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Off The Road Tires
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Competitive Intelligence

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Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

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Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

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Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

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Measure category performance on 15 key parameters across cost, risk and strategy KPIs

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Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Abi will answer all Off The Road Tires related
procurement queries with relevant data points

Abi - AI powered digital procurement assistant

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Get up-to-date market and supplier info on Off The Road Tires to help you build

Intelligence covers market and price outlook, SWOT analysis, demand & supply drivers, engagement models and Procurement best practices

1

Intelligence on category covers the following aspects market outlook, supply market, SWOT analysis, Cost components & Price outlook, Demand and supply drivers, Engagement Models and Procurement Best Practices

manage-risk

Assess Supplier Risk based on key risk and compliance parameters

1

Supplier assessment covers the following parameters Financial Risk, Ethical, Labor, Environmental Compliance, IT Security.

2

Supplier assessment is powered by world’s leading data partners including D&B, CreditSafe, Dow Jones, Refinitiv, Orpheus

discover-supplier

Identify right fit suppliers based on your selection criteria including revenue, capabilities, certification, geography

1

Select suppliers based on industry, country, classification from a database of 4.2 mn suppliers. Get detailed supplier profiles with supplier capabilities, revenue, certifications, risk ratings

assess-category-perforamnce

Benchmark your category performance against peers and the market

1

Measure category performance on 15 key parameters across cost, risk and strategy KPIs

source-market-indices

Get information on key factors affecting your supply

1

Source Macro Data and Market Indices information from leading data sources across these key areas - Labor Rates, Currency, Energy, Country Risk, Trade Flow/Transportation, Port Data, Tariff, Weather and Epidemics

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Report Coverage

  • Market Analysis–Demand and Supply

  • Supply Trends and Insights

  • Key Global Supplier Profiles

  • Price Trend

Market Size

Market Size North America

$3.9 Bn

Market Size Europe

$4.7 Bn

Market Size Asia Pacific

$13 Bn

Table of contents

  1. Off The Road Tires Executive Summary
  2. Category Landscape
  3. Regional Market Outlook
  4. Supply Landscape
  5. Regional Market Overview –Australia
  6. LCCS Analysis
  7. Sustainability Initiatives
  1. Off The Road Tires Market Analysis
  2. Global Market Maturity
  3. Market Overview
  4. Market Size and Trend
  5. Demand and Supply
  6. Market Trend and Implication
  7. Market Drivers and Constraints
  8. Regional Market Outlook
  9. Global Porter's Five Force Analysis
  1. Off The Road Tires Cost and Pricing Analysis
  2. Cost Structure
  3. Price Trend
  4. Pricing Model
  5. Price Driver Analysis
  6. Total Cost of Ownership
  7. Approaches to Savings
  1. Off The Road Tires Procurement Best Practices
  2. Sourcing Models
  3. Best Practices
  4. Value Chain Mapping
  5. Key Negotiation Levers
  6. Market Innovation
  7. Recent Technology Development

 

  1. Covid-19 Impact Assessment
  2. Covid-19 Impact Assessment
  3. LCCS Analysis
  4. Sustainability Initiatives

 

  1. Appendix
  2. Mining Equipment Classification
  3. Product Performance Parameters

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Off-road Tires Market Analysis and Global Outlook

  • Asia Pacific (APAC) will continue to hold the major global OTR market share in terms of growth prospects until 2020.
  • Shift of market focus from product to service has been witnessed as an emerging trend in all the major regions to optimize buyer's total cost of ownership.
  • Major market drivers are mineral production output and growth in the construction sector. 
  • Michelin, Bridgestone, Goodyear, Yokohama and Titan form the top five suppliers constituting 83% of the off-road tire market.

 

Global OTR Tire Market Maturity

  • Key trend, which is expected to influence OTR tire market maturity would be the customer's reliance on distribution network. Both mining and construction customers are increasingly looking out for additional service, such as tire tracking while procuring tires

Off-road Tires Industry Overview

  • Off-road tire market of around $26.1 Bn has a high value from the mining industry, the majority of which comes from the surface/opencast mining sector.
  • In 2015, OTR tire market constituted 10% of all the tire sales accounting for $21 Bn.
  • Due to reduced commodity demand, the mining share in OTR tire sales has been plummeting since 2012 from 20% to 15% by volume.
  • Market demand for OTR tires from mining is softening, and hence there exists an opportunity to renegotiate with suppliers. However, the demand for OTR tires from the mining industry is expected to surge and attain the 2012 mark post-2020.
  • The off-road tire industry forecast predicts that demand is anticipated to improve owing to favorable market conditions. The market would be driven by increasing commodity prices and the current abundant supply of large OTR tires.
  • Tires market study shows that commodity demand is the major market driver to forecast OTR tire demand growth; cyclical conditions may result in an unpredicted estimation.
  • The major cost factors involved are raw materials and labor, which account for about 90% of the total cost.
  • The off-road tire industry forecast shows that on-going development in new technologies is expected to cause a “huge seismic shift” in the way OTR tire industry is doing business thus discarding the old model of selling and servicing such tires.

Global OTR Market Size and Trend

  • Global OTR tire demand is expected to grow at a CAGR of 5.5% to $30 Bn by 2022, driven by increasing demand in small and medium OTR tires from the construction sector.
  • Original Equipment (OE) demand is expected to surpass the replacement demand by 2–4%. The OE demand continues to grow in the mature market as demand for tires used in infrastructure is at a constant rise.
  • Demand for large/ultra-large OTR tires is expected to grow between 3% and 6% annually until 2018 fueled by increased demand from commodities, such as Gold. All commodity segments, except gold, will contract over the next year.
  • 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 thus providing opportunities for other miners to lock their capacity for the upcoming years and develop an upper hand in negotiation with the suppliers.

Global OTR Market: Drivers and Constraints

Drivers

  • Rise in medium-sized farmers is pushing the demand for agricultural equipment, which, in turn, is propelling the demand for agricultural tires across the world. 

  • The OTR tire market report opines that the rising industrialization globally has improved transportation activities. Inter-town transportation, including B2C and B2B trade, is flourishing, which is driving the demand for fast and compact transport automobiles to efficiently navigate around urban areas.  

  • Surging tech development in tires, which offers insights before the automobile breaks down, is further anticipated to favor the global OTR tire market growth.

Constraints

  • Raw material prices generally account for nearly a third of the tire cost. As such, fluctuations in raw material prices adversely impact the pricing of the bias tires. Prices of raw materials, including natural and synthetic rubber, fluctuate due to rise in Brent crude price or scarcity of natural rubber cultivation.

COVID-19 Impact on Global OTR Market 

The off-the-road tire market study reveals that the market is witnessing general weakness due to the COVID-19 crisis across the globe. As OTR tire manufacturers currently hold large-scale inventories, they are expecting industrial operations to resume to alleviate the demand-supply problems. 

Analysts at Beroe opine that the demand for OTR tires is poised to surge as the global economy is getting back on track. Hence, various market conditions pose challenges for manufacturers as they grapple to bolster their contingency plans and wholesale network.

The decreased automobile production has compelled OTR tire manufacturers to do negotiations in pricing. Innovative credit and payment offer on automobiles are likely to add to the revenue in the automotive industry. Further, the agriculture industry is creating steady revenue streams for OTR tire vendors.

Market Analysis –Demand and Supply

  • With the demand for mining going down, the supply deficit for ultra-large tires is not anticipated.
  • Surging demand from construction is expected to bring new suppliers to the market in the medium and large OTR tire segment thus expanding the choices for end-users and making it critical for them to choose their supply partner.
  • Currently, manufacturing plants for small/medium OTR tire sizes operate between 75% and 85% of their capacities.
  • Supply shortage of Tier-1 brand ultra-large OTR tires continued during 2013–2014. However, there are no supply issues for such tires currently. Demand is expected to outstrip supply owing to plant shutdown by major manufacturers, such as Michelin.
  • Global manufacturers are producing large OTR tires at full capacity with no plans for investment/plant expansion until the demand for commodities surges.

Why You Should Buy This Report

  • The report explains the off-the-road tire industry forecast, cost structures, pricing models and key price drivers. 
  • It details the sourcing models, recent technology development and innovation such as how the transformation from product-focused to service-focused approach will be the emerging trend.
  • The report provides key supplier profiles and SWOT analysis of top suppliers in the off-road tires market such as Yokohama, Titan, and others. 
  • The report offers information about matured, global drivers and constraints and developing markets and regional market outlook.

Off The Road Tires Frequently Asked Questions

  1. Which market region will be dominating the OTR tires market until 2020?
  2. The APAC region will continue to dominate the OTR tires market in terms of growth prospects until 2020.
  1. Which is the key emerging trend in all the major regions of the OTR tires market?
  2. The shift of market focus from product to service is a key emerging trend in all the major regions which will also optimize the buyer’s total cost of ownership.
  1. Which regions in the OTR tires market have high and medium market maturity?
  2. The market regions with medium maturity are South America, APAC, and Europe, while North America has high market maturity.
  1. What are the major market drivers for the OTR tires market?
  2. The major market drivers for the OTR tires market are mineral production output and growth in the construction sector.
  1. Who are the top players in the global off-road tire market?
  2. The top players in the global off-road tire market are Michelin, Bridgestone, Goodyear, Yokohama, and Titan. These five suppliers constitute for about 83 percent of the total global OTR market share.
  1. What was the estimated market size of the global off-road tire market in 2016?
  2. From the 2016 tire market study reports by Beroe, the global off-road tire market was valued at $24.8 billion in 2017.
  1. At what CAGR is the global off-road tire market expected to grow by 2020?
  2. According to Beroe’s off the road tire industry forecast, the market is expected to grow at a CAGR of 5 percent to reach a market value of $28 billion by 2020.
  1. What are the key raw materials used in the off-road tire market?
  2. The key raw materials for the off-road tire market are rubber accounting for 29-25 percent, steel accounting for 19-26 percent, and carbon black accounting for 11-12 percent.
  1. Which key trend is expected to influence the OTR tire market maturity?
  2. Customer’s reliance on distribution network is the key trend which is expected to influence the OTR tire market maturity. The mining and construction customers are increasingly looking for additional services, such as tire tracking while procuring tires.
  1. What is the impact of reduced commodity demand on OTR tire sales?
  2. Owing to the reduced commodity demand, the mining share in OTR tire sales has been plummeting since 2012 from 20 percent to 15 percent by volume.
  1. What impact will the on-going development in new technologies bring on the off-road tire industry?
  2. The off the road tire industry forecast from Beroe shows that the on-going development in new technologies is expected to bring a major shift in the way the OTR tire industry is doing business thereby discarding the old model of selling and servicing such tires.
  1. At what CAGR is the global demand for OTR tires expected to grow by 2022?
  2. Driven by the increasing demand in small and medium OTR tire from the construction sector, the OTR tire is demand is expected to grow at a CAGR of 5.5 percent to reach $30 billion by 2022.

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