Agricultural Tractor Tires Market: Key Drivers, Trends, and Challenges
The high labor wages is notably driving the agricultural tractor tires market growth, although factors such as the increase in the tractor rental market may impede market growth. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Agricultural Tractor Tires Market Driver
One of the key factors driving growth in the agricultural tractor tires market is the high labor wages. Labor wages in the Americas and Europe are at their peak, whereas in APAC countries, such as India and China, farmers are facing difficulty in employing more laborers in the farms. Farmers are increasingly showing the willingness to be independent, which can be possible by farm mechanization. Tractor implementation is the most vital step for farm mechanization, as it will lead to less reliance on human labor. One of the key factors driving growth in the agricultural tractor tires market is the high labor wages. Labor wages in the Americas and Europe are at their peak, whereas in APAC countries, such as India and China, farmers are facing difficulty in employing more laborers in the farms. Farmers are increasingly showing the willingness to be independent, which can be possible by farm mechanization. Tractor implementation is the most vital step for farm mechanization, as it will lead to less reliance on human labor.
Key Agricultural Tractor Tires Market Trend
The growing demand for high flexion tractor tires is another major factor supporting the agricultural tractor tires market share growth. The high flexion tractor tires can carry load with approximately 40% reduced air pressure. These tires have several advantages as they guarantee longer footprint by reducing soil compaction, causing a higher yield. The tire lugs are manufactured in such a way that they help tractors move in dirt and mud with ease and such designs also reduce tire slippage. OEMs are increasingly facing the challenge to reduce the cost of high flexion tractor tires to make them affordable for small farmers with low land holdings. This has led the market to be highly price-sensitive, compelling OEMs to reduce the cost of manufacturing while investing heavily in the new technological advances.
Key Agricultural Tractor Tires Market Challenge
The increase in the tractor rental market will be a major challenge for the agricultural tractor tires market. Farm areas in APAC, mostly in countries like India and China, are highly fragmented and small compared with farm areas in developed areas like the US and Europe. Farmers owning small plots often find it difficult to raise funds to buy tractors. The seasonal use of tractors makes it less appealing for cost-sensitive farmers to buy such tractors. Hence, farmers prefer renting tractors for a fraction of their cost and save the additional money, which would have otherwise been spent on tractor maintenance. Increase in the number of households participating in tractor rentals is causing less tractors to be sold to the farmers in India.
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Who are the Major Agricultural Tractor Tires Market Vendors?
The market is moderately competitive since it has the presence of a limited number of well-established vendors. Investment in farm mechanization and enhancing product portfolios are the major strategies that will help the market players gain a competitive advantage in the market. In the coming years, the established players will increasingly focus on cost-efficient manufacturing techniques that will help them reduce production costs.
Key vendors in the market are:
- Bridgestone
- MICHELIN
- Titan International
Other prominent vendors include ATG Tires, CEAT, and Mitas.
What are the Revenue-generating Wheel Width Segments in the Agricultural Tractor Tires Market?
- Small-size tires
- Large-size tires
During 2016, the small-size tires segment dominated the agricultural tractor tires market and is expected to continue its dominance over the next four years. The utilization of small-size tires in compact-size tractors due to its cost-effectiveness and low fuel consumption and the increased utilization of small-size tires in India and China due to the small size of farms, will be the major factors fueling the growth of this market segment.
Which are the Key Regions for Agricultural Tractor Tires Market?
In terms of geography, APAC accounted for the majority of the market shares of the agricultural tractor tires market during 2016 and is predicted to continue the domination during the forecast period as well. The major contributor to the region’s market dominance is the dependence of a huge population on agriculture for their livelihood that will drive the demand for agriculture machinery and vehicles.
What are the Key Factors Covered in this Agricultural Tractor Tires Market Report?
- CAGR of the market during the forecast period 2017-2021
- Detailed information on factors that will drive agricultural tractor tires market growth during the next five years
- Precise estimation of the agricultural tractor tires market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the agricultural tractor tires industry across Americas, APAC, and Europe
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of agricultural tractor tires market vendors
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