With increasing demand for metals and minerals, the largest group of OTR tire applications (mining, construction and ports and handling) are forecast to grow 5.6% CAGR globally over the next five years, according to Smithers Group, a tire research and testing company.
In North America, mining/construction/port tires account for an estimated three-fifths of the OTR market, but are expected to only grow 2.9% CAGR by 2029.
However, the U.S. government's push for more electric vehicles (EVs) and renewable energy technologies has been a boon for the mining industry, according to Smithers.
The transition from fossil fuels to metal and minerals for renewable energy and EVs is creating new opportunities for mining tires, Smithers reported, noting a new lithium deposit was discovered in Wyoming that may support further growth.
Meanwhile, Canada's mining sector continues to stay strong with construction-related mining to address increased infrastructure spending.
In an effort to improve efficiency and productivity, mines are turning to larger equipment that can carry more load for longer distances.
Since radial tires can offer heat dissipation and cut resistance, Smithers predicts there will be a continued trend away from lower-cost bias tires to more expensive radial tires in North America.
Mason Hess, director of global mining for Purcell Tire & Service Centers, expects an "excellent" year in mining tire sales in 2024 as the inflation bubble seems to be over and copper mining has increased.
However, the dealership is contending with shortages in some key tire sizes and the overall nervousness in the industry during a presidential election year.
Brian Thompson, an executive officer with H&H Industries, an OTR tire retreader, said that people don't purchase as much when they are nervous about an election year. "They are tighter with their money," he said.
"I think (mining) is doing fairly well. As a matter of fact, I honestly believe there is a bit of a resurgence — the lithium and rare earth metals, various things that are coming on. I'm sensing that there's a bit more excitement" Bruce Besancon, vice president of marketing at Yokohama Off-Highway Tires America Inc. (YOHTA), said.
"In North America, we haven't really permitted that many new mines. We've been building on the mines that have been there and, by the way, they didn't go away. They're still continuing.
"Despite all the environmental activities that go on, in fact, they're getting much smarter about that as well. But now we're seeing some lithium type mines and the other heavier metals both in the United States and across the globe. I think mining is set up pretty well," Besancon said.
"Actually, I think it's better than last year. It's one of the few areas that I don't think really took too much of a dip. And we see it being a key focus area going forward."