May 29, 2024
Agricultural Tire Market
Ict

Agricultural Tires Are Expected To Be Flourished By Growing Adoption Of Precision Farming Techniques

The global agricultural tires market offers a wide range of tires that are specially designed for agricultural machinery and equipment including tractors, harvesters, trailers, and other vehicles used in farming and livestock operations. Light-weight and robust agricultural tires provide better traction and improve fuel-efficiency of farm vehicles on various terrains. The growing adoption of precision farming techniques among farmers to optimize productivity is a key driving factor for the market. Precision farming relies on advanced technologies such as GPS, GIS, and IoT for tasks including soil mapping, variable-rate fertilizer application, and yield monitoring. This requires modern farm machinery equipped with high-performance and durable agricultural tires.

The global agricultural tires market is estimated to be valued at US$ 7,061.26 Mn in 2023 and is expected to exhibit a CAGR of 5.3% % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

The growing adoption of precision farming techniques as highlighted in the heading is a major driver for the agricultural tires market. Precision farming allows optimal resource utilization through yield mapping, variable-rate technology, and site-specific crop management. This increases productivity and profitability for farmers. Moreover, precision agriculture requires automation of field operations that relies on advanced machinery with strong yet fuel-efficient tires to work efficiently on farms.

Another key factor fueling the market growth is the increasing mechanization of agriculture globally. In developing economies, labor shortages in the agriculture sector are promoting higher mechanization levels through the use of modern harvesting and planting equipment. As the average size of farms increases with consolidation of agricultural lands, demand is rising for high-performance tires that can withstand heavy loads and provide longer service life to machinery operating for longer hours on fields daily. This is positively impacting the sales of agricultural tires.

Segment Analysis

The agricultural tires market can be segmented based on tire type, application, sales channel and region. Based on tire type, the radial agricultural tires sub-segment held the largest market share in 2022 owing to their better traction, durability and fuel efficiency compared to bias agricultural tires. By application, tractors held the dominant share as they are widely used for multiple agricultural purposes such as tilling, harvesting and transportation. Tractor sales also continue to increase globally. Considering sales channels, the aftermarket sub-segment captured higher demand than OEM as agricultural tires need regular replacement.

PEST Analysis

Political: Government support for farm mechanization in developing nations through subsidies on agricultural equipment has promoted tractor and tire sales. However, trade wars can impact raw material prices.
Economic: Global economic recovery post-pandemic and rising food demand from a growing population are driving agricultural production. A strong farm income encourages machinery purchase.
Social: Population growth necessitates higher food output which increases farm mechanization and corresponding tire usage. Younger generations also prefer technologically advanced agricultural solutions.
Technological: Tire manufacturers focus on developing radial tires with increased traction, durability and fuel efficiency for varied soil/climate conditions. Precision farming technologies also augment tractor productivity.

Key Takeaways

The global Agricultural Tires Market Size is expected to witness high growth over the forecast period supported by initiatives to boost farm output.

Regional Analysis: The Asia Pacific region held around 35% share of the overall agricultural tires market in 2024 led by countries such as India, China and Indonesia. Large farmer base, increasing mechanization and conducive government policies propel the demand. India alone is estimated to witness 8% CAGR during the forecast period on the back of initiatives to double farmer incomes.

Key players operating in the agricultural tires market are Phytex Australia, Balkrishna Industries, Apollo Tyres, Bridgestone and Michelin. Phytex Australia dominates the Australian market while Bridgestone and Michelin have a wider international presence. These companies focus on expanding production capacities and distribution networks to tap rising opportunities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it