OTR Tire Market - Global Industry Size, Share Trends Competition, Opportunities and Forecast 2017-2027 Segmented By Demand Category (OEM & Replacement), By Vehicle Type (Mining, Construction & Industrial Equipment, Agriculture Vehicles, Others), By Tire Construction Type (Radial & Bias), and By Region

Global OTR tire market stood at USD23,772.68 million in 2021 and is expected to register growth at a CAGR of 6.66% in value terms, in the forecast period. The mechanization demands in agricultural activities are increasing with the years passing by, thereby increasing the sales of tractors and harvesters. Such practices are increasing the demand for OTR tires for the production of such vehicles as well as their replacement after prolonged use.

OTR is an abbreviation used for off-the-road vehicles. Tires used in such vehicles usually have diameters of more than 20 inches. Such tires are suitable for vehicles with applications in earthmoving, agriculture, surface and underground mining, port material handling, telehandling and heavy construction. Such tires have two construction types, radial and cross-ply or also known as bias arrangement. The bias tires are made of numerous layers of rubber with plies of fabric placed at 30-40 degrees of angle. Whereas, radial tires are manufactured utilizing numerous cords of steel, which are laid exactly at right angles to the center of the tread and parallel to each other. The radial tires are more expensive than bias tires but have few advantages over the bias tires as they provide better vehicle mileage, have more grip and greater ride comfort, etc. Whilst bias tires can withstand high loads and hence are majorly used among heavy equipment such as OTR vehicles.

Rising Investments in Mining Industry

The mining industry is flourishing with suitable investments and can witness a prosperous future. Few such investments include a USD4.6 billion project for Barenda Village Steel Project for the state of Jharkhand, a USD1.55 billion project in the state of Chattisgarh, India for Gevra Open Cast Coal Mining Project, and USD1.05 billion for Sreerampuram Steel Project in Andhra Pradesh, India. Chile mining ministry, Chilean copper commission, and other authorities announced to invest around USD74 billion in the span of 2020-2029 in mining projects. In addition to these, La Mancha Capital Advisory (LMCA) in Spain pitched around USD1.4 billion funds to explore new opportunities in gold mining projects. These investments are aiding the need for OTR vehicles in the sector and thus giving rise to tire replacement.

Eased Customer Outreach via E-Commerce Platforms

According to World Bank, the ratio of individuals using the internet witnessed growth from 43.81% in 2016 to 62.5% in 2021 across the globe. These e-commerce platforms provide ease of product availability to the customers at their doorstep. Major tire companies have their own e-commerce platforms in numerous countries. Such factors are expected to propel the market in the forecast period by easing the consumer outreach to their desired product.

Increasing Share of Mining Dump Trucks, Wheel & Backhoe Loader Tires

The introduction of various plans and programs for the development of mining activities by the government of various countries at an international level is boosting demand for mining vehicles like dump trucks, loaders, etc. Moreover, with the introduction of the latest mining vehicles and advanced manufacturing equipment, sales of mining vehicles used in extraction are expected to rise over the next five years. Increasing mining projects in various nations are boosting the demand for equipment used in the global mining sector, due to which this segment is likely to portray a similar growth trend in the coming years as well.

Expansion of Dealer & Distributor Network

Most renowned tire companies do not manufacture OTR tires in all the regions of the world, due to which the tire service and sales companies are left with no other option and are compelled to sell the specific segment of vehicle tires through their dealers or distributors in such countries. Moreover, with an increase in competition among the prominent tire makers, the companies are competing to grow their dealership network worldwide, thereby expanding the distribution network of OTR tires at a global level. The dealer or distributor meets the demand and also acts as a suitable intermediary between the OTR tire manufacturing company and the end user. Moreover, citing the demand-supply gap of OTR tires in such countries, the OTR tire manufacturing companies find it convenient to operate through the indicated sales channel, including dealers and distributors.

Popularity of Tire Retreading Hinders Sales of New OTR Tires

Tire retreading is the process of layering the tire with rubber when the tread has been used. The lower price of a retreaded tire is an economical option for mining equipment customers, as it has a shorter replacement cycle when compared to other automobile segments. Over 22 liters of petrochemicals are used to produce a new mining tire unit. Retreaded tires, on the other hand, require only 7 liters of petrochemicals to produce one retreat mining tire unit. Retreaded tires are widely used in several types of OTR vehicles, such as large tractors, forklifts, dumptrucks, and other mining vehicles.

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Market Segmentation

Global OTR tire is segmented across demand category, vehicle type, tire construction type, region, and company. Based on demand category, the market is divided among OEM and replacement. On the basis of vehicle type, the market is further segmented across Mining, Construction & Industrial Equipment, Agriculture Vehicles and Others. The tire construction type is then segmented among radial and bias. By region, the market is segmented among regions of Asia-Pacific, North America, Middle East & Africa, Europe and South America. In terms of country, the United States OTR tire market is forecast to grow at a faster rate and is expected to reach around USD3,588.28 million during the forecast period.

Company Profiles

Goodyear Tire and Rubber Company, Compagnie Générale des Établissements Michelin SCA, Bridgestone Corporation, Continental AG, and The Yokohama Rubber Company, Limited are the leading five players operating in the global OTR tire market. Other companies include Zhongce Rubber Group Co., Ltd., Balkrishna Industries Limited, Trelleborg AB, MRF Limited, etc. Apart from these flagship companies, many startup companies are also increasing their footprint in the global OTR tire market by pushing their low-cost products blended with ease of availability.

Report Scope:

In this report, global OTR tire marekt has been segmented into following categories, in addition to the industry trends which have also been detailed below:

• OTR Tire Market, By Vehicle Type:
• Mining, Construction & Industrial Equipment
• Agriculture Vehicles
• Others
• OTR Tire Market, By Demand Category:
• Replacement
• OEM
• OTR Tire Market, By Tire Construction Type:
• Bias
• Radial
• OTR Tire Market, By Region:
• Asia-Pacific
• North America
• Europe
• Middle East & Africa
• South America

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in global OTR tire market

Available Customizations:

With the given market data, TechSci 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).