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The global agricultural tires market size was valued at USD 6,328.60 million in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.63% from 2022 to 2030.  The global agricultural tires market is already experiencing unprecedented growth. This is largely due to improved crop prices and increasing demand by OEMs. The combined OEM and aftermarket demand for agricultural tires is expected to continue increasing in the near future. Moreover, new technological developments in the agricultural tire industry are also helping farmers increase efficiency and extend tire life, which is further driving the market growth.

Global Agricultural Tires Market: Regional Insights

The global agricultural tires market is geographically divided into North America, Europe, Latin America, Asia Pacific, and Middle East and Africa.

Among regions, Asia Pacific is anticipated to witness significant growth in the global agricultural tires market during the forecast period, owing to rise in contribution of agriculture industry of countries such as India and China to global food trade, rise in adoption of novel farming techniques and farming equipment for increasing crop yield, and growing demand for enhancing production across the region.

Furthermore, North America is also anticipated to witness strong growth in the global agricultural tires market during the forecast period. This growth can be attributed high demand for agricultural goods owing to rising living standards, foreign investments and increased consumption. Moreover, growing agricultural industry of countries such as the U.S. and Canada in the region is leading to growing demand for agricultural tires. Along with this, the mechanization in agriculture is also growing in the region, which is also driving the market growth of the North America region.

Figure 1. Global Agricultural Tires Market Share (%), by Region, 2021

Agricultural Tires  | Coherent Market Insights

Global Agricultural Tires Market Drivers:

Low-pressure agricultural tires offer higher yields and this factor is expected to propel growth of the global agricultural tires market over the forecast period. The use of low-pressure tires offer various advantages such as less soil compaction, as low pressure radial tires can generate a longer soil footprint for distributing weight of the tractor more evenly. Thus, adoption of lower-pressure tires is increasing around the world, which is driving the market growth. For instance, in September 2019, Titan International purchased a license for manufacturing Goodyear low-pressure farm tires in Europe. The novel product series is made available for sale along with the possibilities of the company to expand the offerings by 2021.

Moreover, rise in need for mechanization in agriculture is also expected to augment growth of the global agriculture tires market over the forecast period. The inputs of machineries in agriculture industry is evolving with time significantly. With growing advent of new technologies such as internal combustion engines as well as tractors as sources of power to cover larger farm areas in shorter time, the market is witnessing strong growth. Due to mechanization, North America and Europe regions are witnessing high growth as, it is helping countries in these regions in attaining food safety for the increasing population. Thus, growing demand for mechanization is also expected to fuel the market growth.

Global Agricultural Tires Market Opportunities:

Increasing focus of market players on new technologies involved in agricultural tires is expected to create several growth opportunities in the global agricultural tires market over the forecast period. With technologies such as variable air pressure systems, machine operators can adjust tire inflation by only pressing a button for optimizing the efficiency in road and field, depending on the preset parameters. Thus, major market players are offering novel technologies for best outputs. For instance, in September 2019, Continental AG launched its IV technology for agricultural tires that comes with flexible sidewalls to maintain the durability as well as directional stability of the tires.

Increasing number of agriculture activities around the globe are expected to offer growth opportunities in the global agricultural tires market over the forecast period. The advent of novel technologies, innovations and improvement in processes along with rise in demand for food around the world is leading to considerably increased agricultural production across the world. The demand for energy needs as well as growing demand to raise crop yield is leading to growing support from government and private organizations to address the issues in agriculture. Thus, rise in number of agricultural activates around the world is creating lucrative environment for growth opportunities in the market.

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Agricultural Tires Market Report Coverage

Report Coverage Details
Base Year: 2021 Market Size in 2021: US$ 6,328.60 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2022 to 2030
Forecast Period 2022 to 2030 CAGR: 5.63% 2030 Value Projection: US$ 10,621.00 Mn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East: GCC Countries, Israel, and Rest of Middle East
  • Africa: South Africa, North Africa, and Central Africa
Segments covered:
  • By Application: Tractors, Combine Harvester, Sprayers, Trailers, Loaders, and Other Application Types
  • By Sales Channel: OEM and Replacement/Aftermarket
  • By Tires Type: Bias and Radial
Companies covered:

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)

Growth Drivers:
  • Production of low-pressure agricultural tires offer higher yields
  • Rise in need for mechanization in agriculture
Restraints & Challenges:
  • Changing raw material prices
  • Unfavourable conditions arising due to the COVID-19 pandemic

Global Agricultural Tires Market Trends:

Rise in investment in farming equipment by farmers to operate at maximum capacity and to reduce labor, is a growing trend in the global agricultural tires market. These equipment require higher initial investment, however, are known to enhance the overall quantity and quality of the crop. The number of farmers leasing out the part of farms for reducing labor costs is increasing around the world. With declining dependency on labor, the adoption of tractors is likely to grow significantly in agriculture industry, which is expected to fuel the need for tractor tires, and this in turn is likely to boost the market growth.

Growing rate of mechanization of irrigation processes is expected to propel growth of the global agricultural tires market during the forecast period. Mechanized irrigation offers rise in efficiency and greater crop yield. Thus, demand for mechanization of irrigation processes is increasing all over the world, which is driving the irrigation equipment market. Thus, this rise in demand for irrigation equipment which also includes farming tires is driving the agricultural tires market growth. This trend is likely to continue in the market during the forecast period.

Global Agricultural Tires Market Restraints:

Factors such as changing raw material prices are likely to hamper growth of the global agricultural tires market over the forecast period. The agricultural machinery markets is largely impacted by the commodity prices. With the falling basic commodity prices, the purchasing power of farmers is reduced and it also affects the sales of tires and machines in agriculture. For instance, according to the Association of Equipment Manufacturers (AEM), the sales of farm tractors decreased in March 2020% by 15.6% in the U.S. as compared to 2019, and the self-propelled combined sales declined in March by 11.9%. Thus, volatility in commodity costs is likely to obstruct the market growth.

Moreover, unfavorable conditions arising due to the COVID-19 pandemic are also expected to hinder growth of the global agricultural tires market during the forecast period. The epidemic of COVID-19 impacted the market in different ways. It affected the production and demand along with prices of various agricultural commodities all over the world. As per the American Farm Bureau Federation, the cost of corn declined during January to April in 2020 by 19%, lean hogs by 45% and live cattle by 30%. Thus, such unfavorable conditions resulting from the epidemic are restraining the market growth.

Figure 2. Global Agricultural Tires Market Share (%), By Application Type, 2021

Agricultural Tires  | Coherent Market Insights

Global Agricultural Tires Market Segmentation:

The global agricultural tires market report is segmented into Application, Sales Channels, Tires and Geography.

Based on Application, the market is segmented into Tractors, Combine Harvester, Sprayers, Trailers, Loaders, and Other Application Types. Out of which, Tractors segment is expected to dominate the global market over the forecast period and this is attributed to the rise in launch of new technologies such as autonomous and electric tractors by market players. For instance, in 2019, John Deere announced the development of electric-powered agricultural machinery and launched GridCON, an electric cable-powered tractor that delivers 400 horsepower.

Combine Harvester segment is also expected to witness significant growth in the near future and this is owing to the growing adoption of machinery by farmers. Several organizations are focusing on development of combine harvester tires that offer high stability and traction to cater the growing demand in farmers. For instance, in July 2020, Continental launched Combine harvester tire, CombineMaster in VF version after the launch of CombineMaster in 2019. The new VF version has size of 500/85R24 and was made available in ten more sizes.

Based on Sales Channel, the market is segmented into OEM and Replacement Aftermarket. Out of which, OEM is expected to dominate the global market over the forecast period and this is attributed to the growing investment in novel technology by market playerrs to help farmers grow the productivity with the launch of monitoring system. For instance, in 2019, Continental announced the launch of a novel agricultural app, Agriculture TireTech, which is designed for the farming industry, and with this app the company increased its product portfolio, as the company focuses on expansion of agricultural activities.

Replacement/Aftermarket segment is also expected to witness significant growth in the near future and this is owing to the growing demand for replacement of tires in farmers due to Covid-19 pandemic. Due to the uncertainties along with disruption in transportation caused due to the pandemic, farmers are looking for replacing the tires as maintenance of these tires is important in agriculture. Thus, this growing demand is supporting growth of the segment.

Based on Tires, the market is segmented into Bias and Radial. Out of which, Bias is expected to dominate the global market over the forecast period and this is attributed to the growing introduction of novel technologies leading to rise in demand for bias tires. For instance, in December 2020, Goodyear Farm Tires launched its R14T, which is designed to provide max performance is every condition and it comes in 17 different sizes with bias and radial options.

Radial segment is also expected to witness significant growth in the near future and this is owing to the launch of novel products by market players. To offer higher rigidity and durability in tires, manufacturers are introducing products with tread design ensuring greater grip in all the terrains. For instance, in January 2020, Alliance Tire Group announced the launch of its novel radial tractor tire named Agri Star II, which was designed in cooperation with dealers and farmers for ensuring the top performance on the road and the field.

Global Agricultural Tires Market: Key Developments

In September 2019, Firestone AG, announced the launch of a new agricultural tires line that includes tires in 15 different sizes. These tires feature AD technology, new thread pattern, R1W thread depth and design of dual-angle threat pattern.

In February 2019, BKT Tires revealed its novel size of Agrimax Force, IF 750/75 R, a largest radial agriculture tire ever produced by the company. It was introduced at the 2019 SIMA show in Paris.

Global Agricultural Tires Market: Key Companies Insights

The global agricultural tires market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global 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).

*Definition:

A common agricultural tire is the radial type. This type of tire is designed to carry a heavy load while also giving the farmer comfort. It also gives the farmer better mileage. It also creates a deep lug overlap, which helps reduce road vibration.

As the world's population continues to rise, the demand for agricultural products increases. This demand is also being driven by increasing foreign exports and higher standard of living. Farm mechanization is also increasing in the North American region, which is a good thing for the farmers and consumers alike. This trend is improving the agricultural yield and productivity while reducing the labor cost. Hence, the demand for agricultural tires is on the rise.

A common agricultural tire is the radial type. This type of tire is designed to carry a heavy load while also giving the farmer comfort. It also gives the farmer better mileage. It also creates a deep lug overlap, which helps reduce road vibration. Moreover, radial tires can improve the transmission of engine power. This makes them ideal for agricultural equipment. They also offer superior road handling. The radial design is also quieter, making them a good choice for farmers.

Market Dynamics:

Increasing innovations in technology, rise in demand for food security along with the growing populations around the world, and rising mechanization in agriculture are the factors expected to propel growth of the global agricultural tires market over the forecast period. For instance, in April 2021, Michelin announced the launch of its Agribib Row Crop IF agriculture tires, designed especially for trailed and self-propelled sprayers offering enhanced traction, higher load capacity and reduction in soil contraction.

However, factors such as environmental impact and fluctuating commodity costs are likely to obstruct growth of the global agricultural tires market during the forecast period.

Key features of the study:

  • This report provides in-depth analysis of the global agricultural tires market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2022–2030), considering 2021 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the global agricultural tires market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study include 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).
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The global agricultural tires market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the global agricultural tires market

Detailed Segmentation:

  • Global Agricultural Tires Market, By Application Type:
    • Tractors
    • Combine Harvester
    • Sprayers
    • Trailers
    • Loaders
    • Other Application Types
  • Global Agricultural Tires Market, By Sales Channel Type:
    • OEM
    • Replacement/Aftermarket
  • Global Agricultural Tires Market, By Tire Type:
    • Bias Tires
    • Radial Tires
  • Global Agricultural Tires Market, By Geography:
    • North America
    • Europe
    • Asia-Pacific
    • Latin America
    • Middle East & Africa
  • Company Profiles:
    • Bridgestone Corporation (Firestone)
    • Continental AG
    • Balakrishna Industries Limited
    • Titan International Inc. (Goodyear Tires)
    • Trelleborg Wheel Systems (Mitas)
    • Michelin
    • Nokian Tyres PLC
    • Pirelli & C SpA
    • Alliance Tire Group
    • Apollo Tyres

Frequently Asked Questions

The global agricultural tires market size is estimated to be valued at US$ 6,805.53 Million in 2022 and is expected to exhibit a CAGR of 5.63% between 2022 and 2030.
Production of low-pressure agricultural tires offer higher yields and rise in need for mechanization in agriculture are fuelling the growth of the market.
The Tractors segment is the leading component segment in the market.
Changing raw material prices is restraining growth of the market.
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).

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