March 1, 2024
Agricultural Tire Market

Agricultural Tire Market Propelled By Growing Demand For Farm Equipment

Agricultural tires are essential for tractors, harvesters, and other farm equipment, providing stability and traction over various terrains while minimizing soil compaction. The growing mechanization of farms globally has boosted the demand for farm equipment like tractors and harvesters which is driving the agricultural tires market.

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 5.3% % over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends

Growing demand for farm equipment is one of the major trends fueling growth of the agricultural tires market. Rising farm mechanization in developing countries and replacement of aging equipment in developed nations has increased sale of tractors and harvesters. Agricultural machinery manufacturers are also focusing on integrating advanced technologies like automation and GPS in new models to make farming more efficient. This is accelerating replacement cycle of existing farm tractors and harvesters. Further, higher demand for food grains owing to rising global population has put pressure on farmers to boost agricultural productivity. Investment in modern farm equipment has thus become imperative which is positively impacting sales of agricultural tires used in them.

SWOT Analysis

Strength: Agricultural tires have rugged tread patterns for off-road performance on various terrains. They provide excellent traction and handling even on slippery soils.
Weakness: Agricultural tires have a shorter lifespan as compared to automotive tires due to the harsh operating conditions. Higher replacement cost of tires can increase the overall operating expenses.
Opportunity: Rising mechanization in the agricultural sector and growing demand for high-power farm equipment offer opportunities for agricultural tire manufacturers. The market is shifting from bias ply to radial tires which provide better efficiency.
Threats: Volatility in raw material prices can squeeze the margins of tire manufacturers. The growth of the market is dependent on global agriculture production and trade which are influenced by changing climatic conditions and commodity prices.

Key Takeaways

The global Agricultural Tires Market Size is expected to witness high growth.

North America currently dominates the agricultural tires market share due to large agricultural lands and growers’ high preference for technologically advanced equipment. The U.S. accounts for the major share in North America owing to high mechanization and replacement demand for tires.

Key players operating in the Agricultural Tires market are Phytex Australia, Continental AG, Mitas,Firestone, Goodyear, Titan, Michelin, Trelleborg, and Bridgestone. These players are investing in R&D to develop innovative radial tire designs tailored for varied agricultural applications. They are focusing on expanding production capacities and dealership networks to tap the growing replacement demand in major farming nations.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it