The agricultural tires market has witnessed significant growth over the past few years owing to the increasing mechanization in agriculture. Agricultural tires are specially designed tires suitable for rough terrains and loaded conditions in agricultural vehicles and farm equipment. There has been rising adoption of modern agricultural equipment such as tractors, harvesters, loaders, and implements across developing nations to boost farm productivity and increase crop yields. Moreover, dairy farmers are increasingly relying on milking machines, bulk feed trucks, and manure spreaders which utilize agricultural tires.
The global agricultural tires market is estimated to be valued at US$ 7061.26 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing mechanization in the agriculture sector: As outlined in the heading, the agricultural sector worldwide is undergoing rapid mechanization. Heavy duty, rugged agricultural tires suitable for high load applications are integral to the effective functioning of modern agricultural equipment. Tire manufacturers are developing innovative radial technology tires customized for the exact load and speed requirements of different agricultural vehicles and machinery. This is helping boost the adoption of agricultural mechanization and fueling demand in the agricultural tires market.
Supportive government initiatives: Many governments across developing economies are undertaking initiatives to promote mechanization in the agricultural industry in order to increase productivity and double farmer incomes. Subsidies and funding for farm equipment purchases, promotion of contract farming, and development of farm infrastructures are encouraging more smallholder farmers to invest in agricultural machinery. This is positively impacting the sales of agricultural tires fitted in various farm vehicles and application-specific equipment.
Segment Analysis
The agricultural tires market can be segmented into tractors, harvesters, trailers, and other equipment. Among these, the tractors segment accounts for over 45% share of the global market. Tractors form an essential requirement for various agricultural activities like ploughing, seeding, spraying fertilizers and pesticides. The demand for high-quality tractor tires is driven by the need for improved traction, longer life, and better load-bearing capacity.
PEST Analysis
Political: Agriculture is a priority sector for governments across countries. Favorable policies supporting mechanization and modern farming practices boost the demand for agricultural equipment and associated tires.
Economic: Growth in global population and rising demand for food supplements the revenues of agriculture sector. Farmers need high-performance tires to optimize productivity and maximize profits. The market remains influenced by changes in grain and commodity prices.
Social: As more people migrate to cities, labor shortages impact agricultural activities. This accelerates mechanization and automation adoption. Tire manufacturers focus on innovations tailored to the evolving needs of advanced equipment.
Technological: Sensors and connected capabilities are integrated into tire design. Tire pressure and wear monitoring help optimize equipment usage and reduce downtime. Self-inflating and autonomous operation-compatible tires are gaining interest.
Key Takeaways
The Global Agricultural Tires Market Size is expected to witness high growth. The global agricultural tires market is estimated to be valued at US$ 7061.26 Mn in 2024 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030.
Regional analysis – North America accounts for over 35% share of the global agricultural tires market. Asia Pacific region is anticipated to be the fastest growing market for agricultural tires during the forecast period. Countries like India, China, and Indonesia are witnessing increased mechanization and infrastructure investment in the agriculture sector.
Key players – Key players operating in the agricultural tires market are Bridgestone Corporation, MICHELIN, Titan International Inc., Trelleborg Wheel Systems, and Balkrishna Industries Limited. Bridgestone Corporation and MICHELIN dominate with over 35% collective market share owing to their well-established distribution network and product portfolio focused on high-performance agricultural equipment tires.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it