According to a recent report by ResearchAndMarkets.com, the off-the-road (OTR) tyres marketis predicted to reach US$7.68 billion by 2025. The market was valued at US$5.34 Billion in 2017 and is projected to grow at a CAGR of 4.64% during the forecast period.
The OTR tyres market is projected to grow due to the increasing demand for agriculture tractors, construction & mining equipment fuelled by mechanisation and high infrastructural development in developing countries. Due to increased machine hours, the tyre replacement time has seen a slight decline in recent times. Rethreaded tyres cost 1/3rd of the price of new tyres and have good durability. Thus, the market for rethreaded tyres is projected to grow significantly in near future.
The study segments the OTR tyres market by application and region. The construction and mining equipment market is estimated to grow at the highest rate during the forecast period. The growth will be driven by the increasing demand in Asia Oceania and North America. OTR tyres for agriculture tractors segment is estimated to be the largest market during the forecast period due to the increasing demand from developing countries and Asia Oceania region. Increased industrial automation is also projected to influence OTR tyres market for industrial applications.
The study segments the OTR tyres market, by type, into wheeled and rubber track. Rubber tracks market is estimated to be the fastest growing market; whereas, the wheeled market is estimated to be the largest market during the forecast period. The crawler equipment is imposed with the tracks in which there is very less penetration of rubber track. Tracks have a larger surface area in contact with the ground. Tracks help to pull heavy load as weight is distributed evenly, without causing soil compaction. The increasing demand for rubber tracks in developed regions makes it the fastest growing market.
The OTR tyres market is also segmented by rethreading applications and region. The construction and mining equipment type holds the major share in the rethreading market. The advancements in construction & mining equipment, such as automation and electrification, have helped the fleet operators to use the equipment in multiple shifts. This has led to decreased tyre replacement duration, thereby to the increased demand for aftermarket tyres. The demand for rethreaded tyres is projected to grow also due to the high cost of new tyres.
The study segments the OTR tyres market by process (Pre-Cure, Mold Cure). The pre-cure market is projected to be the largest market; whereas, mold cure market, by value, is expected to be the fastest growing market during the forecast period. The mold cure process is a capital-intensive process as it requires investments in the mold. The market for pre-cure is the largest as it is relatively economical process. The market share of mold cure rethreading is projected to reduce significantly as the pre-cure process is simpler and cost effective.
The major factors hindering the growth of the OTR Tyres market for the organized players are the high cost of R&D and low-cost tyres offered in unorganised market.
(RJA)
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