Today's agricultural, mining, and construction industries require specialised equipment. The right set of earthmoving equipment tyres can make a big difference in productivity. As a result, the market for earthmoving equipment tyres is moving towards the spotlight.

Increasingly faster, heavier, and more efficient machines place new demands in the market. The earthmoving equipment tyres welcome the challenges of changing mining and agricultural industries. Earthmoving equipment tyres offer the right structures for today's mining, agricultural, and contract machinery. They have become crucial components of modern earthmoving machinery. Earthmoving equipment tyres are specialised tyres that can withstand different surfaces. For example, they can work normally on muddy and rocky terrains. These tyres are thicker and larger than other tyres.

Earthmoving equipment: A saving grace for the construction industry
Demand for construction and infrastructure products is growing as a direct outcome of population explosion and global economic growth. In India and China, the two most populous and fastest-growing economies in the world, sales prospects for earthmoving equipment tyres are decidedly bright.

With that, the Middle East, a paradise for infrastructure growth should not be avoided. In recent years, the Middle East has become a happy hunting ground for earthmoving equipment manufacturers. This is due to skyrocketing construction activities going on in the region. As a result, the earthmoving equipment tyres market is set to witness steady growth in the coming years.

The expansion of infrastructure, use of advanced machinery, and increased automation to reduce human labour requirements also impact earthmoving equipment tyre sales.

As per the report ‘Earthmoving Equipment Tyres Market Outlook (2023 to 2033)’ by Fact.MR, a leading market research firm based in the USA, the global earthmoving equipment tyres market is forecast to reach a valuation of $13 billion in 2023. Between 2023 and 2033, global sales of earthmoving equipment tyres will surge at a CAGR of 4.2 per cent. The total market size at the end of 2033 is likely to reach $19.7 billion.

Growth of construction and mining sectors acting as a catalyst triggering earthmoving equipment tyre sales
Increasing construction and mining activities globally is a key factor driving the market for earthmoving equipment tyres. In recent years, construction and mining activities have increased dramatically in urban as well as rural areas. This in turn is increasing demand for machineries such as backhoes, excavators, and crawlers. As a result, earthmoving equipment tyre sales will surge at a significant pace.

Governments, especially across emerging countries, are investing heavily in developing and expanding public infrastructure. New smart city projects are being launched worldwide. For instance, the Saudi government plans to build around six business cities and around 800 new plants to create housing and jobs. This in turn will continue to generate high demand for earthmoving equipment as well as tyres.

Extensive use of modern construction equipment vehicles in mining, and oil and gas exploration activities will also create opportunities for earthmoving tyre manufacturers. Emerging trends such as electrification and automation will trigger innovations in earthmoving equipment tyres. Connected tyres are gradually taking out the industry.

Earthmoving equipment tyres are prepared for anything
Earthmoving equipment tyres are critical components of modern earthmoving machinery. These special tyres can withstand a wide variety of surfaces. For example, they can work successfully even on rocky or muddy terrain. The growing need for increased connectivity and enhanced transport options will fuel the market. Advances in globalisation will likewise create favourable conditions for foreign direct investment. This will further support the expansion of the earthmoving equipment tyres market.

Leading manufacturers are focused on launching new advanced products. To reduce their environmental footprint, they are constructing new tyre recycling facilities. This will help them to increase sales as well as comply with stringent regulations. Similarly, industry players in the global market are looking for new tyre additive products with urbane systems and features to aid performance and extend the life of construction tyres. For instance, in November 2022, TIS-Offroad partnered with Hercules Tyres to develop the ‘TIS TT1 Tyre’. It is an all-season mud tyre ideal for light trucks and jeeps, characterised by two diverse shoulder designs.

Radial tyres taking the limelight
There are generally two types of earthmoving equipment tyres. This includes radial tyres and bias tyres. Both these tyres feature high cut protection and good wear resistance. Hence, they deliver strong overall operating hour performance. Demand for radial tyres remains particularly high in the market. This is due to their long life and good heat dissipation properties. The target segment held around 40 per cent of the revenue share in the global earthmoving equipment tyre market in 2022. Their low rolling resistance also improves fuel efficiency, while flexible sidewalls guard the interior of the tyre. Radial tyres cost less, especially when considering their ability to reduce fuel consumption and improve productivity. Hence, they are becoming ideal options for earthmovers.

Asia Pacific to remain at the top of the ladder in the earthmoving equipment tyres industry
Asia-Pacific will lead the global earthmoving equipment tyres industry. This is due to the rapid growth of the construction, mining, and agriculture industries. Governments across Asia Pacific countries such as India and China spend large amounts on infrastructural development. For instance, The government of India has laid out a strong infrastructure expansion plan to turn India into a $5 trillion economy by 2025.

It launched the National Infrastructure Pipeline (NIP) in 2019. Similarly, to boost the infrastructure, initiatives such as ‘Make in India’ and Production Linked Incentive scheme were launched. This will create a plethora of opportunities for earthmoving equipment manufacturers.

Demand will also surge at a healthy pace in Europe and North America. This is due to the widespread acceptance of advanced earthmoving equipment. These regions are evolving digital infrastructures that enable connections between vehicles and infrastructure to collect vital information, reduce traffic and advance road safety. The rising popularity of smart cities in these regions will boost earthmoving equipment tyre sales.

Innovation letting manufacturers to get more work done
To develop new effective products, manufacturers are investing heavily in research and development. They are focusing on reducing their carbon footprint. Partnerships, acquisitions, mergers, and cooperation are other growth strategies adopted by large companies.

Some instances of that are–in October 2022, Apollo Tyres launched two radial tyres for light construction equipment which include the Pro 1044 and 1045; in January 2023, Sunrisers Eastern Cape signed a pact with India-based international tyre company BKT Tyres; in March 2020, K-Tec Earthmovers Inc merged with earthmoving equipment tyres manufacturer Ashland Industries; and in September 2022, BKT launched the new Multimax MP 538 tyre for telehandlers. BKT Tyres expanded its tyre range in the OTR segment with the innovative BKT Multimax MP 538.

Companies are also concentrating on manufacturing tires in a more sustainable way. This can be done by improving rubber compounds for longer life, eliminating use of harmful chemicals, and using sustainable raw materials.

Footnote
References
https://www.factmr.com/report/379/earthmoving-equipment-tyres-market

About the Author

Yash Pathak is a Client Partner at Fact.MR, a USA-based market research and consulting agency with a proven experience in the market research and consulting industry and has been closely working in the industrial, consumer goods and chemical industries.