The global agriculture tires market is poised for substantial growth, with revenue surpassing the $10 billion mark in 2022 and projected to reach over $12.5 billion by the end of 2027, according to a recent report by Fairfield Market Research. The market is expected to maintain a stable growth rate of over 4% CAGR during the period 2021-2027.
Market Overview
Agriculture tires play a crucial role in facilitating the efficient transfer of power from agricultural vehicles to the ground. These specialized tires feature deep tread designs to enhance traction during off-road activities and on non-paved surfaces like mud, sand, dirt, and gravel. Unlike winter tires, agriculture tires do not have embedded studs but are designed with wider grooves to provide better traction, making them essential for various applications in agriculture, mining, construction, and more.
The global agriculture tire industry has witnessed significant growth in recent years, driven by increased adoption in multiple end-user sectors and the mechanization of farming activities. These tires are particularly vital in regions facing labor shortages or high labor costs, as advanced agricultural vehicles equipped with these tires can perform a wide range of tasks, from sowing to harvesting, with reduced human intervention.
Key Findings
- Agriculture tire sales reached approximately $10 billion in revenue in 2022.
- The increasing trend toward mechanization in agriculture is driving growth in the agriculture tires market.
- Europe presents lucrative opportunities for the agriculture tires industry in the long term.
- Emerging economies are developing strong potential markets as investments in agricultural activities rise.
- High-performance durable tread designs are gaining prominence among competitors.
Drivers of Growth
Increasing Rate of Technology Adoption in Developed Nations
Developed nations are witnessing a substantial uptick in the adoption of agriculture tires, outpacing their adoption in construction and mining industries. Factors such as increased off-road activities, rising spending capacity among populations, and the launch of specialized agricultural vehicles have contributed significantly to the growth of the agriculture tires market. European countries, in particular, are leading the way in technological adoption, driven by factors like limited manpower, favorable cultivation conditions, and ample arable land. This advancement is further supported by higher per capita income among farmers, prompting them to invest in high-end technologies to boost production and revenues.
Paradigm Shift in Lifestyle with Increased Spending Capacity
Globally, lifestyle changes and increased vehicle usage are closely linked. The rising demand for vehicles for daily commuting, weekend excursions, and improved spending capacity, especially in emerging nations, have caught the attention of automakers. New product launches catering to peoples needs and extended vehicle lifespans are creating opportunities in the agriculture tires industry. This, in turn, is paving the way for new growth avenues in the global agriculture tires market.
COVID-19 Impact
The COVID-19 pandemic disrupted the supply chain of the tire industry, affecting the agriculture tires market. Restrictions on domestic and international transportation, as well as lockdowns, led to production halts and increased operating costs for manufacturers. While demand has revived following the easing of lockdowns in many regions, it remains fluctuating due to subsequent waves of infections. However, agricultural activities have maintained momentum despite the pandemics impact. Advancements in technology, including real-time data from tires and nanotechnology, offer substantial opportunities for the agriculture tires market to thrive.
Key Segments
Biased Tires Retain Momentum on the Back of Cost-effective and Eco-friendly Attributes
Biased tires, primarily manufactured from natural rubber, are highly favored in countries like China and India due to their cost-effectiveness and flexibility. However, the declining availability of natural rubber may drive demand for radial tires, which offer higher durability and flexibility due to steel ply and synthetic materials. The growing demand for original equipment (OE) and aftermarket sales, driven by increasing spending capacity in developing countries, is expected to fuel the growth of the agriculture tires industry.
Growth Opportunities Across Regions
Asia Pacific Turns Lucrative
The Asia Pacific region is emerging as a key player in the agriculture tires market, driven by strong demand from the agricultural sectors in China and India. Additionally, advancements in farming technologies and supportive government policies are expected to fuel the agricultural industry, boosting demand for agricultural tires. Some manufacturers have established manufacturing bases in Asia due to factors like lower labor costs, raw material availability, favorable government policies, and rising food production demands.
Competition Landscape
Key players in the agriculture tires market are focusing on end-use industry growth and new product developments. Manufacturers are continuously working on creating durable tread designs that meet high-performance standards through advanced engineering techniques. Some key players are also investing significantly in research and development to develop new products with improved tread designs that meet end-user requirements. The market is highly consolidated, with prominent players including Yokohama Rubber Co., Ltd., Continental AG, Trelleborg AB, Balkrishna Industries Limited, Pirelli, among others, leading the industrys progress.
Global Agriculture Tires Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2027 (By Application Coverage, By Tire Type Coverage, By Equipment Horsepower Coverage, By Sales Channel Coverage, By Geographic Coverage and By Company) https://www.fairfieldmarketresearch.com/report/agriculture-tires-market
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About Us
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.
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Web: https://www.fairfieldmarketresearch.com/
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COMTEX_440935902/2840/2023-09-25T22:47:37
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