OTR Tire Market worth USD 7.0 billion by 2030 - Exclusive Report by MarketsandMarkets™

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OTR Tire Market Scope:

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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