March 12, 2019 - Rapidly increasing demand for medium and small off highway tires from the construction sector has been significantly driving the growth of off highway tires market. Rising demand for OE (Original Equipment) is likely to surpass replacement demand by nearly 4% and the demand is expected to continue with constantly increasing demand for off highway tires that is utilized in infrastructure. Surging demand for commodities such as gold have been stimulating the demand supply of ultra-large and large off highway tires.
Mining Industry to Showcase Lucrative Developments In Off Highway Tires Market with Increasing Number of Negotiations with Suppliers
One of the major trends influencing off-highway tires market growth is increasing customer’s reliance on the distribution network. Both construction and mining customers have been increasingly taking interest in adopting additional services such as the tire tracking methods while procuring off highway tires. However, owing to decreased commodity demand, mining share in the off highway tires market sales have been plummeting. Market demand for the off highway tires from mining sector have been softening, due to which there broadly exists an opportunity for negotiating with the suppliers, which in turn would impact on revenue sales in off highway tires market across the globe.
On the other hand, there are higher possibilities that there would be significant decline in the coal mining in the forthcoming years, which would be resulting from growing dependence on the alternative energies together with regulatory and environmental pressure. This in turn would drive down the demand sales of off highway tires from coal miners. In addition, this factor offers opportunities for various other miners for locking down their capacity in the near future, thereby developing upper-hand in the negotiation phase with the suppliers.
Michelin’s Acquisition of Camso Leading to Development of World’s Biggest Off Highway Tires Group
Latest industry news indicates that Michelin has entered in an agreement for purchasing Camso, Quebec off highway tires manufacturer for nearly US$1.7Billion. Michelin is of the point of view that this acquisition can help in creating the world’s biggest off highway tires group. The construction sector has been witnessing significant benefits with increasing number of off highway tires and tracks offered the company for the purpose of small heavy equipment.
Expansion of Yokohama Rubber Co. Product Portfolio to Significantly Benefit Off Highway Tires Market
Yokohama Rubber Co. recently announced expansion of global production capacity of Yokohama Group with regards to off highway tires. The off-highway tires market player has big plans with the addition of new facilities at the tire sales and manufacturing subsidiary of ATG (Alliance Tire Group) in India, ATC Tires Pvt. Construction of the new off-highway tires facility is likely to begin in February at the Dahej Plant of ATC Tires Pvt., in Gujarat. In totality, the off-highway tires market manufacturer has planned to make a heavy investment of nearly $45.50Million. In addition, this heavy investment will also help in boosting annual production capacity of Dahej Plant to 91,700 tons from 57,000 tons by 2019-end.
With strong upward trend of the company’s off-highway tires, Yokohama Rubber Co. has planned to expand its production capacity for avoiding insufficient supply capacity during the medium term. The company has big plans to expand its commercial tire business, which in turn offers significant growth opportunities for off highway tires market. Most of all, new investment in Indian facility for ramping up production sales of the commercial tyres will help in strengthening presence of the company in commercial tire business, thereby elevating its footprint in off highway tires market across the globe.