Prominent players in the global market for farm tire are investing heavily in better manufacturing processes to reduce costs. They are also focusing on enhancing their product portfolios to entice more takers. However, relatively new and smaller players are giving them tough competition by setting up capacities in developing economies of India and China were low cost labor and cheaper land prices are enabling them to manufacture at a relatively low cost and hence taste success in business.
Serving to majorly stoke growth in the global market for farm tire is the rising population which has exponentially increased the demand for food. This has resulted in most farmers taking the mechanized farming route, consisting of tractors and harvesters, for faster tilling, sowing and harvesting.
Yet another factor that has proven highly beneficial to the global market for farm tire is the supportive government policies related to subsidies for agro machinery and easy access to credit.
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Helped by the aforementioned factors, the global market for farm tire is slated to expand at a steady 6.2% CAGR during the period between 2017 and 2025, finds a report by TMR. Rising at this rate, the volume in the market which was about 14,843.5 thousand units in 2016 will become 25,391.4 thousand units by 2025-end.
Depending upon the type of tire, the global farm tire market can be segmented into bias and radial. Of them, the segment of radial grosses maximum revenue. Their sales are mainly a result of their unique perceived benefits. Radial tires, for example, are made of steel belts placed at an angle of 90 degree to the tread center line. Since these tires provide around 10% to 15% more traction than bias tires, their efficiency increases which helps to save fuel. Other advantages of radial tires are a longer tread life, better wear durability, and smoother ride.
One drawback of radial tires is that they cost more. This is predicted to prove beneficial to the sales of bias farm tire which are relatively cheaper and have a wide range of applications.
North America, South America, Europe, Asia Pacific, and the Middle East and Africa are some of the key regions in the global farm tire market. At present, Asia Pacific rakes in maximum revenue and is also ahead of other regions vis-à-vis volume. The high population in the region is clearly the main driver of growth. The volume in the market in Asia Pacific in was about 8,731.6 thousand units in 2016 and it will likely rise to 16,249.9 by 2025 by clocking maximum CAGR of 7.2%.
North America is another key market that is predicted to see substantial growth in the upcoming years. At present, it trails Asia Pacific in terms of volume. Powered by the U.S., the region is predicted to expand at a healthy clip in the near future. The growth in the agricultural industry in the region is said to be boosting demand for farm tires.
The market in Europe, unlike Asia Pacific and North America, will likely register a tepid CAGR 1.8% between 2016 and 2025. The Middle East and Africa, however, will grow relatively faster owing to the scarcity of farm hands in the region.
Bridgestone Corporation, Balkrishna Industries Limited (BKT), Continental AG, TBC Corp., The Goodyear Tire & Rubber Company, Michelin, Mitas Tires Global Inc., Pirelli & C. S.P.A., Titan International, and Sumitomo Rubber Industries Ltd. Are to name a few key players in the global farm market.