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Off-highway tires (OTR) : A small, fast-growing market for tires

Off-highway tires, also known as special tires, are mainly used in large farms, open and underground mining mines, port terminals, construction industry or other special fields. According to the size of the division, off-highway tires can be divided into ordinary size tires and giant tires, tire industry generally the inner ring diameter of 49 inches (inches) below the product is called small and medium-sized size off-highway tires, 49 inches and above products are called giant tires. According to the specific application field, off-highway tires can be divided into agricultural tires, engineering tires, aviation tires and military special tires. According to the structure, off-highway tires can also be divided into radial tires, bias tires, solid tires and so on.

Off-highway tires are a segment of the tire industry. According to the statistics of the Michelin 2022 annual report, 60% of the global tire market consumption in 2021 is passenger car and light truck tires (half steel tires), 30% is truck and bus tires (all steel tires), and 10% is other tires. Off-highway tires belong to this 10%, which is a relatively small market segment in the tire industry. From the perspective of the market share of global tire companies, Michelin, Bridgestone and Goodyear are the three global tire giants, with a global market share of 14.6%, 13.6% and 8.2% in 2021, respectively, and a total of 25.0% for medium-sized tire companies and 38.6% for other tire companies. Superimposed off-highway tires are a subdivision of the tire industry, so the number of enterprises with off-highway tire production technology and production capacity is relatively small.

At present, the market demand for off-highway tires in the world is strong, and many institutions predict that the market size will grow by 5%-7% in 2023-2027. According to the forecast of MARKETS AND MARKETS, the global off-highway tire market in 2022 is 8.7 billion US dollars, and will grow to 11.4 billion US dollars at a compound growth rate of 5.5% in 2022-2027, and the market space is broad; According to the prospectus of Haian Rubber and the forecast data of TechSci Research, from 2021 to 2027, the annual growth rate of the global off-highway tire market is about 6.7%.

Driven by multi-subdivision downstream areas, off-highway tires are in high demand

The rapid development of construction machinery, agriculture and other fields has driven up the demand for off-highway tires. The downstream demand for off-highway tires is wide, and the demand for related tires in mining, agriculture and other fields shows a steady growth trend. Compared with the relative saturation of passenger car tires and commercial vehicle tires in the stock car market and the stable replacement frequency, off-highway tires continue to grow under the influence of factors such as the steady improvement of mechanization rate in downstream agriculture and mining and the increase in business volume. In terms of construction machinery, the downstream of construction machinery involves infrastructure construction, real estate, mining and other industries. Engineering tires are mainly used in engineering vehicles and construction machinery, including dump trucks, scrapers, excavators, loaders, bulldozers, graders, road rollers, beach road machines and construction vehicles such as cranes, concrete mixers and transport vehicles. The vigorous development of the port transportation industry at home and abroad, the popularization of modern manufacturing logistics mechanization and automation, and the countries along the Belt and Road and developing countries such as South America vigorously promote infrastructure construction, which has strongly promoted the continued growth of the demand for special tires in the engineering industry. Global and China's mineral product production continues to grow, the mining industry continues to rise and expand, is expected to continue to promote the growth of tire demand. Tires are one of the key consumables for mining transport vehicles, and according to the prospectus of Hai 'an Rubber and Syncrude Canada, tire consumption costs account for about 24% of vehicle operating costs in a large open-pit mine. In order to reduce the operating costs of mining companies and improve the efficiency of mining tires, improving the life and service life of tires is also an important trend in the development of mining tires. In agriculture, agricultural tires can be used in tractors, tillers, harvesters, rice transplanters, weeders, cultivators, spray machines, planters, field transport vehicles and livestock machines, etc., mainly benefiting from the continuous increase in the mechanization rate of agricultural machinery.

(A) Construction machinery field: infrastructure, mining and other downstream steady development

The downstream of construction machinery involves infrastructure construction, real estate, mining and other industries, and tires belong to the more upstream position in the industrial chain. Downstream infrastructure investment growth, mining growth, etc., will promote the demand for construction machinery to pull up the demand for construction machinery tires.