Global agricultural tyre market to value over $9bn by 2026
The increasing need for enhanced productivity due to growing food demand globally, has propelled the demand for agriculture equipment. The global agriculture tyre market is estimated to value over $9bn and register a CAGR over 5.2% during the forecast period 2019-2026. This according to a research study on Global Agriculture Tyre Market by FutureWise Market Research.
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 tyre usage. Expansion of the regional presence of OEMs and favourable foreign trade policies are also expected to spur the agriculture tyre 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 tyres that offer soft footprint tailored based on farm terrain. Also, the already sold agriculture vehicles need periodic maintenance of agriculture tyres fuelling the aftermarket demand.
Factors hampering the agriculture tyre 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 tyres.
• 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 tyres. Radial ply tyres are expected to witness notable growth during the forecast.
Radial tyres are compatible at low pressure and offer much better rideability than other tyres. Radial ply tyre offer enhanced puncture resistance.
Due to these factors, there has been a notable demand for radial-ply tyres. Bias-ply tyres are also forecasted to observe substantial growth over the forecast period as these tyres last longer, are tougher and relatively low-priced when compared to other tyres. Owing to before-mentioned factors bias-ply tyre 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 utilisation 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.
The 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 tyres 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.