According to the latest market research report by Technavio, the agriculture tire market is expected to grow at a CAGR of 13 percent until 2020.
“Very high flexion (VF) tires allow tractors to carry the same load with 40 percent reduced air pressure. These tires have many advantages as these ensure longer footprint with reduced soil compaction while promoting higher yields. Also, the tire lugs are engineered at an angle of 45 degrees to help move dirt and mud much more ease, and to reduce tire slippage under all conditions,” said Sriram Mohan, one of Technavio’s lead industry analysts for wheels and tires research.
“However, agriculture tire manufacturers are facing stiff cost pressures as income levels among farmers have dropped in recent years. This has led to a highly price-sensitive market, compelling manufacturers to manage the costs while they continue to invest in new technological advancements,” added Sriram.
Key findings of this market study indicate a strong likelihood of many manufacturers taking the online sales route to save on logistics and infrastructure costs. This trend is predominant in Western Europe and North America and is predicted to gain significant traction in emerging countries over the next four years.