Press Release

Automotive OTR Green Tires Market to Grow with a CAGR of 10.6% Globally through to 2028.

Environmental Regulations and Sustainability Initiatives, Advancements in Tire Technology, Growing Demand in Emerging Markets and OEM and Aftermarket Opportunities are factors driving the Global Automotive OTR Green Tires market in the forecast period 2024-2028.

 

 According to TechSci Research report, “Global Automotive OTR Green Tires Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Automotive OTR Green Tires Market stood at USD 6 billion in 2022 and is anticipated to grow with a CAGR of 10.6% in the forecast period, 2024-2028. The Global Automotive Off-the-Road (OTR) Green Tires Market represents a pivotal sector within the automotive industry, embodying the industry's increasing commitment to sustainability and environmental responsibility. OTR green tires are specially engineered to cater to the robust demands of heavy-duty off-road applications, such as construction, mining, agriculture, and forestry. At the core of this market's growth are several driving forces. First and foremost, stringent environmental regulations, both regionally and globally, are compelling automotive manufacturers to seek eco-friendly solutions to reduce carbon emissions. OTR green tires play a significant role in this endeavour by minimizing rolling resistance, thereby enhancing fuel efficiency, and decreasing greenhouse gas emissions, aligning perfectly with these sustainability objectives. Moreover, advancements in tire technology have brought forth innovations in materials, tread designs, and smart technologies that improve tire performance, durability, and safety. This has made OTR green tires an increasingly attractive choice for vehicle operators, as they seek not only environmental benefits but also enhanced operational efficiency. Furthermore, the burgeoning growth of emerging markets, particularly in Asia-Pacific, Africa, and Latin America, has led to greater infrastructure development and increased demand for heavy-duty off-road vehicles.

 

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The Global Automotive Off-the-Road (OTR) Green Tires Market stands as a crucial and rapidly evolving segment within the larger automotive industry, reflecting a world increasingly focused on sustainability and environmental responsibility. OTR green tires are purpose-built to cater to the rigorous demands of heavy-duty off-road applications, including construction, mining, agriculture, and forestry. This market is characterized by a convergence of various drivers and challenges, each playing a pivotal role in shaping its trajectory.

One of the foremost driving factors in the OTR green tires market is the tightening grip of environmental regulations on the automotive industry. Governments around the world are enacting stricter emissions standards and sustainability initiatives in a concerted effort to mitigate climate change and environmental degradation. OTR green tires have emerged as an essential component in this global endeavor, offering a practical solution to reduce the industry's carbon footprint. These tires are designed with an emphasis on reducing rolling resistance, which, in turn, improves fuel efficiency and curtails greenhouse gas emissions. This alignment with environmental objectives has significantly bolstered the demand for OTR green tires.

Parallelly, the relentless pursuit of innovation in tire technology stands as a substantial driver in this market's growth. The tire industry is investing significantly in research and development to create cutting-edge tire designs, novel materials, and smart technologies that enhance performance, longevity, and safety. These advancements have not only improved the environmental footprint of OTR green tires but also their overall appeal to vehicle operators. The ability to provide superior performance, while also contributing to sustainability objectives, makes OTR green tires an attractive choice for heavy-duty vehicle operators across various industries.

The burgeoning growth of emerging markets, particularly in regions like Asia-Pacific, Africa, and Latin America, has further fueled the demand for OTR green tires. These economies are undergoing rapid industrialization and infrastructure development, translating into increased demand for heavy-duty off-road vehicles in sectors like construction, mining, and agriculture. The pivotal role played by OTR vehicles in these industries has led to a growing preference for green tires, as they offer the dual benefit of reducing fuel consumption and environmental impact. Governments in these regions, driven by their own sustainability goals and global environmental commitments, are encouraging the adoption of OTR green tires, ensuring continued market growth.

Total Cost of Ownership (TCO) considerations are another pivotal driver of OTR green tires' market expansion. Fleet operators and vehicle owners are increasingly recognizing the importance of TCO in their decision-making processes. While OTR green tires typically come with a higher initial purchase cost, they offer substantial long-term savings through improved fuel efficiency and reduced maintenance requirements. The extended lifespan of these tires, owing to advanced tread designs and materials, reduces the frequency of replacements, further enhancing their cost-effectiveness. This makes OTR green tires a strategic investment for businesses that rely on heavy-duty off-road vehicles, especially in scenarios where fuel costs are a significant operational expense.

Both the original equipment manufacturer (OEM) and aftermarket segments contribute significantly to the OTR green tires market. OEMs are actively collaborating with tire manufacturers to develop custom green tire solutions tailored to their specific vehicle designs. These partnerships yield tires that not only adhere to eco-friendly principles but also optimize performance and durability. Simultaneously, the aftermarket segment offers a plethora of green tire options for those seeking to retrofit existing fleets with more environmentally conscious solutions. The availability of a wide range of tire sizes and configurations in the aftermarket ensures that vehicle owners can select tires that precisely match their vehicles and applications.

 

Major companies operating in Global Automotive OTR Green Tires Market are:

  • Bridgestone Corporation
  • Continental AG
  • Michelin Group
  • Apollo Tyres Limited
  • Yokohama Tire Corporation
  • Goodyear Tire & Rubber Company
  • Pirelli & C. Spa
  • Toyo Tire Corporation
  • MRF Limited
  • CEAT Limited 

 

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 “The Global Automotive Off-the-Road (OTR) Green Tires Market is at the forefront of the automotive industry's transformation towards sustainability. OTR green tires, designed for heavy-duty off-road applications, offer a crucial solution to reduce environmental impact. They are driven by stringent environmental regulations, technological innovations enhancing performance and fuel efficiency, and the increasing demand from emerging markets. Despite challenges such as high initial costs and limited variety, the market continues to grow due to the compelling total cost of ownership benefits and opportunities in both OEM and aftermarket segments. While challenges persist, the OTR green tires market exemplifies the industry's commitment to a greener and more sustainable future, aligning environmental responsibility with economic viability.,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Automotive OTR Green Tires Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Tire Type (Radial, Bias), By Demand Category (OEM, Replacement), By Region, By Competition, 2018-2028”, has evaluated the future growth potential of Global Automotive OTR Green Tires Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in Global Automotive OTR Green Tires Market.

 

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Environmental Regulations and Sustainability Initiatives, Advancements in Tire Technology, Growing Demand in Emerging Markets and OEM and Aftermarket Opportunities are factors driving the Global Automotive OTR Green Tires market in the forecast period 2024-2028.

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