Global Heavy-Duty Tire Market - Growth, Trends, and Forecast (2018 - 2023)
The global heavy-duty tire market is anticipated to project a CAGR of around 6.2% during the forecast period of 2018-2023. Increased demand for construction, mining, and agricultural machinery & equipment, and their tire replacement has boosted the demand for heavy-duty tires from both OEM and aftermarket sector. Technological development in small off-the road (OTR) tires revolves around the development of new tread patterns, compounding and casing upgrades.
Increasing Mechanization in Various Sectors in both Matured and Emerging Regions
There has been a significant momentum gain in the small heavy-duty tire industry. The market had been lagging for the last 2-3 years as the industries with heavy-duty tire usage, like small loaders, skid steers, and backhoes were significantly less. In addition, the growth rate for the construction industry is expected to be above 3% and anticipated to see positive demand for heavy-duty tires in the forecast period.
The road and bridge construction markets are also expected to fuel the growth of small and large off-the-road tire sales. Increased emphasis on federal and state funding for these infrastructural projects is a major driver of growth in the heavy-duty tire markets. Growing demand for these tires in developing nations is due to the support from the industry growth. Also, improving global economic environment and increasing emphasis on mechanization of agricultural activities is leading to experience an increase in the demand for harvesters, tillers, and shredders, and in turn will drive the demand for tires in these market.
In 2017, majority of the European countries experienced growth in the agricultural machinery market when compared to its past two years declining records and the market is likely to continue to increase during the forecast period. Hence, Europe is likely to register a faster growth rate in agricultural machinery tires market during the forecast period.
Cheaper Tire Retreading Slightly Hinders the Tire Replacement Growth
Demand for tire retreads has also been increasing as the fleet managers/operators continue to leverage retread programs to reduce the operating costs. Retreading can help the heavy commercial vehicle segment save a significant amount of money, as it is significantly cheaper than a tire replacement.
In order to be successful in the market, it becomes critical for the dealers to be well versed with the product, especially in the aftermarket. Having product knowledge to make recommendations regarding the variables impacting tire performance, and understanding the different customer applications, is critical. Dealers should also train their staff regarding the safety the tires provide.
Main raw material for tire industry is rubber and its price in the market shows a significant impact on the tire production capacity. The rubber prices have been fluctuating yearly across all countries. In India, there is a wide demand and supply gap for tires due to low tire production capacity in the country, as the selling price of rubber was about USD 2.01 per kg in the country which is USD 0.5 more than its price in the international market in 2017. Hence, India majorly depended on the imports of tires from Chinese market, especially for commercial vehicle tires and OTR tires.
Key Developments of the Market:
January 2018: Yokohama Group planned to expand its production capacity for heavy-duty tires/ OTR tires by adding new facilities at ATC Tires Pvt. Ltd., a subsidiary of Alliance Tire Group (ATG). The construction of new facility started in February 2018 at ATC Tire’s Dahej Plant, in Gujarat, India.
January 2018: Bridgestone expanded its product portfolio of industry technology solution by introducing PressureStat™, a Tire Pressure Monitoring System (TPMS) for OTR tires in the construction, underground hard rock, quarry, and port industries.
Major Players: BRIDGESTONE, CONTINENTAL, GOODYEAR, MICHELIN GROUP, amongst others
Reasons to Purchase the Report:
Latest technology trends adopted by the manufacturers in the heavy-duty tire market
Analyzing various perspectives of the market with the help of Porter’s Five Forces Analysis
Study on the application that is expected to dominate the market
Study on the regions and countries that are expected to witness the fastest growth during the forecast period
Identifying the latest developments, market shares, and strategies employed by the major market players
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