Report Overview

Industrial growth, increasing mining and construction activities, technological advancements in tire manufacturing, rising demand for heavy machinery, and expanding infrastructure projects driving the growth of South Korea OTR Tire Market during the forecast period between 2024 and 2030.

South Korea OTR Tire Market – Industry Trends & Forecast Report, 2030

The South Korea OTR Tire Market size by value was estimated at USD 190.2 million in 2023. During the forecast period between 2024 and 2030, the South Korea OTR Tire Market size is expected to expand at a CAGR of 7.70% reaching a value of USD 297.2 million by 2030. The South Korea OTR (Off The Road) Tire Market is driven by rapid industrialization and urbanization, leading to increased construction and mining activities. The rise in infrastructure development projects necessitates advanced heavy machinery, boosting OTR tire demand. Additionally, the growth in the agricultural sector, requiring specialized tires for various equipment, further propels the market. Technological advancements in tire manufacturing, offering enhanced durability and performance, also contribute significantly. Moreover, the expansion of the logistics and transportation sectors, coupled with a strong focus on sustainability and environmental regulations, influences the market dynamics positively.

OTR (Off The Road) Tires – Overview

OTR (off the road) tires are specialized tires designed for heavy-duty vehicles operating in off-road conditions, such as construction, mining, and agriculture. These tires are built to endure harsh terrains, providing enhanced durability, stability, and traction. Key features include reinforced sidewalls, deep treads, and resistance to cuts and abrasions. OTR tires come in various sizes and types, including radial and bias-ply, catering to different vehicle requirements and operational needs. Their robust construction ensures extended service life, essential for minimizing downtime and maximizing productivity in challenging environments.

South Korea OTR Tire Market

Growth Drivers

Increasing Government Investments in Infrastructure Projects

The South Korea OTR tire market is poised for significant growth, driven by the government's substantial investment in infrastructure projects. With a focus on enhancing the country's transportation network, energy infrastructure, and construction sector, the demand for off the road (OTR) tires is set to rise. These tires, essential for heavy machinery and vehicles used in large-scale projects, will see increased utilization. The government's commitment to infrastructure development not only stimulates the construction industry but also boosts the need for reliable OTR tires, fostering market expansion and technological advancements in tire manufacturing.

Challenges

Fluctuations in Raw Material Prices

The South Korea OTR Tire Market is experiencing significant volatility due to fluctuations in raw material prices. Key materials like natural rubber and synthetic compounds have seen sharp price changes, affecting production costs and profit margins. Manufacturers are grappling with these unpredictable expenses, which complicates pricing strategies and supply chain management. This instability underscores the need for strategic sourcing and cost management practices to maintain market competitiveness and profitability.

Impact of Escalating Geopolitical Tensions on South Korea OTR Tire Market

Escalating geopolitical tensions, particularly between the United States and China, are impacting the South Korea OTR (Off The Road) Tire Market. Increased tariffs and trade restrictions have disrupted supply chains, leading to higher production costs and delays. South Korea, a major exporter of OTR tires, faces decreased demand from key markets like China due to the strained relations. Additionally, the Russian invasion of Ukraine has exacerbated global raw material shortages, further driving up prices. Companies like Hankook Tire and Kumho Tire are compelled to seek alternative markets and suppliers, impacting their operational efficiency. The uncertain geopolitical climate has also led to volatile currency exchange rates, complicating international transactions and financial stability in the tire industry.

South Korea OTR Tire Market

Segmental Coverage

South Korea OTR Tire Market – By Tire Size

Based on tire size, the South Korea OTR Tire Market is divided into below 25 inches, 25–35 inches, and above 35 inches segments. The 25–35 inches tire size is the largest segment in the South Korea OTR Tire Market. The segment dominates due to its widespread application in construction and mining industries, which require durable and high-performance tires for heavy machinery and equipment. The demand is driven by the continuous growth and development of infrastructure projects and the mining sector in South Korea. As industries expand, the need for reliable and efficient OTR tires in the 25–35 inches range continues to rise, making it the largest and most significant segment in the market.

South Korea OTR Tire Market – By Tire Type

On the basis of tire type, the South Korea OTR Tire Market is split into Radial OTR tire and Bias OTR tire segments. The radial OTR tire segment holds a larger market share in the South Korea OTR Tire Market. The dominance is attributed to the superior durability, better traction, and enhanced fuel efficiency offered by radial tires compared to bias tires. Radial OTR tires also provide better performance on rough terrains and have a longer lifespan, making them a preferred choice in various heavy-duty applications such as mining, construction, and industrial activities. The increasing demand for heavy machinery and equipment in these sectors significantly contributes to the prominence of the radial OTR tire segment in South Korea.

South Korea OTR Tire Market – By Sales Channel

Based on sales channel, the South Korea OTR Tire Market is divided into OEMs (Original Equipment Manufacturers) and Aftermarket segments. OEMs denote the tires supplied directly by manufacturers for initial equipment installation on vehicles during production. Conversely, the aftermarket segment refers to tires sold for replacement or upgrade purposes after the vehicle's initial purchase. While both segments are integral to the market, the aftermarket segment typically encompasses a larger portion due to the ongoing need for tire replacements, upgrades, and repairs among vehicle owners and operators, thereby playing a significant role in shaping the overall market dynamics.

South Korea OTR Tire Market – By Application

Based on application, the South Korea OTR Tire Market is divided into Agriculture, Construction, Mining and Industrial segments. The construction application is the largest in the South Korea OTR (Off The Road) Tire Market. The segment encompasses various applications such as heavy equipment used in infrastructure development, building construction, and road maintenance. With South Korea experiencing significant urbanization and infrastructure projects, demand for construction machinery and vehicles equipped with OTR tires is high. The construction segment drives substantial growth in the OTR tire market due to ongoing development initiatives and the need for robust tires capable of withstanding challenging terrains and operating conditions.

Competitive Landscape

Major players in the South Korea OTR Tire Market include Bridgestone Korea, Yokohama Tire Korea Co Ltd, Michelin Korea Co., Ltd, Sumitomo Rubber Industries, Ltd, Hankook Tire & Technology Co Ltd, and Goodyear Korea Company. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Tire Size

• Below 25 inches

• 25–35 inches

• Above 35 inches

By Tire Type

• Radial OTR Tire

• Bias OTR Tire

By Sales Channel

• OEM (Original Equipment Manufacturers)

• Aftermarket

By Application

• Agriculture

• Construction

• Mining

• Industrial