21 October, 2019
RALEIGH, North Carolina, October 18, 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.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
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 research methodology adopted for the report included:
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
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com