The North America Agricultural Tires Market is expected to exhibit a growth rate of more than 5% during the forecast period 2020 - 2025.

  • Although the population growth in North American region is expected to stay very low, the demand for agricultural products is increasing due to rising standard of living, consumption and foreign expoerts. The local agricultural food market in United States of America was estimated to be nearly USD 20 billion, almost 100% more than the 2014 figure. The growth in demand for agricultural products is propelling the market growth for agricultural tires in North America.
  • North American region exhibits a significant growth rate in farm mechanization. This factor is propelled by decreasing workforce in agriculture sector in United States Of America and Canada. Farm mechanization trend is increasing the agricultural yield as more tractors, combine harveters are being put into use. In 2019, tractor sales in United States of America grew by more than 3% compared to 2018. This factor is propelling the growth of Agriculture Tires in the region. However in 2019, Canada saw a decline of more than 35% in tractor sales and 19% decline of combine harvesters sales.
  • Improvements are being made in traction and material technology due to increasing demand of heavy duty agricultural tires. The exploration of new farming terrains and change in design of farming equipments is leading to rising demand for strong rubber compound. Steel flex walls are currently being used in compound rubber tires, trailer tires, forestry tires, etc. to provide lower ground compaction. Aforementioned technological advancements and innovations are propelling the growth of agricultural tires market in North America.



Key Market Trends

Technological Advancements Are Propelling The Market In North America

Many agricultural tire manufacturers are investing in technological developments that are giving boost to traction properties and tire life. In Canada, the sales for high technology tires is expected to increase during the forecast period owing to the launch of CAP program and huge USD 3 Billion Investment by Territorial, Provincial And Federal Government. For instance, Low Sidewall Technology reduces road loping arising due to tire swaying which subsequently reduces and soil compaction and power hopping. This provides high efficiency to farmers while maintaining the soil quality.

In 2019, Michelin launched RoadBib, a heavy duty tractor tire exhibiting 52 block design instead of lugged tire tire design which prevents soil crushing, reduces plant damage and provides comfort. The RoadBib tire increases the fuel efficiency by 5%, tire life by 25% and provides 20% more rubber contact with ground thereby increasing the traction. The Agricultural Tires Market is also affected by the emission norms and regulations and manufacturers are now producing intelligent tires for hybrid and electric agriculture equipment.

United States Of America Exhibited The Highest Growth Rate In 2019

The year of 2019 was a very uncertain year for agriculture sector in the United States Of America. This was the result of trade war with China, tarrifs and unfavourable weather conditions such as early flooding. Owing to the aforementioned factors, farmers in the United States Of America invested less in farm equipment and agriculture machinery part and componets such as tire. However, the agriculture sector showed signs of recovery during the second half of 2019 and tractor sales for the entire year was 3.7% more than 2018. Combine harvester sales however dropped by 0.7% in 2019.

The agriculture replacement tire market fell by nearly 9% during 2019 but it is expected to improve during 2020. The OEM agriculture tire market also witnessed a very low drop and the market is expected to perform in the same manner till 2021. This can be due to shifting of manufacturing operations to overseas by agriculture equipment manufacturers such as John Deere. The market for Very High Flexion Tires and Increased Flexion Tires is also expected to increase during the forecast period.

Competitive Landscape

The North America Agriculture Tires Market is a consolidated one with players such as Continental AG, Bridgestone Corporation, Trelleborg AB, Michelin North America Inc. dominating the market. The players in the market are adopting the strategy of expansion through innovations with major investments being made in material and design technology development. Players such as Michelin are also improving their customer service by deploying preventive maintenance practices using sensors and digitalization.

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