Europe OTR tire industry size reached USD 1,346 million in 2023. Over the forecast period, Europe OTR tire demand is anticipated to rise at 4% CAGR. The sector is predicted to increase from USD 1,392.4 million in 2024 to USD 2,056.6 million by 2034.
Government policies for the construction of roads, residential buildings, and mining projects across Europe are surging demand for OTR tires. New developments in tire technology, such as improved design and durability, are further fueling growth. These improvements and innovations are set to increase the productivity of equipment operators and reduce downtime.
The mining and construction sectors are the key consumers of OTR tires due to heavy-duty operations. The industry is being influenced by technology developments, with manufacturers investing in research and development to create more resilient and long-lasting tires.
Innovations such as tire pressure monitoring systems (TPMS), material integration, and self-repairing technologies are gaining traction in Europe.
The tire industry is focusing on sustainability, with companies implementing recycling programs, eco-friendly manufacturing techniques, and extended tire lifespans. There is a trend towards increased fuel efficiency to lower carbon emissions.
Tire manufacturers prioritize safety in mining, agriculture, and port handling businesses, enhancing features like puncture resistance, surface traction, and heat dissipation to prevent blowouts.
The sector is also experiencing high consolidation, with leading firms purchasing small-scale ones to broaden product offerings and reach. This has led to increased rivalry and unique pricing tactics.
OTR tires are vital for the performance of OTR vehicles, influencing operating capability in various industries. The aftermarket sales of OTR tires are set to rise due to the increasing demand for replacement tires in industrial, construction, and agricultural machinery.
The sector is further set to face challenges such as initial investment costs, maintenance costs, and environmental regulations in Europe. However, the future remains optimistic, with an anticipated continued growth rate.
Modernization and development in cities are set to surge tire demand in urban construction projects, including building renovations, road construction, and infrastructure upgrades.
The sector is predicted to rise around 1.5x through 2034. OTR tire sales in Europe are propelled by growth in agriculture, construction, mining, and industrial sectors, which is spurred by increasing demand for fuel-efficient, durable tires.
Germany is set to retain dominance in the sector during the forecast period. The country is set to hold around 24% of the share in 2024. Germany has a strong technical infrastructure and several companies functioning in the sector, which is fueling growth. The country offers experience and capabilities from large multinationals to creative SMEs, guaranteeing the continued supply of tires to meet demand.
As Germany leads the way in manufacturing, the country is making progress in reducing the amount of energy and materials used in off-road tires.
Manufacturers are looking for options to reduce environmental impact without sacrificing productivity or the ability to compete globally. This is achieved through the use of technological innovations and sustainable business practices in Germany.
| Attributes | Description |
|---|---|
| Estimated Europe OTR Tire Industry Size (2024E) | USD 1,392.4 million |
| Projected Europe OTR Tire Industry Value (2034F) | USD 2,056.6 million |
| Value-based CAGR (2024 to 2034) | 4% |
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Persistent Demand from Construction Sector to Push Sales
Demand for OTR tires is rising due to the increasing need for specialized tires for heavy machinery and automobiles in the mining, construction, agriculture, and logistics sectors. As infrastructure projects and manufacturing activities increase, the demand for tires is set to rise.
Increased Uptake of Off-road Electric Vehicles
The rise of electric vehicles (EVs) in industrial sectors presents opportunities for OTR tire manufacturers. EV vehicles require advanced, specialized tires, with weight and construction determining the operating capability. This presents an opportunity for OTR tire manufacturers to develop new tire technology and gain a competitive edge over competitors.
Developments in Tire Design and Manufacturing Technology to Fuel Growth
OTR vehicles are transforming tire manufacturing in Europe, focusing on traction, durability, and suspension for industrial, mining, and agricultural applications. These tires are gaining traction for reducing soil roughness, increasing load capacity, and reducing environmental impact.
Manufacturers are also improving tire resistance, surface protection, and thermal damage, fueling trends in automation and predictive maintenance technologies. Smart tire monitoring systems enable real-time tire pressure, temperature, and wear monitoring, fueling sales.
Availability of Low-cost Tires to Hinder Growth
OTR tire demand is hindered by competitive pricing from low-cost China-based tires, which is set to undercut established manufacturers' prices. Companies in regulated industries face significant challenges due to complex norms, hindering the rapid adoption of new technologies in tire development.
These challenges include adhering to industry standards, monitoring regulatory changes, and incorporating new solutions, potentially affecting growth.
Sales of Europe OTR tires grew at a CAGR of 1.7% between 2019 and 2023. Total revenue reached USD 1,346 million in 2023. Increased industrial activities, adoption of advanced agricultural equipment, and government initiatives for infrastructure development were fueling growth.
The industry was influenced by economic conditions, particularly in construction, mining, and agriculture sectors. Technological developments in OTR tire design, materials, and manufacturing processes led to improvements in tire durability and performance. Innovations such as radial tire technology also enhanced fuel efficiency and cost-effectiveness for end-users.
The industry has seen consolidation among tire manufacturers, with mergers, acquisitions, and strategic alliances reshaping the competitive landscape.
Environmental regulations, particularly related to emissions and sustainability, influenced sales, fueling manufacturers to develop eco-friendly tire technologies and processes. Additionally, there has been a growing emphasis on tire recycling and end-of-life management to minimize waste and promote sustainability.
Globalization trends across emerging industries have inflated the reach of OTR tire manufacturers, with developed countries such as Germany and Italy playing a significant role in fueling demand. In response to evolving customer requirements, tire manufacturers have diversified existing product offerings to serve diverse end-user industries.
Over the forecast period, the sector is poised to exhibit healthy growth, reaching USD 2,056.6 million by 2034. The sector is set to experience substantial growth in the future due to the significant role of these tires in the agriculture and industrial sectors.
Demand for high-performance OTR tires for agricultural tractors and equipment is propelled by the development of rural enterprises and farmers' investments in modern equipment.
This growth, coupled with increasing farm mechanization and machinery adoption, is a significant spurring force behind the rising demand for OTR tires in agricultural applications.
Principal Consultant
The following section provides key attributes of the industries related to Europe's OTR tire. These include the off-highway electric vehicle and construction equipment maintenance and repair industries.
Drivers and trends are thoroughly analyzed to find business opportunities in all these industries. This can provide deep insights that help develop unique differentiating strategies to pursue growth and opportunity in Europe’s OTR tire sector.
Growth of these mentioned industries is closely tied to sectors like building and construction, mining, and agriculture. Hence, the growth or collapse of these industries will ultimately impact sales of tires, off-highway electric vehicles, and construction equipment maintenance and repair.
Off-highway Electric Vehicle Industry Assessment:
Increasing demand for affordable and efficient transportation, government incentives, and consumer awareness are the factors contributing to growth. Advanced technologies offer manufacturers a unique opportunity to develop innovative products in the business.
| Attributes | Description |
|---|---|
| Related Market | Off-highway Electric Vehicle Industry |
| CAGR (2024 to 2034) | 14.1% |
| Growth Factor | Industry growth is significantly influenced by ongoing technological innovations in electric motor designs and functionalities. |
| Opportunity | Government initiatives and regulations promoting the adoption of electric vehicles are creating ample opportunities for manufacturers. |
| Key Trend | Development of specialized electric vehicles for off-road and heavy-duty applications is the key trend. |
Construction Equipment Maintenance and Repair Industry Assessment:
The growth of this sector is fueled by technological advancements, improved material quality, and the rise of AI-powered autonomous vehicles. These advancements have simplified travel and increased demand for novel vehicles and innovative repair and maintenance services.
| Attributes | Description |
|---|---|
| Related Market | Construction Equipment Maintenance and Repair Industry |
| CAGR (2024 to 2034) | 4.1% |
| Growth Factor | Rising construction and infrastructure development activities globally are spurring growth. |
| Opportunity | Emergence of AI-powered autonomous vehicles and adoption of remote diagnostics systems are set to create opportunities. |
| Key Trend | Rising investments in technology are anticipated to help decrease the size of the equipment. |
The table below shows the estimated growth rates of the three leading countries. Poland, Italy, and Türkiye are set to record high CAGRs of 5%, 4.6%, and 4.4%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| Poland | 5% |
| Italy | 4.6% |
| Türkiye | 4.4% |
Germany is projected to reach USD 459.7 million by 2034. Over the forecast period, demand for tires in the country is predicted to rise at a CAGR of 3.2%.
Germany plans to invest USD 299.6 billion from 2016 to 2030 under the Federal Transport Infrastructure Plan 2030 to upgrade and develop the entire transport infrastructure. The forecast period predicts a surge in demand for construction equipment, leading to a high growth in terms of sales of OTR tires.
Türkiye's advanced manufacturing sectors, including textiles and industrial automation, require novel equipment for material movement, creating demand for material handling machines. Increasing demand for material handling machines is set to positively impact OTR tire sales in the country.
By 2034, the country is set to surge at a CAGR of 4.4%. Türkiye's strategic location at the crossroads of Europe, Asia, and the Middle East makes the country a vital trade and logistics hub.
Demand for OTR tires in ports and terminals is further influenced by government policies, infrastructure development, and technological innovations. The country’s participation in international trade agreements and foreign investments are also projected to influence tire demand.
Farmers in the United Kingdom are adopting advanced tractors with satellite-assisted steering, data download capabilities, and 24/7 operation, transforming large-scale farming. This shift is fueling demand for high-performance tires to support the efficiency and comfort of these specialized agricultural machines.
Regulatory factors such as tire labeling requirements and disposal and recycling standards influence the industry, necessitating innovations and investments. Environmental concerns and sustainability are also shaping the sector, with an emphasis on eco-friendly and fuel-efficient tire technologies. During the forecast period, the United Kingdom is set to rise at a significant CAGR.
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The section below shows the fabric radial tire segment is predicted to lead the tire type category. The segment is set to rise at a CAGR of 4.8% during the forecast period. Based on application, the mining segment is set to surge at a CAGR of 4.7% from 2024 to 2034.
| Segment | Fabric Radial Tires (Tire Type) |
|---|---|
| Value CAGR (2024 to 2034) | 4.8% |
Fabric radial OTR tires are known for high durability and resilience. Ability to withstand harsh working environments with strengthened sidewalls and complex tread compounds is also set to fuel demand. This results in less downtime for replacement and renovation.
Fabric radial off-road tires offer versatile applications and operating conditions, accommodating heavy machinery, construction sites, and mines. These provide dependable performance in various settings, allowing firms to scale production without excessive operational costs.
Manufacturers with dynamic business conditions and varying production requirements are set to benefit from high flexibility, as these cater to unique needs without incurring excessive operational costs.
| Segment | Mining (Application) |
|---|---|
| Value CAGR (2024 to 2034) | 4.7% |
Growing mining sector in Europe is fueling demand for OTR tires, which are designed to withstand the harsh conditions of mining operations. These tires provide traction, stability, and cargo-bearing capabilities, which are vital for maintaining the performance and profitability of mining operations.
The adoption of modern machinery and technology, such as electric haul vehicles and driverless cars, is surging demand for tires for advanced mining operations.
Europe's OTR tire industry is moderately consolidated, with leading players accounting for around 40 to 45% share. Bridgestone Corporation, Michelin, Continental AG, Yokohama Tire Corporation, and Trelleborg AB are the leading manufacturers and suppliers of OTR tires in Europe listed in the report.
Key Europe OTR tire manufacturers are prioritizing technological developments, integrating sustainable practices, and broadening footprints in the region. Customer satisfaction remains paramount, with a keen focus on tailoring machines to meet diverse business needs. Leading companies actively surge collaborations to stay at the forefront of innovation, ensuring the tires align with the evolving demands.
The sector is experiencing significant growth due to rising demand for high accuracy and durability in the automotive industry. Key manufacturers are investing in research and development to integrate OTR with other safety solutions, leading to the emergence of advanced driver assistance systems.
Established and emerging manufacturers are generating revenue by developing long-term relationships with OEMs and tire vendors in Europe. Leading companies are also investing in cutting-edge sensor technologies to meet evolving automotive demands.
Industry Updates
As per tire types, the sector has been categorized into bias tires, radial tires, and fabric radial tires.
The industry is segregated into 14" to 24", 25" to 30", 31" to 50", and above 50".
Two important sales channels include OEM and aftermarket.
In terms of applications, the sector is divided into agriculture, construction, mining, and industrial.
Industry analysis has been carried out in key countries of Europe, such as Germany, France, Italy, Spain, United Kingdom, Poland, and Türkiye.
The sector is set to reach USD 1,392.4 million in 2024.
The sector is slated to rise at a 4% CAGR through 2034.
The sector is set to reach USD 2,056.6 million in 2034.
Agricultural segment is set to garner a significant value share by 2024.
The sector was valued at USD 1,346 million in 2023.
Michelin, Apollo Tyres, and Bridgestone Corporation.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Industry Definition 3. Industry Trends and Success Factors, including Macro-Economic Factors, Dynamics, and Recent Industry Developments 4. Industry Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034 6.1. Tire Type 6.2. Application 6.3. Tire Size 6.4. Sales Channel 7. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Application 7.1. Agriculture 7.2. Construction 7.3. Mining 7.4. Industrial 8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Tire Size 8.1. 14” to 24” 8.2. 25” to 30” 8.3. 31” to 50” 8.4. Above 50" 9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Sales Channel 9.1. OEM 9.2. Aftermarket 10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Tire Type 10.1. Bias Tires 10.2. Radial Tires 10.3. Fabric Radial Tires 11. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 11.1. Germany 11.2. France 11.3. Italy 11.4. Spain 11.5. United Kingdom 11.6. Poland 11.7. Türkiye 12. Germany Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. France Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Italy Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Spain Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. United Kingdom Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Poland Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 18. Türkiye Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 19. Sales Forecast 2024 to 2034 by Tire Type Application, Tire Size, and Sales Channel for 30 Countries 20. Competition Outlook, including Industry Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 21. Company Profile 21.1. Michelin 21.2. Apollo Tyres 21.3. Bridgestone Corporation 21.4. Continental AG 21.5. Yokohama Tire Corporation 21.6. Prometeon Tire Group S.R.L. (PTG) 21.7. Magna Tyres 21.8. Triangle 21.9. Goodyear Tires & Rubber Company 21.10. Titan International, Inc. 21.11. BKT 21.12. Emerald 21.13. Mitas 21.14. Trelleborg AB 21.15. Nokian tyre, Inc.
Automotive
August 2022
REP-GB-15515
July 2023
315 pages
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OTR Tire Industry Analysis in Europe
