Off-road tire market forecast at over $700 billion

Pune, India – The Off-road Tires Market is set to grow from its current market value of more than USD 420.5 billion to over USD 700 billion, as reported in the latest study by Global Market Insights Inc.
In challenging off-road conditions, vehicles need to be capable of performing even in terrains that are difficult for standard all-season tires to navigate, such as mud and loose sediment. Off-road tires are gaining massive popularity in this regard, designed with noteworthy features including puncture-resistant sidewalls and heavy-duty, blocky treat patterns.
Many off-road tires and wheels are particularly sized for pickup trucks, crossovers, and SUVs, and can benefit four-wheel-drive trucks, vehicles with built-in traction systems, and all-wheel-drive cars. In recent years, the demand for next-gen vehicles, such as electric trucks, has been growing at a steady pace. For example, in January 2022, General Motors confirmed an investment of $7 billion in Michigan plants to develop electric vehicles, such as the 2021 Chevrolet Silverado electric pickup truck. Developments like these are likely to prove beneficial for the off-road tires market size, which could witness major growth.
Moreover, in developing nations, several efforts have been made toward supporting the farming community at large. For instance, the Indian Government announced its goal of incorporating 10,000 Farmer Producer Organizations by 2023. Such initiatives to strengthen the farming ecosystem could drive the demand for specially engineered vehicles for agriculture applications, like UTVs (utility terrain vehicles), and consequently, create a favorable environment for the expansion of off-road tire brands.

Mining has become a crucial part of an attempt to diversify the economy across regions, including the Middle East. In January 2022, Saudi Arabia sought to attract investment worth over $170 billion by 2030 end to address the rising global demand for metals. This factor could assert a positive influence on the manufacturing of OTR (on-the-road vehicles), which are operated in mining areas, and subsequently proliferate the adoption of aggressive off-road tires for these vehicles.
Apart from OTR vehicles, the popularity of UTVs will likely increase since they are a cost-effective transportation solution with added perks such as ease of use and mobility for construction contractors. Over the years, there has been an upward trend in residential construction spending, which can be credited to the rise of both multifamily and single-family construction.
Based on Census Construction Spending data from the NAHB (National Association of Home Builders), the total spending on private residential construction in the U.S. was recorded at a seasonally adjusted annual rate of over $850.6 billion in February 2022. This commendable rise in investment could therefore add impetus to the overall off-road tires industry expansion for construction applications.

In Europe, several investment management firms are emphasizing sustainable forestry and pursuing the highest environmental stewardship as well as expertise in forest management. In August 2021, TIR Europe (Timberland Investment Resources Europe) secured its second Forestry Fund II, reaching the capital-raising target of $200 million. Factors such as these could escalate the use of forestry trucks for hauling short and long logs on difficult terrain and paved roads and in turn, strengthen the demand for off-road truck tires for improved safety and mobility.
According to a Global Market Insights Inc. report, the Europe off-road tires market size will reach a valuation of nearly $125 billion by 2027. To develop physical infrastructure, government bodies are also introducing varied investment strategies in the region. For instance, in December 2021, the European Commission unveiled a major infrastructure investment strategy to mobilize up to $301.6 billion of investments in global developments by 2027. This initiative could strengthen the demand for off-road vehicle tires for construction and infrastructural development purposes in Europe, something that key players in the off-road tire industry have picked up on.
To that end, in February 2022, Yokohama Off-Highway Tires inked a strategic collaboration with Broson Wheels to expand its presence in the Swedish market. By tying up with one of the prominent suppliers of off-highway vehicles, accessories, wheels, and tires in Sweden, YOHT sought to build on its 4-decade-long alliance with NDI and deliver its Alliance range of tires to Swedish customers across the construction, forestry, and agriculture sectors.
Off-road tires with heavy-duty tread patterns and other notable designs have garnered a strong reputation for their capability to provide more traction in loose sediment and mud. With industrial sectors like agriculture, mining, and construction securing massive investments worldwide, the need for vehicles like UTVs, designed to fulfill varied needs and applications is likely to grow, paving the way for a more favorable off-road tires market outlook over the years ahead.