North America Farm Tire Market: Snapshot
Farm tires are a sub-segment of specialty tires that are used by vehicles and machines employed in farm activities in the agriculture sector. Farm machineries such as sprayers, tractors, trailers, and harvesters some of the most common and key users of farm tires. Choosing the right farm tire depends on numerous different factors such as the size of the tractor tire, soil compaction, fuel economy, traction requirements, and weight of the equipment. The market for farm tires in North America is witnessing growth at a moderate pace, with the rising preference to radial tires bringing vast changes to the market’s overall growth dynamics.
Characteristically better, radial tires cost significantly higher than bias tires of the same dimensions. The disparity has forced several farmers to buy old second-hand tires instead, negatively impacting the sales of new tires and the growth prospects of the overall market for farm tires in North America. However, rising demand from hobby farmers and the increased awareness about the need for mechanization in the field of farming are allowing radial tires good growth prospects.
According to Transparency Market Research, the North America farm tire market is expected to exhibit a moderate CAGR of 5.5% from 2017 to 2025 in terms of volume, rising from 2,948 thousand units in 2016 to 4,750 thousand units in 2025.
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Despite Lower Sales Volumes, Radial Tires to Account for Larger Revenue Share
In terms of type, the North America farm tires market has been segmented into bias tires and radial tires. Of these, the segment of radial tires is expected to witness the dominance, in terms of revenue contribution, of radial tires throughout the forecast period. The high costs of these technologically advanced tires allow them to account for a larger share in the overall revenue of the market despite holding a much smaller volume-wise share as compared to the segment of bias tires. The segment of radial tires is expected to continue to hold a higher share in the North America farm tire market in terms of revenue contribution over the forecast period.
Nevertheless, the trend of higher sales volumes of bias tires compared to those of radial tires, is expected to continue over the forecast period as well. The vast disparity in costs of bias tires and radial tires, with radial tires costing as much as 10 times the cost of bias tires of same dimensions, plays a major role in cost-sensitive farmers’ preferences. However, the segment of radial tires is steadily gaining traction, with its growth rate, in terms of volume, expected to be higher than that of the segment of bias tires over the report’s forecast period. In terms of revenue-wise growth, both the segments will remain equally competitive, expanding at CAGRs of 11.8% (bias tires) and 11.9% (radial tires) over the forecast period.
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U.S. Market to Continue to Contribute Massive Share in Revenue to North America Farm Tire Market
In terms of geography, the report examines the market for farm tire across the U.S., Canada, and the rest of North America. Of these, the U.S. is presently the leading revenue contributor to the North America farm tire market and the country will continue to hold its top spot owing to the larger scale of the agriculture sector as compared to other countries in the region and presence of several leading vendors. In terms of rate of growth, however, the market in Canada is expected to register a better pace of growth, in terms of both revenue as well as volume.
Some of the leading players operating in the North America farm tire market are BKT Tires USA Inc., Bridgestone Corporation, Continental AG, The Goodyear Tire & Rubber Company, Michelin, Mitas Tires Global Inc., TBC Corp., and Titan International.