Asia-Pacific Agricultural Tires Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 2.98 Billion |
| Market Size (2029) | USD 3.88 Billion |
| CAGR (2024 - 2029) | 4.36 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia-Pacific Agricultural Tires Market Analysis
The Asia-Pacific Agricultural Tires Market size is estimated at USD 2.98 billion in 2024, and is expected to reach USD 3.88 billion by 2029, growing at a CAGR of 4.36% during the forecast period (2024-2029).
- While the overall scenario of the market is positive, the demand is hugely dependent on the economic turmoil in the region that invariably affects the farmers' income and purchase of farm machinery. However, a downturn in farming equipment sales was witnessed in 2020, as the COVID-19 pandemic severely impacted the automotive industries, including the agriculture tires market. However, the region witnessed an increase in the sale of agricultural equipment, which in turn is likely to witness major growth for the market during the forecast period.
- Over the medium term, the 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; 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 period. 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.
- Most rural areas are usually driven by the urbanization of economies. Thus, an ongoing shift in all rural activities is taking place. Urbanization is spreading into the rural areas around the metropolitan centers, where migration is rampant. With the increase in urbanization, the demand for mechanization of agricultural machinery will increase, which will help to drive the demand for agricultural tires.
- Due to the rising demand for heavy-duty agricultural tires, improvements are being made in traction and material technology. The rise in demand for advanced and strong rubber compounds has increased due to changes 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.
Asia-Pacific Agricultural Tires Market Trends
Replacement Tires To Exhibit The Highest Growth Rate During The Forecast Period
- Agricultural tire maintenance is important, as tires are usually exposed to crop stubble while operating, and in some cases, they occasionally find objects, like a hidden fencepost or deer antler in the field, which results in punctures in the tire. The tire running underinflated or over-deflected could cause damage to the body plies making the tire unusable.
- In the case of worn tires, the effect is more visible in wet conditions, as it increases the slip ratio. The use of worn tires tends to waste time, as their lugs may have been shortened due to wear and the possibility of reduction in their traction capacity in soft or wet soil, which increases the slip rate.
- These tires have more chances of punctures/impacts, and a possible breakdown during working periods can lead to a loss in yield.
- A tire replacement can preserve the soil and increase the machine's traction force, with the benefit of reduced fuel consumption and, ultimately, increased productivity. Various dealers who deal with new tires generally trade aftermarket tires. They generally provide vulcanizing, regrooving, and other on-site services. So, any authentic dealer is the right destination to buy an aftermarket tire for tractors and other agricultural use.
- However, the year 2020 was difficult for tire manufacturers and farmers as well, with uncertainties and disruptions in transportation owing to COVID-19. The farmers were looking for replacements for their tires as, due to lockdowns, most of them were unable to replace their tires, which was expected to propel the growth of the segment in the shorter term.
- 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 as 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 original equipment manufacturer (OEM) tires that come with the new machinery. Therefore, the market for replacement/aftermarket tires is booming owing to their cost effectiveness and the presence of a large number of options.
- The aftermarket tires cost nearly 50% to 75% less than the OEM tires and are easily available at offline and online channels. The rapid and large-scale penetration of smartphones and the internet in the geography is boosting the growth of Online sales channels.
India To Exhibit A Significant Growth Rate During The Forecast Period
- Agriculture is the primary source of livelihood for about 58% of India's population. The Indian agriculture industry is poised for huge growth and is increasing its contribution to the global food trade every year due to its immense potential for value addition, particularly within the food processing industry.
- In light of new government initiatives to promote agriculture, the demand for agricultural machinery is expected to grow in the upcoming period, thereby creating parallel demand for agricultural tires. The migration of people from rural to urban regions, rising labor costs, and lack of skilled labor in most developing states 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 has 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 have 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 have implemented a few comprehensive tax reforms. For example:
- The Indian government has 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 has introduced the 'Canadian Agricultural Loans Act,' which offers farmers a loan of up to USD 500 thousand when purchasing land or a tractor. It may also be used to repair buildings.
Asia-Pacific Agricultural Tires Industry Overview
The Asia-Pacific Agricultural Tires Market is dominated by several key players, such as Continental AG, Bridgestone Corporation, Balkrishna Industries Limited, Trelleborg AB, and others. Major key players are expanding their manufacturing facilities across the region, which is likely to witness major growth for the market during the forecast period. For instance,
In August 2022, The Yokohama Rubber Co., Ltd. started the production of tires at its Visakhapatnam Plant in India. The new plant is engaged in the manufacturing and sale of off-highway tires (OHT), such as those used on agricultural and other equipment.
In March 2022, The Yokohama Rubber Co., Ltd. entered into a share purchase agreement with Trelleborg AB to acquire all shares of Trelleborg Wheel Systems Holding AB.
In April 2021, Michelin launched its Agribib Row Crop IF (improved flexion) agriculture tires, specially crafted for self-propelled and trailed sprayers, which allow higher load capacity, improved traction, and reduced soil contraction.
Asia-Pacific Agricultural Tires Market Leaders
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Continental AG
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Balkrishna Industries Limited
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Continental AG
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Michelin
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Trelleborg AB
*Disclaimer: Major Players sorted in no particular order
Asia-Pacific Agricultural Tires Market News
- February 2023: Continental AG unveiled the VF TractorMaster, the largest tractor tire of its kind, boasting an impressive diameter of 2,147 millimeters. This heavyweight tire weighs 475 kg and has a remarkable load index of 10,300 kg.
- May 2022: Apollo Tires made a significant advancement in agricultural tires by introducing the Virat range, the next-generation series of tires, in Chandigarh, Northern India.
- February 2022: Michelin showcased its latest innovation, the New EVOBIB Agricultural Tire, offering improved longevity, sustainable traction, reduced soil compaction, and lower fuel consumption, all in one tire package.
APAC 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 Farm Mechanization
4.1.2 Others
4.2 Market Restraints
4.2.1 Significant Demand for Retreaded Tires
4.2.2 Others
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD Million)
5.1 By 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 Other Application Type
5.3 Construction Type
5.3.1 Bias Tires
5.3.2 Radial Tires
5.4 Geography
5.4.1 China
5.4.2 India
5.4.3 South Korea
5.4.4 Japan
5.4.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Continental AG
6.2.2 MRF Limited
6.2.3 Balkrishna Industries Limited
6.2.4 Zhongce Rubber Group Co. Ltd
6.2.5 Tian Jin United Tire And Rubber International Co. Ltd.
6.2.6 Bridgestone Corporation Limited
6.2.7 CEAT Ltd.
6.2.8 ATG Tires Private Ltd.
6.2.9 Trelleborg AB
6.2.10 Michelin
6.2.11 APOLLO TYRES LTD
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. SALES VOLUME OF AGRICULTURAL MACHINERIES IN MAJOR COUNTRIES
Asia-Pacific Agricultural Tires Industry Segmentation
The tires that are mounted on agricultural equipment to perform agricultural activity are called Agricultural tires. The diagonal treads on the agricultural tires provide maximum traction, thereby allowing agricultural equipment such as tractors and combine harvesters to move quickly through mud and soil.
The Asia Pacific agricultural tires market is segmented into sales channel type, application type, construction type, and country. The sales channel type includes OEM and Replacement/Aftermarket. The application type consists of Combine Harvesters, Tractors, Sprayers, and Other Application Types. The construction type is divided into Radial Tires and Bias Tires. Lastly, the country segment covers China, India, South Korea, Japan, and the Rest of Asia-Pacific.
The market sizing and forecast for each segment have been determined based on the value (USD).
| By Sales Channel Type | |
| OEM | |
| Replacement/Aftermarket |
| Application Type | |
| Tractors | |
| Combine Harvesters | |
| Sprayers | |
| Other Application Type |
| Construction Type | |
| Bias Tires | |
| Radial Tires |
| Geography | |
| China | |
| India | |
| South Korea | |
| Japan | |
| Rest of Asia-Pacific |
APAC Agricultural Tires Market Research FAQs
How big is the Asia-Pacific Agricultural Tires Market?
The Asia-Pacific Agricultural Tires Market size is expected to reach USD 2.98 billion in 2024 and grow at a CAGR of 4.36% to reach USD 3.88 billion by 2029.
What is the current Asia-Pacific Agricultural Tires Market size?
In 2024, the Asia-Pacific Agricultural Tires Market size is expected to reach USD 2.98 billion.
Who are the key players in Asia-Pacific Agricultural Tires Market?
Continental AG, Balkrishna Industries Limited, Continental AG, Michelin and Trelleborg AB are the major companies operating in the Asia-Pacific Agricultural Tires Market.
What years does this Asia-Pacific Agricultural Tires Market cover, and what was the market size in 2023?
In 2023, the Asia-Pacific Agricultural Tires Market size was estimated at USD 2.85 billion. The report covers the Asia-Pacific Agricultural Tires Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Agricultural Tires Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Asia-Pacific Agricultural Tires Industry Report
Statistics for the 2024 Asia-Pacific Agricultural Tires market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Asia-Pacific Agricultural Tires analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
Asia-Pacific Agricultural Tires Market Report Snapshots
