Off-highway Wheels - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Off-highway Wheels Market size is estimated at USD 1.79 billion in 2024, and is expected to reach USD 2.40 billion by 2029, growing at a CAGR of 6.04% during the forecast period (2024-2029).

Over the medium term, increasing agriculture mechanization trends in emerging countries and a surge in commercial and residential construction projects worldwide are anticipated to drive the agricultural and construction machinery markets, which in turn is expected to drive the demand for the off-highway wheels.

An increase in production and demand for off-road vehicles is expected to drive the off-highway wheels market during the forecast period. Growth in automation in several industries like infrastructure, mining, construction, and agriculture boosted the use of off-road vehicles in these sectors.

The construction industry is highly dynamic, and numerous factors, such as the overall economy, budgets, and global economic scenario, are influencing the market's growth. Volatility in these aspects affects the businesses of construction equipment OEMs, which will, in turn, affect the off-highway wheel demand.

Anticipated growth in electrification in off-highway equipment and rising emphasis on emission occurring through this equipment are anticipated to encourage the off-highway wheel manufacturers to develop low-cost solutions to cater to the dynamically changing demands of customers.

Off-Highway Wheels Market Trends

INCREASING INVESTMENT INTO CONSTRUCTION INDUSTRY

The construction industry is highly dynamic, and numerous factors, such as the overall economy, budgets, and global economic scenario, are influencing the market's growth. Volatility in these aspects affects the businesses of construction equipment OEMs, which will, in turn, affect the off-highway wheel demand.

The Asia-Pacific region holds significant opportunities for the growth in demand for construction machinery. With the prospects of large infrastructure projects and shifting labor dynamics, the demand for construction equipment is expected to witness growth during the forecast period. Due to the COVID-19 pandemic, many industries, including the construction industry, witnessed a slump in investment in the first half of 2020; however, the same is likely to witness a prominent growth during the forecast period.

Several Countries are witnessing significant infrastructure growth owing to an increase in investment across the country. Infrastructure, such as the construction of buildings, tunnels, rail networks, roads, and bridges, is attracting major investments across the country. Growing infrastructure development across the country is likely to increase the demand for construction equipment during the forecast period. For instance,

In March 2022, Four Algerian and Chinese firms signed a deal worth nearly USD 7 billion to develop an integrated phosphates project (PPI) in Algeria. The agreement was signed by Algerian firms Manal and Asmidal, a subsidiary of Algerian energy firm Sonatrach, with Chinese firms Wuhuan Engineering and Tianjin Chemical, a nitrogen and phosphate fertilizer production company.

Several rail and road projects further add up demand for machinery in the Asia-Pacific over the forecasted period. For instance,

• In February 2022, the Indian Government announced a capital of INR 2.45 trillion (USD 32.7 billion) for the development of rapid transit systems and metro projects across India.
• In September 2021, China invested around USD 154.88 billion (RMB 1 trillion) for an expansion of the railway network in the Yangtze River Delta (YRD) region.

In addition, the investments in infrastructure, both public and private, such as the Indonesian National Medium-term Development Plan (USD 460 billion), Vietnam Socio-Economic Development Plan (USD 61.5 billion), and the Philippine Development Plan "Build, Build, and Build" (USD 71.8 billion), are expected to increase the demand for off-highway vehicles in this region.

The increase in construction development across the globe is likely to enhance the demand for construction machinery, which in turn is likely to enhance the demand for wheels in the coming years.

Asia-Pacific is Anticipated to Dominate the Market

Despite unpredictable growth in the real estate sector, noteworthy development of road and rail infrastructure by the nations across the Asia-Pacific region to endure the demand stemming from the growing service and industrial sectors has resulted in substantial growth of the construction industry in recent years. These increasing infrastructural activities raised the need for off-highway vehicles, in turn driving the demand for off-highway wheels.

For instance, in China, after the COVID-19 situation, several cities and provinces like Beijing, Shanghai, and Fujian, among others, announced significant infrastructure plans. Eight cities and provinces announced an investment budget of approximately USD 4.8 trillion. These investments are expected to help the country take up new infrastructure projects and speed up existing construction projects.

After the pandemic, the demand for tractors is rising significantly in India. Moreover, the agriculture sector has a good share of GDP. The GDP share of the agriculture sector increased to 19.9% in FY 2021 compared to 17.8% in FY 2020. The tractor sales have shown tremendous growth compared to the previous year. The tractor sales ended with a yearly growth of 20%, with sales of approximately more than 9 lakh units in FY 2021, compared to 7.09 lakh units in FY2020. An increase in the sales of tractors has also increased the demand for off-highway wheels in India, and the tractor industry is expected to show significant growth in the coming years.

The construction industry is subjugated by private and state-owned enterprises, and increased government and private spending in this esteem are driving the industry toward global primacy. The market for other types of construction machinery and excavators is expected to strengthen in countries such as Japan, China, India, etc., during the forecast period. Also, the rising construction of a significant warehousing industry in China and the global marine traffic are expected to deliver a corpus opportunity for off-highway wheels.

The increasing use and diverse application portfolio of agricultural machinery has encouraged collaboration between the equipment OEMs to better address the market. Other countries in Asia-Pacific include Sri Lanka, Australia, Bangladesh, Kiribati, Papua New Guinea, Bhutan, Laos, Peru, Brunei, Malaysia, the Philippines, and Burma (Myanmar), where the agricultural machinery market is expected to grow over the forecast period.

Moreover, with the growing investments in commercial projects, infrastructure, renewable energy, and public infrastructure, the off-highway vehicle wheels segment is anticipated to record growth at a modest pace in the coming years, thereby enlightening both investor and consumer confidence.

Off-Highway Wheels Industry Overview

Several key players, such as Titan International Inc., Moveero Limited, Trelleborg AB, Accuride Corporation, Rimex, Steel Strips Wheels Ltd, Maxion Wheels, and others dominate the off-highway wheels market. The players operating in the market are concentrating on several growth strategies to gain a competitive edge over other players. For instance,

In March 2022, Titan International Inc. entered into a definitive agreement for the sale of its Australian wheel business to off-highway vehicles, Tyres, a leading local national tire, wheel, and service provider.

In September 2021, Maxion Wheels announced the start of the production of truck wheels from Maxion's San Luis Potosi, Mexico.

In June 2021, Anyang Rarlong Machinery Co. Ltd. developed energy-saving manufacturing technology for engineering wheel rims to improve production efficiency with no defects caused by oxide scale, with an aim to achieve the purpose of energy-saving.

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