The global agriculture tires market is on a growth trajectory, with an estimated expansion from USD 9.64 billion in 2022 to USD 14.21 billion by 2030, reflecting a Compound Annual Growth Rate (CAGR) of 5.14%.
This market is influenced by factors such as increasing sales of agricultural vehicles, government initiatives, technological advancements, and high replacement rates.
Key Market Drivers:
- Rising Sales of Agricultural Vehicles: The demand for agricultural vehicles like tractors, harvesters, and sprayers is increasing as farming practices become more mechanized, especially in developing countries transitioning to modern, machine-based farming.
- Favorable Government Initiatives: Governments worldwide offer subsidies and initiatives to promote modern farming techniques, making agricultural machinery, including tires, more affordable for farmers, thereby boosting demand.
- Technological Advancements: Advanced tire manufacturing technologies have led to the production of more durable, efficient, and long-lasting agriculture tires, influencing farmers to replace old tires with new ones.
- High Replacement Rate: The rigorous use of tires in agriculture results in a high wear and tear rate, leading to frequent replacements.
- Increasing Population and Food Demand: Growing global population and food demand exert pressure on the agriculture sector to enhance productivity, leading to increased reliance on mechanized farming and higher demand for agriculture tires.
- Adoption of Radial Tires: Radial tires, offering better ride quality and longevity, are gaining popularity, especially among informed farmers.
Challenges:
- High Manufacturing Costs: Rising raw material prices like rubber, steel, and nylon contribute to high manufacturing costs, potentially impacting market growth.
- Environmental Concerns: Environmental regulations related to tire disposal and recycling pose challenges to the market, pushing manufacturers to explore eco-friendly materials and methods, which can increase production costs.
- Economic Volatility: Unpredictable economic conditions and currency exchange rate fluctuations can affect raw material costs and production expenses.
Market Segmentation:
Tire Type:
- Bias
- Radial
Application:
- Tractor
- Harvesters
- Attachments/Implements
- Sprayers/Irrigation
- Forestry
- MPT (Multi-purpose Tires)
- Others
