Global agricultural tire market forecast at $10.4 billion by 2030

Pune, India- The Global Agricultural Tires Market size is projected to be worth USD 10,443.10 million by 2030, registering a CAGR of 5.51% during the forecast period (2022–2030) according to Market Research Futures.

Agriculture tires, as the name implies are dedicated to complete farm or agriculture use. These tires have diagonal thread angled at 45 degrees. The treads provide maximum traction thereby allowing the tractor to move quickly through mud and soil. These are available in various sizes and diameter, for many kinds of equipment, including tractors, combine harvesters, sprayers, trailers, and skid steer loaders. These are made from supreme quality rubber for life long and better performance to remain durable on and off the field. They have substantial ribs and voids for traction in soft terrain. These tires have increased fuel efficiencies and hillside stability. Some tires have diamond tread design for minimal soil disruption.

The sale of farming equipment globally has taken a blow as a result of the COVID-19 epidemic, and the predicted recovery will take a long time. This aspect is projected to stifle the expansion of the agricultural tires market in globally the short term. The supply chain plays a key role in the growth of the global agricultural tires market. However, disruption in the supply chain has significantly reduced the production of agricultural machinery and agricultural tires owing to an inadequate supply of raw materials required for production.

A notable decline in purchasing power has resulted in less spending on agricultural equipment / machinery including agricultural tires by consumers. In addition, the frequent lockdown has affected the aftermarket agricultural tires business adversely.

The process of using agricultural machinery to mechanize the job of agriculture, considerably boosting farm worker productivity, is known as mechanized agriculture. Many farm operations once performed by physical labor or working animals such as oxen, horses, and mules have been supplanted by powered technology in contemporary times. Growing demand for automation in farming activities to bridge the demand-supply gap of agricultural produce, and rising adoption of advanced technologies in farming are driving the demand for farm mechanization. Agriculture automation has resulted in the rise in demand for large and small tractors, and demand for mechanized harvesting significantly, in turn, propelling the growth of the global agricultural tires market.

The global tire market prices are influenced by the prices of raw commodities used such as crude oil, rubber, and steel. Natural and synthetic rubber are the most common tire raw materials, accounting for roughly 60-70 percent of the overall raw material cost. Because petrochemical-based raw materials account for over 60% of a tire’s basic materials, price changes in crude oil and agricultural products such as natural rubber create significant price fluctuations. In line with this, radial tires are expensive due to the usage of synthetic rubber and sophisticated production technologies that necessitates high-cost machinery. As a result, the product has a low penetration rate in important agricultural markets and developing economies like India and China. The market’s expansion is anticipated to be limited by the aforementioned reasons. Thus, the surge in raw material prices is expected to restrict the growth of the global agricultural tires market in the forecast period.

Agricultural activities and crop production at the global level have witnessed considerable growth over the last few decades. The introduction of modern technology, innovations, and process improvements coupled with growing food demand has resulted in a significant increase in total agricultural production. These include enhanced seed types, genetic modification in cattle, modern machinery with global positioning systems, and robotics among others, which is enhancing the target market growth. To meet increasing energy requirements and increase crop yield, governments and various organizations are attempting to solve the major difficulties of agriculture across the world, such as small farmer holdings, primary and secondary processing, supply chain, infrastructure enabling effective resource use, and marketing, as well as decreasing market intermediaries. Therefore, growing agricultural activities provide a lucrative opportunity for agricultural tire manufacturers over the forecast duration. Also, the significant role of moving machines in agricultural production will in turn boost the global agricultural tires market in the coming years.

In R&D, the new techniques and research are performed to make the products better and unique. Owing to the regulations pertaining to agricultural tires design, R&D process becomes very crucial as manufacturers are required to adhere to the guidelines set by regulatory bodies. The process of product development starts with conceptualization which is followed by the design of the product then the development and at last the testing. In this process, the product strategies are ready, and the manufacturing process of the product starts after sourcing the raw materials. The major raw materials used in agricultural tires include natural and synthetic rubber, steel, and petroleum products. This particular process of the value chain delivers the value of nearly 45-60% to the whole chain.
Distribution & sales is the most important part of the market. In the agricultural tires market distribution and sale channel consists of intermediaries, direct selling, and others. As these products are specific part of the overall industry and the distribution for this industry does not vary much with accordance to overall industry. Post sales monitoring plays a very important role in this market. As agricultural tires market is very competitive market, the post sales monitoring is must. The post-marketing monitoring stage begins with a periodic safety update report of the end-users, and it is given by the sponsor or the manufacturer to which the product belongs.

Based on Equipment and Implements, the Global Agricultural Tires Market has been segmented into Tractors, Harvesters, Mini Harvesters, Threshers, Power Reapers, Power Tillers, and Others. The Tractors segment is expected to have the highest CAGR and dominate the market share during the forecast period. Throughout the projection period, the tractor segment is anticipated to advance due to government initiatives, the requirement for precise farming techniques, rising tractor affordability, and growth in farmer income. As different farm activities, including land cultivation, sowing, crop care, and harvesting, require different tools, the implements industry is anticipated to expand and, as a result, boost the farm tire market throughout the projected period.

Based on tire type, the agricultural tires market has been segmented into radial, bias, and solid. The bias segment is expected to have the highest CAGR and dominate the market share during the forecast period. Bias tires can support a lot of weight, but because they are used on farm equipment, they are vulnerable to quick wear and tear. The excellent load-carrying capability of bias tires is expected to increase.
Based on sales channel: OEM and aftermarket are the segments based on the sales channel of the Global Agricultural Tires Market. The OEM segment is expected to have the highest CAGR and dominate the market share during the forecast period. Due to the increased demand for tire replacement by tractors’ extensive use, many tire manufacturers cater to OEMs and aftermarket repair and maintenance businesses. Since rubber tires on tractors can deteriorate in fields and increase fuel consumption, they are normally replaced every five years.

The regions are classified as Americas, Europe, Asia-Pacific, Middle East, and Africa. Asia-Pacific is the largest market share holder and is expected to dominate the market during the forecast period. Increasing population and urbanization rates in nations such as India, China, and others are driving up food consumption, increasing agricultural activity, and resulting in tire demand in Asia-Pacific. In the Asia-Pacific area, the growing trend of agricultural mechanization is also driving demand for agricultural tires. Engine-powered agricultural gear has greatly increased efficiency in the agricultural industry by allowing Agricultural to service large amounts of land in a short amount of time. Due to the necessity for cost and energy savings in developing nations, efficient machinery such as harvesters is seeing a strong acceptance rate in Asia. Because of the increased need for heavy-duty agricultural tires, advances in traction and material technology are being developed. Due to changes in the design of agricultural equipment and exploration into new terrains, the demand for innovative and robust rubber compounds has grown. The newest trend in enhancing agricultural tires’ lower ground compaction rate is to equip forestry tires, compound rubber tires, and trailer tires with steel flex walls. India, Thailand, and China are still emerging economies, and agriculture in these nations are substantially investing in agricultural equipment.
Even though population growth in the North American area is predicted to remain moderate, demand for agricultural goods is rising due to increased living standards, consumption, and foreign investments. The local agricultural food industry in the US doubled to be worth over USD 20 billion in 2020, compared to 2014. The increase in demand for agricultural goods is boosting the agricultural tire market in North America to new heights. Agricultural mechanization is rapidly expanding in the North American area. This problem is fueled by the shrinking labor in the agricultural industry in the US and Canada. Agricultural mechanization improves agricultural production as more tractors and combined harvesters are used. The US is one of the world’s major markets for agricultural tractor tires. Due to the rising production rate in the US, the market for agricultural tractor tires is expected to grow in the future.

The global agriculture tire market is characterized by the presence of many regional and local vendors. The regional market is highly competitive, with all the players competing to gain a larger market share. The vendors compete based on cost, product quality, reliability, and aftermarket industry services. Therefore, vendors globally provide cost-effective and efficient products to survive and succeed in a competitive market.
List of Key Companies covered in the report: Bridgestone Corporation (Japan); Continental AG (Germany); Titan Tire Corp (US); Michelin (France); Apollo Tyres Ltd (India); JK Tire & Industries Ltd. (India); Yokohama Tire (Japan).