Agricultural Tires Market Trends

Agricultural Tires Market Overview:

Agricultural Tires Market Size was valued at USD 7.5 billion in 2023. The Agricultural Tires industry is projected to grow from USD 7.86 Billion in 2024 to USD 11.12 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.48% during the forecast period (2024 - 2030). Increased demand for efficient and productive agricultural machinery end-products and rising adoption of advanced technologies in farming are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Agricultural Tires Market Trends

Increasing Demand for Tractors is driving the market growth

The migration of people from rural to urban regions, rising labor costs, and lack of skilled labor in most developing countries fuel tractor sales. Farm labor shortage and rising costs are among the main reasons for the increasing Market CAGR of the farming industry. The increasing need for operational efficiency and the rise in labor costs are expected to boost the agricultural tires market revenue 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, farm labor costs are directly linked to the percentage of a country's entire population employed in agriculture. Hence, farm owners invest in farm equipment to reduce dependency on human labor, reducing the time and effort taken for farming.Farmers increasingly invest in less workforce equipment to work at optimum capacity. Although these equipment types come with a high initial investment, they help improve overall crop quality and quantity. Many farmers are scaling down their agricultural operations and leasing out a portion of their farms to offset rising labor costs.As more farmers reduce their dependency on labor, tractor sales are expected to witness healthy growth in the coming years, thereby driving the demand for tractor tires over the forecast period.

Additionally, Agricultural vehicles are utilized in the farm and agriculture industry to carry out major day-to-day operations. Vehicles are utilized for agricultural operations, for example, in crop plotting and scouting, for selecting rocks, for irrigation purposes, and so on. Nowadays, most of the work is done using this machinery in the fields, which leads to the replacement of tires at regular intervals, which is expected to boost the growth of the agriculture tire market during the forecast period.

Agricultural Tires Market Segment Insights

Agricultural Tires Type Insights

Based on type, the agricultural tires market segmentation includes bias and radial tires. The bias tires segment dominated the market; bias tires are high in India and China as these tires are manufactured using natural rubber, which is produced majorly in the two countries. In addition, the crosshatch construction of the bias tire, coupled with its availability at low cost, is likely to fuel its demand.The cost of raw materials is low, which, in turn, decreases the product's manufacturing cost. However, the decreasing natural rubber supply will likely restrain the segment's growth. In addition, natural rubber increases the rigidity of the tires, which loses uniformity after use, compromising the round shape of the tire and decreasing its shelf life. Radial tires are manufactured with steel ply, which increases durability, along with bead-to-bead construction at an angle of 90 degrees to the circumferential centerline, which increases the flexibility of tires and reduces the rolling resistance, resulting in improved performance. This will likely drive the demand for radial tires in agricultural vehicles over the forecast period.The cost of radial tires is high due to synthetic rubber and modern manufacturing technology requiring high-cost machinery.

Figure1: Agricultural Tires Market, by Tire Type, 2024 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Agricultural Tires Application Insights

Based on application, the agricultural tires market segmentation includes tractors, combine harvesters, sprayers, trailers, loaders, and others. The tractors segment dominated the market. tractors with high horsepower are widely preferred as they can be used for different farming activities. As a result, the demand for tires is also growing with the increasing popularity and use of tractors. The demand for farm tires in the harvesters segment is expected to grow due to the introduction of several types of harvesters to suit farming needs. For instance, John Deere has introduced crop-specific harvesters to meet the requirements of farmers, resulting in the ease of harvesting crops such as sugarcane and corn. This has led to an increased demand for harvesters for long patches of farms.

Agricultural TiresSales Channel Insights

Based on sales channel, the agricultural tires market data includes OEM and aftermarket. The OEM segment dominated the market. The demand for farm tires through the OEM channel is increasing for new agricultural vehicles, such as tractors and harvesters. The demand for these vehicles is high in developed economies, as farmers can afford the newly introduced, expensive farm equipment that aids in executing farming activities on large patches of land. The demand for new tires through aftermarket channels is expected to grow due to the presence of different types of platforms, such as online, authorized dealers, and third-party dealers.

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.

Agricultural Tires Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American agricultural tires market area will dominate this market; up-gradation in farming equipment and evolution in the agricultural industry, aiding the growth of modern-day integrated farming activities, will boost the market growth in this Region.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: Agricultural Tires Market Share By Region 2024 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's agricultural tires market accounts for the second-largest market share due to Favorable government policies such as funding support and low-interest rates have benefited the expansion of the agricultural sector. Further, the German agricultural tires market held the largest market share, and the UK agricultural tires market was the fastest-growing market in the European Region.

The Asia-Pacific agricultural tires market is expected to grow at the fastest CAGR from 2024 to 2030. This is because the manufacturing technology and material used to produce bias tires ensure high load capacities at a low cost. The main raw material required for manufacturing bias tires is natural rubber. Thus, the abundant availability of natural rubber in this Region boosts the market growth. Moreover, China’s agricultural tires market held the largest market share, and the Indian agricultural tires market was the fastest-growing market in the Asia-Pacific region.

Agricultural Tires Key Market Players& Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Agricultural Tires market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The agricultural tire industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the agricultural tires industry to benefit clients and increase the market sector. In recent years, the agricultural tires industry has offered some of the most significant advantages to the agriculture sector. Major players in the agricultural tires market, including Bridgestone Corp., Continental AG, Balakrishna Industries Limited, Titan International Inc., Trelleborg AB, Michelin, Nokian Tyres PLC, Pirelli & C SpA, Alliance Tire Group, and Apollo Tyres and others, are attempting to increase market demand by investing in research and development operations.

Trelleborg AB is a engineering group focused on polymer technology, with headquarters in Trelleborg, Sweden, with 21,230 employees and with yearly revenue of 33.8 billion SEK as of 2021. The company first went public in 1964 and trades on the Nasdaq Stockholm exchange as a large-cap component. Trelleborg is a world leader in engineered polymer solutions that seal, damp, and protect critical applications in demanding environments. Its innovative solutions accelerate performance for customers in a sustainable way. Trelleborg is a world leader in engineered polymer solutions that seal, damp, and protect critical applications in demanding environments. Its innovative solutions accelerate performance for customers in a sustainable way. Trelleborg AB announced its plan to increase its production output from North American agriculture tire facilities to cater to the growing demand. The company generates 18% of wheels sales from the North American market.

Michelin is a French multinational tire manufacturing company based in Clermont-Ferrand in the Auvergne-Rhône-Alpes region of France. It is the second-largest tire manufacturer behind Bridgestone and larger than Goodyear and Continental. Michelin, the leading tire company, is dedicated to sustainably improving the mobility of goods and people by manufacturing and marketing tires and services for every type of vehicle, including airplanes, automobiles, bicycles/motorcycles, earthmovers, farm equipment, and trucks. It also offers digital mobility support services and publishes travel guides, hotel and restaurant guides, maps, and road atlases. 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.

Key Companies in the agricultural tires market include

• Bridgestone Corp.


• Continental AG


• Balakrishna Industries Limited


• Titan International Inc.


• Trelleborg AB


• Michelin


• Nokian Tyres PLC


• Pirelli & C SpA


• Alliance Tire Group


• and Apollo Tyres


• Brunswick Corporation

Agricultural Tires Industry Developments

January 2022: Magna Tyres acquired Industra Ltd., which was a step toward expansion. Industra Ltd has 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.

December 2021: Trelleborg AB announced its plan to increase its production output from North American agriculture tire facilities to cater to the growing demand. The company generates 18% of wheels sales from the North American market.

Agricultural Tires Market Segmentation

Agricultural Tires Type Outlook

• Bias Tires


• Radial Tires

Agricultural Tires Type Outlook

• Tractors


• Combine Harvesters


• Sprayers


• Trailers


• Loaders


• Others

Agricultural Tires Sales Channel Outlook

• OEM


• Aftermarket

Agricultural Tires Regional Outlook

North America

• US


• Canada

Europe

• Germany


• France


• UK


• Italy


• Spain


• Rest of Europe

Asia-Pacific

• China


• Japan


• India


• Australia


• South Korea


• Australia


• Rest of Asia-Pacific

• Middle East


• Africa


• Latin America