AKRON — The agriculture tire market continues to be strong, and industry analysts forecast steady growth for the global off-the-road (OTR) tire segments adversely affected by the COVID-19 pandemic.
As many as 43 million OTR tires, with an estimated value of $59.4 billion, will be sold worldwide this year, Smithers Group projects in its new report, "Future of Off-The-Road Tires to 2027."
The agricultural market is the only segment to maintain positive growth for the last two years, Smithers said. Other specialty segments saw demand dip during the pandemic along with disruption in the supply chain.
Total market value fell to $57 billion in 2020 from $62.4 billion in 2019, Smithers said, with losses especially severe in the construction, and ports and handling sectors.
Smithers is forecasting market value will grow at a compound annual rate (CAGR) of 5.7% through 2027 to $78.3 billion by 2027. Unit volumes will grow at 4% CAGR, topping 50 million tires in 2026. Much of this demand will come from developing markets Asia, the Middle East, Africa and Latin America, the report noted.