Construction Equipment Tire Market : Overview
The market for construction equipment tires witnessed massive slowdown in its progress as a result of the spread of Covid-19 pandemic across the globe. The level of demand declined to the extreme level due to lockdown creating hurdles for the key players operating in this market. However as recovery commences in 2021, major players are recuperating their positions through production expansion, capacity utilizations and online selling in 2021 keeping in view the covid-19 norms.
Leading corporations including Bridgestone Corporation, Michelin, Caterpillar Inc., Magna Tyres Group, Camso, Michelin, McLaren Industries, Continental AG, GRI Tires, Titan International Inc., Nokian Tyres plc., Trelleborg AB and others are making high investments in the establishment of research institutes in different regions to come up with improvements in their offerings. They are adopting business strategies such as sales contracts, strategic alliances, acquiring technical expertise, product approvals, patents and events, joint ventures, partnership agreements, collaborations, digital marketing, mergers and acquisitions, capacity utilisations, technological advancements etc to lead the global market for construction equipment tires with largest market share.
For instance, in April 2021, Bridgestone Corporation signed an agreement to acquire Otraco International Pty Ltd (Otraco). The acquisition will lead to the acceleration of the company’s growth and expansion in the regions such as Australia, Chile and South Africa. In addition to this, Continental AG announced that it is investing in a new dynamic driving simulator so as to develop premium tires for its equipment business.
The company is now focusing more on efficiency, sustainability and is working in line with customer requirements. The testing of tires is a complex process and Continental is making efficient use of the new dynamic driving simulator for the entire processing. The company is a pioneer in using hybrid test technology and has been innovating its products.
In Terms of growth, the Asia Pacific region is anticipated to show a significant growth and will generate major revenue from the material handling equipment tires market due to the increased government projects in developing countries. The European and North American region is projected to be lucrative through 2030 because of the emergence of new manufacturers and domestic players. All the other key regions are driving the market growth and opening various opportunities for manufacturers.
However, construction sector is facing a slow-down owing to the challenges faced by COVID-19, thereby affecting the sales of new construction equipment. This, in turn, is hampering the growth of construction equipment tire market.
Furthermore, growing efforts by government to build highways, dams, railway, and roads as part of developing smart cities in the areas of energy, mobility, and government projects is expected to drive demand for construction equipment, thereby contributing significantly to the construction equipment tire market growth.
Moreover, the spending in construction sector follows the overall GDP growth of the country, therefore government across the globe are taking initiatives to improve the country’s infrastructure and to stabilize the economic condition. Thus, the construction industry across the globe is expected to present significant demand for construction equipment such as crawler excavators, dozers, compact track loaders, and crawler cranes.
This in turn is anticipated to trigger the need for construction equipment tire, consequently driving their demand and sales during the forecast period.
COVID-19 Impact on the Global Construction Equipment Tire Market
The COVID-19 pandemic has brought about several changes for construction equipment manufacturers and the industry as a whole. Manufacturers have temporarily shut down their manufacturing plants and the demand for construction equipment tire is witnessing a downturn.
This has also restricted the movement of goods from one place to another due to disruption in the supply chain. The impact on market is continuing to fluctuate as the sale of new equipment has come to a standstill. This is impacting the growth of the market as tire sales is contingent to the sale of construction equipment.
Moreover, companies are witnessing decline in their revenue, which is also affecting production activity due to high investment nature of the industry. This is likely to negatively impact the sale of new construction equipment tire, owing to lowering demand for new machines, in turn limiting growth of the construction equipment tire market.
However, the demand is expected to escalate by 2021 when global economy will start regaining stability owing to the investment in infrastructure development. Therefore, in long run, the global construction equipment tire market is poised to generate significant opportunities.
Regional Analysis: Asia-Pacific Region to Remain Kingpin in Construction Equipment Tire Market
The high population in China and India have resulted in an increased number of government projects such as airports, renewable energy projects, and roads among others. For instance, The One Belt One Road project by China for improving connectivity and cooperation among multiple countries in Asia, Africa, and Europe is one such initiative by the government of China.
Such projects in the region are foreseen to strengthen the demand for construction equipment, thereby offering lucrative opportunities for the global construction equipment market growth.
Moreover, rental & leasing services offered by equipment manufacturers in Asia to drive sales of construction equipment tire as manufacturers will need to maintain the machine regularly, particularly the tire, which plays a crucial role in the equipment. Such factors are foreseen to boost the demand for construction equipment tire.
Global Construction Equipment Tire Market Competitive Landscape
Some of the players in the construction equipment tire market are
- Caterpillar Inc.
- Magna Tyres Group
- McLaren Industries\
- Continental AG
- GRI Tires
- Titan International Inc.
- Nokian Tyres plc.
- Bridgestone Corporation
- Trelleborg AB
These market players are focusing on new product launches and increasing their product portfolio to gain a competitive advantage. For instance, GRI launched the GRIPEX LT122, designed for heavy-duty loader applications which is puncture resistance and durability for less downtime in operations.
Construction Equipment Tire Market: Market Segmentation
For a better understanding, global construction equipment tire market is being studied under construction machinery, tire type, sales channel & region.
Based on the construction machinery, the construction equipment tire market can be segmented as:
- Mini Excavator
Based on the tire type, the construction equipment tire market can be segmented as:
Based on the sales channel, the construction equipment tire market can be segmented as:
Based on the region, the construction equipment tire market can be segmented as:
- North America
- Latin America
- East Asia
- South Asia & Oceania
- Middle East & Africa (MEA)