Asia-Pacific Agricultural Tires Market Size

Asia-Pacific Agricultural Tires Market Analysis

The Asia-Pacific Agricultural Tires Market size is estimated at USD 2.98 billion in 2024, and is expected to reach USD 3.88 billion by 2029, growing at a CAGR of 4.36% during the forecast period (2024-2029).

• While the overall scenario of the market is positive, the demand is hugely dependent on the economic turmoil in the region that invariably affects the farmers' income and purchase of farm machinery. However, a downturn in farming equipment sales was witnessed in 2020, as the COVID-19 pandemic severely impacted the automotive industries, including the agriculture tires market. However, the region witnessed an increase in the sale of agricultural equipment, which in turn is likely to witness major growth for the market during the forecast period.
• Over the medium term, the Increasing population and growing rate of urbanization in countries such as India, China, etc., are fueling the demand for food, and this is subsequently propelling the growth in agricultural activities; thus, the demand for agricultural tires is rising in the Asia Pacific region.
• The rising trend of farm mechanization is also propelling the demand for agricultural tires in the Asia Pacific region. The engine-powered agricultural types of machinery have considerably improved the efficiencies in the farming sector by giving farmers the capability to service vast areas of land in a short period. Efficient types of machinery, such as harvesters, are witnessing a rapid adoption rate in the Asia Pacific, owing to the need for cost and energy savings farming operations in developing countries.
• Most rural areas are usually driven by the urbanization of economies. Thus, an ongoing shift in all rural activities is taking place. Urbanization is spreading into the rural areas around the metropolitan centers, where migration is rampant. With the increase in urbanization, the demand for mechanization of agricultural machinery will increase, which will help to drive the demand for agricultural tires.
• Due to the rising demand for heavy-duty agricultural tires, improvements are being made in traction and material technology. The rise in demand for advanced and strong rubber compounds has increased due to changes in the design of farming equipment and exploration into new terrains. Equipping forestry tires, compound rubber tires, and trailer tires with steel flex walls is the latest trend that is improving the lower ground compaction rate of agricultural tires.