Farm Tires Market

Farm Tires Market Outlook (2023 to 2033)

As per Fact.MR, the global farm tires market is valued at US$ 8.2 billion in 2023 and is forecasted to reach US$ 14 billion by 2033-end. Worldwide sales of farm tires are predicted to increase at a CAGR of 5.5% from 2023 to 2033.

Tractor sales are predicted to expand strongly over the coming years as more farmers become less dependent on labor, which will boost demand for tractor tires throughout the forecast period.

Farm tires, usually referred to as agricultural tires, are used on a variety of farm machinery and vehicles, including tractors, harvesters, and sowers. The employment of cutting-edge equipment in agriculture has significantly increased crop productivity. As a result, more and more farmers and producers are using agricultural machinery.

• Tractor tires account for a leading 60% share of the global market in 2023 since tractors are the most widely used equipment on farms.
• Three out of five sales across the world are accounted for by radial tires.

Growing agricultural activities, rising food demand, and increasing farmer awareness of the benefits of adopting modern farming methods over traditional ones are key elements driving market growth. Rising demand for agricultural machinery from emerging economies, growing use of farm vehicles in the industry, and rising adoption of modern farming methods by farmers to increase agricultural yield are some of the most significant factors that will boost market expansion over the coming years.

One of the significant challenges encountered in sustainable agricultural development is the assurance of social security about food security-oriented interventions. Farm mechanization offers farmers numerous social and economic benefits, such as improved yield.

The looming water scarcity crisis, along with the growing requirement for ensuring food security, has further complemented the perception of farmers toward farm mechanization as a crucial component of reforming the future of the agriculture sector. As mechanization and modernization of agriculture entail the requirement for appropriate machinery to ensure effective and timely field operations, the application of agricultural inputs, and a reduction in drudgery, farm tires will exhibit a steady rise in demand over the coming years.

Key drivers promoting market expansion are an increase in the fleet size of tractors in emerging economies and technological advancements in agricultural methods. Tractor modifications have also made them compatible with the most modern farming equipment, which has increased usage and driven up market growth.

A significant factor supporting market expansion is the attractive subsidies offered by government organizations for the acquisition of new agricultural gear and equipment. High demand for the use of farm tires is being caused by small-scale farmers' awareness of the restoration of organic farming and the function of contemporary agricultural vehicles.

Global demand for farm tires is also anticipated to increase as a result of advantageous international trade policies and the expansion of OEMs' regional presence.

Report Attributes	Details
Market Size in 2023	US$ 8.2 Billion
Projected Market Value (2033)	US$ 14 Billion
Global Market Growth Rate (2023 to 2033)	5.5% CAGR
Market Share of Radial Tires (2023)	60%
Key Companies Profiled	Michelin Bridgestone Corporation Titan International, Inc. Continental AG TBC Corporation Mitas Tires Apollo Tyres Ltd. CEAT The Carlstar Group Trelleborg AB

What is Paving the Way for Farm Tire Manufacturers?

“Design Innovations w.r.t Compounds, Structure, Tread Pattern”

Demand for farm tires is increasing favorably as a result of the growing use of new farm vehicles and equipment. Farmers in underdeveloped countries are drawn to mechanized systems built into tractors because they greatly minimize human labor, mistakes, and the high expense of manpower. Modern agricultural vehicles may also carry out a variety of tasks, including planting, fertilizing, and harvesting.

Automation is being promoted in the agriculture sector as a result of the growing requirement to automate intricate agricultural processes. The need for farm tires is rising as a result of expanding automation and the increased use of agricultural vehicles to produce more crops. This is likely to boost market expansion over the coming years.

Spreading awareness of new technology among farm tire and equipment dealers and end-users has been receiving increased attention from government organizations as well as manufacturers. Agricultural machinery and equipment manufacturers continue to develop heavier, most powerful, and huge tractors and other machinery, thereby creating avenues for increased flexion (IF), very high flexion (VF), and low-sidewall technology-based farm tires.

Compounding employed in farm tires, tread patterns, and structure are likely to be key areas of design innovation among farm tire manufacturers. Along with improvements in weight-carrying capacity, recent crop science advancements have led toward genetically modified organism (GMO) crops, which are tougher and heartier than previous plant generations.

Farm tire makers are seeking new compounds that have the potential to improve stubble resistance, and reduce the tendency for sidewall cracks, which in turn will lure affluent farmers to bank on the imminent new products. This is expected to boost market value over the coming years.

“Growing Preference for High Load-carrying Capacity & Low-Pressure Farm Tires”

Over the past few years, the majority of tire manufacturers have followed the IF and VF trends, developing their versions of tires with flexible sidewalls that promise lower soil compaction and greater load-carrying capacity. The trend has gained increased emphasis recently, with a dramatic rise in the size, power, and weight of agricultural equipment.

The current generation of farm tires carry relatively more weight and are sturdy and resilient in fields against steel and rubber belt-piercing stalks of GMO crops. The performance of these tires on roads at greater speeds for longer distances has augmented their demand among farmers worldwide. Low-pressure tires that produce a larger tire footprint are perceived as having a higher preference, as they distribute the weight of the tractors and other agriculture machinery over a larger area, reducing soil compaction.

How Can New Companies Strengthen Their Market Position?

“New Market Players Should Focus on Introducing More Adaptable Tires”

Start-ups should engage in a variety of strategic initiatives to increase their presence. To grow and thrive in an increasingly competitive and challenging market environment, new entrants must provide affordable products.

• In 2019, Continental developed Agriculture TireTech, a brand-new agriculture app, with a focus on the farming sector. The pressure-load calculator, which enables users to determine the appropriate tire pressure based on the load, is the centerpiece of the Agriculture TireTech system.

Following the footsteps of established companies emerging market players can grow their activities and add digital solutions for end users, dealers, and contractual partners to their already extensive offerings of complete services. They should focus on new developments for introducing more adaptable tires to minimize soil compaction and free up farmers' time while following safety regulations.

Which Region Should Farm Tire Providers Invest In?

“Rapid Adoption of Advanced Farming Techniques in North America”

• North America accounts for 50% share of the global market in 2023.

North America is dominating the farm tires market due to the expanding agriculture industry and advancements in farming equipment. The rapid adoption of advanced farming techniques and rising demand for radial tires are driving market expansion. The need for farm tractors and harvesters to cultivate crops quickly is driving up demand for farm tires.

Country-wise Insights

What are the Prospects for Farm Tire Sales in the United States?

“Increase in Agricultural Mechanization”

Market growth in the United States is attributed to the huge demand for autonomous farm equipment and the increased need for food production. Additionally, the country is seeing an increase in agricultural mechanization, which is also fueling market expansion. Furthermore, high customer compliance with maintenance plans will boost product demand.

Will Germany Be a Profitable Market for Suppliers of Farm Tires?

“Favorable Government Policies Supporting Agriculture Industry”

Improving manufacturing techniques and the greater use of next-generation technologies throughout the range of farming operations are supporting market expansion in Germany. Favorable government policies supporting the agriculture industry are expected to drive demand for farm tires over the coming years.

Why is Japan Seeing High Demand for Farm Tires?

“Presence of Large Tracts of Agricultural Land”

Market growth in Japan is driven by the presence of various tire and tractor manufacturers, a growing population, and rising agricultural activities. The presence of large tracts of agricultural land, low-cost labor, the abundance of raw resources, and favorable climatic conditions are boosting market value in Japan.

Category-wise Insights

Why are Radial Tires Most Widely Utilized Across the World?

“Radial Tires Offer Superior Rideability and Suitable for Low Pressure”

By product type, the market is segmented into bias tires and radial tires.

• Radial tires account for 60% of sales of farm tires at present.

Radial tires are made by molding and inflating rubber against two steel bands that run along the edges of the tire's circumference to create an annular barrel shape around the carcass. Radial tires offer significantly superior rideability than conventional tires and are suitable for low pressure. Increased puncture resistance is a benefit of radial tires. These reasons have led to a noticeable increase in the demand for radial tires.

Steel ply is used in the manufacturing of radial tires, which increases durability, and bead-to-bead construction at a 90° angle to the circumferential centerline. This improves performance by lowering rolling resistance and increasing tire flexibility. These elements are predicted to increase demand for radial tires in agricultural vehicles throughout the projection period.

Development of innovative products by market participants is projected to boost demand for radial tires. Manufacturers are offering goods with tread designs assuring improved grip in all terrains to deliver tires with increased stiffness and endurance.

Will Sales of Farm Tires Rise Substantially in the After market?

“Increasing Need for Tire Replacements Boosting Farm Tire Sales through Aftermarket Channels”

The market is classified into OEMs and aftermarket based on the sales channel.

Growing consumer awareness and the expansion of tire stores and dealers are anticipated to fuel the sales of farm tires through aftermarket channels. Damaged tires cause soil compaction and crumbling, which reduces agricultural output and necessitates regular repair and replacement.

Keeping agricultural tires in excellent condition and replacing them when necessary due to wear and tear is essential. The increasing need for tire replacements due to the global development of agricultural operations is boosting the sales of farm tires through aftermarket channels.

Competitive Landscape

Key farm tire producers are making significant R&D investments to diversify their product offerings. They are focusing on product standards, contractual agreements, quality control, supply chain management, and collaborations with other organizations to make a mark in this industry.

For instance,

• In 2020, Michelin unveiled the TRAILXBIB, a brand-new agricultural tire for slurry wagons, spreaders, and trailers. It is engineered for exceptional endurance, longer tire life, and less soil compaction.

Key Segments of Farm Tires Industry Research

• By Product Type :

  • Bias Tires
  • Radial Tires

• By Application :

  • Tractors
  • Combine Harvesters
  • Sprayers
  • Trailers
  • Loaders
  • Others

• By Sales Channel :

  • OEMs
  • Aftermarket

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa