Asia-Pacific Agricultural Tires Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia-Pacific Agricultural Tires Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Asia Pacific Agricultural Tires Market is expected to exhibit a growth rate of over 6% during the forecast period 2020 - 2025.

Key Highlights

• Increasing population and growing rate of urbanization in countries such as India, China, etc. are fueling the demand for food and this is subsequently propelling the growth in agricultural activities and thus the demand for agricultural tires is rising in the Asia Pacific region.
• The rising trend of farm mechanization is also propelling the demand for agricultural tires in the Asia Pacific region. The engine powered agricultural types of machinery have considerably improved the efficiencies in the farming sector by giving farmers the capability to service vast areas of land in a short time span. Efficient types of machinery such as harvesters are witnessing a rapid adoption rate in the Asia Pacific, owing to the need for cost and energy savings farming operations in developing countries.
• Due to rising demand of heavy duty agricultural tires, improvements are being made in traction and material technology. The rise in demand for advanced and strong rubber compound have increased due to change in the design of farming equipment and exploration into new terrains. Equipping forestry tires, compound rubber tires and trailer tires with steel flex walls is the latest trend that is improving the lower ground compaction rate of agricultural tires.

Key Market TrendsReplacement Tires To Exhibit The Highest Growth Rate During The Forecast Period

The demand for farming machinery and equipment is increasing in the Asia Pacific region owing to the rising population and its growing food need. Economies such India, Thailand, China, etc. are still in the developing stage and farmers in these countries are heavily investing in farming equipment. However, for some farmers, it is not feasible to buy expensive OEM tires that come with the new machinery. Therefore, the market for replacement/aftermarket tires is booming owing to their cost effectiveness and presence of large number of options. The aftermarket tires cost nearly 50% to 75% less than the OEM tires and are easily availabe at offline and online channel. The rapid and large scale penetration of smartphones and internet in the geography is boosting the growth of Online sales channel.

India To Exhibit A Significant Growth Rate During The Forecast Period

The rise in farm mechanization in India is leading to the market growth for agricultural tires. India's tractor sales is increasing every year and sales figure for 2019 stood at 878,476 units, recording a growth of 10.24% growth over 2018 figure of 796,873 units. Mahindra and Mahindra became the largest seller of agriculture tractors in the world in 2019 by selling 330000 units of which 95% units were sold domestically. India also has 159.65 million hectares of arable land which is 2nd largest in the world and nearly 54% more than that of China. The farm mechanization rate is nearly 40% to 45% in India which presents a huge opportunity for domestic and foreign investments in farm equipment and machinery. India is also planning to increase the available power per hectare from 2 kilowatt to 4 kilowatt by 2030. Due to aforementioned factors, the market for agricultural tires will subsequently rise in India during the forecast period. However, due to COVID 19 outbreak, the sale of farming equipment in India has taken a severe hit and the expected recovery is expected to take a long time. This factor is expected to hinder the market growth for agriculture tires in India.

Competitive Landscape

The Asia-Pacific Agricultural Tires Market is a fragmented one with major players such as Continental AG, MRF Limited, Bridgestone Corporation, TIANLI Tyres, etc. dominating the market. The Asia Pacific market is dominated by local players which holds a major share of aftermarket sales.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Continental AG
MRF Limited
Balkrishna Industries Limited
Zhongce Rubber Group Co. Ltd
Tian Jin United Tire And Rubber International Co. Ltd.
Bridgestone Corporation Limited
CEAT Ltd.
ATG Tires Private Ltd.
Trelleborg ab
Michelin SCA

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