Agriculture Tires Market

Agriculture Tires Market Outlook

Recording the valuation of nearly US$10 Bn in 2022, global agriculture tires market is all set to exceed the US$12.5 Bn in revenue by the end of 2027. Fairfield Market Research expects a stable growth outlook at over 4% CAGR for the market during 2021 - 2027.

Market Analysis in Brief

Tires are recognized for transiting the vehicle drive or power to the ground using pneumatic structures that are mounted over the vehicle rims. Tires are crucial in protecting the rims whilst transferring the traction force from the vehicle axles onto the road. Agriculture tires are special categorized tires that are manufactured with better and deep tread designs for tractors and agricultural vehicles with an intent to provide more traction during the off road activities or on non-paved roadways like sand, mud, dirt, or gravels. Comparative to the winter tires, they are not embedded with studs, however they are designed with wider grooves that aid them to sink in the mud or gravel for better traction. Internationally, agricultural tire industry has progressed at a rapid pace in the last decade. Increased utility in multiple end user categories such as mining, construction, and farming among others have created constructive opportunities for the growth of agriculture tires market. Additionally, growing applications of the tires have aided in balancing negative demand due to fluctuation amidst any end-use industry. This, itself is likely to ensure worthy prospects for the agriculture tires industry in the foreseeable future with better stimulus.

Key Report Findings

• Agriculture tire sales recorded around US$10 Bn revenue in 2022
• Growing desire to mechanize farming activities to push prospects up for agriculture tires market
• Europe promises lucrative opportunities to agriculture tires industry in long term
• Developing economies likely to develop strong potential markets as investments in agricultural activity rises
• High-performance durable tread designs gain spotlight among competitors

Growth Drivers

Increasing Rate of Technology Adoption in Developed Nations

Adoption of the tires in the agricultural sector has been rising at a promising rate comparative to that in construction and mining industries. Increased off road activities, growing spending capacity of population from developed & developing nations supplemented by launch of special agricultural vehicles in the recent past has bolstered the agriculture tires market considerably. Burgeoning technological adoption rate is significantly higher in European countries with limited manpower, conducive cultivation environment and wide arable land availability. The technological advancement in the region is supported by higher per capita income amidst the farmers. As a result, farmers with lesser labor availability rely on high end technologies to boost production and revenues.

Higher labour wages in developed nations limits the farmers spending over petty jobs in large grasslands and agriculture fields. Such jobs are being accomplished with mechanized systems, integrated into tractors and harvesters that entail in reducing human errors and efforts. Modern agricultural vehicles are capable of performing multitude of activities such as sowing, fertilization, harvesting, among others. The desire to mechanize agricultural activities was the need of the hour with limited labor shortages or high labour overheads with fluctuation in availability. The deployment of advanced technologies is justified with the usage of equally good agricultural tires to support the agricultural vehicles. Emergent economies have been witnessing a spike in shelling out money towards agricultural activities, which is likely to provide a positive outlook for the growth of agriculture tires market.

Paradigm Shift in Lifestyle with Increased Spending Capacity

Globally, lifestyle changes and growing vehicle miles travelled are synchronous. Increasing vehicle demand with weekend long excursions, daily rise in commutation to work from suburb locations, rise in the spending capacity in emerging nation on account of the proliferation of service based industries, are some of the attributes that are looked upon by automakers. New product launches suiting the needs of people and increased vehicle life span are all likely to contribute towards creating an opportunity in agriculture tires industry. This in turn shall pave the way for new growth avenues in the global agriculture tires market.

COVID-19 Impact

Fluctuating Market Growth Expected in Short Term

The pandemic has caused immense disruption in the supply chain of tire industry, which also held its direct impact on agriculture tires market. Mainstream raw material suppliers have been anxious due to domestic and international ban on transportation and logistics coupled with the zero production during the lockdown period. As a result, operating profits were squeezed and daily overheads swelled, resulting in financial pressure on the manufacturers. The pandemic has been putting significant pressure on the entire value chain that has led to a disruption and delays in the final deliveries.

With the long stint of lockdown waived off in several geographies, demand has been revived however it remains fluctuating due to the surge of infections in the second and third wave. Nevertheless, agricultural activities have retained the market momentum despite dreadful impact of the pandemic. All these factors have attributed towards the fluctuation in the tire industry growth. Advancements in the technological front involving the real time data reception from tires for better vehicle manoeuvring and deployment of nanotechnology by manufacturers is likely to provide immense opportunity for the agriculture tires market to proliferate.

Overview of Key Segments

Biased Tires Retain Momentum on the Back of Cost-effective, and Eco-friendly Attributes

Biased tires are highly preferred in China, and India that are manufactured from natural rubber. These tires are quite popular in the Asian countries due to its low cost of manufacturing and good flexibility. However, declining availability of the natural rubber shall constrain its demand and it is highly probable the demand for radial tires would rise. As these tires are manufactured with steel ply and few synthetic contents its durability and flexibility is comparatively higher. Burgeoning demand for OE and aftermarket sales on the back of rising spending capacity of the population in the developing countries has bolstered the growth of agriculture tires industry and is likely to continue in the foreseeable future.

Growth Opportunities Across Regions

Asia Pacific Turns Lucrative

Asia Pacific is turning out to be one of the leading regions due to the rising demand especially from the agricultural sector of China, and India coupled with the advent of manufacturing activities. Moreover, developments in the farming technologies and supportive policies are anticipated to fuel the growth of agricultural industry, thereby boosting agricultural tire demand. Few manufacturers have established the manufacturing bases in the Asian regions with due consideration towards the low labour cost, better raw material availability, conducive government policies and rising demand for food production in the region. Rising demand for food is expected to drive the agricultural industry in turn providing the necessary thrust to the agricultural tires market in the region.

Competition Landscape: Agriculture Tires Market

Key manufacturers of the agriculture tires market are reliant on the end-use industry growth and the new product developments. Manufacturers are consistently focussing towards building new tread designs that are durable and highly reliable in terms of performance standards by using advanced engineering techniques. Some of the key players are simultaneously involved in R&D activities with significant investments to develop new products with better tread designs and suffice end user requirements. The market is highly consolidated and steered by few large players inclusive of Yokohama Rubber Co., Ltd., Continental AG, Trelleborg AB, Balkrishna Industries Limited, Pirelli, among others that control a majority of the stake.

Major manufacturers are implementing business strategies with a blend of new product development, joint ventures and pricing strategies along with extended aftersales services in an attempt to build large clientele base and promote their brand value. The global agriculture tires market space include Trelleborg AB, The Yokohama Rubber Co., Ltd., Bridgestone Corporation, Pirelli & C. S.p.A., Continental Aktiengesellschaft, Sumitomo Rubber Industries Ltd., Goodyear Tire & Rubber Company, Compagnie Générale des Établissements Michelin (CGEM), Titan Tire Corporation, Balkrishna Industries Limited, and Prometeon Tyre Group S.r.l. are some as the key players among others that are indulged in steering the progression of worldwide agriculture tires industry.

The Global Agriculture Tires Market is Segmented as Below:

By Application Coverage       

• Tractors
• Harvesters
• Implements
• Irrigation
• Forestry
• Others

By Tire Type Coverage          

• Bias
• Radial

By Equipment Horsepower Coverage           

• 0-80 HP
• 80-200 HP

By Sales Channel Coverage 

• OEM
• Aftermarket

By Geographical Coverage   

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Turkey
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • ASEAN
  • ANZ
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa

Leading Companies   

• Bridgestone Corp.
• Continental AG
• Balakrishna Industries Ltd. (BKT)
• Yokohama Rubber
• Michelin
• Titan International Inc.
• Sumitomo Rubber Industries, Ltd.

Inside This Report You Will Find:

1. Executive Summary
2. Agriculture Tires Market Outlook
3. Global Agriculture Tires Market Outlook, 2019 - 2027
4. North America Agriculture Tires Market Outlook, 2019 - 2027
5. Europe Agriculture Tires Market Outlook, 2019 - 2027
6. Asia Pacific Agriculture Tires Market Outlook, 2019 - 2027
7. Latin America Agriculture Tires Market Outlook, 2019 - 2027
8. Middle East & Africa Agriculture Tires Market Outlook, 2019 - 2027
9. Competitive Landscape
10. Appendix

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