The global market for off the road (OTR) tyres is estimated to be nearly 3.5 million tonnes in 2015, corresponding to a value of US$23 billion, and is expected to show an overall compound annual growth rate (CAGR) of 4.4% to 2020 in volume terms, and 5.0% per year in value terms.
A new report by Smithers Rapra says that the current state and future evolution and composition of the market are based on a number of key end uses in the global economy (mining, construction, agriculture and industrial) as well as regional growth determinants and technological advances in OTR vehicles and their tyres playing a significant role.
“A number of technological trends will present opportunities for both OTR tyre manufacturers and raw material and component suppliers to meet emerging needs in the marketplace. New compounds, materials and integrated value-added technologies – tyre pressure monitoring systems like TPMS – should help OTR tyres become more durable, efficient and long lasting as applications become more demanding,” said Arthur Mayer, author of the report.
“At the same time, new opportunities appear to be opening up to savvy market participants in the areas of sustainability and standardisation, where there has been relatively little activity compared to other tyre industry areas so far.”
The largest use for OTR tyres is mining and construction, which also includes some larger industrial applications such as ports and handling (where the largest forklift trucks are used). Altogether, this segment will continue to represent well over half of the market in volume terms. Meanwhile, the construction, agriculture and industrial sectors have continued their steady performances in line with overall economic growth.