Off-the-road Tires Market
Rising investments toward construction sector to accelerate off-road tires market outlook over 2019-2025
Ongoing technological advancements in product manufacturing will stimulate off-road tires market trends. New generation tires will boast of enhanced tread patterns and performance attributes and will provide higher durability and heat resistance over the predecessor. Consistently expanding distributor & dealership network across the globe will also foster product penetration over the study timeline.
Furthermore, growing innovations to develop advanced product portfolio featuring self-sealing tires, and Self-Supporting Runflat (SSR) tire systems will positively influence business growth. The implementation of SSR system improves the safety of vehicle as it prevents the damage to side walls of tires in crunch situations. Rising adoption of advanced tire manufacturing techniques among the prominent Industry players including Michelin, Continental AG, and Pirelli will help expanding the consumer base for these specialty tires.
However, consistently changing regional trade policies and fluctuating raw material prices may negatively affect the product demand over the forecast timeframe. Some countries levy high import tariffs on rubber raw materials which should increase the product price, restricting the industry expansion. For instance, in 2018, China increased the import duties on synthetic rubber coming from the U.S., Singapore, and the European Union. Though the current scenario of global trade war may restrain off-road tires market demand, the expansion of production facilities across the globe will help countering this negativity.
Based on raw materials, synthetic rubber segment is projected to substantially grow over 7.5% CAGR through 2025. The growth is attributed to superior heat and abrasion resistance provided by the material during vehicle operations. Moreover, the tires built from synthetic rubber exhibits longer lifecycle owing to lesser wear and tear. The way these products withstand variable temperatures and permit strong hold over slippery surfaces, it will support the segment penetration over the forecast timeframe.
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Considering the tire height, above 45 inches segment is likely to register significant gains due to the increased demand from bigger vehicles such as tractors, harvesters, rock trucks, dozers and excavators. The expansion of construction activities along with the proliferating agriculture sector will drive the segmental demand. Tire manufacturers are consistently involved in new product launches for OTR (off-the-road) applications which should foster revenue generation over the forecast period. For instance, in April 2018, Alliance Tire Group launched new galaxy brand radial tires for OTR vehicles.
The product is utilized for several off road vehicle types such as SUV, UTV, 4WD, HDT, Dirt Bikes & Quad and OTR. Pertaining to rising recreational activities and dirt bike events hosted across the globe, the Dirt Bikes & Quad segment is presumed to witness substantial gains in the off-road tires market. The increasing development of recreational parks and tracks for ATV will escalate the product demand.
Increasing investment to enhance the product attributes will positively impact the market growth. For instance, in April 2016, Speedways Rubber Co. revealed that it will invest around USD 68 million to manufacture tires for quads.
Author Name : Amol Kothekar