PMR delivers key insights on the global forestry equipment tire market in its latest research report, Forestry Equipment Tires Market: Global Industry Analysis 2013 – 2017 and Forecast 2018 – 2028.
On the basis of insights and findings in the report, the long-term stance for the global forestry equipment tire market is expected to be positive with an estimated value CAGR of 5.7% during the forecast period. Increasing demand for wood and wood products, coupled with the shift toward mechanization and automation in forestry operation to increase efficiency and output, is one of the key factors expected to lay a robust foundation for the growth of the forestry equipment tire market during the forecast period. The global forestry equipment tire market is estimated to create an incremental money making opportunity of US$920.8m during the forecast period.
Global forestry equipment tire market dynamics
The forestry equipment tire market is expected to witness healthy growth throughout the forecast period. Long term growth in the demand for forestry equipment tires is expected to be driven by the socio-economic outlook, which in turn rests on the changing demographic, continuous economic growth, urbanization and increasing affluent population.
Growing urbanization has led to an increase in the demand for wood and wood products. Manufacturers across the region are increasingly adopting stable, reliable and comfortable forestry equipment to increase efficiency and output. This scenario is likely to result in a rise in the production of forestry equipment – driving the demand for forestry equipment tires from the OEM segment.
Furthermore, recovery of the construction industry across developed geographies such as North America and Europe is expected to drive the demand for wood, supporting growth in the forestry equipment tire market. Forestry equipment is generally expensive and requires periodic maintenance checks for smooth operations. The high price of forestry equipment as well as the high maintenance cost affects their adoption in developing countries and further hinders the growth of forestry equipment tires in these regions.
• On the basis of type, the pneumatic tire market segment is expected to be a high value segment, accounting for a significant share of the global forestry equipment tire market. While the segment is expected to witness robust growth during the forecast period, it is expected to face stiff competition from solid tires and polymer-based tires, owing to their enhanced performance and longer work life.
• Among equipment type segments, the forestry tractor tire segment is pegged to be a prominent segment in the global forestry equipment tire market. The segment is expected to maintain its prominence throughout the forecast period. The forestry skidders and forwarders segment is expected to expand at a significant pace during the forecast period.
• By sales channel type, the aftersales channel segment dominates the global forestry equipment tire market with a significant share and is expected to experience robust growth during the forecast period.
The European market is expected to dominate the global forestry equipment tire market in terms of revenue in 2018, and the region is projected to witness significant growth throughout the forecast period at a relatively steady pace as compared to other regions.
The North American forestry equipment tire market is expected to trail behind the European market capturing approximately a quarter of the value share during 2018. The forestry equipment tire market in the region is expected to witness steady growth in the near future, primarily driven by recovery in the growth of the construction industry and increasing wood demand.
Latin America, with a significant forest area and recovering economy, is expected to cater a significant growth opportunity for the forestry equipment tire market participants during the forecast period. Developing countries across East Asia and South Asia such as India, China and ASEAN countries are expected to emerge as lucrative regions in the forestry equipment tires market.
The global forestry equipment tire market is consolidated with Tier 1 players accounting for a significant share in 2018. Some of the leading market companies in the global forestry equipment tire market include Michelin, Nokian Tyres, Bridgestone Corporation, Titan International, Balkrishna Industries, Yokohama Rubber, Trelleborg, Qingdao Qizhou Rubber, Maxam Tire International, and Tianjin United Tire & Rubber International.