CHICAGO, April 25, 2024 /PRNewswire/ -- OTR Tire
Market is estimated to grow from USD
4.8 billion in 2024 to USD 7.0
billion by 2030, at a CAGR of 6.5%, according
to a new report by MarketsandMarkets™. The Russia-Ukraine war is causing an increase in
infrastructural and agricultural opportunities in European
countries. In addition, there is a need for housing as more
Ukrainians relocate abroad. These elements are in charge of the
global expansion of farming and infrastructure, affecting the OTR
tire market, especially in the European region. Other key factors
driving the OTR tires market include the industry's growing mining
activity in Latin America,
Africa, and Asia Pacific and growing investments in the
infrastructure, especially in developing Asian countries.
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Browse in-depth TOC on "OTR Tire
Market"
496 - Tables
82 - Figures
429 -
Pages
OTR Tire Market Scope:
Report
Coverage
|
Details
|
Market Size
|
USD 7.0 billion by
2030
|
Growth Rate
|
CAGR of 6.5%
|
Largest
Market
|
Asia Pacific
|
Market
Dynamics
|
Drivers, Restraints,
Opportunities & Challenges
|
Forecast
Period
|
2024-2030
|
Forecast
Units
|
Value (USD
Billion)
|
Report
Coverage
|
Revenue Forecast,
Competitive Landscape, Growth Factors, and Trends
|
Segments
Covered
|
Equipment Type,
Agriculture Tractors Tires, By Power Output, Agriculture Tractors
Tracks, By Power Output, Industrial Equipment, By Type, Tire Type,
OTR Tires for Construction Equipment, By Tire Type, Rim Size,
Retreading, By Process, Retreading, By Application, By Application,
Aftermarket, and By Equipment Type
|
Geographies
Covered
|
Asia Pacific, North
America, Europe, and Rest of the World
|
Report
Highlights
|
Updated financial
information / product portfolio of players
|
Key Market
Opportunities
|
Retreading of OTR
Tires
|
Key Market
Drivers
|
Growing aftermarket
sales
|
31-70 HP tractors hold the highest market share for
the OTR tires in the agricultural tractors segment.
There is a sizable market for 31–70 HP tractors in densely
populated nations with low per capita arable land. For instance,
the amount of arable land per person in countries like China and India is <0.1 hectares, suggesting that
these nations have more farmers than others. Furthermore, the
government's subsidies to low-income farmers have accelerated the
mechanization rate in these nations. Take the Indian government's
Macro-Management Agricultural Schemes, for instance, where farmers
purchasing tractors with 35 horsepower can receive a 25%
subsidy.
Tractor models in the market usually range from small gardens to
large ones used on extensive farms or construction sites. Each type
requires different tire specifications for optimal performance. For
instance, compact tractors (<70 HP) often use tires about 24-30
inches in diameter. Mid-range utility tractors (71–250 HP), used
more broadly in agriculture, typically have rear tires ranging from
30-46 inches. The largest agricultural tractors (above 250 HP),
which require the most power and carry the heaviest loads, can have
tires up to 85 inches in diameter. Hence, the need for OTR tires
changes depending on the tractor size.
The OTR Tires for <30 HP and 31–70 HP tractors have the
highest market share in the Asia
Pacific region, which has high demand for smaller 24-30
inches diameter ORT tires, whereas 71–130 HP tractors has a huge
demand in North America boosting
the demand for 30 to 46 inches diameter OTR tire and European
region has the highest market share for >250 HP tractors which
has increased the demand for up to 85 inches OTR tires.
Many OEMs supply OTR tires for 31–70 HP tractors globally. For
instance, OEMs like BKT and MRF are major Indian tire manufacturers
with a strong presence in the agricultural tire market. They offer
a variety of tire sizes and tread patterns suitable for tractors in
the 31-70 HP range. MRF targets the Asian and African markets
specifically, where smaller farm machinery is more prominent,
whereas BKT OTR tires are popular in Europe, North
America, and Asia Pacific
regions. Adding more, Trelleborg is a Swedish tire manufacturer
that offers a variety of agricultural tires, including those for
tractors in the 31-70 HP range and is prevalent in Europe and North
America. Lastly, Maxxis is a Taiwanese tire manufacturer
that offers a variety of agricultural tires, including those for
tractors in the 31-70 HP range, which are prevalent in Asia, Africa,
and South America.
Rigid Dump Truck is the fastest growing sub-equipment type of
the OTR Tires Market.
Rigid dump trucks, or haul trucks, are heavy-duty vehicles
designed for transporting large quantities of materials over rough
terrain in mining and construction operations. The dump trucks find
applications in both the construction and mining industries. The
mining industry significantly uses rigid dump trucks, with
manufacturers developing specialized mining trucks for operations
in rough terrains, open-cast mines, and other challenging
environments. The increasing prevalence of these trucks in these
industries has propelled the demand for specialized OTR tires
tailored to the unique requirements of these vehicles. The radial
tires are used primarily on rigid dump trucks as they are designed
to limit heat generation. This is crucial in heavy-duty
applications where tires are subjected to high loads and intense
operating conditions.
The Rigid dump trucks generally use rims with rim sizes ranging
from 320/85R24 to 800/70R38, depending on the applications. For
instance, Michelin's XDR 4 EXTRA LOAD 59/80R63 tire is used in many
rigid dump trucks in the European region. Also, most experts agree
that truck tires should be replaced every three to five years. The
retreading is made up to 4 times depending upon the tire's
condition.
These rigid dump trucks have a higher demand in the Asia Pacific region, particularly in countries
like China, India, and Southeast Asian countries, due to
the emergence of several landscaping and construction projects. The
Chinese government is investing heavily in infrastructure projects,
with plans to invest USD 120,000
million in infrastructure projects in the country in
June 2022. The average working hours
per year for dump trucks have increased in past few years,
primarily driven by increased construction, infrastructure
projects, and mining activities globally. As countries develop and
seek to modernize their infrastructure, the demand for heavy-duty
vehicles like dump trucks grows, leading to longer operating hours.
These machines often operate in continuous, harsh environments,
necessitating robust equipment. The intensity of such projects
pushes the machinery to its limits and leads to quicker wear and
tear, especially on critical components like tires. Extended
operating periods, often around the clock to meet project
deadlines, further amplify the strain on equipment, accelerating
the deterioration of dump truck tires. Also, there is growth in
aftermarket OTR tires as operators seek cost-effective, durable
replacements to handle increased usage demands. These aftermarket
tires often provide a more affordable alternative to OEM tires
without significantly compromising performance, which is crucial
for maintaining operational efficiency and safety standards. Hence,
with the increase in global mining and infrastructure activities,
the demand for OTR tires used for dump trucks is projected to grow
in the OE and aftermarket.
North America is the
second-largest region in the OTR Tire market.
North America has a large
construction industry that requires heavy machinery and equipment,
which drives the demand for OTR tires industry in the region.
The USGS (United States Geological Survey) released the Mineral
Commodity Summaries 2024, highlighting that US mineral production
contributed more than 105 billion
dollars to the US economy in 2023, a 4 billion increase over
2022. This increased mining and industrial activities in
North America has increased the
requirement of heavy machinery and equipment, including OTR tires,
to operate efficiently. The construction and mining vehicle used
more in North America is the rigid
dump truck, commonly used for hauling heavy loads in mining and
construction operations. The OTR tire size used most in rigid dump
trucks is the 57/65R63, a standard size for these vehicles due to
its high load capacity and durability. The tire is often retreaded
or purchased from the aftermarket to ensure the continued operation
of the rigid dump truck. Companies such as Marangoni, Michelin,
Vipal, Oliver, and Bandag are North
America's primary suppliers for retreaded OTR tires.
Moreover, the region's agricultural sector has also
significantly contributed to the increasing demand for OTR tires.
Arable land per person in the US is high, ~0.5 hectares per person,
which has increased the demand for large agriculture tractors
(>130HP). The growing demand for technologically advanced
equipment, new mine sites, and geographical proximity to the US
market have created growth opportunities for the sale of
construction and mining equipment in Canada. Also, the Canada Infrastructure Bank
plans to invest USD 139 billion under
its long-term infrastructure plan by 2028, further driving the
demand for OTR tires in the region.
Tire manufacturers and retailers in the US also offer rebates to
encourage customers to purchase their products, which come in
cashback, discounts, or future credits. For Instance, Double Coin
Tires provides an incentive program called Put Us to the Test,
which allows customers to test a selection of their TBR tires for
six months. Government norms and subsidies have also significantly
boosted the sales of OTR tires in North
America. For instance, the US Department of Agriculture
(USDA) provides subsidies for purchasing agricultural equipment,
including OTR tires, to promote mechanization and efficiency in
farming. These subsidies have made OTR tires more affordable for
farmers, increasing demand and sales. Similarly, the Canadian
government's infrastructure investment plans have created new
growth opportunities for the OTR tire market in the region. Hence,
the region's commitment to infrastructure development and
technological advancements in the agricultural and mining sectors
is expected to drive the demand for OTR tires in the future.
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Key Market Players:
The major players in OTR Tires Companies include
Continental AG (Germany),
Bridgestone Corporation (Japan),
Michelin (France), The Goodyear Tire
& Rubber Company (US), and Pirelli C. S.p.A (Italy).
Recent Developments
- In March 2024, The Goodyear Tire
& Rubber Company recently launched the RL-5K off-the-road (OTR)
tire with a three-star load capacity rating for heavy-duty loaders
and wheel dozers. This new tire is designed to offer larger wheel
loaders increased load carrying capacity, featuring a deep tread
for cut resistance and traction in challenging conditions. The
RL-5K is Goodyear's latest radial OTR tire in the 45/65R45 size,
constructed to withstand the necessary air pressure for a 16%
increase in load-carrying capacity compared to its
predecessor.
- In November 2023, The Continental
VF TractorMaster Hybrid is a tire designed for agriculture
contracting work that offers comfort on roads and traction on hard
and soft soils. The tire has an integrated sensor that monitors
pressure and temperature to help extend the tire's life and ensure
the correct pressure. It also has a hybrid tread pattern that
offers traction in the field and is comfortable on the road.
- In April 2023, the MICHELIN x
mine l4 tire is a groundbreaking radial tire designed for
earthmover applications, specifically for the KOMATSU
WE2350/P&H L2350 large wheel loader used in surface mining.
This tire offers enhanced mobility and productivity, with features
like improved traction, reduced tread wear, optimized footprint,
and increased life expectancy by 50% or more. It is engineered to
run cooler than competitors, maintaining an optimal temperature
even at higher speeds, contributing to its durability and
performance in challenging mining conditions. This product has tire
pressure monitoring system (TPMS), allowing for improved uptime and
connectivity in mining operations.
- In February 2023, Continental AG
launched its largest tractor tire with the VF TractorMaster size
VF900/60R42. This tire measures 2,147 millimeters in diameter and
weighs 450 kilograms with a load index of 189 (10,300 kilograms).
It is designed to carry the weight of more than 300 horsepower,
catering to the increasing demand for powerful agricultural
machinery due to rising costs and the need to transport larger
loads more efficiently.
- In July 2022, Bridgestone
launched the VSWAS 23.5R25, expanding its Off-the-Road (OTR) snow
tire range. This tire caters specifically to graders and loaders
operating in deep snow. Its unique tread design eliminates the need
for studs or chains while allowing year-round use.
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