Tire Prices Shrink as Production Volume Compresses amid Coronavirus Pandemic
The general market weakness due to the coronavirus crisis is being experienced globally. As manufacturers in the off-the-road (OTR) tire market currently have high inventories, they are expecting business operations to return to normal to mitigate supply and demand issues. Analysts at the Transparency Market Research (TMR) opine that the demand is estimated to ramp up, as the economy is stabilizing. As such, different market conditions pose as hurdles for manufacturers, as they scramble to strengthen their wholesale network and contingency plans.
The reduced vehicle production has compelled manufacturers in the off-the-road (OTR) tire market to negotiate their tire prices. Innovative payment and credit offers on vehicles are anticipated to pump revenue back in the automotive business. Agriculture sector is creating stable revenue streams for tire dealers.
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Bias Tires Pose Stiff Competition to Sales of Radial tires
Radial tires have more advantages as compared to its disadvantages. However, radial tires are more difficult and complicated to repair as compared to other types of tires. Moreover, bias tires pose a stiff competition to radial tires, and the former is predicted to dominate the revenue as compared to all tire types in the off-the-road (OTR) tire market.
On the other hand, repurposing radial tires is boosting the credibility of manufacturers in the off-the-road (OTR) tire market such as Bridgestone Americas’ Aiken Plant, which converts used tires into giant watering troughs for livestock. Manufacturers are increasing the availability of low-pressure tires meant for high-powered row crop applications.
Innovations in Harvester, Tractor Tires Create Revenue Opportunities for Companies
Since agriculture is predicted to dictate the highest revenue among all industrial types in the off-the-road (OTR) tire market, manufacturers are expanding their portfolio in this sector. Michelin introduced harvester and floater tires among others, which help to maximize harvests.
Stakeholders in the off-the-road (OTR) tire market are boosting their output capacities in high performance radial tires that offer long service life and exceptional year round traction. They are increasing R&D muscle to incorporate strong and flexible sidewalls and self-cleaning hinges for optimized pulling power. In addition, manufacturers are innovating in harvester tires that deliver less pressure for less soil compaction.
Airless Radial Tires Help Eliminate Downtime, Complex Mounting in Construction
The off-the-road (OTR) tire market is projected to surpass the revenue of US$ 10.6 Bn by the end of 2030. Manufacturers are innovating in all terrain and all position radial tires to broaden their revenue streams. After agriculture, the construction industry holds promising potentials for the growth of the off-the-road (OTR) tire market. The breakthrough airless technology in radial tires for construction is eliminating the need for complex mounting equipment.
Airless radial tires are transforming the construction sector, since they omit the need for maintaining air pressure and reduce downtime during operations. These tires mimic the properties of pneumatic tires by eliminating issues of a flat tire. Companies are increasing their production for all terrain airless radial tires that provide hard surface traction.
Special Compounded Designs in Tires for Mining Benefit for Extreme Underground Services
Among tough competition in the off-the-road (OTR) tire market, the U.S. tire and rubber company Firestone is expanding its portfolio in agriculture and off road tires. Tires for the mining industry involve bias tires specifically designed for underground mining operations to deploy exceptional cut resistance and impact protection. Manufacturers are developing bias tires that are being used in extreme service shuttle trucks and LHD (load haul dump) applications.
Super heavy-duty plain tread designs are being incorporated in off road tires for mining applications that are capable of delivering resilient underground service. Special compounded designs in tires improve tread life of tires. Noise treated tractor and commercial vehicle tires are storming the off-the-road (OTR) tire market. Large footprints in tires help to reduce soil compaction.
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Off-the-Road (OTR) Tire Market: Overview
- The global off-the-road (OTR) tire market is anticipated to expand at a CAGR of ~3% during the forecast period, owing to increase in construction and infrastructure development across the globe. Rising demand for industrial products is boosting the development of new industries. Moreover, expansion of existing industries is propelling the market for construction equipment.
- Expansion of industries is propelling the demand for minerals and metals, which are extracted from their ores. This is boosting the mining industry, which requires mining equipment such as shovels, loaders, haul trucks, and draglines, which, in turn, is likely to increase the demand for off-the-road tires across the globe.
Drivers of Off-the Road (OTR) Tire Market
- Rise in medium-sized farmers across globe is fueling the demand for agricultural equipment, which is fueling the demand for agriculture tires across the globe. Increase in industrialization across the globe has boosted transportation activities. Intercity transport activities, including B2B and B2C trade are growing, which drives the demand for compact and fast transport vehicles to effectively navigate around cities. This is propelling the global off-the-road (OTR) tire market.
- Growing population and rising consumer income across the globe are likely to shift agriculture sector toward mechanization, which is likely to boost the off-the-road (OTR) tire market across the globe. Rising technological development in tires, including connected tires and TreadStat rim management system, which provides information before the breakdown of the vehicle. This is anticipated to propel the off-the-road (OTR) tire market across the globe.
