Off-highway Wheels Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
発行: Mordor Intelligence Pvt Ltd
ページ情報: 英文 90 Pages
The off-highway wheels market was valued at around USD 1499.8 million in 2021, and it is expected to reach USD 2082.4 million by 2027, registering a CAGR of about 6.04% during the forecast period (2022 - 2027).
The market was negatively impacted by the COVID-19 in 2021. The construction, mining, and industrial activities were stopped during the lockdown period in order to contain the spread of virus and maintain the social distancing norms. Also, halt in manufacturing activities and disrupted the supply chain hampered the market growth for the year 2020. However, since later half of 2020, as the lockdown measures, the demand for off-highway wheels started witnessing increase in demand, primarily attributed to growth in manufacturing of off-highway equipment.
Over the medium term, increasing agriculture mechanization trend in emerging countries and surge in commercial and residential construction projects worldwide are anticipated to driving the agricultural and construction machinery markets which in turn is expected to drive the demand for the off-highway wheels.
Increase in production and demand for off-road vehicles is expected to drive the off-highway wheels market during the forecast period. Furthermore, a growth in automation in several industries like infrastructure, mining, construction, agriculture, and others has boosted the use of off-road vehicles in these sectors.
The construction industry is highly dynamic, and numerous factors, such as the overall economy, budgets, and global economic scenario, are influencing the market's growth. Volatility in these aspects affects the businesses of construction equipment OEMs, which will, in turn, affect the off-highway wheel demand.
For instance, in the ASEAN countries, the construction sector is expected to grow at a rate of more than 6% post-2020. It is estimated that over the next five years, the combined value of all the mega-projects in the ASEAN region is expected to be valued at USD 2.9 trillion. Of this value, about USD 1.5 trillion is invested in the planning/pre-planning phase.
Agriculture sector is vital to economic growth. Mechanization in the agricultural sector played a vital role in terms of transformation, especially in high-income countries. Additionally, in the emerging markets (such as African countries, ASEAN countries, and other developing countries), the adoption rate of mechanization in the agricultural sector has been gradually increasing over the past few years. It accounted for 4% of global gross domestic product (GDP) in 2018, and in around emerging economies, it can account for more than 25% of GDP.
In the agricultural sector, India is one of the developing markets, which has steadily witnessed demand for tractors over last few years, due to the strong government funding to Indian farmers in buying agricultural machineries, in order to attain high farming economy in the country and speedy improvement in the tractors industry. For instance,
According to the Ministry of Agriculture and Farmers Welfare, Government of India, in FY 2020-2021, USD 140 million is assigned towards mechanization, thus anticipated to fuel prospects for off-highway vehicles substantially leading to growth of off-highway wheels.
Current agriculture depends on a fleet of heavy-duty machinery and vehicles, from small utility vehicles and pickup trucks to massive tractors and combines that can weigh from as much as 15 tons, plus attachments. Furthermore, the growing demand for tractors in Asia-Pacific and recovery in the global agricultural machinery market are anticipated to boost demand for off-highway wheels during the forecast period. Furthermore, the trend for the electrification of farming vehicles is on the rise, further this factor is also expected to drive the demand for off-highway wheels.
Despite unpredictable growth in the real estate sector, noteworthy development of road and rail infrastructure by the nations across Asia-pacific region in order to endure the demand stemming from the growing service and industrial sectors has resulted in a substantial growth of construction industry in the recent years. These increasing infrastructural activities raised the need of off-highway vehicles, in turn driving the demand for off-highway wheels.
For instance, in China after the COVID-19 situation, several cities and provinces like Beijing, Shanghai, and Fujian, among others, announced significant infrastructure plans. Eight cities and provinces announced an investment budget of approximately USD 4.8 trillion. These investments are expected to help the country take up new infrastructure projects and speed up existing construction projects.
After the pandemic, the demand for tractors is rising significantly in India. Moreover, the agriculture sector has a good share in GDP. The GDP share of the agriculture sector increased to 19.9% in FY 2021 compared to 17.8% in FY 2020. The tractor sales have shown tremendous growth compared to the previous year. The tractor sales ended with a yearly growth of 20%, with sales of approximately more than 9 lakh units in FY 2021, compared to the 7.09 lakh units in FY2020. An increase in the sales of tractors has also increased the demand for off-highway wheels in India, and the tractor industry is expected to show significant growth in coming years.
Furthermore, the construction industry is subjugated by private and state-owned enterprises, increased government and private spending in this esteem is driving the industry toward global primacy. The market for other types of construction machinery and excavators is expected to strengthen in countries such as Japan, China, India, etc during the forecast period. Also, rising construction of significant warehousing industry in China and the global marine traffic are expected to deliver a corpus opportunity for off-highway wheels.
Moreover, with the growing investments in commercial projects, infrastructure, renewable energy, and public infrastructure, the off-highway vehicle wheels segment is anticipated to record growth at a modest pace in coming years, thereby enlightening both investor and consumer confidence.
The off-highway wheels market is moderately fragmented as there are many players in the market, like Titan International, Inc., Moveero Limited, Trelleborg AB, Accuride Corporation, Rimex, Steel Strips Wheels Ltd, Maxion Wheels, OTR Wheel Engineering, Carrier Wheels Private Limited, Bohnenkamp AG, Citic Dicastal Co. Ltd, Trident International, Levypyora Oy, JS Wheels, Anyang Rarlong Machinery Co. Ltd, STARCO, Sun Tyre and Wheel Systems, Baluchistan Wheels Limited, Topy industries Ltd, SAF Holland Group, Bhagwati Wheels, Pronar Wheels, Tej Wheels, Camso Wheels, and Mefro Wheels GmbH. The players operating in the market are concentrating on several growth strategies to gain competitive edge over other players. For instance,