Farm Tire Sales to Rise as Application Base Expands
Farm tires are special category tires that are manufactured with deep tread designs to achieve enhanced functioning for tractors, and other agricultural vehicles with an intent to provide more traction during off-road activities, or on non-paved roadways like sand, mud, dirt, or gravel. 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. Additionally, growing applications of the tires have aided in balancing negative demand due to fluctuation amidst any end-use industry. This is likely to ensure worthy prospects for the global farm tire market in the foreseeable future.
Advanced Technology Adoption Provides Impetus to Market Growth
Adoption of the tires in the agricultural sector has been rising at a promising rate comparative to construction and mining industries. Increased off-road activities, growing spending capacity of population from developed and developing nations, supplemented by the launch of special agricultural vehicles in the recent past has bolstered the agricultural tire market demand 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 of farmers, due to which the farmers with lesser labour availability rely on high-end technologies to boost production and revenues. Higher labour wages in developed nations limit 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 an array of activities such as sowing, fertilization, and harvesting. The desire to mechanise agricultural activities was the need of the hour with limited labour 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. The market will also receive strong support from developing economies as they witness augmenting spending by farmers on agricultural activities.
COVID-19 Pandemic Causes Fluctuations in Short-term Market Growth
COVID-19 has caused immense disruption in the supply chain of tire industry. 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 on the technological front involving the real time data reception from tires for better vehicle manoeuvring and deployment of nanotechnology by manufacturers are likely to provide immense opportunity for the market to proliferate.
Regionally Evolving Agricultural Demand Shoots Market Growth
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 farming technologies and supportive policies are anticipated to fuel the growth of agricultural industry, thereby boosting the demand for farm tires. A few manufacturers have established the manufacturing bases in the Asian & African regions with due consideration towards the low labour cost, better raw material availability, conducive government policies, and rising demand for higher crop yield in the region.
Eco-friendly and Cost-competitive Biased Tires Sustain Demand Surge
Biased tires, manufactured from natural rubber, are highly preferred in fast-developing economies such as China and India, owing to their lower manufacturing costs and decent flexibility. However, declining availability of natural rubber shall foil the, clearing the way for radial tires. As these tires are manufactured with steel ply and a few synthetic contents, they tend to possess higher durability and flexibility. Burgeoning demand for OE and aftermarket sales on the back of rising spending capacity of the population in the developing countries has bolstered the market growth and is likely to continue in the foreseeable future.
Key Market Players Focus on Tread Design Innovations and R&D Investments
A key focus area of manufacturers remains the innovation of new tread designs that are durable and highly reliable in terms of performance standards by using advanced engineering techniques. Significant R&D investments also mark an important competition trend in the farm tire market. The market is highly consolidated and continues to see dominance of a few large players, including Yokohama Rubber Co., Ltd., Continental AG, Trelleborg AB, Balkrishna Industries Limited, and Pirelli.
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 a large clientele base and promote their brand value. 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 of the key players steering the global farm tire market growth.
Key Elements Included In The Study: Global Farm Tire Market
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