A rather questionable terrain in itself, off-road tire market has undoubtedly engraved a unique position in the off-road vehicle realm of late. The off-road tire industry size is surging at an appreciable rate globally from the ongoing technological and performance enhancements in the tires. Moreover, the steady expansion of distributor as well as dealership network across the globe is likely to stir the industry trends during 2019-2025.
Considerable consumer inclination towards the utilization of ATVs and UTVs for the attainment of superior diving performance would probably supplement the market share in the upcoming years. It is prudent to mention, that the demands for the recreational parks and ATV tracks in the North America region is substantially rising. Supporting this, the predominant vehicle segment, dirt bikes and Quad, is anticipated to foresee appreciable proceeds, attributing to the proliferating recreational activities and dirt bike events worldwide.
The off-road tire market is highly fragmented in terms of the competitive landscape, enabling the industry giants such as Continental AG, Michelin, and various others to adopt strategies and plans whilst deploying umpteen technological innovations in order to sustain their geographic presence across the market.
Worldwide off-road tire market is characterized by string of various government policies and regulations to ensure robust performance and high driver safety. Following are some of the chief trends that are estimated to impel off-road tire market outlook over the forecast period.
Booming synthetic rubber demand
Fast-growing consumer inclination toward synthetic materials has gradually powered the demand for high-resistance, superior performance vehicle tires over the recent times. Various industry mammoths are looking forward to investing into the synthetic rubber plants and factories to upgrade their designs and innovations.
Synthetic rubber, being highly resistant to heat and abrasion, contributes to the longer product shelf-life ascribing to reduced wear and tear. Additionally, increased flame-resistivity of the tires endorses their aptness for extreme water sports along with off-roading activities, eventually driving the product penetration globally.
Surging demand for synthetic rubber tires will provide tremendous growth opportunities to off-road market players, aiding the expansion of the industry size. Estimates claim that synthetic rubber material segment is predicted to depict a CAGR of 7.5 per cent through 2025.
Elevating original equipment requirements
High performance off road vehicles are majorly exposed to rough terrains and environments which is adding up to the demands for improved original equipment to withstand the pressure exerted on the tires.
Several industry contenders are developing primary terms with the off-road vehicle makers to address the burgeoning demand and sustain their industry foothold in the ensuing years.
Surging off road vehicles product is gaining immense traction across the globe, thereby augmenting the original equipment segment share by the end of 2025.
Mounting preference for large diameter tires
Owing to the tough terrains and superior grip, a noteworthy inclination towards large diameter tires has been witnessed by off-road tire market players globally.
It has been apprehended that due to the aforementioned factor, above 45 inches tire height segment is projected to amass considerable gains over the period of seven years. High demand from the agriculture sector is likely to propel the segmental growth on the grounds of improved grip and wear resistance.
Industry biggies are unveiling new product launches intending to stimulate their revenue generation which is predicted to complement the product outlook in the coming years. As a matter of fact, Alliance Tire Group in mid-2018 flagged off an advanced galaxy brand radial tires catering to off-the-road applications.
Rise in the number of racing tournaments in Europe
Wide scale presence of adventure trails and racing events across Europe is expected to promote the regional growth. This permits the adoption of advanced off-road vehicles, thereby supporting the exponentially rising growth graph of Europe off-road tire industry during 2019-2025.
Steady customer inclination towards adventure activities would open up new opportunities for the regional market players.
One of the fundamental restraints that off-road tire market has been observing is the fluctuating raw material prices perhaps attributed to vividly transforming government trade policies. Say for example, China in April 2018, levied higher duties on the synthetic rubber imported from the United States, Singapore and Europe whilst restricting the rise of the global market. However, it is pivotal to state, that off-road tire market vaunts a slew of profitable growth grounds for industry expansion.
Apparently, a market speculation put forth by Global Market Insights, Inc., unveils that the worldwide off-road tire industry size would cross a mammoth of USD 705 billion by the end of 2025.