OFF ROAD TIRES MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

One of the key challenges for the growth of the global off road tires market is the significantly higher replacement costs of off road tires as compared to regular passenger vehicle tires. Off road tires are specifically designed for heavy-duty applications and to withstand rough terrains. As a result, they utilize reinforced sidewalls and tread patterns as well as endure more wear and tear. This makes off road tires more expensive than standard tires used in passenger cars and light commercial vehicles. A set of replacement off road tires can cost anywhere between 50% to 100% more than regular tires. Moreover, off road tires have a shorter replacement cycle as they get worn out faster when used under tough conditions on off roads, trails and work sites. The higher operating costs associated with frequent replacements is a deterrent for some customers and fleet operators, especially in price sensitive developing markets. This high cost of ownership acts as a challenge for the larger acceptance of off road vehicles and corresponding growth in demand for off road tires.

Market Opportunity - Expansion into emerging markets with growing off road vehicle sales

One of the significant opportunities for the global off road tires market is the expanding customer base in emerging economies owing to rising sales of off road vehicles. Countries such as India, Brazil, Mexico, Indonesia and others are witnessing strong economic growth which has increased disposable incomes. This has boosted the demand for off road vehicles such as UTVs, SUVs, trucks and construction equipment among both private and commercial customers in these markets. As infrastructure and construction activities are increasing, the need for transportation and machinery movement on uneven terrains is driving the sales of off road vehicles. In order to cater to the specific applications of such vehicles, appropriate off road tires are required. Tire manufacturers can leverage this opportunity by enhancing their presence in emerging markets through appropriate product offering, distribution partnerships and promotion of brands dedicated to off road segment. This would enable them to tap the rising replacement market as well.