Mexico Off-the-Road Tire (OTR) Market Report and Forecast 2032

Mexico Off-the-Road Tire (OTR) Market Insights & Analysis

The Mexico Off-the-Road Tire (OTR) Market is projected to grow at a CAGR of around 3.0% during the forecast period, i.e., 2024-32. Owing to the country's expanding economy backed by rising agricultural activities tends to influence the market growth graph. Off-the-road (OTR) tires are the large big tires used in golf carts, tractors, forklifts, cranes, and bulldozers. They are specially made to provide excellent traction in mud & deep gravel, among other sorts of terrain. These tires also include deep treads & flexible suspension in order to facilitate vehicles to travel steep terrain.

According to World Bank figures, Mexico is the eighth-largest producer of crops in the world and has a significant role in the food production of Latin America. The Mexican government gives its farmers enough pertinent help to expand the agricultural sector of the economy. In addition, farmers may grow more than 200 different types of crops in the nation owing to the country's diverse topography and suitable weather.

Further, the nation is altering its practices more frequently to incorporate effective methods and machinery to cut down on the amount of labor needed in the agriculture sector to make it more efficient. For instance, in January 2023, Bridgestone developed a unique and customized all-terrain tire known as the Dueler All-Terrain AT002 for the Lamborghini Huracán Sterrato. This special tire was designed specifically to complement the off-road supercar and its all-wheel drive powertrain. Many kinds of cutting-edge OTR trucks are gaining popularity among farmers in Mexico, thereby influencing the specific tire demands in the future, further contributing to enhancing the Mexico Off-the-Road Tire (OTR) Market size in the ensuing years.

Mexico Off-the-Road Tire (OTR) Market Dynamics

• Rapidly Growing Agricultural Activities Necessitating OTR Tires, to Push the Market Forward

OTR equipment, including 4WD & track tractors, scrapers, corn heads, pulled planters, disc harrows, vertical tillage, and balers, is widely used in the nation and has seen consistent growth in annual sales over the past few years. In addition, because modern vehicles operated for agricultural purposes are equipped with off-the-road tires, their market in Mexico has expanded over the past few years, and further growth is anticipated during the ensuing years.

• Absence of OTR Tire Production Facilities & Dependence on Imports to Impede the Mexican Market

The Mexico Off-the-Road Tire (OTR) Market is highly dependent on imports due to the absence of local production facilities. As a result, unstable exchange rates, import duties, and transportation expenses can considerably impact the prices of imported tires.

Another factor negatively affecting the market development is the rising competition from low-cost OTR tire manufacturers in other countries, thus making it challenging for Mexican companies to remain competitive. Additionally, the lack of local production units means that the Mexican industry is highly vulnerable to global supply chain disruptions & changes in demand patterns, further limiting the market expansion.

• Evolving Construction & Mining Sector to Present Lucrative Prospects

Mexico's building industry has been expanding steadily during the past few years. One or more other variable influencing the Mexico Off-the-Road Tire (OTR) Market growth is the nation's booming industrial, manufacturing, and building projects. For example, the Juanicipio project for silver and gold in Zacatecas state, the Sonora project for lithium, the Buenavista Zinc project for zinc mining, and other crucial mining projects are stimulating demand for industrial equipment & OTR tires in Mexico in the upcoming years.

Mexico Off-the-Road Tire (OTR) Market Segment-wise Analysis

By Type of Equipment:

• Earth Moving Equipment
• Material Handling Equipment
• Agricultural Equipment

The Earthmoving Equipment captured a significant share of the Off-the-Road (OTR) Tire Market in Mexico due to the mounting mining operations around the nation. It is majorly attributed to the requirement for durable, high-performance tires in tough terrains & demanding working conditions. Furthermore, the rising investments by the government in the mining sector and the growing adoption of advanced equipment & machinery have further instigated the need for OTR tires.

Tire manufacturers are responding to this demand by developing innovative products and expanding their production and distribution capabilities to cater to the growing needs of the industry, thus influencing the market size.

By End User:

• Construction
• Industrial
• Mining
• Agriculture
• Ports

The Construction Sector accounts for the largest share of the Mexico Off-the-Road Tire (OTR) Market. Several large development projects have suddenly picked up steam in recent years & are predicted to upscale the demand for OTR tires in the forthcoming years with the spike in construction across the country. According to the news revealed by the Ministry in 2022, Mexico is partnering with private firms to plan a significant infrastructure construction investment while actively seeking to attract investment from the United States.

The investment package combining public & private investment is likely to cover over 40 construction projects across various sectors, such as highways, energy, ports, and telecommunications. Therefore, the boost in construction projects would likely increase the demand for earthmoving machinery, necessitating OTR tires utilized in the construction industry.

What Does Our Mexico Off-the-Road Tire (OTR) Market Research Study Entail?

• The Mexico Off-the-Road Tire (OTR) Market Research Report highlights the forecast growth rate or CAGR by anticipating the market size & share.
• The market analysis puts light upon the primary industry trends, driving aspects, potential opportunities, growth challenges, and other major factors.
• The Mexico Off-the-Road Tire (OTR) Market Research Report entails details about the most critical shifts in market share in the prominent regions.
• Considering the statistics & the developments by the primary market competitors, our report also strives to demonstrate the most sought-after strategies of the key players.