Agricultural Tires basically refers to the tires that are manufactured using wheels and modified for use in farming related equipments like tractors, combines, sprayers and skid steer loaders. Such tires are durable enough on or off the agricultural field.
The industry research report titled, “China Agricultural Tire Industry Situation and Prospects Research report” is a professional and in-depth investigation carried out to evaluate the recent situation of the Agricultural Tire industry. It provides a comprehensive analysis to its users involving the integrity of logic and totality of contents. Basically, the report provides an outlay of the industry including specific definitions, classifications, applications and industry chain structure along with a market analysis for the international market including development history, competitive landscape analysis, and major regions’ development status. Also, the development plans and policies are well discussed along with manufacturing processes and cost structures.
The tire market is majorly segmented by (a) Product Types, with production, revenue, price, and market share and growth rate of each type, further classified into Radial Tire and Bias Tire and (b) by applications, focusing on consumption, market share and growth rate of Agricultural Tire in each application, which includes Tractors, Harvesters, Trailers and Other.
The Agricultural Tire in China market, mainly caters to the markets of North China, South China, Northeast China, Southeast Coastal Area wherein the major market players namely include-Michelin, Bridgestone, Pirelli, Trelleborg, AGT, BKT, Mitas, Sumitomo, Nokian and Titan International.
A steady growth has been witnessed in the global automobile market and the related robust growth of Chinese automobile market has further triggered the tire market to recover slightly over the years. The global tire shipment has witnessed a rise by 2% year on year to 1.963 billion, and relatively China’s automotive tire output has reached up 1.2% to 572 million. In the next few years, Chinese automotive tire market is expected to develop by around 4% as the sluggish economic scenario is all set to ameliorate since the world gross product is forecasted to augment by 2.9 per cent in 2018, leading to a recovery of the economy making it stable enough to relish an ongoing global demand.
Considering the enterprises; Bridgestone, Michelin, Goodyear, Continental and Pirelli have been ranked amongst the top five industry players in the world. Through the fast-growing Chinese automobile market; the world’s major tire giants have managed to deploy their production bases in China and also amplified their investment for overall expansion in the recent years, for instance, Continental started its Phase III project in Hefei in November 2015 so as to level up the capacity in China to 14 million tires per annum, and Goodyear conducted the expansion of Dalian Plant in November 2016 with a new capacity of 5 million tires per annum.
China’s key local manufacturers have uplifted the overseas layout in a bid to avoid the influence of anti-dumping and countervailing investigations from US in order to be prepared well in advance and ensure that the growth of this industry is not hampered. The acceleration in the layout involves the following:- China’s first-ranked Hangzhou Zhongce Rubber has set up a tire factory in Thailand; Linglong Tire’s Thai Factory Phase I was put to function in 2016 and Phase II has been undergoing construction; Double Coin opened its first overseas factory in Thailand in July 2016.
Associated with the relevant linkages between demand, investment, trade and productivity; the inert global growth is foreseen to ameliorate and thereby revive the overall investments in the industry further leading to a speedy recovery in productivity. Moreover, with the futuristic concept of Sustainable Development Goals (SDGs) which are specifically the goals of “removing extreme poverty” and “generating decent employment opportunities for all”; the industry on a whole will benefit since all the industries in the global economy will experience positive shifts towards development.
In addition, the trends of corporate integration in the industry have been very much obvious in 2017 and the global tractor tires market is further likely to grow at a decent CAGR of around 5.06% in terms of shipment by 2022. The demand for agricultural tractor tires is anticipated to experience a slow growth initially majorly due to the growth of replacement market.
Radial-ply tires have been observed as the latest ones prevailing in the market and have proved to be more efficient than bias-ply tires. Nowadays, tires are highly engineered and are more capable of carrying more weight, efficient, and render less impact on the terrain than before with the support of LSW technology through which the inner wheel diameter has been increased while keeping the outer diameter unchanged. Such ongoing advancements in the agricultural tractor tires technology is expected to be one of the latest trends, which is going to drive the market demand in the upcoming years.
Other emerging trends with the passage of time will include- growing demand for green agriculture tractor tires, increasing demand for wider agricultural tires and increasing farm mechanization especially in developing countries such as India, China, and Thailand. As a result, in 2022, The Asia Pacific is projected to reckon for a major share i.e. more than about 71% of the global agricultural tire industry.
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Ankur Gupta, Head Marketing & Communications