Home Automotive and Transportation OTR Tires Market Size, Share & Industry Scope by 2031

OTR Tires Market

OTR Tires Market Size, Share & Trends Analysis Report By Product Type (Solid, Radial, Bias Tire, Non-Pneumatic Tire), By Process Type (Pre-Cure, Mold Cure), By Rim Size (Below 25", 29"-41", 51"-63"), By Equipment (Articulated Dump Trucks, Asphalt Finishers, Backhoe Loaders, Crawler Dozer, Crawler Excavators, Crawler Loaders, Mini Excavators, Motor Graders, Rigid Dump Trucks, RTLT-Telescopic, Skid-Steer Loaders, Wheeled Excavators, Agriculture Tractors, Others), By End-Use (Agriculture, Construction, Material Handling, Mining, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRAT55527DR
Study Period 2019-2031 CAGR 8.7%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 4.5 Billion
Forecast Year 2031 Forecast Year Market Size USD 9.5 Billion
Largest Market Asia Pacific Fastest Growing Market Europe
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Market Overview

The global OTR tires market size was valued at USD 4.5 billion in 2022 and is projected to reach USD 9.5 billion by 2031, registering a CAGR of 8.7% during the forecast period (2023-2031). Growing demand for construction equipment, agricultural tractors, mining equipment, and fast infrastructure development in developed and emerging nations will likely raise the OTR tires market share.

Off-the-road (OTR) tires, also known as earthmover or heavy equipment tires, are specially engineered for vehicles and equipment in various off-road applications. These tires are designed to endure the hard circumstances and difficult terrains frequently encountered in construction, mining, agriculture, and industrial activities.

Rising demand for agricultural tractors, construction, and mining equipment as emerging economies invest more in infrastructure. The high use of machines has increased the demand for tire replacement, projected to increase tire demand. Similarly, increasing government sponsorships on many agricultural equipment and tools and the increasing popularity of OTR tires worldwide are other drivers projected to boost the market growth of OTR tires. Furthermore, the popularity of off-road vehicles in developed and developing countries and the expansion of development activities globally are likely to aid the growth of the OTR Tires Market over the forecasted time frame.

Market Dynamics

Market Drivers

Growing Construction and Mining Activities

Increased building and mining projects worldwide drove demand for heavy equipment like loaders, bulldozers, and dump trucks that rely on OTR tires. OTR tires are critical for heavy gear in excavation, haulage, and other construction and mining activities. Increased construction and mining operations necessitate heavy machinery such as excavators and dump trucks, which rely heavily on OTR tires to function. For example, India's construction industry is anticipated to rise by 12% by 2023, reaching INR 45,907 billion. By 2025, the construction business will be worth USD 1.4 trillion. The building industry accounts for 18% of total economic production. 

Rapid urbanization in emerging economies such as India and China has increased building activity, which has boosted demand for OTR tires. India had the most infrastructure projects in the development or execution of more than USD 25 million as of May 2022. India has 1,944 projects, followed by the US with 1,866 and China with 1,175. Furthermore, according to Statista, worldwide construction equipment sales are expected to exceed 810,000 units in 2021. Furthermore, tire manufacturers are spending in R&D to improve the longevity and performance of OTR tires. For example, improved materials strengthened sidewalls and tread patterns to improve traction and wear resistance. Expanding construction and mining operations continue to be a significant driver of the OTR tire market trend.

Market Restraints

Price Fluctuation and High Production Cost

OTR tires are frequently huge and specialized, which leads to increased manufacturing costs. The large upfront cost of these tires can be a limiting factor for end-users, particularly in industries where economic considerations are important. A tire costs roughly USD 17.37 to manufacture. Rubber accounts for roughly half the cost, with steel cord coming in second. In the United States, the typical machinery cost for a tire production unit ranges between USD 500,000 and USD 1 million. A whole tire plant can cost between USD 300 million and USD 600 million. The tire industry is capital-intensive, with raw materials accounting for 60-65% of revenue. 

The cost of raw materials for OTR tires might fluctuate, affecting production costs. The OTR tire market is vulnerable to fluctuations in the prices of the following raw materials: Natural rubber, synthetic rubber, steel, and chemicals are all examples of materials. Natural rubber prices climbed by roughly 20% in 2022, while crude-based ingredient prices increased by 40-50%. As a result of the high cost of OTR tires, firms may decide to extend the service life of old tires, posing possible safety issues and reducing operational efficiency. Tire replacement cycles may be delayed or staggered in industries with restricted budgets or experiencing economic uncertainty, affecting overall demand for new OTR tires.

Market Opportunity

Infrastructure Development Initiatives

Infrastructure development projects, notably in the construction and allied sectors, are critical in generating demand for Off-The-Road (OTR) tires. Infrastructure projects necessitate the employment of a large amount of heavy equipment, such as excavators, loaders, bulldozers, and dump trucks, all of which rely significantly on OTR tires. According to Statista, the worldwide construction equipment industry will be worth over 130 billion US dollars in 2020. According to the same report, the market will be worth more than 160 billion US dollars by 2024. The Infrastructure Investment and Jobs Act (IIJA) and the Bipartisan Infrastructure Law (BIL) are two infrastructure development projects in the United States. The BIL allocates USD 1.2 trillion in government money to transportation, energy, and climate infrastructure projects. The IIJA contains USD 550 billion in new expenditures for physical infrastructure upgrades. These expenditures are projected to have an indirect positive impact on the market.

The Indian government underlined the necessity for higher infrastructure expenditure in the India Budget 2023-24, nearly tripling its infrastructure spending to 3.3% of GDP from its spending in 2019-20. The Budget has set aside INR 75000 crores for 100 projects deemed vital to upgrading the overall multimodal logistics infrastructure. Infrastructure development is critical to achieving India's 2047 objective of a USD 40 trillion economy and being categorized as a developed economy. As a result, infrastructure development activities provide significant prospects for expanding the OTR tire industry. The requirement for durable and high-performance OTR tires is driven by the need for heavy equipment in the construction and associated industries. OTR tire producers can take advantage of these opportunities by tailoring their products to the specific needs of infrastructure development projects worldwide.

Regional Analysis

The global OTR tires market analysis is conducted in North America, Europe, Asia-Pacific, Middle East Africa, and Latin America.

Asia-Pacific is the most significant global OTR tire market shareholder and is estimated to grow at a CAGR of 8.5% over the forecast period. In 2022, Asia Pacific will have a high CAGR in the market. Infrastructure projects are likely to grow in scope as they are critical to boosting connectivity and promoting long-term growth. The need for residential buildings has recently increased due to population growth and migration to large cities. To meet infrastructure development needs, Asia-Pacific countries must invest USD 1.7 trillion yearly in infrastructure development between now and 2032, according to the Asian Development Bank. These factors are expected to boost demand for construction equipment and have a beneficial impact on OTR tires.

Furthermore, growing economies such as China and India propel this region's mining business. Mining industries in India and China have grown tremendously in recent years. According to the Indian Brand Equity Foundation, India will be the world's second-largest coal producer and second-largest crude steel producer in 2021. There is a high local demand for metals and minerals. because these countries are heavily inhabited.

Europe is anticipated to exhibit a CAGR of 8.8% over the forecast period due to technical advancements in the off-road tire industry and strong major players throughout the region. Furthermore, Europe has a substantial agricultural industry, and advancements in mechanization and modernization of farming operations influence the demand for OTR tires. The increased usage of agricultural machinery such as tractors and harvesters drives demand for OTR tires. Agriculture will contribute 1.4% of EU GDP in 2022. Agricultural revenue per yearly work unit (as defined by Indicator A) is expected to climb (+11.0%) in the EU in 2022, reaching a level 44.0% higher than the index level in 2015.

North America exhibits a moderate share of the market. Increased construction activity is frequently associated with periods of economic expansion in North America. For example, infrastructure initiatives such as road construction, building development, and mining contribute to the demand for OTR tires. The private sector will spend USD 1.25 trillion on buildings in 2021, while the public will spend USD 346 billion. Commercial building spending will be USD 97 billion in 2022, while single-family residential construction spending will be USD 404 billion. Moreover, Government infrastructure development activities, such as road improvements or public construction projects, can stimulate demand for OTR tires as heavy equipment is deployed.

Report Scope

Report Metric Details
Segmentations
By Product Type
  1. Solid
  2. Radial
  3. Bias Tire
  4. Non-Pneumatic Tire
By Process Type
  1. Pre-Cure
  2. Mold Cure
By Rim Size
  1. Below 25"
  2. 29"-41"
  3. 51"-63"
By Equipment
  1. Articulated Dump Trucks
  2. Asphalt Finishers
  3. Backhoe Loaders
  4. Crawler Dozer
  5. Crawler Excavators
  6. Crawler Loaders
  7. Mini Excavators
  8. Motor Graders
  9. Rigid Dump Trucks
  10. RTLT-Telescopic
  11. Skid-Steer Loaders
  12. Wheeled Excavators
  13. Agriculture Tractors
  14. Others
By End-Use
  1. Agriculture
  2. Construction
  3. Material Handling
  4. Mining
  5. Others
Company Profiles Bridgestone Continental AG Pirelli Goodyear Tire and Rubber Company Michelin Tyres Triangle Group Titan Toyo Trelleborg Kumho Tire Yokohama Promotion Tyre Group Industries Roda Brasil Sumitomo
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global OTR tires market is segmented based on product type, process cure, rim size, equipment, end-use, and region.

The product type is further segmented into solid, radial, bias, and non-pneumatic tires.

Radial accounts for the largest share of the market. Reinforcing belts run perpendicular to the tread's centerline in radial OTR tires. This structure improves stability and heat dissipation. Radial tires outperform bias tires regarding weight bearing capacity, traction, fuel efficiency, and tread life. Radial tires are recommended for various OTR applications due to their performance advantages. Radial tires are typically used on heavy-duty vehicles such as mining trucks and huge construction equipment. Reinforcing belts on bias-ply OTR tires run at an angle to the tread's centerline. This design offers flexibility and a smooth ride. Bias tires are commonly used in agriculture for tractors and other farm equipment. They are also appropriate for some construction vehicles. Bias tires are excellent for specific applications because they give a comfortable and smooth ride.

Based on Process Cure, the market is sub-segmented into Pre-Cure and Mold Cure.

Pre-Cure is a significant contributor to the market. Pre-cure is a tire retreading procedure involving applying a new tread rubber layer to an old tire casing. Before being bonded to the tire casing, the tread rubber is pre-cured (vulcanized). Pre-cure enables more efficient production of OTR tires because the curing process can be completed before the tire is constructed. This efficiency is especially advantageous for large and complex OTR tires. Pre-cure retreading is frequently seen as a cost-effective method of giving worn tires a fresh lease on life. The entire tire, including the tread and sidewalls, is vulcanized in a mold during the mold cure process. This method is utilized in the manufacture of both new and retreaded tires. Mold curing is the typical method for producing new OTR tires. While mold cure is most typically utilized for new tires, it also applies to retreaded tires.

Based on Rim Size, the market is fragmented into Below 25", 29"-41", and 51"-63".

29"-41" occupy the largest share of the market. The 29"-41" rim size is a versatile and extensively applicable size that may be used for various OTR applications such as mining, construction, agriculture, and forestry. The 29"-41" rim size is ideal for medium-to-large off-the-road vehicles, including articulated dump trucks, wheel loaders, and motor graders. These vehicles are often employed in heavy-duty construction, mining, and other industries. Due to its adaptability, extensive applicability, and suitability for a wide range of OTR vehicles and applications, the 29"-41" rim size leads the global OTR tires market. OTR tires in this category are designed for larger rim sizes ranging from 51 to 63 inches in diameter. This size range of OTR tires is commonly used for enormous haul trucks, large loaders, and other heavy-duty earthmoving equipment. They are designed to endure large-scale mining and construction site conditions.

Based on equipment, the market is divided into Articulated Dump Trucks, Asphalt Finishers, Backhoe Loaders, Crawler Dozer, Crawler Excavators, Crawler Loaders, Mini Excavators, Motor Graders, Rigid Dump Truck, RTLT-Telescopic, Skid-Steer Loaders, Wheeled Excavators, Agriculture Tractors.

Asphalt Finishers generate the most revenue in the market. Asphalt pavers suffer from severe wear and tear due to their constant contact with hot asphalt and high loads. As a result, tire consumption is significant, fueling demand for OTR tires made exclusively for asphalt pavers. Global demand for asphalt paving is expanding because of increased infrastructure development and urbanization. This increase in asphalt paving activities drives up demand for OTR tires built specifically for asphalt pavers. Articulated dump trucks are off-road vehicles designed to transport materials in difficult terrain. They have an adjustable chassis that allows flexibility over uneven terrain.

The segment can be further bifurcated by end-use into Agriculture, Construction, Material Handling, and Mining.

Construction influenced the market growth. Heavy-duty construction equipment utilized in infrastructure development, building construction, and other construction projects requires OTR tires in the construction sector. These tires are built to endure the stresses of construction sites, such as rugged terrain and large loads. Infrastructure development projects such as roads, bridges, buildings, and other structures characterize the construction sector. These projects necessitate using a diverse range of OTR-equipped vehicles, including excavators, loaders, graders, and dump trucks, fueling the demand for OTR tires. The worldwide construction sector is predicted to grow steadily in the next years, owing to urbanization, population expansion, and increased infrastructure investment. This expansion will further fuel demand for OTR tires in the construction sector. Agriculture OTR tires are for farm equipment such as tractors and other agricultural machines. They are designed to deal with the unique problems of farming regions, such as uneven terrain and changing weather conditions.

Market Size By Product Type

Market Size By Product Type
  • Solid
  • Radial
  • Bias Tire
  • Non-Pneumatic Tire
  • Recent Developments

    Top Key Players

    OTR Tires Market Share of Key Players

    OTR Tires Market Share of Key Players
    Bridgestone Continental AG Pirelli Goodyear Tire and Rubber Company Michelin Tyres Triangle Group Titan Toyo Trelleborg Kumho Tire Yokohama Promotion Tyre Group Industries Roda Brasil Sumitomo Others

    Frequently Asked Questions (FAQs)

    What is the growth rate of the global OTR tires industry?
    The global OTR tires industry is projected to grow at a CAGR of 8.7% during the forecast period (2023-2031).
    Top key players in the OTR tires market include Bridgestone, Continental AG, Pirelli, Goodyear Tire and Rubber Company, and Michelin Tyres.
    Asia-Pacific is the most significant global OTR tire market shareholder.
    Growing construction and mining activities, infrastructure development initiatives, and increasing demand for heavy equipment are driving the growth of the OTR tires market.
    Price fluctuation, high production costs, and potential safety issues related to tire replacement cycles are key risks and challenges in the OTR tires market.


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