Increasing Government Support Likely to Increase Demand for Agricultural Tractor Tires in APAC
A recent report on Global Agricultural Tractor Tires Market – Strategic Assessment and Forecast 2017-2022 states that the agricultural tractor tire market worldwide is likely to witness tremendous growth. The market is expected to grow at a CAGR of more than 3% during the forecast period during 2016–2022.
The adoption of tractor tires to conduct agriculture operations varies within geographies. Where the agricultural tractor tires market in developed economies is saturated, resulting in demand for advanced agricultural tractors tires, developing economies still have a low penetration of tractors, leading to a low demand for tractor tires. Therefore, the demand for agricultural tractor tires is coming from developing economies such as India, China, Thailand, and Bangladesh.
The market research report by Beige Market Intelligence states that APAC registered the highest number of tractor tire sales in 2016, while the fastest growing market was Africa in terms of geography. The high number of sales in APAC is mainly due to the presence of three key leading countries: India, China, and Japan. However, the tractor tire sales growth in Japan was moderate. The tractor market in India grew at the CAGR of 7.3% in 2016. This is mainly due to increasing government support for the agriculture sector and investments in purchase of agricultural tractors. This, in turn, has increased the demand for agriculture tractor tires.
With the increasing demand for tractor tires, manufacturers in APAC are also implementing various technologies in tire manufacturing. The tractor tire manufacturers in the APAC region are implementing VHF technology.
Agricultural Tractor Tires Market Growth in India
In India, demand for low-end HP tractors is high. The agricultural tractor market in India is majorly dominated by the 21-30 HP tractors segment. This is mainly due to the low-farm mechanization level in the country. Thus, the demand for agricultural tractor tires is largely for low HP tractor manufacturers. With the declining price of raw materials such as natural rubber in India, the profitability of agricultural tractor tires manufacturer will increase. In India, agricultural tractor tires manufacturers are running at the operating profit margin. The double-digit profit margin of manufacturers is only because of the declining raw material costs.
Agricultural Tractor Tires Market Growth in China
China is another leading country for agricultural tractor tires in the APAC region. This is mainly due to increasing tractor sales in the region. The agricultural tractor market in China is dominated by low HP tractors, however, the market is witnessing huge demand for above 100 HP tractors. Tractor tires play an important role in transmitting the power to the ground. If tractor tires are not appropriate, the power transmitted to the ground will not be suitable. Thus, with the increasing demand for high HP tractors, the construction technique of tractor tires also plays a key role.
The report not only considers the market size of different segments in the major geographical regions such as North America, APAC, Latin America, Europe but also provides the market size and forecast in the key countries such as Brazil, China, France, Germany, India, Italy, Russia, the UK, and the US.
For more information on the top trends, drivers, challenges, industry analysis and growth forecast check the report.
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