Mining, construction, ports and handling, agriculture, industrial and other specialty tire formats are seeing a return to demand. A total of 43.0 million units will be sold in 2022, with an overall value of $59.4 billion, according to projections from our latest report Future of OTR Tires to 2027. The only segment of this market that has maintained positive growth over the past two years, has been agricultural tires. Other specialty tire segments have seen an adverse impact from the Covid-19 pandemic and the resultant fall in demand for raw materials, and disruption of international trade. Total market value fell from $62.4 billion in 2019, to $57.0 billion in 2020; with losses especially severe in construction, and ports and handling formats.
Across the next five years we forecasts a stabilisation of the market, with value increasing at a compound annual growth rate (CAGR) of 5.7%, reaching $78.3 billion in 2027. Unit volumes will increase at a slower rate, 4.0% CAGR, topping the 50 million tire-per-year mark in 2026; driven mainly by demand from developing markets in Asia, the Middle East, Africa and Latin America.
There is a simultaneous, imperative to invest in new technologies that align with changing priorities in end-use industries. Among the most important identified by Smithers’ analysis are:
- The integration of smart tires to optimise industrial fleets, matching on-tire sensors to proprietary data analytics to streamline maintenance and other operations; as well as supporting the wider safe use of autonomous vehicles in closed industrial environments
- The fitting of more increased flexion (IF) and very high flexion (VF) tires on tractors and other agricultural machinery
- The increased adoption of electric vehicles, including the need for specialty tires with improve weight loading and durability
- Building larger tires for the latest generation of mining and construction equipment
- Transitioning OTR tire formats towards a more sustainable materials set – including recycled content, sustainable NR sourcing, and greater use of better retreading technology.
This in-depth market forecasting also considers in detail the latest macro-economic trends and how these will impact demand across the next five years. This includes the ongoing disruption to tire supply chains; the rising cost of elastomers and other essential raw materials; and the wider impact of the ongoing war in Ukraine.
This is contextualised by dedicated profiles of the 17 leading off-the-road tire manufacturers, worldwide. These include reviews of their post-Covid recovery priorities/strategy, recent M&A activity, disruptive technology innovations, and the evolution of complementary fleet support services.