The North America farm tires market features a highly fragmented competitive landscape. However the market features the presence of few well-established players having strong distribution networks. Also, these players have deeply penetrated into the farm tires market by introducing innovative and technologically advanced products.
Companies are strengthening their position through mergers and acquisitions and continuously investing in research and development activities to come up with solutions to cater the customers’ requirement. For instance, Titan International Inc., introduced its new range of bias tires for skid steers in early 2017. These tires are targeted towards activities such as snow removal and landscaping, providing superior traction in snow, ice and mud.
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Transparency Market Research estimates that the North America farm tire market, in terms of volume-wise sales, is expected to exhibit a moderate CAGR of 5.5% from 2017 to 2025, rising from 2,948 thousand units in 2016 to 4,750 thousand units in 2025. In terms of revenue, the market is expected to exhibit a more promising 11.9% CAGR over the said period, chiefly owing to the rising preference to radial tires.
Radial Tires to Witness Increased Demand in North America Farm Tires Market
In terms of type of tires, the North America market will witness the dominance of the segment of radial tires in terms of revenue generation while the segment of bias tires will continue to remain the leading segment in terms of sales volumes. The high costs of characteristically advanced radial tires will allow the segment to earn a larger share in the market despite lower sales over the forecast period. In terms of geography, the market in U.S. will continue to account for a larger share in the overall revenue of the North America farm tire market over the report’s forecast period.
Demand for Higher Volumes of Food Products to Have Positive Influence on Market Growth
Rising demand for farm tractors and harvesting machinery is expected to help the overall farm tire market growth, as they are used for multiple purpose machines, including harrowing, plowing, tilling, and planting machines. Growing awareness regarding the importance of mechanization in in the agriculture sector for the maximization of output is aiding the growth of the market. Demand for technologically advanced tires such as with increased flexion (IF) and specialty farm tires such as combine tires, sprayer tires, and eco-friendly tires are further anticipated to contribute toward the expansion of the market during the forecast period.
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Additionally, increase in demand for food and other related consumables, owing to the rising population of key markets in the region, and increased per capita income of farmers in North America are also likely to boost the sale of farm tires in the forecast period from 2017 to 2025. The market is also expected to benefit from the rising demand of tractors from hobby farmers.
Decline in Net Farm Income to Discourage Farmers to Spend on Expensive Tires
The report estimates that the market will bear the brunt of a number of factors, hindering its overall growth prospects over the report’s forecast period. Factors such as unfavorable climatic conditions and changing government regulations in the region are expected to exert the most notable negative impact on the overall consumption of farm tires in North America in the next few years. Another crucial factor influencing the farm tire market in the region, especially in the U.S. market, is expected to be the sharp decrease in net farm income of farmers, which is a result of low commodity prices.