Updated Aug 25, 2022 20:21

Market for Agricultural, Construction and Industrial Machinery Tire in China

Market Overview
In , the Chinese market for tyres for agriculture, forestry, construction, industry and other off the road vehicles increased by % to $, rising for the sixth year in a row after two years of decline. In general, consumption, however, continues to indicate a strong expansion. Over the period under review, the market hit record highs in and is likely to see steady growth in the near future.

In value terms, production of tyres for agriculture, forestry, construction, industry and other off the road vehicles rose rapidly to $ in estimated in export price. In general, production, however, showed buoyant growth. The pace of growth appeared the most rapid in 2011 with an increase of %. Over the period under review, production of tyres for agriculture, forestry, construction, industry and other off road vehicles reached the peak level at $ in 2019; however, from to , production stood at a somewhat lower figure.


Consumption
Consumption of tyres for agriculture, forestry, construction, industry and other off the road vehicles in China expanded to units in , increasing by % on the year before. Over the period under review, the total consumption indicated noticeable growth from 2007 to : its volume increased at an average annual rate of +% over the last fifteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption decreased by -% against indices. Consumption of peaked at units in ; however, from to , consumption remained at a lower figure.

The revenue of the market for tyres for agriculture, forestry, construction, industry and other off the road vehicles in China was estimated at $ in , with an increase of % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption recorded a buoyant increase. Consumption of peaked in and is likely to see gradual growth in the immediate term.


Market Forecast
Driven by increasing demand for agricultural, construction and industrial machinery tire in China, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to units by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of agricultural, construction and industrial machinery tire in China were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for agricultural, construction and industrial machinery tire. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
China remains a net exporter of agricultural, construction and industrial machinery tire; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of units, which was equal to $. This tangible trade surplus reflects the fact that the market remains buoyed by domestic production, and the industry is highly incorporated into the global market, which is likely to continue in the medium term.