Growing Dominance of China in Global OTR Tire Market During 2020-25

Market Overview

The construction equipment sector is moving towards recovery and is expected to exhibit positive signs during 2020-25. With the growing construction and mining in MEA and APAC, the demand for OTR tires is surging at a considerable pace. However, North America would also present immense opportunities for OTR tire suppliers owing rise in mining activities The rise in urbanization, construction and mining activities, has also influenced the demand for OTR tires globally. Modernization of agriculture is on the full swing in APAC, with rising sales of tractors, harvesters, and combines.

Global Off the Road (OTR) Tire Market Analysis, 2020

Agricultural tires captured a lower market share in recent years. Moreover, with the increased agricultural activities the demand for OTR tires rising at a considerable pace.

Increased government investments and foreign direct investment in construction activities in Asia-Pacific are anticipated to boost the demand for OTR tires. China grabbed the largest market share in Asia-Pacific followed by India, Malaysia, and Indonesia in 2019 on account of increasing construction and agricultural activities. The construction market in the Asia Pacific region is forecast to exceed USD1 trillion through 2025. Therefore, the region would be the hotbed for the OTR tire suppliers.

Asia-Pacific is the leading manufacturer of OTR tires and exports to North America and Europe. Latin America shows a positive growth rate and has an emerging potential for the OTR tire market due to the enormous mineral deposits.

Market Outlook and Statistics

According to the MarkNtel Advisors research report “Global Off the Road (OTR) Tire Market Analysis, 2020”, the CAGR of the global OTR tire market is anticipated to be around 4.20% during 2020-25. The overall sales of the vehicles are increasing positively thereby snowballing the demand for OTR tires. 

The dominance of bias tires in Asia-Pacific and Latin America is projected to persist during the forecast period as well. However, the demand for radial tires is growing at a substantial rate and is projected to increase during 2020-25. Manufacturers such as Continental AG, Yokohama, and Bridgestone are investing in the research and development of the radial tires to enhance the quality of the tires.

According to MarkNtel Advisors research report “Global Off the Road (OTR) Tire Market Analysis, 2020”, in 2019, Earthmoving & construction equipment (excavator, loader, Crane, rollers, bulldozer, etc.) grasped more than 50% of the market share owing to their enormous application areas in mining, construction, and roads.

OTR tires are comparatively costly than the basic tires. A certain price difference in Chinese tires has been observed as compared to global manufacturers. Therefore, to avoid market disturbance several governments imposed anti-dumping duties on Chinese OTR tires for importing the tires, especially in Mexico and Brazil.

Asia-Pacific to Lead the Global OTR tire Market

China is the leading manufacturer of OTR tires as the country exports primarily to Latin America, Asia, and South Africa as these regions price sensitive. The demand for the OTR tires is expected to magnify in the forthcoming years on account of the extensive use by construction and mining equipment. However, due to the series of anti-dumping duties implemented by countries such as Brazil and Argentina have contributed positively towards the greater prominence of the American and European OTR tire suppliers. Latin America especially Mexico and Brazil are the major contributors fueling the demand for OTR tires with increasing mining activities.

With the rising foreign investments and government initiative in the construction sector, the demand for the OTR tire is predicted to surge during 2020-25. North America grabbed a substantial market share in 2019 on account of the presence of OEMs and rising construction activity. Latin American market is turning out to be highly competitive and productive owing to the presence of enormous mining deposits in the country.  

Competitive Benchmarking

The key major players contributing to the growth of global OTR tire market are Yokohama, Goodyear, Michelin, Continental, Apollo, Bridgestone, Zhongce Rubber Company, Triangle, Giti, Pirelli, Sumitomo, Hankook, Nokian, Hankook and Others as revealed by MarkNtel Advisors in their research report, “Global Off the Road (OTR) Tire Market Analysis, 2020”. 

“Global Off the Road (OTR) Tire Market Industry Analysis, 2020”, provides comprehensive qualitative and quantitative insights on the industry potential, key factors such as trends, drivers, hotspots and opportunities and challenges available for OTR tire manufacturers and suppliers providers across the globe. Moreover, the report also encompasses the key leading players in the industry, along with competitive benchmarking and competition matrix and company profiling.

 Market Segmentation:

1. By Type of Equipment (Construction & Earthmoving Equipment, Material Handling, Agricultural Equipment)
2. By Type of Product (Excavator, Loader, Grader, Bulldozer, Road roller, Tipper, Forklifts, Cranes, Others)
3. By Demand Type (OEM Vs Replacement)
4. By Type of Tire (Radial, Bias and Non-Pneumatic Tires)
5. By End Users (Construction, Industrial, Mining, Agricultural, and Ports)
6. By Price Category (Budget, Economy, Premium)
7. By Regions (North America, South America, Europe, Middle East, Africa, and Asia-Pacific)
8. By Countries (United States, Canada, Mexico, Brazil, Argentina, Chile, Colombia, Cuba, Turkey, Russia, United Kingdom, Germany, Italy, France, Poland, Ukraine, Hungary, Spain., Sweden, Saudi Arabia, UAE, Iran, South Africa, Nigeria, Algeria, Morocco, Algeria, Ethiopia, Sudan, Somalia, China, India, Japan, South Korea, Australia, Malaysia, Philippines, Thailand, New Zealand, Singapore, and Indonesia)
9. By Company  

Key questions answered in the study

1. What are the current and future market trends of the Global Off the Road Tire (OTR) Market? 
2. How the industry has been evolving in terms of end-user demand and application areas?
3. What are the future plans and customer expectations of end-users across the region? 
4. How the competition has been shaping across the region followed by their comparative factorial indexing?
5. What are the key growth drivers and challenges for the Global Off the Road Tire (OTR) Market?
6. What are the customer orientation, purchase behavior, and expectations from the Off the Road Tire (OTR) across various regions?