Agricultural Tires Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Agricultural Tires Market is projected to expand from USD 8.72 Billion in 2025 to USD 11.77 Billion by 2031, registering a CAGR of 5.13%. Designed specifically for farm machinery like tractors and harvesters, these tires are essential for maintaining traction, supporting heavy loads, and preserving soil health. The primary forces propelling this market include the growing global need for food security, which demands higher crop yields, and the rising adoption of mechanized farming in developing nations to boost efficiency. This positive momentum is corroborated by recent industry figures; for instance, the European Tyre and Rubber Manufacturers' Association reported a 5% increase in agricultural replacement tire sales in 2024, totaling 716,000 units, which highlights the sector's resilient demand.

However, market growth faces a significant hurdle due to the volatility of raw material costs, particularly natural rubber and petroleum derivatives, which leads to unstable manufacturing expenses. These fluctuating costs frequently force manufacturers to raise prices, discouraging cost-sensitive farmers from purchasing new tires or replacements and consequently limiting sales volume. As a result, the ability to manage variable input costs remains a critical challenge for manufacturers striving to maintain profitability and ensure consistent market expansion.

Market Drivers

The rapid mechanization of global farming serves as a major engine for market growth, necessitated by severe labor shortages and the demand for increased operational output. As the agricultural workforce shrinks, commercial farms are swiftly transitioning from manual labor to high-horsepower tractors and automated harvesters, generating a continuous need for heavy-duty, large-rim tires. This trend toward heavy machinery is supported by strong sales figures; notably, Mahindra & Mahindra’s 'Farm Equipment Sector Press Release' from June 2024 indicated domestic tractor sales of 35,237 units in May 2024, showing robust demand. Furthermore, Kubota Corporation reported 2024 revenues of $17.5 billion from its Farm & Industrial Machinery segment, highlighting the massive global investment in mechanized solutions that rely on tire consumables.

A secondary pivotal driver is the technological advancement in radial and low-pressure (IF/VF) tire designs, which address the critical need for soil preservation and yield optimization. Because heavy farm equipment risks compacting soil and damaging crop roots, manufacturers are developing Very High Flexion (VF) tires that operate at lower pressures to distribute weight evenly and minimize ground impact. This technical progression has established the agricultural sector as a key revenue source for specialized producers. For example, Balkrishna Industries Limited revealed in their 'Q4 & FY24 Earnings Presentation' from May 2024 that the agriculture segment accounted for 60.5% of total sales volume, confirming a strong market preference for these specialized solutions over other off-highway tire categories.

Market Challenges

The instability of raw material prices, specifically for natural rubber and petroleum derivatives, creates a precarious environment for the Global Agricultural Tires Market. Manufacturers must navigate unpredictable production costs that directly affect pricing strategies and profit margins, often necessitating price hikes to remain financially viable when input costs surge. This transmission of costs hinders market growth, as agricultural end-users, frequently operating with limited liquidity, are highly sensitive to operational expense increases. Consequently, facing erratic pricing, cost-conscious farmers often postpone replacement purchases and extend the use of worn equipment, which effectively suppresses sales volumes.

Recent industry data on raw material trends further validates this supply chain instability. According to the Association of Natural Rubber Producing Countries, global natural rubber consumption was projected to increase by 1.8% in 2024, reaching approximately 15.45 million tonnes, a level of demand that tightened supply and sustained pressure on material costs. Such fluctuations compel manufacturers to constantly adjust their financial plans, frequently resulting in delayed investments in production capacity. Ultimately, the inability to provide stable, competitive pricing retards the adoption of new agricultural tires and dampens the overall expansion of the market.

Market Trends

Customizing tires for autonomous and electric agricultural machinery is emerging as a dominant trend as the industry adopts advanced propulsion systems. In contrast to traditional diesel tractors, electric and autonomous units deliver instant torque and carry heavy battery packs, requiring tires with reinforced casings and specialized tread compounds to manage increased loads without slipping. This development parallels the wider adoption of next-generation equipment, fueling the need for compatible tire technologies. The magnitude of this shift is reflected in major OEM performance; CNH Industrial reported full-year net sales of $18.15 billion for its Agriculture segment in their 'Fourth Quarter and Full Year 2023 Results' released in February 2024, indicating strong market demand for advanced farming platforms that necessitate specialized tire specifications.

Simultaneously, the shift toward sustainable and bio-based rubber materials has become a critical trend, driven by corporate sustainability goals and environmental regulations. Manufacturers are actively substituting petroleum-based synthetic rubber with renewable alternatives like guayule, dandelion latex, and recycled carbon black to lower production carbon footprints. This transition moves beyond mere compliance, representing a strategic advancement in material science that demands substantial research and development expenditure. This investment capability is underpinned by robust sector revenues; for instance, Michelin reported in February 2024 that sales for its Specialty businesses, including agricultural lines, reached €7.0 billion in their '2023 Full-Year Results', highlighting the financial strength supporting the company’s accelerated path toward fully sustainable tire production.

Key Players Profiled in the Agricultural Tires Market

• Bridgestone Corporation
• COMPAGNIE GeNeRALE DES eTABLISSEMENTS MICHELIN
• Continental AG
• Balkrishna Industries Ltd.
• Titan International Inc.
• Trelleborg AB
• The Yokohama Rubber Co., Ltd.
• Nokian Tyres PLC
• Apollo Tyres Ltd.
• Prometeon Tyre Group S.r.l.
• CEAT Ltd.

Report Scope

In this report, the Global Agricultural Tires Market has been segmented into the following categories:

Agricultural Tires Market, by Application Type:

• Tractors
• Combine Harvester
• Sprayers
• Trailers
• Loaders
• Others

Agricultural Tires Market, by Sales Channel:

• OEM
• Aftermarket

Agricultural Tires Market, by Tire Type:

• Bias Type
• Radial Type

Agricultural Tires Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Agricultural Tires Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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