Report Overview

Brazil OTR Tire Market – Industry Trends & Forecast Report, 2030

Brazil OTR Tire Market size by value was estimated at USD 1.48 billion in 2023. During the forecast period between 2024 and 2030, the Brazil OTR Tire Market size is expected to expand at a CAGR of 5.40% reaching a value of USD 2.56 billion by 2030. The Brazil OTR (Off-The-Road) Tire Market experienced significant growth, primarily driven by the expansion of infrastructure projects across the country. Brazil's burgeoning construction sector, fueled by government investments in roads, highways, and infrastructure development, spurred demand for heavy-duty machinery, consequently boosting the demand for OTR tires. Additionally, Brazil's thriving mining industry, one of the largest in the world, further propelled the demand for OTR tires as heavy equipment used in mining operations required durable tires capable of withstanding harsh terrains. The country's vast agricultural sector also contributed to the growth of the OTR tire market, with increased mechanization in farming activities necessitating robust tires for agricultural machinery.

By volume, the Brazil OTR Tire Market size was estimated at 0.09 billion units in 2023. During the forecast period between 2024 and 2030, the Brazil OTR Tire Market size is projected to grow at a CAGR of 5.61% reaching a volume of 0.13 billion units by 2030. Brazil's economic stability and rising disposable incomes during this period led to increased consumer spending on recreational activities such as off-road driving and adventure tourism. The trend further fueled the demand for OTR tires as enthusiasts sought durable and high-performance tires for their off-road vehicles. Additionally, the growing awareness of the importance of tire maintenance and replacement among commercial vehicle owners and fleet operators boosted aftermarket sales of OTR tires. Government regulations mandating the use of high-quality tires and adherence to safety standards also played a crucial role in shaping the dynamics of the Brazil OTR tire market, driving manufacturers to innovate and offer advanced tire solutions to cater to the evolving needs of consumers and industries alike.

Off-the-road (OTR) Tires – Overview

Off-the-road (OTR) tires are heavy-duty tires designed for use on vehicles such as dump trucks, loaders, graders, and other heavy equipment used in construction, mining, agriculture, and industrial applications. These tires are characterized by their robust construction, deep treads, and strong sidewalls, which enable them to withstand rough terrain, sharp rocks, and heavy loads. OTR tires come in various sizes and configurations to suit different vehicles and operating conditions. They play a crucial role in ensuring the performance, productivity, and safety of off-road vehicles operating in challenging environments. Regular maintenance and proper tire selection are essential for maximizing OTR tire lifespan and performance.

Brazil OTR Tire Market

Growth Drivers

Expanding Mining and Construction Sectors

Fueled by rapid urbanization, infrastructure development, and the surging demand for natural resources, the mining and construction sectors are poised for significant growth. The expansion will require substantial capital investments, creating a prime opportunity for the global corporate lending market. Banks and financial institutions will be well-positioned to meet the demand by offering loans for project financing, equipment acquisition, and operational needs, driving the overall growth of the corporate lending market.

Challenges

High Import Duties

High import duties can disrupt the flow of goods in the global corporate lending market. Companies relying on imported materials face increased costs, impacting project viability and potentially requiring larger loans. This can lead to lenders being more cautious, demanding stricter terms or higher interest rates. Overall, high import duties create uncertainty and can hinder cross-border business activity.

Impact of Escalating Geopolitical Tensions on Brazil OTR Tire Market

Escalating geopolitical tensions can significantly impact the Brazil OTR (Off-the-Road) Tire Market. As Brazil is a major player in global commodity exports, any disruption in international relations could affect trade flows, leading to fluctuations in demand for OTR tires used in industries like mining and agriculture. For instance, strained relations with key trading partners may result in trade barriers or sanctions, hindering the export of commodities and thus reducing the need for heavy-duty tires. Moreover, geopolitical instability can contribute to economic uncertainty, dampening investment sentiment, and constraining infrastructure development projects, which are major consumers of OTR tires. The Brazil OTR Tire Market's growth potential may be hampered by such geopolitical tensions, necessitating adaptation strategies for businesses operating in the sector.

Brazil OTR Tire Market

Segmental Coverage

Brazil OTR Tire Market – By Vehicle Type

Based on vehicle type, Brazil OTR Tire Market is divided into Agriculture Vehicles, Construction & Industrial Vehicles, and Mining Vehicles segments. The mining vehicles segment is the largest vehicle type in the Brazil OTR (Off-The-Road) Tire Market. The sector encompasses a wide range of heavy-duty vehicles used in mining operations, such as dump trucks, loaders, and excavators. With Brazil being rich in natural resources and hosting a significant mining industry, the demand for OTR tires for mining vehicles is substantial. The tires need to withstand rugged terrains and heavy loads, making them a crucial component in the mining sector's operations. Therefore, the mining vehicles segment stands out as the largest in Brazil's OTR Tire Market.

Brazil OTR Tire Market – By Demand

Based on demand, Brazil OTR Tire Market is split into OEM (Original Equipment Manufacturers) and Replacement segments. The replacement segment typically holds a larger share in the Brazil OTR Tire Market. The segment encompasses the sales of tires used as replacements for worn-out or damaged ones in existing vehicles or machinery. It often dominates due to the steady demand for tire replacements in various industries such as construction, mining, and agriculture. While the OEM segment caters to new vehicle production, the replacement segment maintains a robust presence, driven by ongoing maintenance needs across diverse sectors, contributing significantly to the overall market dynamics in Brazil.

Brazil OTR Tire Market – By Tire Type

Based on tire type, Brazil OTR Tire Market is divided into Radial, Bias, and Solid segments. The radial segment emerges as the largest tire type in the Brazil OTR Tire Market. Radial tires, known for their durability and enhanced performance, dominate the market due to their widespread adoption across various industries. Their superior traction, resistance to wear and tear, and ability to operate in challenging terrains contribute to their popularity among consumers. Therefore, the radial segment holds a significant share in the Brazil OTR tire market, reflecting the preference for high-quality, reliable tire solutions in the region's industrial landscape.

Brazil OTR Tire Market – By Tire Size

By tire size, Brazil OTR Tire Market is divided into 24’’–30’’, 31’’–35’’, 36’’–39’’, 40’’–50’’, 51’’–55’’, and 56’’ and above segments. The 40’’–50’’ segment holds the highest market share in the Brazil OTR Tire Market. The segment likely encompasses a significant portion of the market due to its range, possibly indicating prevalent usage or demand for tires in this size range in various applications such as construction, mining, and agriculture. Its prominence suggests that it may hold substantial market share and importance in meeting the diverse needs of industries relying on Off-The-Road (OTR) tires in Brazil.

Competitive Landscape

Major players in the Brazil OTR Tire Market include Bridgestone, Michelin, Goodyear, Pirelli, Continental, Trelleborg, Yokohama, Vipal, Randon, and BKT (Balkrishna Industries Limited). To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In 2020 - Meritor, Inc., an automotive components manufacturer, announced its plan to develop a new manufacturing facility in Brazil to support the domestic commercial vehicle market.

Scope of the Report

By Vehicle Type

• • Agriculture Vehicles

  • Construction and Industrial Vehicles

  • Mining Vehicles

By Demand

• • OEM (Original Equipment Manufacturers)

  • Replacement

By Tire Type

• • Radial

  • Bias

  • Solid

By Tire Size

• • 24’’–30’’

  • 31’’–35’’

  • 36’’–39’’

  • 40’’–50’’

  • 51’’–55’’

  • 56’’ and above

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Brazil OTR Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Mining and Construction Sector Expansion
         2. Rising Infrastructure Investment
         3. Expansion of the Agricultural Sector
      2. Restraints
         1. High Import Duties
         2. Stringent Environmental Regulations
         3. Competition from Low-Cost Producers
      3. Opportunities
         1. Growing Demand for Retreaded Tires
         2. E-commerce Growth
         3. Focus on Sustainability
      4. Challenges
         1. Skilled Labor Shortage
         2. Raw Material Price Fluctuations
         3. Logistics Challenges
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Brazil OTR Tire Market: Marketing Strategies
5. Brazil OTR Tire Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Agriculture Vehicles
         2. Construction and Industrial Vehicles
         3. Mining Vehicles
         4. Others
      2. By Demand
         1. OEM (Original Equipment Manufacturers)
         2. Replacement
      3. By Tire Type
         1. Radial
         2. Bias
         3. Solid
      4. By Tire Size
         1. 24’’–30’’
         2. 31’’–35’’
         3. 36’’–39’’
         4. 40’’–50’’
         5. 51’’–55’’
         6. 56’’ and above
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Insurance Company Market Share Analysis, 2023
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
7. Brazil OTR Tire Market, Pricing Analysis
8. Brazil OTR Tire Market: Import & Export
9. Impact of Escalating Geopolitical Tensions on Brazil OTR Tire Market
10. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Bridgestone
    2. Michelin
    3. Goodyear
    4. Pirelli
    5. Continental
    6. Trelleborg
    7. Yokohama
    8. Vipal
    9. Randon
    10. BKT (Balkrishna Industries Limited)
    11. Other Prominent Players
11. Key Strategic Recommendations
12. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       Brazil OTR Tire Segmentation                      

Figure 2       Brazil OTR Tire Market Value Chain Analysis                    

Figure 3       Company Market Share Analysis, 2023                  

Figure 4       Brazil OTR Tire Market Size, By Value (USD Million), 2019–2030                   

Figure 5       Brazil OTR Tire Market Share, By Vehicle Type, By Value, 2019–2030                     

Figure 6       Brazil OTR Tire Market Share, By Demand, By Value, 2019–2030                                               

Figure 7       Brazil OTR Tire Market Share, By Tire Type, By Value, 2019–2030

Figure 8       Brazil OTR Tire Market Share, By Tire Size, By Value, 2019–2030

List of Tables

Table 1        Brazil OTR Tire Market Size, By Value (USD Million), 2019–2030

Table 2        Brazil OTR Tire Market Share, By Vehicle Type, By Value, 2019–2030                     

Table 3        Brazil OTR Tire Market Share, By Demand, By Value, 2019–2030                                               

Table 4        Brazil OTR Tire Market Share, By Tire Type, By Value, 2019–2030

Table 5        Brazil OTR Tire Market Share, By Tire Size, By Value, 2019–2030

Table 6        Bridgestone Company Overview

Table 7        Bridgestone Financial Overview

Table 8        Michelin Company Overview

Table 9        Michelin Financial Overview

Table 10      Goodyear Company Overview

Table 11      Goodyear Financial Overview

Table 12      Pirelli Company Overview

Table 13      Pirelli Financial Overview

Table 14      Continental Company Overview

Table 15      Continental Financial Overview

Table 16      Trelleborg Company Overview

Table 17      Trelleborg Financial Overview

Table 18      Yokohama Company Overview

Table 19      Yokohama Financial Overview

Table 20      Vipal Company Overview

Table 21      Vipal Financial Overview

Table 22      Randon Company Overview

Table 23      Randon Financial Overview

Table 24      BKT (Balkrishna Industries Limited) Company Overview

Table 25      BKT (Balkrishna Industries Limited) Financial Overview

Table 26      Other Prominent Players Company Overview

Table 27      Other Prominent Players Financial Overview