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Heavy-Duty Tire Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 90 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4515740
The Heavy-duty Tire Market was valued at USD 20.02 billion in 2022, and it is expected to reach a value of USD 25.36 billion by 2028, registering a CAGR of 4.84% during the forecast period.

The COVID-19 pandemic had a significant effect on the automotive tires market directly in the short term as the production and sales of new vehicles witnessed a decline in 2020. Moreover, owing to restrictions, vehicle owners reduced the amount of driving resulting in delayed visits for maintenance or tire replacement. However, with the projected exponential increase in vehicle sales over the forecast period, the market is expected to be revived economically also with the players focusing on the development of the new product.

Over the long term, increasing adoption of off-highway machinery in construction, mining, and agricultural industries. Rising mechanization trend in developing countries and spike in residential and commercial construction projects are driving the demand for off-highway machinery which in turn creates a parallel demand for

The demand for tire retreads has been increasing for these vehicles, as fleet managers /operators continue to leverage retread programs to reduce operating costs. Retreading can save the heavy commercial vehicle segment to a significant extent, as it is significantly cheaper than a tire replacement.

Heavy Duty Tire Market Trends

Construction Machinery Tires are Dominating Other Heavy-duty Tires

The demand for construction machinery, such as cranes, wheel loaders, bulldozers, motor graders, excavators, telescopic handlers, forklifts, and backhoes is predominantly being driven by the increasing volume of construction projects and expanding construction budgets, especially in developing countries across the globe over the last five years. This is driving the construction machinery tires market. Continued economic growth in a number of developed and developing nations, coupled with attractive financing conditions on the back of low interest rates, is expected to boost average global construction industry revenues, which will, in turn, propel the growth of the construction machinery market.

The market has trailed behind for the past two to three years due to the disproportionately low use of heavy-duty tyres in industries including small loaders, skid-steers, and backhoes. Additionally, a 5% increase in the construction industry is predicted, which is likely to positively affect the market growth for heavy-duty tyres over the course of the projected period. The market is expected to rise soon as a result of the improving economic situation and the increasing focus on mechanising agricultural activities. The need for tyre retreads for these vehicles has been growing as fleet managers and operators continue to adopt retread programmes to reduce operating expenses.

Asia-Pacific is Leading the Heavy-duty Tire Market

One of the major factors driving the growth of the market is the growing construction industry, especially in developing countries, owing to numerous growth opportunities in infrastructure, residential, and non-residential sectors. For instance, the rise in the construction of multi-family houses (with the growing trend of nuclear families), and increasing investments in the construction of roads, highways, smart cities, metros, bridges, and expressways due to growing population and urbanization.​

The growing trend toward automation is expected to drive the growth of the market. However, factors, such as stringent emission regulations for construction machinery, are expected to hinder the growth of the market​

The Asia-Pacific region is witnessing demand owing to the growing construction sector and infrastructural investments in countries, such as India and ASEAN Countries (such as Malaysia, Indonesia, Vietnam, Singapore).​

The construction industry is highly dynamic, and numerous factors, such as overall economy, budgets, and global economic scenario, are influencing the market’s growth. Volatility in these aspects affects the businesses of construction equipment OEMs, as well as construction rental equipment. This, in turn, is leading to price fluctuations of new, used, and rental equipment.​

The ASEAN region holds significant opportunities for the growth in demand for construction machinery. With the prospects of large infrastructure projects and shifting labor dynamics, the construction equipment rental market is expected to witness growth post-2020 during the forecast period.

In the ASEAN countries, the construction sector is expected to grow at a rate of more than 6% post-2020. It is estimated that over the next five years, the combined value of all the mega-projects in the ASEAN region is expected to be valued at USD 2.9 trillion. Of this value, about USD 1.5 trillion is invested in the planning/pre-planning phase.​

In addition, the investments in infrastructure, both, public and private, such as the Indonesian National Medium-term Development Plan (USD 460 billion), Vietnam Socio-Economic Development Plan (USD 61.5 billion), and the Philippine Development Plan “Build, Build, and Build” (USD 71.8 billion), are expected to offer opportunities for construction equipment rentals. ​

Thus, construction equipment rental in these scenarios proves to be the preferable and effective choices for the construction companies, primarily to reduce or minimize the impact of unexpected financial downturns.​

With continuous technological developments across the industry and the emission standards becoming more stringent, it is continually becoming a challenge for companies to provide standard-compliant machinery at affordable prices.​

With commercial construction being the strongest performing sector, followed by house building and apartment building (owing to the growing rental markets in the region, along with the rising employment index), the region is expected to expand its construction industry. Furthermore, in cities, such as Sydney and Melbourne, strong government support, in terms of infrastructure investment, is aiding the construction of both commercial and residential properties.​

Thus, due to the above-mentioned developments, the market studied is expected to grow at a slow and steady pace. ​

Heavy Duty Tire Market Competitor Analysis

The global heavy-duty tires market consists of numerous international and domestic players, such as Bridgestone Corporation, Michelin, Titan International, Trelleborg Wheel Systems, Balkrishna Industries Limited, and Continental AG, which account for over 40% of the market share. Growing product innovation activities among key players are driving growth in the market. For instance,
  • September, 2022: Continental introduced the LD-Master L5 Traction Construction Tire. The new LD-Master L5 Traction radial tire is built for tough situations and comes standard with tire sensors. The L5 traction tread design protects the carcass while ensuring a smooth and safe work site operation. The strong tread block design ensures consistent traction. The extra deep tread and sidewall protection strengthen the tire and assure long-term production.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.1 Vehicle Type
5.1.1 Construction Machinery
5.1.2 Mining Machinery
5.1.3 Agricultural Machinery
5.1.4 Industrial Vehicles
5.2 End-user Type
5.2.1 OEM
5.2.2 Aftermarket
5.3 Geography
5.3.1 North America United States Canada Rest of North America
5.3.2 Europe Germany United Kingdom France Italy Rest of Europe
5.3.3 Asia-Pacific China Japan India Rest of Asia-Pacific
5.3.4 Rest of the World Brazil Argentina South Africa Other Countries
6.1 Vendor Market Share
6.2 Mergers & Acquisitions
6.3 Company Profiles
6.3.1 Bridgestone Corporation
6.3.2 Continental Tires
6.3.3 Balkrishna Industries Limited (BKT)
6.3.4 Michelin
6.3.5 Titan Tire Corporation
6.3.6 Sumitomo Rubber Industries, Ltd
6.3.7 Trelleborg AB
6.3.8 The Goodyear Tire & Rubber Company
6.3.9 JK Tyre & Industries Ltd

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Bridgestone Corporation
  • Continental Tires
  • Balkrishna Industries Limited (BKT)
  • Michelin
  • Titan Tire Corporation
  • Sumitomo Rubber Industries, Ltd
  • Trelleborg AB
  • The Goodyear Tire & Rubber Company
  • JK Tyre & Industries Ltd