by Agricultural tires play a crucial role in agricultural machinery for soil tillage, harvesting, transportation of produce and other on-field operations. Agricultural tires allow heavy agricultural machinery and vehicles to operate smoothly on uneven terrains and distribute weight evenly across wide areas. They provide strong traction and high load-bearing capacity to navigate soggy fields and carry heavy weights. The global agricultural tire market is driven by demand from high crop yield agricultural operations that require heavy duty tires for tractors and other vehicles.
The global agricultural tires market is estimated to be valued at US$ 7061.26 Mn in 2023 and is expected to exhibit a CAGR of 5.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Key Trends:
The adoption of radial tires is one of the key trends being witnessed in the agricultural tires market. Radial tires have several advantages over bias tires such as longer tire life, better traction, lower rolling resistance and ride comfort. As agricultural operations expand in scale requiring timely operations over large acreages, radial tires are gaining popularity. Their puncture resistant qualities and extended life cycles reduce downtime and increase productivity for farmers. Leading tire manufacturers are developing innovative radial tire solutions tailored for specific agricultural applications such as tractors of varying horsepower and equipment for distinct crops which is fueling market growth.
Porter’s Analysis
Threat of new entrants: The agricultural tires market requires high capital investments and R&D which acts as a deterrent for new players entering the market. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and presence of many established players. Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of alternative raw material sources. Threat of new substitutes: Threat of substitution is low as agricultural tires have no close substitutes and are essential for farm vehicles and equipment. Competitive rivalry: The market is competitive due to presence of major established players globally.
Key Takeaways
The Global Agricultural Tires Market Share is expected to witness high growth. Regional analysis the Asia Pacific region currently dominates the global agricultural tires market due to high agriculture activity and a large farm vehicle fleet in countries such as India, China. The market in North America and Europe is also expected to grow at a significant rate during the forecast period.
Key players operating in the Agricultural Tires are Apollo Tyres, Bridgestone Corporation (Firestone), Alliance Tire Group, Continental AG, Pirelli & C SpA, Balakrishna Industries Limited, Nokian Tyres PLC, Titan International Inc. (Goodyear Tires), Michelin , and Trelleborg Wheel Systems (Mitas). The major players are focusing on expanding their production capacities and geographical reach to meet the growing demand. Product innovation and portfolio expansion are other strategies adopted by key players in the global agricultural tires market.
