Forecast Period
|
2026-2030
|
Market Size (2024)
|
USD 1.16 Billion
|
CAGR (2025-2030)
|
5.52%
|
Fastest Growing Segment
|
Construction
Equipment
|
Largest Market
|
North
|
Market Size (2030)
|
USD 1.60 Billion
|
Market
Overview
The India Off Highway Vehicle
Tire market was valued at USD 1.16 Billion in 2024 and is expected to reach USD
1.60 Billion by 2030 with a CAGR of 5.52% during the forecast period. The India Off-Highway
Vehicle Tire Market is experiencing robust growth, driven by the country’s
ongoing infrastructure boom, agricultural advancements, and mining sector
expansion. Significant government initiatives, such as the National
Infrastructure Pipeline (NIP), are leading to an increase in construction
projects, including roads, bridges, and urban infrastructure. These projects
require heavy machinery, which in turn drives the demand for durable,
high-performance tires capable of withstanding rugged terrains. Alongside
construction, the agricultural sector's ongoing mechanization is also a key
contributor. As farmers adopt more advanced machinery like tractors,
harvesters, and plows, the need for specialized tires designed for diverse soil
conditions and improved traction is expanding. The growing mining industry,
with its need for robust tires capable of supporting heavy loads and handling
abrasive environments, further propels the market.
The market is witnessing several key
trends, including the shift towards tires with enhanced durability and
performance. Innovations such as radial tires with better fuel efficiency and
increased lifespan are gaining popularity, especially in the construction and
agricultural sectors. Tires with features like self-cleaning treads and
advanced rubber compounds are being introduced to cater to the harsh working
conditions found in mining and construction. Manufacturers are also focusing on offering
tires that provide better traction and stability, which are critical for
vehicles operating in off-road environments, such as farms, construction sites,
and mining operations.
However, there are challenges that may
impact the market’s growth. One significant concern is the high cost of premium
tires, which can be a barrier for small-scale farmers or businesses with
limited budgets. While larger enterprises in construction and mining can afford
the advanced, higher-quality tires, smaller operations may struggle with the
upfront cost, limiting tire upgrades and replacements. Furthermore, the demand
for tires is closely linked to the economic cycles of construction and mining
activities, meaning any slowdowns in these sectors could affect tire sales.
Additionally, tire manufacturers must contend with issues like raw material
price volatility and sustainability concerns, as demand for eco-friendly and
recycled tire options rises. These factors create uncertainties that businesses
must navigate to remain competitive in the market. Nonetheless, innovation in
tire design, along with increasing demand from key industries, will continue to
drive growth during the forecast period 2025-2030.
Market Drivers
Infrastructure Development and
Construction Boom
India’s rapid urbanization and
government-driven infrastructure projects are a major drivers for the
Off-Highway Vehicle Tire Market. Large-scale initiatives, such as road
construction, urban development, and smart cities, require construction
machinery that operates in tough, off-road conditions. The demand for
heavy-duty equipment like bulldozers, cranes, and excavators grows, leading to
increased tire sales. As cities expand and rural areas see more infrastructure
investments, the requirement for durable tires capable of withstanding harsh
environments accelerates. Tires used in these vehicles must offer superior
traction, load-bearing capacity, and longevity, which bolsters the market's
growth. For instance, as of 2024, India launched a major infrastructure
initiative, allocating USD 130 billion, 3.4% of GDP to boost its economy, a
fivefold increase over the past decade. Most growth occurred in the last five
years, with a 27% annual growth rate. Key advancements include a 1.6-fold
expansion of the National Highways network, 94% railway electrification, 100 high-speed
Vande Bharat trains, modernization of 1,318 railway stations, and a nearly
fourfold increase in metro rail networks across 21 cities. Additionally, 84
airports are operational, and power generation capacity has risen by 70%. These
efforts are supported by the National Infrastructure Pipeline, National
Monetization Pipeline, PM GatiShakti National Master Plan, and various
sector-specific programs, including Bharatmala, Sagarmala, and the Smart Cities
Mission. The fourth phase of the PMGSY aims to enhance connectivity for 25,000
rural residents.
Agricultural Mechanization
The
shift towards mechanization in Indian agriculture is another significant growth
driver for the off-highway tire market. As farming practices evolve, the
adoption of modern machinery like tractors, harvesters, and plows becomes more
common. This transition demands high-quality tires that can perform well across
diverse terrains ranging from soft, muddy soil to hard, rocky ground. Tires for
agricultural machinery are designed for traction, flotation, and durability,
directly driving demand in the market. This growing mechanization ensures
consistent tire sales as agricultural equipment requires regular tire
replacements to maintain performance.
Expansion of the Mining Industry
India’s mining industry is undergoing
significant expansion, driven by increased demand for raw materials such as
coal, minerals, and metals. Mining vehicles, including dump trucks, loaders,
and drilling equipment, require specialized tires designed to handle extreme
conditions such as high abrasion, weight-bearing capacity, and rough terrains.
Tires in this sector are critical to operations, as they face constant wear and
tear in challenging environments. The growth in mining activities, particularly
in coal-rich regions, significantly drives the demand for off-highway tires.
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Key
Market Challenges
High Cost of Premium Tires
The high upfront cost of premium
off-highway tires is a significant challenge in the market. These tires are
often built with advanced materials, enhanced durability, and superior
performance features, making them costly. Small to medium-sized farms, construction
firms, and mining companies may find it difficult to justify the expense of
these high-end tires, especially if they have limited budgets. This can result
in a reluctance to invest in premium tires, which could affect sales in certain
market segments. Manufacturers must find ways to offer cost-effective solutions
without compromising quality.
Raw Material Price Volatility
The tire manufacturing industry faces
challenges related to the volatility of raw material prices, such as rubber,
steel, and other composites. Fluctuations in the cost of these materials can
directly impact tire prices, making them unpredictable and difficult for
businesses to budget for. This uncertainty can affect both manufacturers and
end-users, as businesses may hesitate to purchase large quantities of tires due
to concerns about future price increases. Companies in the tire sector must
manage their supply chains effectively to mitigate the risks associated with
raw material price volatility.
Maintenance and Replacement
Cycle
Off-highway vehicle
tires require regular maintenance and timely replacements to ensure optimal
performance. However, the maintenance cycle can vary greatly depending on the
vehicle’s usage, terrain conditions, and the type of tire. Tires used in mining
and construction equipment, for example, often wear out faster due to harsh
conditions. The demand for tire replacements can be unpredictable, which makes
it challenging for manufacturers to maintain a consistent market presence.
Companies must anticipate demand and develop strategies to manage inventory
effectively to address this issue.
Key
Market Trends
Growing Demand for Bias Tires
Bias tires are gaining traction in the off-highway vehicle market, especially within the construction and agricultural sectors. These tires offer excellent traction, stability, and are particularly well-suited for tough, off-road environments. Unlike radial tires, bias ply tires have a crisscrossed layer of nylon or polyester cords, which makes them more resistant to cuts and punctures. Due to their sturdiness and ability to handle uneven surfaces, bias tires are favored in construction and agricultural applications, where machinery often operates in rugged conditions. As industries continue to expand, the demand for bias tires is expected to grow, as they provide cost-effective, reliable solutions for vehicles operating in harsh terrains.
Customization and Specialized Tires
As different off-highway vehicles have
unique operational needs, the trend of customizing tires to specific vehicle
requirements is growing. Tires are being designed for applications, such as
tires for construction machinery, agricultural equipment, or mining vehicles.
Customization allows for better performance, safety, and durability, catering
to the exact conditions each vehicle faces. Manufacturers are also offering
specialized tires that focus on specific features like high traction, low
compaction, and resistance to punctures, further enhancing the overall
efficiency and longevity of off-highway vehicles.
Eco-Friendly and Sustainable Tires
The push for sustainability is a key
trend in the off-highway tire market. Manufacturers are increasingly focusing
on producing eco-friendly tires made from recycled or renewable materials.
These sustainable options not only help reduce environmental impact but also
cater to the growing consumer preference for environmentally responsible
products. The development of tires that offer better fuel efficiency and longer
lifecycles aligns with global sustainability goals. As governments and
businesses implement stricter environmental regulations, the demand for
sustainable tire solutions is expected to rise. For instance, In 2024, JK Tyre
& Industries, a leading player in the Indian tire industry, presented its
array of innovative products, underscored by technological prowess, at the
inaugural Bharat Mobility Global Expo 2024 in India. This unprecedented global
expo convened the entire mobility value chain in a single venue. Under the
theme ‘Innovation For The Future,’ JK Tyre’s exhibition emphasized its
dedication to integrating technological advancements. The company showcased its
environmentally friendly tire, ‘UX Green,’ which is composed of 80% sustainable
materials.
Segmental
Insights
Vehicle
Type Insights
The India Off-Highway Vehicle Tire
Market is segmented by vehicle type into construction equipment, agricultural
vehicles, mining vehicles, material handling equipment, and others.
Construction equipment includes a wide range of machinery such as excavators,
bulldozers, cranes, and loaders, which are commonly used in large-scale
infrastructure and construction projects. These machines require tires with
high durability and performance to withstand rough, uneven terrains and heavy
loads. Tires used in this segment are designed for enhanced traction,
load-bearing capacity, and resistance to wear, ensuring that construction
vehicles operate efficiently over long periods.
Agricultural vehicles encompass
machinery used in farming, including tractors, harvesters, plows, and sprayers.
The tires for agricultural vehicles are built to handle diverse soil conditions
and provide excellent traction, flotation, and minimal soil compaction. These
tires are essential for farming operations, especially in rural areas where
agricultural machinery is widely adopted. The demand for these tires is driven
by the increasing mechanization of farming practices, which reduces the
dependency on manual labor and improves the overall efficiency of agricultural
activities.
Mining vehicles are used in the
extraction of raw materials such as coal, minerals, and metals. These vehicles,
including dump trucks, loaders, and drills, require specialized tires that can
endure extreme conditions like abrasive terrains, heavy loads, and challenging
weather. Tires in this category are engineered for high endurance, offering
resistance to punctures and damage while maintaining performance under harsh
operating conditions. The demand for mining vehicle tires is closely linked to
the expansion of the mining industry in India, particularly in regions with
abundant natural resources.
Material handling equipment includes
vehicles such as forklifts, reach trucks, and pallet jacks used in warehouses,
ports, and manufacturing facilities. Tires for material handling equipment
prioritize stability, maneuverability, and load-bearing capacity, ensuring that
these machines can operate effectively in confined spaces and high-traffic
areas. Tires in this segment are designed for durability and comfort, reducing
the risk of operational delays due to tire wear and minimizing the need for
frequent replacements.
The "others" category includes
various off-highway vehicles not covered by the aforementioned segments, such
as all-terrain vehicles (ATVs), recreational vehicles, and golf carts. These
vehicles require specialized tires that offer traction, performance, and
durability for off-road use, typically in less demanding but still challenging
environments. Tires for these vehicles are designed for both performance in
recreational settings and robustness in various terrains. The diversity of
these vehicles contributes to a niche yet steady demand in the market.
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Region
Insights
In 2023, the
North region of India became a dominant player in the Off-Highway Vehicle Tire
Market, with key states such as Uttar Pradesh, Haryana, Punjab, and Delhi
leading the charge. The North has seen significant growth in infrastructure,
agriculture, and mining, all of which contribute to the strong demand for
off-highway vehicle tires. One of the major drivers in this region is the rapid
expansion of transportation infrastructure, including highways, expressways,
and metro projects, which has led to increased usage of construction machinery
such as cranes, bulldozers, and excavators. These heavy-duty vehicles require
specialized tires to ensure efficiency and durability in rugged, off-road
environments.
Agriculture is
another key factor contributing to the dominance of the North region. States
like Punjab and Haryana are known for their vast agricultural lands, and the
growing trend of mechanization in these areas has significantly boosted the
demand for agricultural vehicle tires. Farmers are increasingly adopting
advanced machinery, such as tractors, harvesters, and sprayers, to enhance
productivity. Tires designed to withstand diverse soil conditions, offering
traction and flotation, are in high demand to support the needs of mechanized
farming. As agricultural mechanization continues to grow, the need for
specialized tires capable of performing in challenging terrains is expected to
keep rising.
The North also
holds an important position in the mining sector, particularly in areas like
Rajasthan and Uttar Pradesh, which are rich in mineral resources. Mining
vehicles, including dump trucks, loaders, and drilling machines, require
specialized tires designed for high load-bearing capacity and resistance to
extreme conditions. The growth in mining activities in the region drives tire
demand for vehicles that operate in harsh, abrasive environments. These factors
combine to make the North region a significant contributor to the off-highway
vehicle tire market in India, with sustained growth expected due to the ongoing
infrastructure development, agricultural expansion, and mining activities.
Recent
Developments
- In
2024, Yokohama India introduced two new models to its esteemed Geolandar
series: the Geolandar X-AT and the Geolandar M/T G003. These advanced
tires are designed to provide excellent performance and durability,
addressing the varied requirements of off-road enthusiasts and
adventurers. The Geolandar X-AT, situated between All Terrain and Mud
Terrain categories, delivers outstanding performance across multiple types
of terrain.
- In
2024, TVS Srichakra, a leading manufacturer and exporter of two and
three-wheeler as well as Off-Highway tires in India, introduced its
innovative Steel Belted Agro-Industrial Radial Tires at The Tire Cologne
2024, a prominent global trade exhibition for the tire sector. The company
presented its key products at Hall 6.1 Booth: C050–C054 during the
three-day event held in Cologne, Germany. This newly launched Steel Belted
Agro-Industrial Radial Tire, a pioneering product in its category, is
specifically engineered for use in telescopic handlers, compact wheel
loaders, and backhoe loaders, catering to both agricultural and industrial
needs. The two sizes showcased included 460/70R24 for telehandlers and
340/80R18 for front axle applications of backhoe loaders.
- In
2022, Yokohama Rubber Co. (YRC) commenced operations at its third off-road
tire manufacturing facility in Visakhapatnam, Andhra Pradesh,
approximately four months ahead of schedule. This new plant was
established to enable Yokohama Off-Highway Tires (YOHT) to address the
increasing global demand for off-road tires. Similar to its existing
facilities in Dahej, Gujarat, and Tirunelveli, Tamil Nadu, the
Visakhapatnam plant will produce YOHT’s primary brands, including
Alliance, Galaxy, and Primex, which are extensively utilized in
agricultural, construction, industrial, and forestry machinery.
Key
Market Players
- Apollo Tyres Limited
- Balkrishna Industries Limited
- Bridgestone Corporation
- CEAT Limited
- Continental AG
- JK Tyre & Industries Limited
- Michelin
- MRF Limited
- The Goodyear Tire & Rubber Company
- Pirelli & C. S.p.A.
By Vehicle
Type
|
By Tire
Type
|
By Demand
Category
|
By Region
|
- Construction Equipment
- Agricultural Vehicles
- Mining Vehicles
- Material Handling Equipment
- Others
|
|
|
|
Report
Scope:
In this report,
the India Off Highway Vehicle Tire Market has been segmented into the following
categories, in addition to the industry trends which have also been detailed
below:
·
India
Off Highway Vehicle Tire Market, By Vehicle Type:
o
Construction
Equipment
o
Agricultural
Vehicles
o
Mining
Vehicles
o
Material
Handling Equipment
o
Others
·
India
Off Highway Vehicle Tire Market, By Tire Type:
o
Radial
o
Bias
·
India
Off Highway Vehicle Tire Market, By Demand Category:
o
OEM
o
Replacement
·
India
Off Highway Vehicle Tire Market, By Region:
o
North
o
South
o
East
o
West
Competitive
Landscape
Company Profiles: Detailed
analysis of the major companies present in the India Off Highway Vehicle Tire
Market.
Available
Customizations:
The India Off
Highway Vehicle Tire Market report with the given market data, TechSci Research
offers customizations according to a company's specific needs. The following
customization options are available for the report:
Company
Information
- Detailed
analysis and profiling of additional market players (up to five).
The India Off Highway Vehicle Tire Market is an upcoming report to be
released soon. If you wish an early delivery of this report or want to confirm
the date of release, please contact us at [email protected]