Off the Road (OTR) Tires Market

Off the road (OTR) Tires Outlook

Heavy-duty vehicles with off-road capabilities, such as those used in mining, agriculture, logistics, and housing, frequently use off-the-road (OTR) tires. Off-the-road (OTR) tires are made with grip on a variety of unpaved conditions, including sand, mud, dirt, and others, in mind. They also have improved performance and stability. The need for construction and material handling equipment has increased as a result of the development of the housing market in emerging nations, and this is anticipated to have a large positive impact on the market for off-road tires. Off-the-road (OTR) tires are frequently used in the building of dams, civil engineering projects, mining for sand and gravel, the agricultural industry, and other areas. The usage of off-the-road vehicles such tractors, cranes, wheel loaders, telescopic handlers, and special purpose vehicles is also increasing, which is fueling the market's expansion.

Opportunities to see in this market

OTR tires’ lifespan can be extended by retreading. Through this procedure, the tire tread is replaced with a fresh one after a thorough inspection. Following the application of fresh tread over the polished old tires with an adhesive layer, the mold cure or pre-cure procedure is carried out. These tires are more economical than producing new tires, saving between 30% and 50% of the cost and labor. Retreading is a green approach that respects environmental protection laws. In comparison, the creation of new tires helps cut emissions and the 740 liters of oil needed to make one tire.

For tire remolding when their tires are worn out and to raise knowledge about the retreading process, several retread tire producers have been in touch with fleet owners. Retread tire programs like this will lessen the amount of old, worn-out tires that are dumped, lowering environmental risks. Because of the government's various makeshift restrictions for worn-out tires, the US represents a prospective market for retreading tires.

OTR Tire Use in Off-Highway Vehicles is increasing

A major aspect that is anticipated to provide plenty of business chances for firms in the market is the high adoption of off-the-road (OTR) tires in heavy-duty vehicles that are utilized in construction and mining operations. The construction of roads and other forms of public infrastructure makes extensive use of heavy-duty vehicles. Off-the-road (OTR) tire market size is expected to increase due to the surge in off-highway vehicle demand in these sectors.

Major players in the off-the-road (OTR) tires market are Continental AG, Bridgestone Corporation, Michelin, Goodyear, Pirelli, and others.

Developments to look forward by Major Key players

• The Bridgestone Bandag, LLC manufacturing facility in Abilene, Texas, received a $60 million expansion in September 2022 thanks to an investment by the Bridgestone Company. Due to the company's retread business' explosive development, the Abilene plant's expansion is intended to meet the rising demand for its tread rubber goods. The plant will build new mixing operations as part of the expansion, which will also result in an instant rise in operational activity by implementing 6- and 7-day production schedules.
• In June 2022, Michelin bought a 51% stake in Royal Lestari Utama (RLU), an Indonesian initiative that is establishing sustainable rubber tree farms. By this agreement, Michelin will have access to more environmentally friendly rubber raw materials for its products, enhancing its sustainability reputation.
• The commencement of a cooperative research and development project between Bridgestone Corporation and ENEOS Corporation in February 2022 was announced with the goal of realizing the societal deployment of chemical recycling technologies that permit accurate pyrolysis of worn tires. In order to create a more sustainable society, Bridgestone and ENEOS are working on this initiative to create a recycling company that will turn old tires into raw materials.

Global OTR Tires follow-ups

Due to its sizable population and high demand for minerals and metals, Asia Pacific dominates the industry. Throughout the last ten years, the economy of the area has grown quickly. It is home to sizable emerging nations like China, India, and Indonesia, where sizable mining and building projects are being approved to boost economies. This has increased demand for mining and construction equipment, as well as for the OTR tires used in such equipment. With 173 newly found minerals and 163 confirmed reserves, China comes in third after the US and Russia. The demand for minerals will continue to rise as China implements the Made in China 2025 goal and the economy moves to a more advanced level.

Conclusion

Off-the-road (OTR) tire use is projected to expand as off-highway vehicle demand picks up speed in a number of end-use sectors. A positive market trend is the ongoing trend of automation in the industrial industry. The forklift and warehouse truck industries' consistent need for tires with high cut and wear resistance is a major reason expected to drive the off-the-road (OTR) tire market. The need for OTR tires is projected to increase as agricultural equipment becomes more mechanized. The past few years have seen large expenditures made in infrastructure and building projects in emerging nations, which is expected to expand the outlook for the off-the-road (OTR) tire market.