Asia Pacific Farm Tire Market Size, Share & Trends Analysis Report By Product (Radial, Bias), By Application (Tractors, Harvesters, Forestry, Irrigation, Sprayers), By End-use, And Segment Forecasts, 2020 - 2027

Report Overview

The Asia Pacific farm tire market size was valued at USD 2.88 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 5.8% from 2020 to 2027. The growing agriculture sector in the region is anticipated to drive the demand for the product for farm vehicles. The rise in the utilization of specialty vehicles for farm activities is expected to further support the market growth. The regional market is anticipated to be driven by rising demand for tractors, harvesters, implements, sprayers, and others in farming activities in developed as well as developing economies. China led the market in 2019 in light of wide applications in agriculture, construction, and forest activities across the country. In China, the market for farm tires has witnessed an accelerating growth in the past few years and is estimated to ascend at a CAGR of 6.6% over the forecast period. High demand for agricultural products in the country backed with high population growth, rising spending capacity has surged the agricultural activities, and have positively influenced the market.

The agriculture industry in the Asia Pacific, majorly in China and India is a major contributor to the world food demand and accounted for a significant share in the production of agriculture goods. Thereby, augmenting the demand for specialty vehicles in the fields and positively influencing the expansion of the farm tire market.

Switching trends from conventional farming towards organic farming are anticipated to increase agricultural activities in emerging economies of the region. Utilization of specialty vehicles including tractors, sprayers, harvesters, and others in farms are expected to upscale on account of rising in activities, thus are likely to positively impact the farm tire demand.

Increasing operational efficiency and implementation of modern techniques in the farming activities are likely to increase the adoption of modern movable machinery in the farms, thus, supporting the market. However, the current COVID-19 outbreak has hampered the supply chain and thus has negatively affected the market.

Product Insights

Bias farm tire product segment dominated the market with a revenue share of 84.1% in 2019 and is anticipated to ascend at a high CAGR over the forecast period. Bias tires are manufactured with ply sheets installed diagonally overlapping each other. As a result, the tires provide improved stability in off-road applications.

The demand for bias or bias-ply tires is high in developing countries owing to the low cost of the product and high-performance efficiency in off-road applications such as agriculture, mining, and construction. Moreover, the external wall of the tire is thicker and rigid, which reduces the wear and tear and increases the shelf life. Thus, are popular for farming and off-road activities.

The radial tire segment is expected to witness growth in agriculture application with the introduction of IF and VF radial tires. As the sidewall flex in radial tires is not transmitted to the tread, the road-to-surface contact area increases, imparting improved stability to the vehicle. The tires also absorb shocks and bump efficiently owing to their flexibility, which makes them a suitable choice for vehicles designed for off-road areas.

Radial tires do not heat up and run cooler as compared to the bias tires as the structure of radial tires reduces rolling resistance. This aids in improving the durability and longevity of the tires, rendering them suitable for regular use. Thus, the demand for radial tires is expected to gain traction in the estimated time.

End-use Insights

The Original Equipment Manufacturers (OEM) segment accounted for the largest revenue share in 2019 and is expected to expand at a CAGR of 4.6% over the forecast period. The demand for farm 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 growing automobile industry in the region coupled with the presence of a large number of manufacturers in China and India is expected to have a positive impact on the market. Sale of tractors in the region has witnessed significant growth in the recent past, thus has surged the demand for tires in the OEM end-use.

The demand for new tires through aftermarket channels is increasing owing to the presence of different types of platforms such as online, authorized dealers, and third-party dealers. However, the popularity of tire retreading in developing economies, such as India and China, is likely to restrain the demand for tires through the aftermarket.

Periodic maintenance and timely replacement of the tires are likely to increase the demand for aftermarket sales of the tires. Extreme farm activities including mining, farming, and work at a construction site reduce the durability of the tires and thus need the replacement of the same, thereby, augmenting the market for aftersales.

Application Insights

The tractors segment accounted for the largest revenue share of 47.5% in 2019 and is likely to accelerate at a significant CAGR during the forecast period. The demand for tractors in countries with medium and large patches of farms is high as they offer ease in farming activities. However, the countries with huge and long agricultural land patches use heavy machinery for farming activities, restricting the demand for tractors and their tires.

Harvesters segment is expected to be the second-largest application segment for farm tires in the estimated time. The demand for harvesters is higher as compared to the other vehicles as the former can be used in small, medium, and large farmlands as well as in different types of farming activities across the globe.

Growing demand for technologically sophisticated machinery for forestry operations is expected to drive the usage of tires over the forecast period. The presence of a significant forestry market in the Asia Pacific is expected to drive the sales of forestry equipment. Growth of the construction sector in the aforementioned regions is also expected to result in an increased timber requirement, which is further expected to drive the demand for tires in forestry equipment.

Rising irrigation sector in the region backed with high performing agriculture sector in India and China are likely to ascend the demand for products. Moreover, the demand for sprayers is expected to be driven on account of the superior performance and uniform spray pattern obtained through the product use. The aforementioned factors are expected to augment the market for farm tires.

Country Insights

China dominated the regional market in 2019 with a share of 33.9% and is anticipated to continue this trend over the forecast period. The demand for farm tires in China is high owing to the presence of various small and large-scale players with established manufacturing facilities. It is a major producer of farm tires with the presence of leading global players such as Bridgestone, Michelin, Goodyear, and Continental AG among several others.

Bias tires contribute majorly to the market growth in India as they account for over 93% of the market share on account of their low cost. The market in India is expected to grow owing to the rise in agricultural activities and the increasing purchase of tractors and harvesters in the country. Moreover, the commercial availability of the products across the country is likely to support the aftermarket sales.

The increasing adoption of upgraded agricultural equipment in farming activities is projected to boost the demand for farm tires in Japan over the forecast period. The high standard of living in the country coupled with increasing urbanization is expected to boost the adoption of advanced technological developments.

Growing agricultural activities in Indonesia, Thailand, Australia, New Zealand, and others are likely to influence the demand for tractors and harvesters, thus positively affecting the market for farm tires. Moreover, forestry and irrigation activities in the region to support domestic demand are likely to have a positive impact on the market.

Key Companies & Market Share Insights

The market is characterized by the presence of large, multinational companies catering to global demand. These large players compete based on manufacturing technology and the application scope of farm tires. The demand for farm tires is high in economies such as India, China, Australia, Philippines, Indonesia, and Japan owing to the increasing agricultural activities and requirement of agricultural equipment. Some of the prominent players in the Asia Pacific farm tire market include:

• Apollo Tyres Ltd.

• Bridgestone Corporation

• CEAT LTD.

• Continental Corporation

• The Goodyear Tire & Rubber Company

• JK Tyre & Industries

• Michelin Tyres

• MRF Limited

• Nexen Tire Corporation

• Yokohama Tire Corporation

• Pirelli

Asia Pacific Farm Tire Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the Asia Pacific farm tire market report based on, product, application, end-use, and country:

• Product Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • Bias

  • Radial

• Application Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • Tractors

  • Harvesters

  • Forestry

  • Irrigation

  • Implements

  • Sprayers

• End-use Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • OEM

  • Aftermarket

• Country Outlook (Volume, Thousand Units; Revenue, USD Million, 2016 - 2027)

  • China

  • India

  • Japan

  • Indonesia

  • Vietnam

  • Philippines

  • Cambodia

  • Australia

  • New Zealand

  • Myanmar

  • Thailand