Technavio analysts forecast the global specialty tire market to post a CAGR of close to 4% by 2020, according to their latest report.

The research study states that the global specialty tire market is expected to grow at a significant rate during the forecast period. One of the key growth factors is the reinforcement of construction activities in the US and Latin America and the strong focus on efficient farming techniques, which require advanced tires.

Technavio’s report segments the global specialty tire market based on different applications, including agricultural tires, aircraft tires, heavy commercial vehicle (HCV) and mining vehicle tires, and other tires. To determine the market size, Technavio’s analysts have calculated the total production of specialty tires for original equipment manufacturers (OEMs) and aftermarket sales.

The three major factors driving the global specialty tire market according to Technavio’s automotive research analysts are:

  • Rise in demand for construction and mining machines
  • Growing demand for agricultural equipment
  • Increase in number of aircraft

Rise in demand for construction and mining machines

According to the latest report by Technavio, mining and construction industries are the major end-users of specialty tires. As investments in the mining industry are increasing, the demand for metals and other related commodities are also increasing. Demand for large and ultra-large radials for mining equipment and construction machinery is also growing rapidly.

Infrastructure development impacts many sectors of the economy. For instance, the demand for construction machines increases with the development of infrastructure, which will, in turn, lead to increased demand for specialty tires for this segment.

“Currently, construction and mining activities are increasing significantly in BRIC nations. This growth is attributed to massive spending on infrastructure construction projects and mining activities, as well as growth in industrial activities. The economic conditions of these nations are also expected to grow over the next four years, which will boost the market for specialty tires,” says Siddharth J, Technavio’s wheels and tires research expert.

Growing demand for agricultural equipment

As developing nations continue to grow, their agriculture sectors face more pressure. Farming sectors are currently more efficient and productive than ever before, which is resulting in the higher sale of agricultural machinery. The growth of the market for these machines will surface mostly from developing countries like China, Brazil, and India, as these countries are currently in the process of mechanizing their agricultural sector. The rising population and strong economic growth of these nations are also leading to increased farming activities, resulting in the sale of related machinery.

“In 2011, the demand for agricultural machinery in APAC was more than twice that of any other region. India and China are the primary nations fueling the market in the APAC region and other markets like Thailand and Indonesia will also expand rapidly over the next few years,” says Siddharth J.

Increase in number of aircrafts

Technavio’s report highlights the growth in global air traffic, which is helping increase the overall demand for aircraft tires mainly because of the increasing number of flights and various macro environmental trends. According to the World Bank, the US, China, the UK, Germany, and Japan are the leading countries in terms of air traffic.

In 2014, the reported number of air travel passengers in developing regions such as APAC, Latin America, Commonwealth of Independent States, Africa, and Eastern Europe was six times more than that of passengers in developed countries like North America and Western Europe, totaling 6.3 billion. This increase in air traffic worldwide is a positive sign for the aircraft tire segment, which also increases the demand for tires in the aftermarket segment.

Browse Related Reports:

  • Global Racing Tire Market 2015-2019
  • Passenger Car Tires Market in Canada 2015-2019
  • Passenger Car Tires Market in Canada 2015-2019

Purchase these three reports for the price of one by becoming a Technavio subscriber. Subscribing to Technavio’s reports allows you to download any three reports per month for the price of one. Contact enquiry@technavio.com with your requirements and a link to our subscription platform.

About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

If you are interested in more information, please contact our media team at media@technavio.com.