The global agriculture tire market is estimated to value over USD 9 billion and register a CAGR over 5.2% during the forecast period 2019-2026.
Increase in need of enhanced productivity due to growing food demand globally has propelled the demand for agriculture equipment. The growing demand for agricultural equipment has positively influenced the agriculture tire market. Elevation in the fleet size of tractors in developing countries and technological advancements in farming techniques are primary factors stimulating the market growth. Furthermore, modification in tractors has resulted in compatibility with the latest farming equipment which has elevated the adoption, therefore resulting in the propelling the market.
Government offering attractive subsidies on the purchase of new agricultural machinery and equipment is playing a major role in bolstering the market growth. Awareness among small-scale farmers regarding restoration of organic farming and the role of modern agriculture vehicles is generating high demand for agriculture tire usage. Expansion of the regional presence of OEMs and favourable foreign trade policies are also expected to spur the agriculture tire demand.
Sustainable farming practices are gaining traction to meet the needs of higher agricultural yields. Shrinking cultivation lands induce the need for advanced farming equipment automation which implies increased demand for agricultural vehicles. This, in turn, is augmenting the use of agriculture tires that offer soft footprint tailored based on farm terrain. Also, the already sold agriculture vehicles need periodic maintenance of agriculture tires fuelling the aftermarket demand.
Factors Hampering the Agriculture Tire Market Growth
• Government inclination to curb harmful environmental impact due to the use of certain farming vehicles
• Inverted taxation policy i.e tax on raw rubber is higher than manufactured tires
• Frequent fluctuations in raw material prices
• Farming activities weather dependency
The market is classified into by product, by application, by distribution, and by region. Based on by-product the market consists of bias and radial ply tires. Radial ply tires are expected to witness notable growth during the forecast. Radial tires are compatible at low pressure and offer much better rideability than other tires. Radial ply tire offer enhanced puncture resistance. Due to these factors, there has been a notable demand for radial-ply tires. Bias ply tires are also forecasted to observe substantial growth over the forecast period as these tires last longer, are tougher and relatively low-priced when compared to other tires. Owing to before-mentioned factors bias-ply tire is expected to witness an increase in demand.
Based on application, the market is bifurcated into tractors and harvesters. Tractors are expected to dominate the market. New product development to suit specific farming process is estimated to fuel further growth of the tractor segment. Launch of damage-sensitive crops harvester is augmenting the demand of tractors which in turn is augmenting the growth of the market.
In terms of region, North America and Europe regions are the global leaders of the market. The utilization of the latest advanced technologies is driving the growth of the market in these regions. Technological advancements and rising demand for tractors are presumed to boost the presence of the market.
Asia-Pacific region is anticipated to witness substantial growth. owing to favourable government policies in developing nations like India and Bangladesh to support and boost the agriculture sector. Rise in population in the region is fuelling the demand for rapid cultivation of crops by employing tractors and harvesters, hence accelerating the demand for agriculture tires in the region.
Established players of the market are Bridgestone, Michelin, Goodyear Tire & Rubber Co., Continental AG, Alliance Tire Group (ATG), CEAT, JK Tyre & Industries Ltd, Trelleborg Wheel Systems, JK Tyre & Industries, CEAT Tyres, and Bridgestone Corporation.