The continuous advancement of mechanization and infrastructure construction in emerging markets has driven the demand for agricultural, construction, mining equipment, and engineering machinery tires. According to Smithers' report "The Future of Off-The-Road (OTR) Tires to 2024," the global OTR tire market size was estimated to exceed 4 million metric tons in 2019, valued at USD 27.5 billion. It was projected that the five-year compound annual growth rate (CAGR) for OTR tire sales would be 3.8% and the CAGR for value would be 4.8% by 2024.
In recent years, construction and industrial activities have been the primary market supports and drivers, but looking ahead, growth across various end-use industries is expected to become more balanced. For instance, rising commodity prices are supporting the mining industry, while economic and population growth are bolstering the construction, agriculture, manufacturing, and shipping sectors. From an equipment perspective, the development of new machines for these industries is driving innovation in OTR tires. The focus is now on products that can handle increased load demands and communicate their condition.
The mining and construction segments will continue to account for more than half of the market size. While mining and construction growth has been affected by various factors in the past, the mining aggregates segment (aggregates for construction) has driven overall market growth. The performance of the construction, agriculture, and industrial sectors is expected to align with overall economic growth.
In developing countries, the demand for agricultural tractors, construction, and mining equipment is increasing. The construction and industrial segments have maintained their stable market leadership and are projected to continue growing. The growth in manufacturing in developing economies is anticipated to drive the market for industrial equipment tires.
Regionally, as the global economy stabilizes and resumes growth, all regional markets are expected to experience growth by 2024. The Asia-Pacific market, with its large mining, construction, agricultural, and industrial bases, has emerged as the largest market. Population growth, increased agricultural mechanization, mining recovery, and sustained construction activities support further growth in this region.
In the end-use sector, the increasing load requirements make tire products and services crucial factors in avoiding downtime. Equipment automation, along with the use of big data and predictive analytics, is transforming the OTR tire business into closer collaboration between OEMs, tire manufacturers, and distributors. Over the next few years, the industry will be increasingly driven by data utilization, predictive analytics, and automation, shifting from a transaction-centric model to a solution-oriented approach. The mining and construction OTR sectors will be at the forefront of this change, with OTR tires incorporating integrated sensors for tire monitoring and management.
