Off-road Tires Market Size

Off-road Tires Market Size

Off-road Tires Market size surpassed USD 420.5 billion in 2020 and is projected to grow at over 7.5% CAGR from 2021 to 2027. The infrastructure development projects, and the growing construction sector are the key factors driving the industry growth. Investments made by several governments, especially in the emerging economies are generating requirements for off-highway vehicles.

For instance, China is anticipated to fund about 100 countries for railways, roads, ports, power plants, and other infrastructure development projects. This mammoth initiative will not only generate broad economic growth opportunities for recipient countries but also boost their GDP by up to 3.4% according to the World Bank.

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On the other hand, the COVID-19 pandemic is negatively affecting the global off-road tires market. The preventive measures adopted to curb the impact of the contagious coronavirus resulted in nationwide lockdowns, mobility restrictions, and termination of several manufacturing operations that were non-essential. However, the automotive industry observed recovery of production activities in the third quarter of 2020. In addition, healthy recovery for the off-highway vehicle sector is expected due to increasing demand post-pandemic, fueling the consumption of off-road tires.