The global OTR tire market will expand at a compound annual growth rate of 4.9%, a representative from Smithers told 2024 Tire Industry Association (TIA) OTR Tire Conference attendees.
Within the overall market, “we see the best opportunities in the mining sector,” said Ciaran Little, vice president, Americas and Asia Pacific information division, Smithers, during his Feb. 22 OTR Tire Conference presentation, “The Current and Future Outlook for Off-the-Road Tires.”
Combined, the mining, construction and port tire segments are projected to grow at a rate of 5.6% annually through 2029, according to Smithers estimates, with the Asia Pacific region, led by China, serving as “the main driving force” behind this ramp-up.
Demand for OTR tires all of types in North America will remain healthy, noted Little, who added that the mining tire market in the United States and Canada will expand at an annual rate of 2.4%, with 85% to 87% of total OTR tire activity in the region being “attributable to the U.S.”
Smithers believes the transition away from fossil fuels to metals and minerals for the development of renewable energy will be a key trend that will continue to impact the mining tire market in North America.
Other North American mining tire market trends include continued radialization and increased end user dependence on onsite tire management systems, Little explained.
“We’re (also) seeing a trend toward larger trucks.”
Looking beyond mining tires, Smithers projects that the construction, port and industrial tire segments in North America, combined, will grow at an annual rate of 3.1% through the year 2029.
“We’re expecting to see an increase in infrastructure spending,” which will supercharge overall construction tire demand and small OTR tire demand in particular, Little told attendees.
During his presentation, Little also provided a summary of radial and bias ply OTR tire performance requirements and cited the ongoing expansion of Yokohama Rubber Co. Ltd.’s OTR tire business and Goodyear Tire & Rubber Co.’s decision to divest its OTR tire unit as significant developments within the OTR tire segment.
In addition, he discussed the continued electrification of off-highway equipment across the gamut of OTR tire applications, adding that excavators are expected to be among the first construction machines to electrify.
“And we’re seeing sustainability start to make inroads into the OTR tire market.”
Legislation and retreading
Also during the second day of the 2024 TIA OTR Tire Conference, Roy Littlefield IV, TIA’s vice president of government affairs, told attendees that “it’s crucial that members of Congress recognize and support the OTR tire industry.
“The OTR tire industry serves as common ground,” where elected representatives on both sides of the aisle can come to bipartisan consensus in support of economic growth, he said.
Littlefield noted that spending on construction projects “will continue to increase” through 2026, when the $1.2 trillion Infrastructure Investment and Jobs Act, which was signed into law in late-2021, expires.
Thanks to the law, “we’ve seen particular emphasis on road construction and maintenance.”
Wrapping up day two’s general session, David Stevens, managing director of the Tire Retread & Repair Information Bureau, moderated a panel discussion called “Everything You Need to Know About OTR Retreading.”
Panelists included Mike Berra, president of Community Tire Retreading; Rusty Hatten, who works in operations and sales at H&H Industries; Darryl Moore, director of remanufacturing and sustainability at Kal Tire; Mike Jacobsen, vice president of manufacturing at Purcell Tire & Rubber Co.; and James John, president of Shrader Retreading, a division of Craft Tire Inc.
Speaking in turns, they walked attendees through videos that showed various stages of the OTR tire retreading process.
Echoing panelists’ comments, Stevens said he sees “massive opportunities for the OTR tire retread market.”
