By: Beroe Inc --
16 November, 2019
The global off the road (OTR) tires market is currently estimated to be worth $27.6 billion and is growing at a CAGR of 5.5 percent till 2022, according to Beroe Inc., a procurement intelligence firm. The Original Equipment (OE) demand is expected to surpass the replacement demand by 2–4 percent.
In the OTR market, the high market maturity region is North America, while medium market maturity regions are South America, APAC and Europe. The APAC has the largest market size worth $13 billion and will continue to dominate the market in terms of growth prospects until 2021, with a growth rate of 7 percent. In terms of market size, Europe is the second largest with a value of $4.7 billion, followed by North America with a worth of $3.9 billion.
An increase in demand for haul truck/mining trucks along with growing commodity demands is expected to drive the demand for OTR tires. A significant decline in coal mining is anticipated in the upcoming years, due to growing dependence on alternative energies, coupled with environmental/regulatory pressure. This would drive down the OTR tire demand from coal miners. However, the demand for OTR tires from the mining industry is expected to surge post-2020.
The construction industry predominantly comprises of tire sizes (rim) less than 25 inches, whereas the mining industry (surface) predominantly comprises of tire sizes above 25 inches up to 63 inches and aggregates consist of sizes between 29–49 inches. The construction industry accounts for 75 percent of the total demand, followed by mining for 15 percent and aggregates for 10 percent.
The current Global demand for Small/Medium OTR Tire is 4.07 million units with a supply of 3.8 million units. By 2021, the demand is expected to reach 4.46 million units, against a supply of 4.1 million units. For Large/Ultra-large OTR Tires, the current global demand is 0.14 million units with a supply of 0.13 million units. The global demand and supply for Large/Ultra-large OTR Tires is projected to be balanced by 2021, with a demand and supply of 0.15 million units
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