercial Vehicles Such as Mining Trucks, Earth Movers, Tractors and Other Agricultural Machinery Are Expected To Have Significant Rise in the Growth of OTR Tires Market

OTR Tires Market size was valued $7.5 billion in 2020 and is estimated to grow at a CAGR of 3.5% during 2021-2026. The growing demand for mining, agriculture and construction are fueling the OTR Tire market. Additionally, the rising demand for commercial vehicles and the need for off-the-road tires for optimal performance including glass transition temperature are driving the growth of the market. Off the road tires are designed in such a way that it provides traction on different roads such as mud, sand and others with the pneumatic trail of styrene butadiene copolymer. The OTR tires are generally used in the vehicles which work on construction sites, mud mining and other mining fields, agricultural field and others. North America is considered as fastest growing region around the world as North America holds high infrastructure development which is expected to boost the OTR Tire market in the forecasted period.

OTR Tire Market Segment Analysis – By Application

Agriculture segment held the largest market share in the OTR Tires Market at 30.5% in 2020. The rise in agricultural activities and increase in revenue of farmers has led to increase in use of tractors and other agriculture machinery which is driving the OTR Tire market. The factors such as infrastructure development in developing countries are expected to have significant growth in forecasted period. Hence the use of construction and mining vehicles in developing countries are rapidly increasing which increase the demand for OTR Tires.

OTR Tire Market Segment Analysis – By Type

Green tire is made from recycled materials like nylon rubber through a process that does not require an excessive amount of energy. Conventional tires are made of rubber, but tires are now often manufactured from sustainable raw materials such as plasticizers and resins, with growing energy concerns. Such environmentally friendly raw materials are increasingly chosen over traditional products due to advantages such as being lighter than traditional products, which results in a reduction of the vehicle’s total weight. This also needs less fuel and helps lower the resistance to rolling. During the forecast period, the green tires are expected to witness a lucrative growth rate mainly due to advantages such as long-life and retractable tires. Also, the increase in energy costs, strict government regulations, and increased environmental awareness regarding fuel consumption among consumers will lead towards the increase in the use of green tires in vehicles during the forecast period at 7.5% CAGR.

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OTR Tire Market Segment Analysis – By Geography

North America dominates the OTR Tires Market with a highest share at 36.5% followed by Europe and APAC in 2020. In North America, infrastructure development is increasing at a wide scale which is leading to adoption of heavy vehicles which are equipped with OTR Tires for having optimal performance. Moreover, the presence of key players such as Goodyear tires and others in U.S are effectively leading to enhance the growth of the market. Additionally, the global OTR Tires market growth is led by APAC due to high usage of heavy vehicle in agricultural sector and construction sites. These significant factors are expected to increase the requirement of such vehicles equipped with OTR Tires in this region, thus propelling the growth of the OTR Tires market.

OTR Tire Market Drivers

Increase in commercial vehicles

The use of commercial vehicles such as mining trucks, Earth movers, tractors and other agricultural machinery are expected to have significant rise in the growth of OTR Tires market. The rising population in countries like India, china and other are deploying the agricultural machinery having OTR tires for their agricultural field which is expected to drive OTR tires market in the forecasted period.

Increasing the production of automotive

The rise in the middle-class population and income has led to the growing demand for automotive in recent years. In addition, the company’s growing interest in exploring the rural markets further aided the sector’s growth. According to India Brand Equity Foundation, India is also a popular car exporter with high hopes for export development in the near future. During FY19, automotive exports grew 14.5% despite declining sales in India and China. It is projected to rise during 2016-2026 at a CAGR of 3.05% despite Covid-19 impact. However, multiple initiatives by the Government of India and the major car players on the Indian market are expected to make India a pioneer in the two and four wheels. By enabling consumers to travel long distances for work, shopping, and entertainment, the automotive industry has encouraged the development of a comprehensive road system, enabled the growth of suburbs and shopping centers around major cities, and played a key role in the growth of ancillary industries such as oil and travel.

OTR Tire Market Challenges

High Investment and Availability of Affordable OTR Tires from unorganized market

As the rising price of natural rubber is rapidly increasing the price factor become a challenge in OTR Tire market. The manufacturing of OTR Tires requires large quantity of rubbers which is used to manufacture tires which require heavy capital investment. R&D activity is also one of the factors which required significant capital investment. The OTR Tire market is also covered by local unorganized players which offer the OTR Tires in low prices than the organized player into the market. Thus, the activity performed by local players is certainly hindering the market growth rate.

OTR Tire Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the OTR Tires Market. The market of OTR Tires has been consolidated by the major players – Michelin, Bridgestone Corporation, Goodyear Tire & Rubber Company, Pirelli, Goodyear Tire, Alliance Tire Group, Toyo Tire & Rubber Company, Double Coin Holdings, Yokohama, GRI Tyres, Apollo Tyres Ltd,

Acquisitions/Technology Launches

In November 2020 Goodyear tires have launched latest RH-4A+ tire for haulage which are optimized for footprint pressure to help provide long hours to removal.

In August 2020 GRI have launched new OTR Tires called Grip Ex Snow tire which have strong grip and high traction in deep snow, this tire guarantees optimal performance in low temperatures and preserves longer tire life.

Key Takeaways

The OTR Tires Market is dominated by North America owing to increase in infrastructure development and advanced technologies which are enhancing the growth of this market in North America.

Agriculture sector being the most important factor for countries like India, China and other are driving the market, the requirement for agricultural vehicle like tractors are rapidly increasing which in turns boost up the OTR Tires market.

The significant rise in the mining sector and deployment of the heavy machinery is expected to boost the market growth of OTR Tires.

Related Reports

A. Off-Road Vehicles Tire Market

B. Automotive Tire Market

For more Automotive Market reports, please click here

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