A new report from Global Market Insights Inc. says the off-road tire market will increase from its current value of $435 billion to over $705 billion by 2025.
Technological advancements will be a positive influence on the market.
The original equipment segment will account for a large part of the market's growth. This is being aided by the increasing demand for heavy-duty off-road equipment—particularly in areas with increased infrastructure development which require use of construction and other heavy-duty equipment.
Europe's off-road tire market is expected to exceed $15 billion by 2025, says the report. This will be driven in part by the increased use of ATVs and UTVs; this vehicle segment is driving off-road tire demand in other regions of the globe, as well.
Demand will be impacted, however, by fluctuating raw material prices due in part to change government trade policies around the world. Industry expansion will be negatively impacted by higher import tariffs on rubber raw materials, such as those imposed by China in April 2018 on synthetic rubber imported from the U.S., Singapore and the European Union.
Synthetic rubber is still anticipated to see above-average industry growth over 7.5% by 2025. This is due to the many beneficial properties it offers such as longer product life and resistance to heat and abrasion.
According to the report, tires above 45 in. (1.14 m) will see significant growth due to increasing preference for large diameter tires in OTR equipment and various agricultural machinery.
Global Market Insights says the growing demand for off-road tires will be beneficial to many manufacturers in the industry, and provide opportunity for increased market penetration and company expansion.