Global Agriculture Tire Market Showing Positive Trends: Forecast to Grow at a CAGR of 6.1% by 2027
Published | 01 January 2022
Because of the rising population as well as the growing need for food, the global market for agriculture tires is growing at a high CAGR. Furthermore, the governments of various countries also are offering lucrative schemes and subsidies to support the farmers to adopt advanced farming technologies, thereby pushing the market forward….
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the global agriculture tire market was worth USD 8.92 billion in the year 2020. The market is estimated to grow at a CAGR of 6.1%, earning revenue of around USD 13.59 billion by the end of 2027. The growing demand for agricultural equipment with high efficiency and productivity is driving the global agricultural tire market, particularly among developed nations. Additionally, the market is experiencing significant growth due to the growing need for food due to the increasing population. The high dependence on agriculture and rapid economic growth of emerging economies such as India, China, Japan, etc., is also fueling the demand for agriculture equipment, such as tractors and harvesters, further propelling the growth of agriculture tires. Many governments are also coming up with a range of schemes and subsidies to support the adoption of advanced farming technologies by small and marginal farmers, and these incentives are expected to fuel market growth. However, the high cost of agricultural tires may act as a major restraint on the market.
Favorable Government Initiatives and Subsidies Boosting the Global Agriculture Tire Market Growth
Due to the high cost of farming equipment, the governments of various countries provide various schemes, subsidies, and low-interest loans which fuels the growth of the global agriculture tire market. For instance, more than $20 billion is spent by the U.S government on subsidies for farm businesses each year. Likewise, China’s central government offers low-cost loans to farmers, especially for fertilizers and agricultural machinery, and recapitalizes the Rural Credit Cooperatives to ward off bad loans. Additionally, the Government of India offers the National Food Security Mission (NFSM) scheme under which it provides aids for machinery equipment and maintenance to increase productivity. Such initiatives are anticipated to boost the growth of the global agriculture tire market.
Increasing OEM Investment Towards Expanding Tire Production Capacity Propelling the Market’s Growth
In response to the growing demand for farming equipment in the market, OEMs are investing significantly in expanding their agriculture tire production to stay competitive. The tire manufacturers are expanding their current capacity and establishing new plants to boost their production. Due to growing demand from end-users such as agricultural contractors and farmers, Apollo Vredestein is expanding its European agricultural tire production activities at its Netherlands factory. These factors are anticipated to fuel the global agriculture tire market during the forecast period.
Global Agriculture Tire Market - By Distribution Channel
Based on the distribution channels, the global agriculture tire market is segmented into OEM and replacement/aftermarket. The original equipment manufacturer (OEM) accounts for the largest share in the global agriculture tire market because of the increasing demand for agricultural vehicles such as tractors, harvesters, trailers, etc. However, the replacement/aftermarket segment is projected to witness the highest growth rate during the forecast period because of the regular maintenance agricultural vehicles require due to depreciation. As a result, the demand for replacement tires is growing at a high rate to maintain higher efficiency and maximum yield during agricultural production.
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Global Agriculture Tire Market - Regional Insights
Geographically, the global agriculture tire market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among these, the Asia-Pacific region dominated the market in 2020. However, North America is also anticipated to witness a substantial growth rate during the forecast period because of the high purchasing power of the farmers and faster accessibility and investment towards advanced farming equipment. Increasing emphasis on precision farming to increase agricultural yield is expected to drive demand for smart agricultural tires in these regions throughout the forecast period.
Impact of COVID-19 on the Global Agriculture Tire Market
The global agriculture tire market was tremendously affected by the sudden outbreak of the COVID-19 pandemic. As the countries imposed a lockdown to mitigate the virus spread, the production and supply chains of agriculture tires were immediately halted, incurring huge losses to the manufacturers. Furthermore, a huge number of farmers are dependent on government schemes and subsidies due to the high prices of farming equipment. However, their accessibility to these schemes was cut-off during the COVID-19 period which directly impacted the demand for agriculture tires in the market. However, the market is anticipated to recover during the forecast period as the countries focus on expanding their agriculture production to meet the growing demand.
The leading players in the global agriculture tire market are Asian Tire Factory Limited, MRL Tyres Limited, Balkrishna Industries Limited, Trelleborg AB, Bridgestone, Superking Manufacturers (Tyre) Pvt. Ltd., Continental AG, YACHT., Michelin, Specialty Tires of America, Inc., Sumitomo Rubber Industries, Ltd., The Carlstar Group, LLC., Titan International, Inc., Trelleborg Wheel Systems Czech Republic a.s., Pirelli & C SpA, Apollo Tyres, Nokian Tyres PLC, JK Tyre & Industries, Hankook Tire & Technology Co., Ltd., and other prominent players.
The market is dominated by global as well as regional companies, such as Sumitomo Rubber Industries Ltd., and Apollo Types, JK Tyre & Industries, etc. The market giants consistently offer innovative products to gain a competitive edge. However, the regional companies offer products that cater to the local agricultural needs based on the soil type and the type of farming which provides them with a substantial share in the market. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.
Don’t miss the business opportunity of the global agriculture tire market. Consult our analysts to gain crucial insights and facilitate your business growth.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global agriculture tire market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the global agriculture tire market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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- Agriculture Tire Market- Global Industry Size, Share, Trend Analysis, Outlook, Growth, Opportunity and Forecast, 2017-2027, Segmented By Tire Type (Bias Tires, Radial Tires), By Application (Tractors, Combine Harvesters, Sprayers, Trailers, Loaders, Others), By Distribution Channel (OEM, Replacement/Aftermarket), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA)
Publish Date: January 2022
The global agriculture tire market is driven by the expanding agriculture production due to the growing population and increasing demand for food products. Additionally, favorable government policies and subsidies for acquiring agricultural equipment is also strengthening the market.
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