Press release
Farm Tires Industry to reflect an above-average 6.0% value CAGR by the end of 2028 - States Fact.MR
Farm Tires Market
Demand is led by tractors and harvesters, with trailers and sprayers following suit. Sales continue to remain concentrated in the independent aftermarket channel, with OEM and OES complementing demand.
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The latest study by Fact.MR projects the farm tires market to grow at 6% CAGR through 2028. The report finds that sluggishness in the US farm sector remains a key restraining factor for the growth of farm tires market.
Weak commodity prices have cut farm earnings, which has led to a decline in equipment spending. The sluggishness continues to impact sales of both new and replacement tires.
The report finds that manufacturer focus has shifted to digitalization and adoption of innovative technology. Product differentiation has emerged as a key strategy for market players to increase sales.
The prevailing low commodity prices are influencing farm owners to boost operational efficiency, while reducing overheads. These developments have compelled farm tire manufacturers to launch technologically superior and cost-efficient products in the market.
In view of the evolving end-user demand, launch of innovative agriculture tires that are equipped with sensors is likely to gain ground during the assessment period.
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The prevailing scenario in the market has also induced a ‘shop for value’ trend among end-users. The weakness in global commodity prices has meant that farm owners are prioritizing price over quality.
The change in buying behavior has made farm tire manufacturers to make changes to production. Farm tire manufacturers are now including cost-effective offerings in their portfolio.
Demand for Farm Tires Higher in Tractors vis-à-vis Harvesters
Demand for farm tires is higher in tractors segment as compared to harvesters. According to the report, demand for farm tires is highest in the 45 to 140 HP category.
The demand for farm tires in the 300 to 450 HP harvesters is the highest. The report projects these two vehicle types to remain at the forefront of adoption for farm tires during the assessment period.
Spreaders remain the least attractive segment for farm tire manufacturers, and the status quo is likely to remain unchanged during the assessment period.
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Radial Farm Tires Continue to Outsell Bias Variants
The radialization trend in the farm tires market is tapering off, however, radial tires continue to be an attractive segment for manufacturers.
In a bid to cater to the evolving demand from farm owners, manufacturers are focusing on increasing the tire size to support heavy weights.
Farm tire manufacturers are shifting to Group 49, which are 7 ft. tall, and have a rolling circumference index of 256 inches.
The report projects 20 to 45 inch rim diameter to grow at the highest CAGR, signifying a shift towards large radial tires. The report opines that size will continue to be a key focus area for manufacturers during the assessment period.
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