Off-road Tires Market size is set to surpass USD 700 billion by 2027, according to a new research report by Global Market Insights Inc.
The increasing penetration of UTVs and ATVs owing to their functional flexibility & usability in multiple applications and terrains is enabling the off-road tires industry growth. Initiatives adopted by product manufacturers to enhance the performance and durability of off-road tires are also contributing to the expanding market demand. One such development includes the integration of the latest technology into these tires. For instance, manufacturers offer technologically advanced tires, which boast several sensor systems to offer real-time data. Technologies including B-Tag, Rim Management, and TreadStat system are used to observe various physical parameters, such as temperature and pressure, enabling users to make proactive decisions in case of any potential risk.
On the other hand, concerns related to raw material fluctuations often caused by transforming trade policies pose threat to the business profitability of manufacturers. Additionally, the global crisis triggered by COVID-19 has further deteriorated the market conditions. The early impacts of the pandemic led to a dip in the global off-road tires market, however, it is anticipated to rebound swiftly with the roaring production of off-highway vehicles.
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Favorable properties to augment the natural rubber demand
Based on material, the natural rubber segment is anticipated to witness high growth of around 9% CAGR through 2027. In trucks and earthmoving vehicles, natural rubber is mainly used to alleviate the internal heat generation in tires and offer substantial mechanical resistance. The growing preference for natural rubber in off-road tires to improve stability and performance will accelerate segment demand.
Browse key industry insights spread across 230 pages with 309 market data tables & 33 figures & charts from the report, “Off-road Tires Market Size By Material (Synthetic Rubber, Natural Rubber, Fabrics & Wire, Carbon Black), By Tire Height (Below 31 inches, 31-40 inches, 41-45 inches, Above 45 inches), By Vehicle (4WD HDT, SUV, UTV, Dirt Bikes & Quad, OTR), By Distribution Channel (Original Equipment, Secondary/Replacement, Distributor/Dealer Equipped), COVID-19 Impact Analysis, Regional Outlook, Price Trends, Competitive Landscape, Application Growth Potential & Forecast, 2021 – 2027”, in detail along with the table of contents:
Off-road tires below 31 inches to witness significant developments
The growing application of off-road tires in UTVs, quads, dirt bikes, and SUVs will propel the market size from below 31 inches. Regions including North America and Europe are experiencing a rising preference for high torque vehicles, thus fueling the adoption of SUVs. Moreover, the constant efforts of manufacturers to deliver improved performance through several research & development ventures will further support the industry expansion.
OEMs to be the most preferred distribution channel
The OEM segment is the dominating distribution channel in the off-road tires market. The segment is anticipated to account for more than 44% of the revenue share by 2027. Numerous financing and discounts offered by original equipment manufacturers along with roaring production of off-road vehicles are significantly aiding market demand. However, product manufacturers are working closely with vehicle manufacturers to develop & provide customized solutions to off-road machine manufacturers.
North America to experience substantial traction
The North American off-road tires market is forecast to register 7.5% gains through 2027. Inclining consumer preference for off-road vehicles, such as dirt bikes and quads for trail activities, will enable regional industry statistics. In addition, high investments in the electrification of construction and mining equipment in the region will further catalyze the market share.
Partnerships and product launches are among the major initiatives adopted by industry participants
Product manufacturers are engaged in several strategic initiatives to strengthen their industry foothold and gain a competitive edge over other players. For instance, in March 2021, Michelin introduced a new generation of both on and off-road tires, which offer exceptional traction, wear performance, and toughness. These tires are specially designed for the energy, construction, logging, and concrete sectors.
Some of the prominent participants in the global off-road tires market are Yokohama Tire Corp., Nokian Heavy Tyres Ltd., Bridgestone Corporation, JK Tyre & Industries Ltd., and Nortec, among others.