India Off the Road (OTR) Tire Market to Grow at a CAGR of 8.5%, during Forecast Period
Published | 07 July 2022
India Off the Road (OTR) Tire Market is flourishing owing to the infrastructure improvements and increasing need for construction and mining machinery which fuels the demand for OTR tires…
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that India Off the Road (OTR) Tire Market was worth 10.81 million units in the year 2021. The market is projected to grow at a CAGR of 8.5%, with sales forecast to reach 19.17 million units by the end of 2028. India Off the Road (OTR) Tire Market is booming because of the rising demand for off-road tires which offer the best traction on uneven surfaces. Also, the benefits of OTR tires are used in various pieces of machinery for use in industries like construction, mining, mechanized agriculture, and industry. The demand for radial OTR tires has been seen to rise recently over bias tires, and this trend is anticipated to continue due to its many benefits. Moreover, OTR tires continue to be most popular in Asia-Pacific, but demand is increasingly rising in Europe and North America. Furthermore, India Off the Road (OTR) Tire Market is one of the most emerging markets that grow continuously owing to the fast integration of new technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), cloud computing, and others. However, Both the cost of the press machines used in the production of OTR tires and the cost of the raw materials are expensive. This, in turn, may act as a huge restraining factor for market growth.
Infrastructure Improvements and Increased Construction and Mining Activity
Most emerging countries, including India, have seen significant growth in infrastructure development as a result of the impact of globalization. Expansion of transportation networks, significant investments in roads, bridges, and tunnels for easier commuting, an improved supply chain network for better trade, expansion of manufacturing industries, and building construction are all examples of infrastructure. With rising labor costs, the need for increased productivity, and the best use of resources, advanced machines are expected to drive demand for construction and mining equipment. Furthermore, private and public infrastructure investments are likely to rise, increasing demand for construction and mining equipment. This has a positive impact on OTR tire demand.
More public and private infrastructure investments are likely to increase, which is expected to increase demand for mining and construction machinery. Because of a significant technological revolution taking place in India and around the world, as well as growing global development, the OTR tire industry is poised to grow more than ever. Two of the sector's most significant advances are innovation that provides the best support to the industrial sectors and diverse products. The demand for construction, farming, and mining equipment is expected to rise significantly over the next ten years, propelling the India OTR tire market even higher.
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Challenge: High Cost Associated with the Production of OTR Tires
Both the cost of the press machines used in the production of OTR tires and the cost of the raw materials are expensive. As a result, none of the market's players can afford to spend a lot of money on R&D. While farm equipment requires different tires for tractors, construction, and mining equipment is outfitted with heavy load bearing with a strong design and treads for better traction. The requirement for tire retreading or replacement in the case of OTR tires is determined by usage patterns and environmental factors. It is necessary to develop and test a wide range of tire sizes because the size of tires changes based on the application and terrain. R&D expenses rise as a result of customizations, a large range of products, advancing technology, and changes in demand. Because research is more expensive, producers tend to concentrate on their current product lines, which slows the expansion of the OTR tires market's more recent sectors.
Segmental Coverage
India Off the Road (OTR) Tire Market - By Sales Channel
Based on the sales channel, India Off the Road (OTR) Tire Market is segmented into OEM and Aftermarket. OEM accounts hold the largest market share. OEM OTR tires are always of the highest quality and are also suitable for all-purpose use. It's designed to be quiet, effective off the road, and long-lasting, and it performs admirably. Aftermarket OTR tires, on the other hand, also last longer and cost far less than OEM brake pads. This influences the aftermarket segment to dominate the market share in the upcoming years.
Impact of COVID-19 on India Off the Road (OTR) Tire Market
The COVID-19 epidemic has had a significant negative impact on the OTR Tire sector and supply chain in India. Sales of mining and construction equipment decreased in the first quarter of 2020. Sales, however, are anticipated to increase in the second half of 2020. The need for off-highway equipment has also significantly expanded as a result of greater mechanization. However, cross-border trade was severely impacted as a result of the COVID-19 outbreak, which resulted in supply chain disruptions in 2020. Due to increased investments in infrastructure development, increased metal demand, expansion in the mining industry, farm mechanization, and industrial automation, demand for off-highway vehicles grew in 2021 and is anticipated to climb further. The increasing demand for off-highway vehicles is anticipated to fuel
Competitive Landscape
The leading market players in India Off the Road (OTR) Tire Market are MRF Limited, Apollo Tyres, Bridgestone Company, CEAT Tyres, Goodyear Tire & Rubber Company, TVS Eurogrip, Jk Tyre & Industries, Ralco Tyres, Continental Tyres, Michelin, other prominent players. India Off the Road (OTR) Tire Market is highly fragmented with the presence of several manufacturing companies in the country. The market leaders retain their supremacy by spending on research and development, incorporating cutting-edge technology into their goods, and releasing upgraded items for customers. Various tactics, including strategic alliances, agreements, mergers, and partnerships, are used.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India Off the Road (OTR) Tire Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Off the Road (OTR) Tire Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
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