OTR Tire Market Size, Share, Trends & Forecast by 2030

OTR Tires Market

The global OTR Tire market is projected to grow from USD 4.8 billion in 2024 to USD 7.0 billion by 2030 at a CAGR of 6.5%. The growing demand for heavy machinery in construction, mining, and agriculture, coupled with increasing infrastructure projects worldwide, is driving the expansion of the OTR tire market. Additionally, advancements in tire technology, such as enhanced durability and tread designs, fuel market growth by improving efficiency and reducing downtime for equipment operators.

The Russia-Ukraine war is causing an increase in infrastructural and agricultural opportunities in European countries. In addition, there is a need for housing as more Ukrainians relocate abroad. These elements are in charge of the global expansion of farming and infrastructure, affecting the OTR tire market, especially in the European region. Other key factors driving the OTR tires market include the industry’s growing mining activity in Latin America, Africa, and Asia Pacific and growing investments in the infrastructure, especially in developing Asian countries.

31-70 HP tractors hold the highest market share for the OTR tires in the agricultural tractors segment.

There is a sizable market for 31–70 HP tractors in densely populated nations with low per capita arable land. For instance, the amount of arable land per person in countries like China and India is <0.1 hectares, suggesting that these nations have more farmers than others. Furthermore, the government’s subsidies to low-income farmers have accelerated the mechanization rate in these nations. Take the Indian government’s Macro-Management Agricultural Schemes, for instance, where farmers purchasing tractors with 35 horsepower can receive a 25% subsidy.

Tractor models in the market usually range from small gardens to large ones used on extensive farms or construction sites. Each type requires different tire specifications for optimal performance. For instance, compact tractors (<70 HP) often use tires about 24-30 inches in diameter. Mid-range utility tractors (71–250 HP), used more broadly in agriculture, typically have rear tires ranging from 30-46 inches. The largest agricultural tractors (above 250 HP), which require the most power and carry the heaviest loads, can have tires up to 85 inches in diameter. Hence, the need for OTR tires changes depending on the tractor size.

The OTR Tires for <30 HP and 31–70 HP tractors have the highest market share in the Asia Pacific region, which has high demand for smaller 24-30 inches diameter ORT tires, whereas 71–130 HP tractors has a huge demand in North America boosting the demand for 30 to 46 inches diameter OTR tire and European region has the highest market share for >250 HP tractors which has increased the demand for up to 85 inches OTR tires.

Many OEMs supply OTR tires for 31–70 HP tractors globally. For instance, OEMs like BKT and MRF are major Indian tire manufacturers with a strong presence in the agricultural tire market. They offer a variety of tire sizes and tread patterns suitable for tractors in the 31-70 HP range. MRF targets the Asian and African markets specifically, where smaller farm machinery is more prominent, whereas BKT OTR tires are popular in Europe, North America, and Asia Pacific regions. Adding more, Trelleborg is a Swedish tire manufacturer that offers a variety of agricultural tires, including those for tractors in the 31-70 HP range and is prevalent in Europe and North America. Lastly, Maxxis is a Taiwanese tire manufacturer that offers a variety of agricultural tires, including those for tractors in the 31-70 HP range, which are prevalent in Asia, Africa, and South America.

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Rigid Dump Truck is the fastest growing sub-equipment type of the OTR Tires Market.

Rigid dump trucks, or haul trucks, are heavy-duty vehicles designed for transporting large quantities of materials over rough terrain in mining and construction operations. The dump trucks find applications in both the construction and mining industries. The mining industry significantly uses rigid dump trucks, with manufacturers developing specialized mining trucks for operations in rough terrains, open-cast mines, and other challenging environments. The increasing prevalence of these trucks in these industries has propelled the demand for specialized OTR tires tailored to the unique requirements of these vehicles. The radial tires are used primarily on rigid dump trucks as they are designed to limit heat generation. This is crucial in heavy-duty applications where tires are subjected to high loads and intense operating conditions.

The Rigid dump trucks generally use rims with rim sizes ranging from 320/85R24 to 800/70R38, depending on the applications. For instance, Michelin’s XDR 4 EXTRA LOAD 59/80R63 tire is used in many rigid dump trucks in the European region. Also, most experts agree that truck tires should be replaced every three to five years. The retreading is made up to 4 times depending upon the tire’s condition.

These rigid dump trucks have a higher demand in the Asia Pacific region, particularly in countries like China, India, and Southeast Asian countries, due to the emergence of several landscaping and construction projects. The Chinese government is investing heavily in infrastructure projects, with plans to invest USD 120,000 million in infrastructure projects in the country in June 2022. The average working hours per year for dump trucks have increased in past few years, primarily driven by increased construction, infrastructure projects, and mining activities globally. As countries develop and seek to modernize their infrastructure, the demand for heavy-duty vehicles like dump trucks grows, leading to longer operating hours. These machines often operate in continuous, harsh environments, necessitating robust equipment. The intensity of such projects pushes the machinery to its limits and leads to quicker wear and tear, especially on critical components like tires. Extended operating periods, often around the clock to meet project deadlines, further amplify the strain on equipment, accelerating the deterioration of dump truck tires. Also, there is growth in aftermarket OTR tires as operators seek cost-effective, durable replacements to handle increased usage demands. These aftermarket tires often provide a more affordable alternative to OEM tires without significantly compromising performance, which is crucial for maintaining operational efficiency and safety standards. Hence, with the increase in global mining and infrastructure activities, the demand for OTR tires used for dump trucks is projected to grow in the OE and aftermarket.

North America is the second-largest region in the OTR Tire market.

North America has a large construction industry that requires heavy machinery and equipment, which drives the demand for OTR tires in the region. The USGS (United States Geological Survey) released the Mineral Commodity Summaries 2024, highlighting that US mineral production contributed more than 105 billion dollars to the US economy in 2023, a 4 billion increase over 2022. This increased mining and industrial activities in North America has increased the requirement of heavy machinery and equipment, including OTR tires, to operate efficiently. The construction and mining vehicle used more in North America is the rigid dump truck, commonly used for hauling heavy loads in mining and construction operations. The OTR tire size used most in rigid dump trucks is the 57/65R63, a standard size for these vehicles due to its high load capacity and durability. The tire is often retreaded or purchased from the aftermarket to ensure the continued operation of the rigid dump truck. Companies such as Marangoni, Michelin, Vipal, Oliver, and Bandag are North America’s primary suppliers for retreaded OTR tires.

Moreover, the region’s agricultural sector has also significantly contributed to the increasing demand for OTR tires. Arable land per person in the US is high, ~0.5 hectares per person, which has increased the demand for large agriculture tractors (>130HP). The growing demand for technologically advanced equipment, new mine sites, and geographical proximity to the US market have created growth opportunities for the sale of construction and mining equipment in Canada. Also, the Canada Infrastructure Bank plans to invest USD 139 billion under its long-term infrastructure plan by 2028, further driving the demand for OTR tires in the region.

Tire manufacturers and retailers in the US also offer rebates to encourage customers to purchase their products, which come in cashback, discounts, or future credits. For Instance, Double Coin Tires provides an incentive program called Put Us to the Test, which allows customers to test a selection of their TBR tires for six months. Government norms and subsidies have also significantly boosted the sales of OTR tires in North America. For instance, the US Department of Agriculture (USDA) provides subsidies for purchasing agricultural equipment, including OTR tires, to promote mechanization and efficiency in farming. These subsidies have made OTR tires more affordable for farmers, increasing demand and sales. Similarly, the Canadian government’s infrastructure investment plans have created new growth opportunities for the OTR tire market in the region. Hence, the region’s commitment to infrastructure development and technological advancements in the agricultural and mining sectors is expected to drive the demand for OTR tires in the future.

Key Players

Major manufacturers in the OTR tire market include Continental AG (Germany), Bridgestone Corporation (Japan), Michelin (France), The Goodyear Tire & Rubber Company (US), and Pirelli C . S.p.A (Italy).

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