April 10, 2018 << Back to Blog
April 10, 2018
The technological advancement in the OTR segment is presenting new opportunities to the manufacturers and material suppliers alike. Ever increasing end-users requirement has been a driving factor for the OTR tire manufacturers who face timely challenge to deliver the best in terms of technology and design. With rising costs and weaker commodity prices, maximising resources and eliminating inefficiencies are key to survival.
Numbers do not lie
Growing demand in the OE market has been a primary factor in this upsurge. In 2015, the off-the-road tire market was valued at $23 billion, and since then it has grown astoundingly, experiencing an overall compound annual growth of 1.5%.
A bright future
By the year 2020, it will reach a cumulative 5% in value and 4.4% in volume. This prosperous stage of the OTR industry can be accredited to the evolution and composition of the market based on the global economy. Along with the growth in construction, industrial and agriculture sector, the regional growth determinants are playing a significant role in the development of the industry too.
Industries which fuel the OTR tires demand
The most in-demand industry for OTR tires is mining followed by construction. Apart from these applications, the OTR tires are also used in various other industrial applications. The industrial and agriculture sector are growing steadily and are following an overall economic growth pattern whereas mining and construction have restrained a little due to the effects of soft energy and ever-changing metals prices.
ATG leading from the front
While OTR tire segment is on a meteoric rise, ATG is playing a huge role in leading this innovative drive. ATG understands this exponential growth, and now with Yokohama’s expertise by its side, ATG plans to take exponential leaps in technology and innovation to provide better value to its customer and become their first choice in the OTR segment.