Agricultural Tires Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 6.57 Billion |
| Market Size (2029) | USD 8.88 Billion |
| CAGR (2024 - 2029) | > 5.13 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Americas |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Agricultural Tires Market Analysis
The Agricultural Tires Market size is estimated at USD 6.57 billion in 2024, and is expected to reach USD 8.88 billion by 2029, growing at a CAGR of greater than 5.13% during the forecast period (2024-2029).
The rise in demand for efficient and productive agricultural machinery end-products, especially among developed nations, drives the agriculture tires market. After China, Germany is the second-largest exporter and manufacturer of agricultural tires.
The demand for farm products from expanding populations and technological advancements in agricultural equipment are the primary factors propelling the market growth.
The agriculture tires aftermarket is highly fragmented and poses a high risk to OEMs in this field. Changing agriculture machinery design and increasing penetration into newer unknown terrain may require tires with newer and stronger rubber compounds. Floatation tires, forestry tires, trailer tires, and compound rubber tires with steel flex walls are the trending tires in the agricultural tires market.
Agricultural Tires Market Trends
The Increasing Demand for Tractors is Driving the Market
The migration of people from rural to urban regions, rising labor costs, and skilled labor lack in most developing countries are fueling tractor sales. Shortage of farm labor and its rising cost are among the main reasons for the increasing mechanization of the farming industry.
The increasing need for operational efficiency and the rise in labor costs are expected to boost the demand for agricultural tractors. Over the forecast period, the market for agricultural tractors will be driven by limited labor availability.
Considering simple demand-supply economics and the transfer of labor from urban to rural areas, the cost of farm labor includes a direct link to the percentage of a country's entire population employed in agriculture. Hence, to reduce dependency on human labor, farm owners are investing in farm equipment, thereby reducing the time and effort taken for farming.
Various governments introduced new strategies to produce and consume locally to bridge the supply chain gaps and address the labor shortage in the agriculture sector. To assist smaller players, the governments implemented a few comprehensive tax reforms. For example:
- The Indian government implemented the 'Macro-Management Scheme of Agriculture,' which provides a 25% subsidy on tractors up to 35 PTO HP. At the same time, the Canadian government introduced the 'Canadian Agricultural Loans Act,' which offers farmers a loan of up to USD 500,000 when purchasing land or a tractor. It may also be used to repair buildings.
Farmers are increasingly investing in farm equipment to work at optimum capacity with a smaller workforce. Although these equipment types come with a high initial investment, they help improve overall crop quality and quantity. Many farmers are now scaling down their agricultural operations and leasing out a portion of their farms to offset rising labor costs.
As more farmers are reducing their dependency on labor, it is expected that tractor sales will witness healthy growth in the coming years, thereby driving the demand for tractor tires over the forecast period.
Increasing Demand in the United States Despite Falling Farm Income
The overall strength of the US economy, including factors such as income levels, purchasing power, and infrastructure development, plays a role in driving demand for agricultural tires. A robust economy supports investments in the agricultural sector, leading to increased demand for equipment and tires. In 2001, the gross farm income totaled USD 249.9 billion, which increased significantly by the end of 2022 to over USD 604.1 billion.
The country holds a vast and highly developed agricultural sector, with a significant number of farms and extensive agricultural operations. This large-scale farming requires a substantial number of agricultural tires to support various equipment and machinery. Moreover, in 2022, 2 million farms were in the United States, down from 2.20 million in 2007. In a similar vein, farmland acres continue to decline, falling from 915 million acres in 2002 to 893 million acres in 2022. The average farm size increased a bit from 440 acres in the 1970s to 446 acres in 2022.
Despite the decrease in the number of farms, the United States remains at the top due to the consolidation and modernization of the agricultural sector. Larger, more technologically advanced farms benefit from economies of scale and specialization, allowing for increased productivity and efficiency. It, combined with advancements in agricultural practices, equipment, and infrastructure, helps the United States maintain its position as a leading agricultural producer.
Additionally, the United States is a significant exporter of agricultural products, supplying food and commodities to both domestic and international markets. This export-oriented agriculture relies on efficient farming practices and equipment, further driving the demand for agricultural tires.
US agricultural exports grew steadily in the past 25 years, from USD 62.8 billion in 1997 to USD 196 billion in 2022. Consumer-oriented products, including high-value items like dairy, meats, fruits, and vegetables, experienced significant export growth due to global population growth, rising incomes, and dietary diversification.
Such factors are likely to drive the demand for agriculture tires in the United States over the coming years.
Agricultural Tires Industry Overview
The agricultural tire market is moderately concentrated. The major players in the agricultural tires market are Bridgestone Corporation (Firestone), Titan International Inc. (Goodyear Tires), BKT, Continental Reifen Deutschland GmbH, and Michelin, among others.
Other companies in the industry include Carlisle Companies Incorp., Trelleborg Wheel Systems, and McCreary Tire & Rubber Co. In order to maintain market dominance, the major companies are focusing on product up-gradation and customization to expand the overall product line, with robust offerings in the agricultural tires market.
Agricultural Tires Market Leaders
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Michelin
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Bridgestone Corporation (Firestone)
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Titan International Inc. (Goodyear Tires)
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BKT Tires
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Continental Reifen Deutschland GmbH
*Disclaimer: Major Players sorted in no particular order
Agricultural Tires Market News
- February 2023: Continental introduced its largest-ever tractor tire designed for high-horsepower tractors, offering enhanced load-carrying capacity, improved traction, and reduced soil compaction. With its robust construction and advanced tread design, the tire aims to meet the demands of modern agriculture, providing increased efficiency and productivity in the field.
- May 2022: Apollo Tyres launched a new range of agricultural tires specifically designed for tractors. These tires are aimed at improving traction, fuel efficiency, and load-carrying capacity while also reducing soil compaction. With their durable construction and innovative tread patterns, the tires are expected to enhance the performance and productivity of tractors in agricultural operations.
- January 2022: Magna Tyres acquired Industra Ltd in a step toward global expansion. Industra Ltd holds a robust presence in the Polish market, with three tire segments, including Agricultural Tires. Earthmoving and Industrial Tires will aid Magna in marking its presence in the Polish market.
Agricultural Tires Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Growing Global Population
4.1.2 Others
4.2 Market Restraints
4.2.1 Fluctuating Commodity Prices
4.2.2 Others
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Sales Channel Type
5.1.1 OEM
5.1.2 Replacement/Aftermarket
5.2 Application Type
5.2.1 Tractors
5.2.2 Combine Harvesters
5.2.3 Sprayers
5.2.4 Trailers
5.2.5 Loaders
5.2.6 Other Application Types
5.3 Tire Type
5.3.1 Bias Tires
5.3.2 Radial Tires
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Spain
5.4.2.5 Italy
5.4.2.6 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 Japan
5.4.3.3 India
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 South America
5.4.4.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Bridgestone Corp.
6.2.2 Continental AG
6.2.3 Balakrishna Industries Limited
6.2.4 Titan International Inc.
6.2.5 Trelleborg AB
6.2.6 Michelin
6.2.7 Nokian Tyres PLC
6.2.8 Pirelli & C SpA (Prometeon Tyre Group)
6.2.9 Alliance Tire Group
6.2.10 Apollo Tyres
6.2.11 Magna Tyres
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Intergration of Tire Pressure Monitoring System
7.2 A Dynamic Shift Towards Eco-Friendly and Energy-Efficient Agriculture Tires
Agricultural Tires Industry Segmentation
An agricultural tire is a specialized tire designed for use in agricultural machinery and equipment, such as tractors, combines, and harvesters. These tires are built to withstand the unique demands of agricultural applications, providing traction, stability, and flotation on various terrains. They are designed with deep treads, reinforced sidewalls, and strong carcasses to handle heavy loads, reduce soil compaction, and improve overall performance in farming operations.
The agricultural tire market is segmented by sales channel type, application type, tire type, and geography. By sales channel type, the market is segmented as OEM and replacement/aftermarket. By application type, the market is segmented as tractors, combine harvesters, sprayers, trailers, loaders, and other application types. By tire type, the market is segmented into bias tires and radial tires. By geography, the market is segmented as North America, Europe, Asia-Pacific, and the rest of the World. The report offers the market sizes in value (USD) for all the mentioned segments.
| Sales Channel Type | |
| OEM | |
| Replacement/Aftermarket |
| Application Type | |
| Tractors | |
| Combine Harvesters | |
| Sprayers | |
| Trailers | |
| Loaders | |
| Other Application Types |
| Tire Type | |
| Bias Tires | |
| Radial Tires |
| Geography | ||||||||
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Agricultural Tires Market Research FAQs
How big is the Agricultural Tires Market?
The Agricultural Tires Market size is expected to reach USD 6.57 billion in 2024 and grow at a CAGR of greater than 5.13% to reach USD 8.88 billion by 2029.
What is the current Agricultural Tires Market size?
In 2024, the Agricultural Tires Market size is expected to reach USD 6.57 billion.
Who are the key players in Agricultural Tires Market?
Michelin, Bridgestone Corporation (Firestone), Titan International Inc. (Goodyear Tires), BKT Tires and Continental Reifen Deutschland GmbH are the major companies operating in the Agricultural Tires Market.
Which is the fastest growing region in Agricultural Tires Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Agricultural Tires Market?
In 2024, the Americas accounts for the largest market share in Agricultural Tires Market.
What years does this Agricultural Tires Market cover, and what was the market size in 2023?
In 2023, the Agricultural Tires Market size was estimated at USD 6.23 billion. The report covers the Agricultural Tires Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Agricultural Tires Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Farm Tires Industry Report
Statistics for the 2024 Farm Tires market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Farm Tires analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
