Farm Tire Market Size, Share & Trends Report

Farm Tire Market Size, Share & Trends Analysis Report By Product (Bias, Radial), By Application (Tractors, Harvesters), By Distribution (OEM, Aftermarket), By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: Feb, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-2-68038-707-0
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 145

Report Overview

The global farm tire market size was valued at USD 7.49 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 5.1% from 2021 to 2028. The growing demand for farm tires in agricultural vehicles, coupled with the expansion of the agriculture sector, is projected to boost the market growth over the forecast period. Adoption of advanced technologies by farmers to increase the agricultural yield and meet the rising food demand is projected to be the key factor benefiting the market growth. In addition, the sales of tractors have witnessed substantial growth in the historic years on account of the rising demand for technological up-gradation, thereby having a positive impact on the market growth.

China farm tire market size, by product, 2017 - 2028 (USD Million)

The market in China is expected to witness high growth in the years to come on account of the presence of a number of large manufacturing facilities, coupled with the booming population in the country. In addition, improvements in farming technologies and favorable policies are expected to aid the growth of the agriculture industry, thereby driving the demand for related products, including tires.

Rapid urbanization, coupled with the increasing standards of living, has imposed high pressure on food production and productivity across the globe. The expansion of the agricultural sector in order to meet the rising demand for food products is anticipated to benefit the demand for agricultural vehicles, thereby fueling the demand for farm tires over the forecast period.

Increasing demand for products with superior properties, such as high puncture and wear and tear resistance, is likely to propel the production of quality products. In addition, the high production of farm tires, coupled with the rising consumption across the globe, is likely to propel the growth of the market.

Local players mostly focus on their specific strengths and retain their customers by providing custom services to tractor and harvester manufacturers. Companies in the industry also focus on increasing their production capacity as the demand for farm tires is growing in the agricultural industry on account of the increasing demand for agricultural produce.

Product Insights

The bias tire segment led the market and accounted for 57.57% share of the global revenue in 2020. The use of bias tires is high in India and China as these tires are manufactured using natural rubber, which is produced majorly in the two countries. In addition, the crosshatch construction of the bias tire, coupled with its availability at low cost, is likely to fuel its demand.

The cost of raw materials is low, which, in turn, decreases the manufacturing cost of the product. However, the decreasing supply of natural rubber is likely to restrain the segment growth. In addition, natural rubber increases the rigidity of the tires, which loses uniformity after use, compromising the round shape of the tire and decreasing its shelf life.

Radial tires are manufactured with steel ply, which increases the durability, along with bead-to-bead construction at an angle of 90degrees to the circumferential centerline, which increases the flexibility of tires and reduces the rolling resistance, resulting in improved performance. This is likely to drive the demand for radial tires in agricultural vehicles over the forecast period.

The cost of radial tires is high on account of the use of synthetic rubber and modern manufacturing technology requiring high-cost machinery. As a result, the penetration of the product in the major agricultural markets and the developing economies, such as India and China, is low. The aforementioned factors are likely to limit the market expansion.

Distribution Insights

The aftermarket segment led the market and accounted for a 69.3% share of the global revenue in 2020. The rising demand for the replacement of tires by the farmers on account of the expansion of agricultural activities across the globe is anticipated to benefit the segment growth over the forecast period.

The use of bias tires is reducing as they are being replaced with radial tires having high-performance characteristics. In addition, the growth of new vehicle sales is lower owing to which the demand for the tires is lower through OEM distribution than that of replacement. These factors are projected to drive the demand for tires through aftermarket sales.

The demand for new tires through aftermarket channels is increasing owing to the presence of different types of platforms, such as online, authorized dealers, and third-party dealers. However, the popularity of tire retreading in developing economies, such as India and China, is likely to restrain the demand for tires through the aftermarket.

The demand for farm tires through the OEM channel is expected to witness growth owing to the increasing demand for new agricultural vehicles, such as tractors and harvesters. The demand for these vehicles is high in developed economies as farmers are able to afford the newly introduced, expensive farm equipment that aids in executing farming activities on large patches of land.

Application Insights

The tractors segment led the market and accounted for 43.5% share of the global revenue in 2020 owing to its multipurpose nature. Tractors with high horsepower are widely preferred as they can be used for different farming activities. As a result, the demand for tires is also witnessing growth with the increasing popularity and use of tractors in the industry.

The demand for farm tires in the harvesters segment is expected to witness growth owing to the introduction of several types of harvesters to suit the farming needs. For instance, John Deere has introduced crop-specific harvesters to meet the requirements of farmers, resulting in the ease of harvesting crops, such as sugarcane and corn. This has led to an increased demand for harvesters for long patches of farms.

Global farm tire market demand share, by application, 2020 (%)

The growing demand for technologically advanced machinery for forestry operations is expected to drive the demand for tires. In addition, high penetration of forestry equipment in mature markets, including North America and Europe, results in rising aftermarket sales for the tires, which is likely to propel the market growth over the forecast period.

The growth in the mechanization of irrigation processes on account of increased efficiency and superior crop yield supported by mechanized irrigation is expected to drive the market for irrigation equipment. This is further likely to drive the demand for irrigation equipment, including farm tires, thereby propelling the market growth.

Regional Insights

The farm tire market in Asia Pacific dominated the global market and accounted for a 41.5% share of the revenue in 2020. This is attributed to factors such as increasing population, rising disposable income of the middle-class population, and rapid industrialization and urbanization. In addition, the presence of small and large-scale manufacturers in the region is likely to benefit the market growth.

The manufacturing technology and material used for the production of bias tires ensure high load capacities at a low cost. The major raw material required for manufacturing bias tires is natural rubber. Thus, the abundant availability of natural rubber in Thailand, India, Vietnam, Indonesia, China, and Malaysia in the Asia Pacific is expected to boost the demand for bias tires in the region.

Favorable government policies such as funding support and low-interest rates have benefited the expansion of the agricultural sector in Europe. In addition, ascending demand for agricultural vehicles in economies, such as Germany, Russia, and France, owing to the expansion of agricultural activities in the region is likely to augment the demand for farm tires over the forecast period.

Agricultural equipment manufacturers in North America are at the forefront in terms of evolution and change in the agriculture industry, aiding the growth of modern–day integrated farming activities. Upgradation in farm equipment is expected to propel the demand for farm tires. In addition, good consumer adherence to maintenance schedules is likely to augment the product demand.

Key Companies & Market Share Insights

Small-scale players cater to the particular country or region where they are located and compete on the basis of product differentiation by providing innovative products. They also compete on the basis of regional demand and their penetration in the regional markets. Many regional players adopt an expansion strategy by becoming a distribution partner for global players.

The market is characterized by the presence of large, multinational companies catering to global demand. These large players compete on the basis of manufacturing technology and the application scope of farm tires. In addition, many market players undergo mergers and collaborations to expand their reach, thereby increasing their market share. Some prominent players in the global farm tire market include:

  • Balkrishna Industries Limited (BKT)

  • Bridgestone Corporation

  • Continental AG

  • Compagnie Générale des Établissements Michelin (CGEM)

  • Sumitomo Rubber Industries, Ltd.

  • Titan International, Inc.

  • Mitas

  • TBC Corporation

  • Apollo Tyres Ltd.

  • Hankook Tire

  • MRF Limited

  • JK Tyre & Industries Ltd.

  • CEAT

  • The Carlstar Group, LLC

  • Specialty Tires of America, Inc.

  • Alliance Tire Group (ATG)

  • Trelleborg AB

Farm Tire Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 7.85 billion

Revenue forecast in 2028

USD 11.16 billion

Growth Rate

CAGR of 5.1% from 2021 to 2028 (Revenue-based)

Market demand in 2021

29,776.8 thousand units

Volume forecast in 2028

40,517.5 thousand units

Growth Rate

CAGR of 4.4% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in thousand units, revenue in USD million/billion, CAGR from 2021 to 2028

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, application, distribution, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; Italy; Russia; Turkey; China; India; Japan; Australia; Brazil; Argentina; South Africa

Key companies profiled

Balkrishna Industries Limited (BKT); Bridgestone Corporation; Continental AG; Compagnie Générale des Établissements Michelin (CGEM); Sumitomo Rubber Industries, Ltd.; Titan International, Inc.; Mitas; TBC Corporation; Apollo Tyres Ltd.; Hankook Tire; MRF Limited; JK Tyre & Industries Ltd.; CEAT; The Carlstar Group, LLC; Specialty Tires of America, Inc.; Alliance Tire Group (ATG); Trelleborg AB

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global farm tire market report on the basis of product, application, distribution, and region:

  • Product Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2028)

    • Bias

    • Radial

  • Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2028)

    • Tractors

    • Harvesters

    • Forestry

    • Irrigation

    • Implements

    • Sprayers

  • Distribution Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2028)

    • OEM

    • Aftermarket

  • Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

      • Russia

      • Turkey

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • South Africa

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