OTR Tires Market

[429 Pages Report] The global OTR Tire market is projected to grow from USD 4.8 billion in 2024 to USD 7.0 billion by 2030 at a CAGR of 6.5%. The growing demand for heavy machinery in construction, mining, and agriculture, coupled with increasing infrastructure projects worldwide, is driving the expansion of the OTR tire market. Additionally, advancements in tire technology, such as enhanced durability and tread designs, fuel market growth by improving efficiency and reducing downtime for equipment operators.

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Market Dynamics

DRIVER: Growing aftermarket sales

They demand working conditions in their respective industries worldwide for mining, construction, and agricultural vehicles to favor tire aftermarket sales. The aftermarket tire market has benefited from increased equipment maintenance and servicing awareness. The farming industry has become more mechanized, which has raised sales of mechanized parts and equipment and driven up demand for aftermarket tires. Rolling conditions mainly influence tire longevity. Tires used in industrial and agricultural equipment suffer increased wear and tear due to roadways and uneven terrain: hard braking, rapid acceleration, and oversized loads impact tire lifespan in mining and construction areas. The tread depth is specified by each OTR tire manufacturer, with surface quality being a significant factor. For sand and asphalt surfaces, tires with 100% tread depth and traction pattern are utilized; for rocky or severe terrain, tires with 150% to 250% tread depth are recommended. Consumer preferences for OTR tire replacement could be more consistent since major OE brands offer a large selection of pricey OTR tires.

In contrast, numerous local and domestic brands offer inexpensive tires. Therefore, the price might significantly affect the sales figures aftermarkets see in the OTR tire market. As a result, longer workdays have made it necessary to replace OTR tires more frequently, which has increased OTR tire aftermarket sales.

RESTRAINT: Availability of low-cost tires from unorganized markets

The low-cost OTR tires from the unorganized market, particularly from China, are restraining the growth of the OTR tire market due to their competitive pricing. These tires can undercut the offerings from established manufacturers, making it challenging for organized players to maintain their profit margins. The unorganized market often operates outside of regulatory frameworks, leading to potential issues with quality, safety, and environmental standards. This can challenge organized market players who must adhere to stricter guidelines and maintain higher standards. The low-cost tires from the unorganized market can impact the overall market dynamics in several ways. Firstly, they can lead to price erosion in the market, making it difficult for organized players to maintain their pricing strategy. Secondly, the lower quality of these tires can result in reduced customer satisfaction and increased safety risks, which can harm the entire industry's reputation. Lastly, the unorganized market can hinder the growth of innovative technologies and solutions, as these players may need more resources or incentives to invest in research and development. For instance, the Chinese key players such as TECHKING, TRANGLE tyres, DoubleCoin, and Otani Tyre Co. Ltd (Thailand) offer OTR tires at 25–30% less than the OTR tires that top key players provide.

To counteract the influence of the unorganized market, organized players can highlight the benefits of their products, such as superior quality, safety standards, and after-sales support. They can differentiate their offerings and justify their pricing by emphasizing these aspects. Additionally, collaborating with local suppliers and distributors can help establish a more substantial presence in regions dominated by the unorganized market, allowing organized players to tap into the demand for low-cost tires while maintaining their quality standards.

OPPORTUNITY: Retreading of OTR Tires

OTR tire life can be increased via retreading. After a thorough inspection, this procedure replaces the worn-out tire tread with a new one. After applying a fresh tread layer with an adhesive layer over the old, buffed tires, the mold cure, also known as pre-cure, is completed. These tires are economical; compared to creating new tires, they save between 30% and 50% of the cost and labor. Retreading is a sustainable option that supports environmental protection laws. Compared to producing new tires, it helps cut emissions and the 740 liters of oil needed to manufacture one tire unit. Numerous retread tire manufacturers have gotten in touch to raise understanding of the retreading process and to facilitate tire remolding when fleet owners' tires wear out. By reusing tires, such programs might lessen the amount of old, worn-out tires that are disposed of, hence lowering environmental hazards. The United States presents a prospective market for retreading tires due to the government's ad hoc laws regarding worn-out tires.

CHALLENGE: Stringent emission regulations

Hazardous Air Pollutants (HAP) emissions for tire manufacturing firms are regulated by the National Emission Standards for Hazardous Air Pollutants (NESHAP) in the United States. The standards discuss the abrasion of tire tread wear particles (TWPs), the environmental effects of raw materials in tires, and the complexity of tire wear particles across their life cycle. The guidelines cover using raw materials, the production process, the product's lifetime on the road, tire disposal, and eventual repurposing scenarios. A quantifiable estimate of PAH air emissions from tire manufacture has yet to be available. Directive 2004/107/EC of December 15, 2004 (EC, 2004) contains a predetermined limit for the emission of compounds in ambient air, including PAHs, and must be considered when releasing pollutants into the atmosphere. It will be challenging to comply with this set of laws and regulations to safeguard the environment from contaminants and prevent diseases that cause cancer in people who breathe in gases.

Therefore, to safeguard the environment from industrial risks, tire producers must strictly abide by the norms and regulations established by local governments.

OTR Tire Market Ecosystem.

The major OTR Tire market companies have the latest technologies, diversified portfolios, and global distribution networks. The major players in the OTR Tire market include Continental AG (Germany), Bridgestone Corporation (Japan), Michelin (France), The Goodyear Tire & Rubber Company (US), and Pirelli & C. S.p.A (Italy).

The radial tires segment is estimated to be the largest market during the forecasted period.

Regional preferences and market dynamics further propel the OTR tire market's transition towards radial tires. In Europe, Michelin emerges as a dominant player, exclusively manufacturing radial tires. This focus has led to the widespread adoption of radial tires in the region, where stringent quality standards and a focus on performance drive market trends. Also, in April 2023, Michelin announced a significant investment of USD 750 million in its Lexington, South Carolina plant to expand radial earthmover tire production. This expansion aims to meet the growing demand for these tires in the construction equipment market, particularly in the Americas.

As a result, radial tires enjoy a substantial market share in Europe, with Michelin leading the charge with its renowned product offerings. Conversely, in the Asia Pacific region, bias-ply tires retain a significant foothold, particularly in price-conscious markets. While radial tires offer superior performance and durability, the lower initial cost of bias-ply tires makes them more appealing in regions where cost considerations heavily influence purchasing decisions. This trend is particularly pronounced in emerging economies where infrastructure development drives demand for heavy machinery, but budget constraints dictate tire choices. However, they are currently adopting radial tires due to the availability of low-cost radial tires on the market.

Considering the OTR tires in the construction and mining sector, haul trucks like the Komatsu 930E and the Caterpillar 797F rely heavily on radial tires to withstand the extreme loads and rugged terrain encountered in mining operations. These tires provide unparalleled stability and durability, ensuring increased productivity and reduced downtime for mining operators. Similarly, radial tires are indispensable in construction for their ability to deliver superior traction and maneuverability on diverse terrains, contributing to improved efficiency and safety on job sites.

Despite regional variations in adoption, the overarching trend toward radial tires remains evident across the OTR tire market. The dominance of radial tires in the OTR market is a testament to their unmatched quality and efficiency, ensuring optimal performance and longevity for heavy-duty equipment across industries.

Agriculture Tractors is the fastest-growing sub-segment in the application segment for the OTR Tire market.

The agriculture tractor segment is experiencing rapid growth in the OTR (Off-The-Road) tire market due to the increasing global population and rising demand for food production, which drive agricultural activities, leading to higher adoption of heavy machinery such as tractors. As farmers seek to enhance productivity and efficiency, there is a growing need for durable tires that can withstand the rigors of farming operations. Additionally, technological advancements in agriculture, such as precision farming and autonomous machinery, further drive the demand for OTR tires in the sector. In the Asia Pacific region, agriculture is done at small and medium-sized farms, which is expected to raise the demand for low HP tractors (i.e., <70 HP). In contrast, the tractors used in Europe are of higher horsepower (i.e.,>250 HP), which require OTR tires of larger sizes due to the availability of larger arial lands by the farmers. These innovations require tires with specialized features, such as enhanced grip and load-bearing capacity, to support the operation of advanced farming equipment. For instance, Trimble Inc. and AGCO Corporation established a joint venture to improve support for farmers in the mixed fleet precision agriculture market through factory-fitted and aftermarket solutions. AGCO Corporation also introduced FarmerCore, aimed at revolutionizing the farmer and dealer experience in digitization.

Furthermore, the growing trend towards more extensive farm operations and mechanization is boosting the need for more robust tires. Farmers increasingly invest in high-capacity tractors and equipment to optimize operations, driving demand for OTR tires with more excellent load-carrying capabilities and longevity. Hence, as farming practices evolve to meet the needs of a growing population, the demand for high-performance OTR tires in this segment is expected to continue its upward trajectory.

25–30 Inches rim size sub-segment to hold the largest market share in the rim size segment for the OTR Tire Market

The 25-30-inch rim size is widely equipped across various applications such as construction, mining, and agricultural sectors, offering a balance between stability, load-bearing capacity, and compatibility with a wide range of machinery. The 25-30-inch rim size also provides optimal traction, durability, and performance in challenging terrains, making it a preferred choice for many OTR tire users. Adding further, these rim-size OTR tires achieve a balance between maneuverability Construction sites are congested with tight corners and obstacles where more giant rims sizes offer superior weight and make equipment clumsy. The 25–30-inch size maintains a perfect spot and has enough power to handle heavy loads and the agility to navigate complex environments.

For instance, in the construction industry, backhoe loaders (Caterpilar415 IL, Case IH 434 Backhoe Loader, 50N Series 2, and 580N EP series), rigid dump trucks (BKT EARTHMAX SR 34, ROCK GRIP E4, Maxam  MS405, and Magna tires MA04+), and articulated dump trucks (John Deere 260 P-Tier, 310 P-Tier, Caterpillar 725 Bare Chassis, and730 Bare Chassis) commonly utilize tires with rim sizes falling within the 25-30 inch range. These machines perform various tasks on construction sites, from loading and transporting materials to excavating and grading. The 25–30-inch rim size offers the support and stability required for these heavy-duty operations while allowing agile maneuvering in tight spaces. Similarly, haul trucks and excavators often feature tires with rim sizes between 25 and 30 inches in mining operations. These machines handle massive payloads and operate in harsh conditions, requiring tires that can withstand extreme loads and provide reliable performance. The 25–30-inch rim size meets these demands while ensuring compatibility with the design specifications of mining equipment.

Asia Pacific region holds the largest share of the OTR tire market.

The Asia Pacific region dominates the global OTR tires market, with emerging economies such as China, India, Japan, and South Korea being significant contributors. With 173 found minerals and 163 proven deposits, China ranks third after the United States and Russia regarding the need for OTR tires for construction and mining equipment. The demand for minerals will continue to rise as China implements the Made in China 2025 goal and the economy moves to a greater level. These regions also dominate in other factors such as road construction, urban expansion, and establishing industrial zones, which heavily rely on heavy machinery equipped with OTR tires. Consequently, there is a significant demand surge for OTR tires in Asia Pacific to support these construction activities.

Moreover, the agricultural sector in Asia Pacific plays a pivotal role in driving the demand for OTR tires. With a large portion of the region's population engaged in agriculture, mechanization is rapidly increasing to boost productivity and efficiency. Tractors combine harvesters and other agricultural machinery extensively using OTR to navigate various terrains and facilitate farming operations, contributing significantly to the region's OTR tire market's growth. Furthermore, the robust growth of manufacturing industries in Asia Pacific, particularly in countries like China and South Korea, has propelled the demand for OTR tires. These industries require heavy machinery for manufacturing processes, logistics, and material handling, all of which rely on OTR tires for efficient operation. The expanding industrial landscape in Asia Pacific further amplifies the demand for OTR tires, driving the market growth.

The India Brand Equity Foundation (IBEF) reports that India plans to invest USD 1 trillion till 2025 in infrastructural development. Large-scale construction projects require the use of a variety of construction tools to be completed. Japan has a tiny mining industry but a significant construction industry driven by the country's periodic earthquakes and tornadoes. More construction equipment is required for reconstruction projects, which would propel Japan's OTR tire market. Both domestic and foreign construction projects bring in money for construction companies in South Korea.

In South Korea, industrial minerals account for 78% of the mining sector, where they are utilized to produce lime and cement clinker, which has boosted the sales of OTR tires in the mining sector. Also, the National Infrastructure Pipeline (NIP) was launched in 2020 with an investment of USD 1.32 trillion USD from 2020 to 2025. These initiatives aim to enhance connectivity, trade, and economic development across the Asia Pacific, leading to increased demand for heavy machinery and OTR tires. Additionally, technological advancements in agriculture, such as precision farming and automation, are accelerating the adoption of advanced farm machinery equipped with OTR tires in the region, further fueling market growth.

Examples of OTR tire manufacturers expanding their presence in Asia Pacific include global industry leaders like Bridgestone, Michelin, and Yokohama Rubber. These companies have established manufacturing facilities and distribution networks across key regional markets to cater to the growing demand for OTR tires. Additionally, local players like Xuzhou Armour Rubber Company in China and BKT in India have emerged as prominent suppliers of OTR tires, further contributing to the region's market dominance. Also, Continental AG is investing USD 14 million over the next three years in its Sri Lankan specialty tires plant in Kalatura to solidify its foothold in the solid tire. Overall, Asia Pacific's robust economic growth, extensive infrastructure development, and increasing mechanization in agriculture and industry position it as the leading market for OTR tires globally.

Key Market Players

Major manufacturers in the electric tractor market include Continental AG (Germany), Bridgestone Corporation (US), Michelin (France), The Goodyear Tire & Rubber Company (US), Pirelli & C. S.p.A. (Italy), The Yokohama Rubber Co., Ltd. (Japan), Trelleborg Wheels System (Sweden), Titan International Inc. (US), Nokian Tyres plc. (Finland), Ceat (India), Magna Tyres (Netherlands), The Carlstar Group, LLC. (US), The Firestone Tire & Rubber Company (US), Triangle Tire Co. (China), Apollo Tires Ltd. (India), Double Coin Tire Group Ltd (China), Techking Tires (China), JK Tire & Industries Ltd (India), Linglong Tire (China), Belshina (China), MRF Tyres (India), Qingdao Rhino Tire Co., Ltd. (China), Otani Tire Co. Ltd. (Thailand), and Balkrishna Industries Limited (India).

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Scope of the Report

With the given market data, MarketsandMarkets offers customizations per the company's specific needs.

The study segments the OTR Tires Market:

OTR Tires Market, By Equipment Type

• Articulated Dump Trucks
• Asphalt Finishers
• Backhoe Loaders
• Motor Graders
• Rigid Dump Trucks
• RTLT-Telescopic
• Skid-steer Loaders
• Wheeled Excavators
• Wheeled Loaders <80 HP
• Wheeled Loaders >80 HP
• Agriculture Tractors
• Others

Agricultural Tractors Tires, By Power Output

• <30 HP
• 31–70 HP
• 71–130 HP
• 131–250 HP
• >250 HP

Agricultural Tractors Tracks, By Power Output

• 131–250 HP
• >250 HP

Industrial Equipment, By Type

• Forklifts
• Aisle Trucks
• Tow Tractors
• Container Handlers

OTR Tires Market, By Tire Type

• Radial
• Bias
• Solid

OTR Tires For Construction Equipment, By Tire Type

• Radial
• Bias
• Solid

OTR Tires Market, By Rim Size

• 14-24 Inches
• 25-30 Inches
• 31–50 Inches
• Above 50 Inches

Retreading, By Process

• Pre-cure
• Mold Cure

Retreading, By Application

• Construction & Mining Equipment
• Agriculture Tractors

OTR Tires Market, By Application

• Construction & Mining Equipment
• Agriculture Tractors
• Industrial Equipment
• All-Terrain Vehicles

Aftermarket, By Equipment Type

• Articulated Dump Trucks
• Asphalt Finishers
• Backhoe Loaders
• Motor Graders
• Rigid Dump Trucks
• RTLT-Telescopic
• Skid-steer Loaders
• Wheeled Excavators
• Wheeled Loaders (<80 HP)
• Wheeled Loaders (>80 HP)

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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