CHICAGO, Nov. 21, 2022 /PRNewswire/ — OTR Tires Market is projected to grow from USD 8.7 billion in 2022 to USD 11.4 billion by 2027, at a CAGR of 5.5% over the forecast period, according to a new report by MarketsandMarkets™.
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In European countries, owing to the war in Ukraine, there is growth in infrastructure and farming activities. Additionally, the Ukrainian people are shifting to other countries, creating housing needs. Such factors are responsible for growth in infrastructural and farming activities across the globe, impacting the OTR tires market. Another factor impacting the market is the increasing mining activites in Asian, African and Latin American regions. Due to the high demand for the extraction of minerals and ores, mining equipment is in demand, impacting the OTR tires market.
31-70 HP tractors lead the demand for OTR tires in the agricultural tractors segment.
The 31-70 HP tractor segment has significant demand in highly populated countries with low arable land per capita. For example, arable land per capita in countries such as China and India is below 0.1 hectare/person, indicating that there are more farm owners in these countries compared to other countries. In addition, subsidies provided by the government for low-income farmers have fuelled these countries’ mechanization rates. For example, the subsidy named Macro-Management Agricultural Schemes by the Indian government, where a 25% subsidy is given to farmers who buy tractors with 35HP. This high demand for tractors fueled by the need for higher throughput from agricultural activities aided by governing body subsidies will drive the OTR tire market.
Wheeled Loaders >80 HP will hold a major market share in the OTR Tires Market for Construction & Mining applications
A wheeled loader uses an arm to lift and lower its bucket, and a bell crank is used to open and close its bucket. They can lift anything, such as debris, gravel, soil, dirt, pallets, etc.; hence, wheeled loaders have higher demand in construction and mining. Construction projects worldwide have seen a significant upturn in approvals as the effects of the pandemic has subsided. For example, the Mumbai–Delhi, 1,350 km expressway in India, started in 2019 and is expected to be constructed by 2025. Corridor 11 Pozega to Boljare Motorway in central Serbia is worth USD 2.2 billion and is expected to be completed by 2029. Such large-scale projects require moving large volumes of materials to fuel the demand for wheeled loaders. As the demand for such heavy-duty equipment increases globally, it is likely that the demand for the OTR tires used in this equipment will also see a significant rise.
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Asia Pacific region to dominate the global OTR Tires Market
China and India are projected to hold the largest shares of the market owing to the rural population. The sale of small drives the sales volume of OTR tires in these countries (<30HP, 31-70HP) tractors. These countries generate demand for metals and minerals due to their large population. The growing economy has allowed them to sanction large-scale construction and mining projects, thus driving the sales of construction and mining equipment and OTR Tires. China has discovered 173 minerals and has proven reserves in 163, ranking third globally after US and Russia. With the implementation of the Made in China 2025 strategy, the enormous potential and growth of the economy transitioning to a high-quality development stage will continue to boost demand for minerals. According to India Brand Equity Foundation (IBEF), India has earmarked USD 1 trillion for investment in developing infrastructure. Grand-scale construction projects will deploy several construction equipment for their execution. Japan has a small mining sector but a large construction sector whose growth is driven by the rebuilding activities after the earthquakes and tornados frequenting the nation. Rebuilding activities demand more construction equipment, which would drive the OTR tire market in Japan. Construction companies in South Korea are generating revenues from local construction projects and overseas projects. The mining sector in South Korea generated a revenue of 1.4 billion USD in 2021. The South Korean mining industry is currently dominated by industrial minerals, comprising 78% limestone – which is used for lime and cement clinker production.
Thus, the large construction and mining sector and rising demand for high agricultural output drives the demand for the equipment used in these sectors, making Asia Pacific region the leader of the OTR Tires Market by region.
Key Market Players
The OTR Tires Market is dominated by global players and comprises several regional players, including Continental AG(Germany), Bridgestone Corporation (Japan), Michelin (France), Goodyear (US), and Pirelli (Italy).
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