United States OTR tire markets is expanding due to its comprehensive
construction and mining activities. The market has been experiencing substantial
growth in recent years, driven by infrastructure development projects, rise in
mining operations, and the expansion of the agriculture sector.
United States OTR Tire Market Overview
The OTR tire market in the United States is
experiencing rapid growth, and this trend is expected to continue in the coming
years. The increasing globalization has led to advancements in the
infrastructure sector, resulting in increased investments in both public and
private infrastructure projects. This, in turn, is anticipated to drive the
demand for mining and construction equipment, thereby expanding the market for OTR
tires. Additionally, the growing number of medium-sized farmers has also
contributed to market trends, as agricultural vehicles are being used more
extensively in farming operations.
Given these factors, the OTR tire industry in
the United States is poised to benefit significantly. To improve efficiency,
the sector is embracing more sophisticated machinery, leading to increased
adoption of such vehicles in the industry and a substantial boost to the OTR
tire market. Consequently, both the demand for OEM off the road tires and
replacement tires are expected to rise, driven by the increased use of mining
and construction machinery. The United States OTR tire market is projected to
grow at a promising rate during the forecast period, with the infrastructure
sector investments presenting new market opportunities at various levels.
United States OTR Tire Market Drivers
The mining and construction sector serves as
a significant catalyst for the OTR tire market in the United States. As the
nation invests in infrastructure development, including bridges, buildings,
roads, and airports, the demand for construction machinery and vehicles rises.
These machines and vehicles rely on OTR tries to navigate challenging
construction sites and uneven terrains. The expansion of the construction
sector, driven by population growth, urbanization, and government
infrastructure initiatives, fuels the demand for OTR tires in the United States.
Mining and construction operations heavily
depend on large-scale machinery and vehicles for material hauling, extraction,
and transportation. Off-the-road tires play a crucial role in supporting these
activities by providing durability and traction in harsh mining environments.
The increasing demand for metals, minerals, and other raw materials for
industrial production and infrastructure development further contributes to
Additionally, the agricultural and forestry sectors
play a vital role in driving the United States OTR tire market. Off-the-road
tires are essential for agricultural machinery such as combines, harvesters,
tractors, and sprayers, which operate in fields with challenging conditions and
uneven terrains. In the forestry sector, OTR tires are used in skidders,
logging trucks, and harvesters that maneuver through rugged forests. The need
for increased mechanization, agricultural productivity, and sustainable
forestry practices drives the demand for off-the-road tires in these sectors in
the United States.
United States OTR Tire Market Trends
Off-road tire manufacturers in the United
States are investing in research and development to enhance tire technologies.
This includes advancements in tire tread designs, compounds, and construction
materials to improve durability, performance, and fuel efficiency.
Technological innovations also aim to develop self-sealing technologies, tire
pressure monitoring systems, and intelligent tire systems to enhance safety and
optimize tire performance. The trend towards sustainability and environmental
awareness is highly significant in the United States' OTR tire market.
Manufacturers are dedicated to developing eco-friendly tire solutions that
reduce carbon emissions and promote fuel efficiency. Furthermore, there is a
focus on low rolling resistance tires as they minimize energy loss, reduce fuel
consumption, and contribute to the reduction of greenhouse gas emissions.
Retreading is gaining traction as a viable alternative for off-road tires, as
it extends their lifespan, reduces waste, and conserves resources.
Additionally, the demand for larger off-road tires has increased due to the use
of larger equipment and machinery in industries such as construction, mining,
and agriculture. These wider tire sizes provide greater durability, increased
load carrying capacity, and stability for heavy-duty applications.
Manufacturers are expanding their production capabilities to meet this demand
by investing in equipment and technologies required for producing and supplying
larger off-road tires. Moreover, there is a growing demand for specialized and
customized off-road tires in the United States market.
Challenges in the United States OTR Tire
The high prices of new OTR tires present a
significant constraint, resulting in increase in the sales of retread tires.
The retreading process utilizes fewer petrochemicals and silica compared to new
tire production, making retread tires available at more affordable prices.
Consequently, tire retreading has emerged as an economical solution for OTR
vehicle owners worldwide. Retreaded OTR tires are extensively utilized in
industrial, construction, mining, and agricultural equipment. In addition,
extreme climatic conditions and heavy OTR tire usage contribute to substantial
wear and tear, leading to increased maintenance costs for OTR vehicle owners.
The demand for retreaded tires is closely tied to the OTR segment and is
expected to grow in the future due to its cost-saving benefits for OTR vehicle
owners. This growing demand for retreaded OTR tires is also anticipated to
attract new entrants into the retread tire market. The rising costs of primary
components used in OTR tire manufacturing, such as rubber, oil, and steel, have
had an impact on the global sales of OTR tires. The surge in crude oil prices
and the associated increase in prices for derivatives like carbon black, a
critical raw material in off-the-road tire manufacturing, combined with higher
transportation costs, have resulted in elevated prices for OTR tires in the US
market. The inflation of raw material costs is a significant factor that has
contributed to the decline in demand for OTR tires and poses a constraint for
the growth of the United States OTR tire market.
Recent Market Developments
Trelleborg AB introduced its new EMR1031
earthmover tire in May 2022 for loading tasks carried out "on the most
difficult terrains, such as sand, rock, or extra hard surfaces." A premium
sidewall protector is included with this tire to prevent damage and extend tire
New telehandler and compact loader tire
CompactMaster EM was introduced by Continental AG in October 2021. The
CompactMaster EM tire has twisted steel cord and a redesigned turtle shield
design. It is appropriate for the construction and agricultural industries.
The growth in the OTR tire industry in the
United States is due to the rise in infrastructure projects, mining, and
recreational activities. The country is also attracting investments from
foreign investors, and government policies to transition from an oil-based
economy to infrastructural developed economy. This has led to an increase in
the utilization of commercial vehicles and, in turn, the replacement rate of
tires, especially OTR tires. Development projects such as the California
High-Speed Rail, Texas Bullet Rail, Blue Castle Nuclear Plant, and Hyperloop
contribute to this trend. As commercial vehicle utilization continues to
increase in the coming years, the replacement rate will also rise. One of the
most significant market trends is the growing acceptance of tire retreading,
particularly in OTR tires. The OTR tire market in the United States accounts
for the highest share of the overall retread tire market in the country.
Another significant trend in the market is an increased emphasis on
technological advancement. Tire manufacturers in the United States are
developing technologically advanced new tire offerings to meet changing
customer demands for better ride comfort, safety, higher fuel efficiency, and durability.
A further trend in the market is a shift towards online tire sales. Consumers
benefit from the increase in e-commerce and online sales as it provides them
with more options for purchasing products. Customers can compare different tire
brands, as well as the costs, qualities, and specifications of related goods.
Overall, the ease in trade regulations and increased infrastructure projects
will drive market growth in the United States OTR Tire Market.
The United States OTR Tire market is
categorized by Vehicle Type, Demand Category, Tire Construction Type, Sales
Channel, Region and Competitive Landscape. The market is divided into
Agriculture, Construction, Mining, and Material Handling based on Vehicle Type.
Demand Category includes OEM and Replacement. Tire Construction Type is
segmented into Radial and Bias. Sales Channel consists of Online and Offline.
Region-wise, the market is segmented into Northeast Region, Midwest, South
Region, and the West Region.
Apollo Tires ltd., Bridgestone Corporation,
The Michelin Group, Continental AG, Goodyear Tire and Rubber Company, Madras
Rubber Factory Ltd., The Yokohama Rubber Co., Ltd., Balkrishna Industries
Limited (BKT), Toyo Tire Corporation, Zhongce Rubber Group Co., Ltd are some of
the major players in the United States OTR Tire market.