North America OTR Tire Market Segmented By Vehicle Type (Mining Vehicles, Construction, Agricultural Vehicles, Others), By Demand Category (OEM, Aftermarket), By Tire Construction Type (Radial, Bias), By Country (United States, Canada, Mexico), Competition, Forecast & Opportunities, 2018- 2028F

Market Overview

North America OTR Tire Market has valued at USD 3.2 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 6.3% through 2028. A tire is a strong, flexible rubber casing fastened to the wheel rim. The wheels of a moving vehicle are padded by tires, which also provide a gripping surface for traction. The majority of automobile tires are pneumatic, which means that air is compressed inside the tire. Furthermore, tires help with steering, braking, and turning, which enhances overall driving performance. So, in order to maximize performance and ensure the smooth operation of the vehicle, the customer needs to choose the appropriate tire. The North America Tire Market is growing rapidly due to the expansion of the American automobile industry and increased demand for OTR tires. Also, it is anticipated that as fleet size of vehicle increases, the demand for tire to increase in coming years. The North America OTR tire market encompasses a wide range of tire sizes, tread patterns, and constructions tailored to specific applications. These applications include earthmoving equipment, mining haul trucks, agricultural machinery, industrial vehicles, and more. The OTR tire sector plays an integral role in enabling machinery to operate efficiently in rugged terrains and challenging conditions. Off-the-road (OTR) tire, also known as mud terrain tire, is manufactured using materials, such as natural or synthetic rubber, steel, carbon black, wire, vulcanization accelerator, and silica. It requires high air pressure to support heavy loads and prevent sidewall damage. It also involves specialized rims that are designed to handle their weight and size. As it has a longer operational life, enhanced stability and reliability, and puncture resistance, the demand for OTR tire is escalating in ultra-high-performance vehicles across the North American region. Moreover, the North America OTR tire market in North America is expected to experience significant growth in the near future due to the above-mentioned factors.

Key Market Drivers

Increasing Construction and Industrial Activities

With the growing number of infrastructure projects and big construction projects on the horizon, the need for construction equipment for material handling is on the rise. Both the traditional and the new companies require an increase in order to develop the country. The American infrastructure needs a complete overhaul of the roads, water system, railways and other infrastructure in order to develop them. The US government is proposing to invest 1.5 USD trillion in infrastructure in order to rebuild the damaged framework. With the growing irrigation and mining activities, and the growing number of road development projects, the construction industry is driving the growth of the construction industry, which in turn drives the growth of the OTR tire sales in North America. All in all, with the combination of growing activities in infrastructure, and mining, the growth of OTR tire sales is on the rise in North America during forecast period.

Mining and Quarrying

The mining industry's reliance on large haul trucks and heavy machinery creates a consistent demand for robust OTR tires that can handle the weight and abrasive conditions of mining operations.

Agriculture and Farming

The agricultural sector requires OTR tires for tractors, combine harvesters, and other machinery used in cultivating and harvesting crops.

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Key Market Challenges

Fluctuation in Manufacturing industry and Environmental Regulations

During the pandemic, one of the major issues faced by OTR manufacturers was a lack of orders for off the road vehicle models, which has an impact on the market for OTR replacement tires. In addition to the issues mentioned above, another major issue facing the global OTR tire industry is the growing demand for environmental compliance offered by the government in North America. Governments in North America are introducing stringent emissions regulations for commercial vehicles, which increases the demand for green tires. Manufacturers and fleet operators in North America are required to adhere to the regulations imposed by the government while ensuring optimal productivity. As a result, the overall market for OTR tire replacement tires is expected to grow in North America.

Harsh Operating Conditions

OTR tires must withstand extreme conditions, including heavy loads, abrasive surfaces, and challenging terrains. Developing tires that can deliver consistent performance under these conditions is a significant challenge.

High Costs

OTR tires are designed for heavy-duty applications, which can lead to higher manufacturing costs. These costs are passed on to customers, making it crucial to balance performance and cost-effectiveness.

Supply Chain Disruptions

The global nature of the tire industry means that supply chain disruptions, such as raw material shortages or transportation challenges, can impact the availability of OTR tires.

Key Market Trends

Development Of Advanced Technologies and Safety Features

The demand for OTR tires is on the rise with heavy equipment such as bulldozers and excavators, as well as loaders. The demand for remodeling and upgrading construction projects in both residential and commercial areas is one of the main factors driving the growth of the market in North America. In addition, OTR tires are increasingly being used in tractors and combines, sprayers and harvesters, as well as irrigation equipment for farm-related activities such as field plowing and weed control, animal handling and material transporting. All-terrain vehicle (ATV) sales are also on the rise in the region due to the growing popularity of ATVs for recreational purposes and adventure sports. Overall, the above trends and developments indicate that the North America OTR Tire Market growth is expected to grow at a higher rate in the coming years.

Technology Integration

OTR tire manufacturers are incorporating advanced technology into tire designs, such as improved compounds, reinforced casings, and innovative tread patterns to enhance durability, traction, and wear resistance.

Sustainability and Efficiency

Growing environmental concerns and efficiency requirements are prompting manufacturers to develop OTR tires that offer reduced rolling resistance, longer lifespan, and improved fuel efficiency.

Smart Tire Technology

Integration of sensors and monitoring systems in OTR tires allows operators to track tire performance, pressure, and temperature, leading to better maintenance practices and reduced downtime.

Segmental Insights

Vehicle Type Insights

The North America Off-The-Road (OTR) Tire Market, segmented by vehicle type, encompasses a diverse landscape catering to specialized needs across various industries. In the mining vehicles segment, OTR tires play a pivotal role in supporting the massive haul trucks and machinery used in mining operations. These tires must withstand the weight of heavy loads and navigate challenging terrains, making durability and traction paramount. The construction vehicles category relies on OTR tires for bulldozers, excavators, and loaders, ensuring optimal performance on construction sites and infrastructure projects.

OTR tires designed for construction machinery prioritize stability, resistance to wear, and the ability to handle rugged surfaces. Agricultural vehicles, including tractors and combine harvesters, demand OTR tires that can navigate fields and provide traction for different soil types. Agricultural OTR tires prioritize low soil compaction, efficient grip, and resistance to punctures. The "Others" category encompasses a range of applications, including forestry equipment, industrial machinery, and even military vehicles.

Each of these applications presents unique challenges, such as navigating dense forests or providing reliable mobility for military operations. The segmentation underscores the versatility of OTR tires, tailored to cater to the specialized needs of industries that rely on heavy machinery to accomplish various tasks. As technology advances and industries evolve, OTR tire manufacturers continue to innovate, producing specialized solutions that enhance productivity, durability, and efficiency across mining, construction, agriculture, and other sectors, contributing to the growth and resilience of the North America OTR Tire Market.

Demand Category Insights

The North America Off-The-Road (OTR) Tire Market, segmented by demand category, reflects the distinct preferences of original equipment manufacturers (OEMs) and the aftermarket. In the OEM segment, OTR tire manufacturers collaborate closely with equipment manufacturers to supply tires as original fitments for new machinery. These tires are meticulously designed to meet specific performance requirements, ensuring optimal compatibility and performance. OEM demand is closely tied to fluctuations in construction, mining, and agricultural machinery production.

In the aftermarket category, OTR tires are sought after for replacement and maintenance purposes. As machinery ages or endures wear, the need for tire replacement arises, driving aftermarket demand. Additionally, the aftermarket serves as a flexible avenue for customers seeking specialized tire solutions or upgrades for existing equipment. Both OEM and aftermarket segments play pivotal roles in the North America OTR Tire Market, reflecting the cyclical nature of heavy machinery industries and the ongoing need for tire replacement and enhancement. As technological advancements continue to shape tire design, manufacturers cater to both segments, ensuring the availability of high-quality, durable, and innovative OTR tries to meet the diverse demands of original equipment manufacturers and aftermarket customers alike.

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Country Insights

The United States is a major player in the North America OTR tire market due to its robust construction, mining, and agricultural sectors. Infrastructure projects and mining activities drive demand for OTR tires in this region. Furthermore, Canada's mining and natural resource industries contribute to the demand for OTR tires. The country's vast landscapes and remote locations necessitate reliable heavy machinery equipped with durable tires.

Recent Developments

• Bridgestone Corporation announced plans to invest USD 60 million in 2022 to expand its manufacturing plant at Bridgestone Group, LLC, in the town of Bridgestone, Texas. This expansion will result in an immediate boost in operational activity with new mixing operations to be implemented.
• Titan International Inc., in 2022, entered into a 3-year contract to supply agricultural wheels and tires produced in Titan's plants in North America, South America, and Europe to CNH Industrial's manufacturing facilities.
• Bridgestone Corp. in 2022, announced the initiation of a Joint Research and Development project to achieve the social deployment of technologies for chemical recycling that enable accurate pyrolyzing of used tires.

Key Market Players

• Bridgestone Corporation
• Continental AG
• Cooper Tire & Rubber Company
• Titan International Inc.
• Michelin
• Nokian Tyres plc
• The Yokohama Rubber Co Ltd.
• Toyo Tire Corporation
• Trelleborg AB
• Pirelli & C. S.p.A.

Report Scope:

In this report, North America OTR Tire Market has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• North America OTR Tire Market, By Vehicle Type:

o   Mining Vehicles

o   Construction Vehicles

o   Agricultural Vehicles

o   Others

• North America OTR Tire Market, By Demand Category:

o   OEM

o   Aftermarket

• North America OTR Tire Market, By Tire Construction Type:

o   Radial

o   Bias

• North America OTR Tire Market, By Country:

o   United States

o   Canada

o   Mexico

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the North America OTR Tire Market.

Available Customizations:

North America OTR Tire Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).