Market Overview:
Agricultural tires are used in agricultural equipment like tractors, harvesters, and trailers. They are designed to effectively work in difficult terrains and withstand heavy loads. Agricultural tires provide better traction power, stability and minimize soil compaction for improving farming productivity.
Market key trends:
One of the key trends driving growth of the agricultural tires market is increasing mechanization processes in agriculture. With growing population and reducing arable land, mechanization of agricultural processes have become indispensable to boost agricultural productivity. Automation and robotics are gaining widespread adoption in activities like seeding, planting, irrigation, crop monitoring and harvesting. This is increasing the demand for agricultural equipment running on high quality and durable agricultural tires. The tires are designed to sustain heavy loads of modern farming machinery and operate smoothly even in muddy fields and uneven lands. Moreover, they provide optimum traction and flexibility to easily manoeuvre in agricultural fields. The trend of mechanization is expected to continue driving replacement demand of agricultural tires during the forecast period.
The global Agricultural Tires Market Growth is estimated to be valued at US$ 7061.26 Million 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.
Porter’s Analysis
Threat of new entrants: Low level threats of new entrants in agricultural tires market as it requires huge capital investment in R&D, manufacturing and distribution channels.
Bargaining power of buyers: Moderate bargaining power of buyers as tires are consumable product and buyers look for value added services like on field service support from tire manufacturers.
Bargaining power of suppliers: Low bargaining power of raw material suppliers due to availability of substitutes and fragmented supplier base.
Threat of new substitutes: Low threat from new substitutes as agricultural tires made from natural rubber has compelling advantages over synthetic alternatives.
Competitive rivalry: High level competitive rivalry among existing players to gain market share through new product innovations, expansion in emerging regions and acquisition strategies.
SWOT Analysis
Strength: Agricultural tires manufacturers have strong distribution network and brand recognition. Innovation in tire design helps improve farm productivity and reduce soil compaction.
Weakness: Seasonal demand nature of agricultural sector poses production planning challenges. High R&D costs to develop specialized tires increase barriers to entry.
Opportunity: Growth in mechanization in developing countries boosts replacement demand. Diversification into specialized tires for new farming equipment and precision farming presents new opportunities.
Threats: Trade barriers and policies impact tire imports. Volatile raw material prices leads to uncertainty.
Key Takeaways
The global Agricultural Tires Market is expected to witness high growth, exhibiting CAGR of 5.6% over the forecast period, due to increasing mechanization of farms and growing replacement demand. Asia Pacific dominates the global market currently, primarily due to large tractor population and growth in global exports of rice, wheat and other commodities from countries like India and China. The region is expected to continue its dominance in the coming years as well.
Key players operating in the agricultural tires market 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). Leading players focus on expansion in high growth markets through strategic acquisitions and joint ventures to gain competitive advantage. They also invest heavily in R&D to develop innovative products with improved traction and reduced soil compaction.
