TechSci: America 2050 plan to fuel OTR tire demand
Rebuilding and renewing America and major government infrastructure programs in Canada and Mexico are fueling demand for off-the-road (OTR) tires across North America.
A new study from global market research and consulting company TechSci Research shows America 2050, Mexico’s National Infrastructure Program and Canada’s New Infrastructure Plan and New Building Canada Plan are set to have a positive impact on the OTR vehicles market over the course of the next five years.
OTR tire sales worth $3 billion in North America in 2015
TechSci research director Karan Chechi told Traction News: “On account of these huge building and infrastructure initiatives, the OTR vehicle tire market in North America is forecast to grow to $4.35 billion by 2021, thereby exhibiting a compound annual growth rate of approximately six percent during 2016-2021.”
Chechi said around $3.08 billion worth of OTR vehicle tires were sold in North America in 2015.
“The OTR vehicle tire market in North America is witnessing growth due to continuing rise in the region’s construction, mining, agriculture and logistics sectors,” he said.
“Also, growing use of various OTR vehicles such as backhoes, trenchers, bulldozers, cranes, excavators, forklifts, motor graders, telescopic handlers, tractors, special purpose vehicles, wheel loaders, has been further augmenting demand for OTR vehicle tires in North America.
The Regional Plan Association’s America 2050 was launched in 2007 to “rebuild and renew America” by repairing the inadequate infrastructure system in the megaregions of the U.S., alongside increasing residential capacity for the country’s expanding population base.
China leads global demand for OTR tires
Globally the OTR vehicle tire market is supported by the continuing growth in construction, mining, agriculture and logistics sectors, the TechSci research reveals. That’s despite declining crude oil prices translating into weaker construction and mining activities in various part of the world over the last few years.
As of 2015 more than 200 OTR vehicle tire manufacturing plants were operating around the globe, out of which more than 50 percent of the plants are located in the Asia-Pacific region. In 2015 the Asia-Pacific region held the lion’s share in global OTR vehicle tire market. The TechSci research showed China was the world’s largest OTR vehicle tire market.
The research included agricultural equipment tires, industrial equipment tires and other applications such as all-terrain vehicle tires, racing car tires and special vehicle tires.
For the full Global Off-the-Road Vehicle Tire Market Forecast and Opportunities 2021 report, visit TechSci’s website.