STEEL TRACKS AND RUBBER TRACKS MARKET ANALYSIS

The Global Steel Tracks and Rubber Tracks Market is estimated to be valued at US$ 2.13 billion in 2023 and is expected to reach US$ 3.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.9% from 2023 to 2030.

Steel tracks and rubber tracks are two essential components in the construction equipment and heavy machinery industry. Both types of tracks serve the purpose of providing traction, stability, and durability for various machines, such as excavators, bulldozers, skid steers, and compact track loaders.

Steel tracks are known for their robustness and longevity, making them suitable for applications in harsh and challenging terrains like rocky surfaces and rugged landscapes. They offer superior weight-bearing capabilities and are less susceptible to damage from sharp objects, making them ideal for heavy-duty tasks. However, they can be less forgiving on sensitive surfaces and may cause more ground damage compared to their rubber counterparts.

On the other hand, rubber tracks have gained popularity for their versatility and reduced ground impact. They offer greater flexibility and a smoother ride, which translates to improved maneuverability and traction on delicate surfaces like asphalt and concrete. Rubber Tracks are also quieter during operation and generally require less maintenance compared to steel tracks.

Steel Tracks and Rubber Tracks Market Regional Insights

• North America: North America is the largest market for steel tracks and rubber tracks, accounting for a share of over 25% in 2023 North America has a significant market for both steel tracks and rubber tracks, driven by the construction industry's demand for heavy machinery and equipment. The U.S. and Canada are major contributors to the market due to ongoing infrastructure projects and the presence of a well-established construction sector. In this region, Rubber Tracks have gained popularity due to their lower-ground impact and suitability for urban construction and maintenance projects.
• Europe: Europe is the second-largest market for Steel Tracks and Rubber Tracks, accounting for a share of over 20% in 2023. Europe is another significant market for Steel Tracks and Rubber Tracks, with countries like Germany, France, and the U.K. leading the demand. The region's construction industry and agricultural sector contribute to the demand for heavy machinery with both track types. Additionally, the focus on environmentally friendly practices has led to an increased preference for Rubber Tracks, as they offer reduced ground damage and improved fuel efficiency.
• Asia Pacific: Asia Pacific is the fastest-growing market for Steel Tracks and Rubber Tracks, accounting for a share of over 45% in 2023. The Asia-Pacific region has experienced rapid industrialization and urbanization, leading to substantial growth in the construction and infrastructure sectors. China, India, Japan, and South Korea are major contributors to the market, with a strong demand for both steel tracks and rubber tracks. The versatility of rubber tracks in urban construction projects and agricultural applications has driven their adoption in the region.

Figure 1. Global Steel Tracks and Rubber Tracks Market Share (%), by Region, 2023

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Steel Tracks and Rubber Tracks Market Drivers:

• Construction and Infrastructure Development: The growth of the construction and infrastructure sectors is a significant driver for both types of tracks. As countries invest in building roads, bridges, buildings, and other infrastructure projects, the demand for construction equipment, including machinery equipped with steel or rubber tracks, increases.

For Instance: According to India Brand Equity Foundation India is expected to become the third-largest construction market globally by 2022. The country plans to spend $1.4 trillion on infrastructure development between 2019 and 2023

• Urbanization and Real Estate: The ongoing global trend of urbanization has led to a rise in urban construction and real estate projects. In urban areas, there is a greater need for construction equipment with rubber tracks, as they offer reduced ground damage, increased maneuverability, and lower noise levels, making them suitable for work in confined spaces.

For Instance: United Nations data reveals that China is anticipated to invest a staggering $12 trillion solely in new infrastructure projects by 2025. This massive investment is geared towards supporting China's rapid urban transition, with a vision for over 70% of its population residing in cities.

Steel Tracks and Rubber Tracks Market Opportunities:

• Infrastructure Development Projects: With increasing investments in infrastructure development globally, there are ample opportunities for both types of tracks. Governments and private companies undertaking projects like road construction, bridges, railways, and ports require heavy machinery equipped with steel or rubber tracks for efficient and durable operations.

For Instance: In 2020, the EIB approved €63.3 billion of financing for projects, out of which €13.1 billion was for infrastructure projects

• Agricultural Sector: In the agricultural sector, rubber tracks have become increasingly popular due to their ability to minimize soil compaction. As farmers seek to improve yields and reduce environmental impact, the demand for machinery equipped with rubber tracks is likely to increase.

For Instance: In Jan 2023, According to PIB Delhi India's agriculture sector has been experiencing strong growth, boasting an impressive average annual growth rate of 4.6% over the past six years.

Steel Tracks and Rubber Tracks Market Trends:

• Increased Adoption of Rubber Tracks: The market witnessed a growing preference for rubber tracks over steel tracks, especially in applications that require reduced ground damage and improved maneuverability. Rubber tracks' versatility and suitability for urban construction and delicate terrains have contributed to their increased adoption.

For Instance: According to statistics released by the European Construction Equipment Federation in 2022, an excavator equipped with rubber tracks demonstrates a 12% higher lifetime fuel efficiency compared to the same excavator with steel tracks.

• Technological Advancements: Manufacturers have been investing in research and development to improve the design and performance of both steel and rubber tracks. Advancements in track technology aimed at enhancing durability, reducing wear, and increasing fuel efficiency have been prominent trends in the market.

For Instance: In a 2023 research report published by the US Army Engineering Research and Development Center, findings indicated that 3D printed tracks exhibited equivalent or even superior wear resistance compared to traditional tracks made of rubber or steel.

Steel Tracks and Rubber Tracks Market Restraints:

• High Initial Cost: One of the primary restraints for both steel and rubber tracks is their higher initial cost compared to other types of tracks, such as tires. The initial investment in purchasing or upgrading to steel or rubber tracks can be a significant factor for some equipment owners.

Counterbalance: Both steel and rubber tracks are known for their durability. Steel tracks, in particular, are extremely tough and can handle very harsh conditions, which means they don't need to be replaced as often. Rubber tracks, while less durable than steel, require less maintenance, which can lead to cost savings over time.

• Maintenance and Replacement Costs: While rubber tracks generally require less maintenance than steel tracks, they can still wear out over time, leading to replacement costs. For heavy-use applications or harsh terrains, both steel and rubber tracks may need frequent maintenance, impacting overall operating expenses.

Counterbalance: Despite the high maintenance and replacement costs, the use of steel and rubber tracks can lead to significant cost savings in other areas, such as fuel efficiency and increased productivity, which can offset these costs.

Recent Developments

New product launches

• Camso (Michelin): In April 2023, Camso (Michelin) formerly known as Camoplast Solideal, is a Canadian company that is a manufacturer and service supplier of products for off-the-road vehicles. They serve the material handling, construction, agriculture and powersport industries launched a new line of rubber tracks for construction equipment. The new tracks are designed to provide superior traction and durability in difficult terrain.
• Bridgestone: In March 2023, Bridgestone Corporation a leading manufacturer of steel tracks for construction equipment launched a new line of rubber tracks for agricultural equipment. The new tracks are designed to provide superior traction and durability in muddy and wet conditions.
• Soucy: In February 2023, Soucy, established in 1967 by Mr. Gilles Soucy, stands as a private corporation specializing in the conceptualization and manufacturing of diverse components. These components cater to leading manufacturers in the realms of motorsport, industrial machinery, agriculture, and defense vehicles. Soucy launched a new line of steel tracks for construction equipment. The new tracks are designed to provide superior traction and durability in harsh environments.

Key Strategic Initiatives

Acquisition and partnerships

• Bridgestone partnered with McLaren Industries: In February 2023, Bridgestone partnered with McLaren Industries, a leading manufacturer of steel tracks for construction equipment. The partnership was part of Bridgestone's strategy to expand its product offering and reach new markets.
• Soucy partnered with VMT International: In March 2023, Soucy partnered with VMT International, a leading manufacturer of rubber tracks for agricultural equipment. The partnership was part of Soucy's strategy to expand its product offering and reach new markets.
• All States Ag Parts acquired Steel Tracks, Inc.: In April 2023, All States Ag Parts serves as a reliable supplier, offering a range of used, rebuilt, and aftermarket parts for tractors of various makes and models acquired Steel Tracks, Inc., a leading manufacturer of steel tracks for construction equipment. The acquisition was part of All States Ag Parts' strategy to expand its product offering and reach new markets.

Figure 2. Global Steel Tracks and Rubber Tracks Market Share (%), by Track Type, 2023

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Top Companies in Steel Tracks and Rubber Tracks Market

• Bridgestone Corporation
• Camso Ltd. (formerly known as Camoplast Solideal)
• Bridgestone Industrial Products America, Inc.
• Continental AG
• Titan International, Inc.
• Mattracks, Inc.
• Global Track Warehouse USA
• VMT International
• Trelleborg AB
• McLanahan Corporation
• Superior Tire & Rubber Corp.
• TFI Tracks
• CTS Tire Express
• Eurotrack Ltd.
• TuffStuff Australia

Definition: Steel tracks and rubber tracks are types of traction systems used in heavy machinery and construction equipment. Steel tracks are made of steel components and are known for their durability and strength, making them suitable for demanding terrains and heavy-duty applications. Rubber tracks, on the other hand, are composed of rubber and other composite materials, offering reduced ground impact, improved maneuverability, and versatility, making them ideal for sensitive surfaces and urban construction projects.