Updated Aug 25, 2022 19:49

Market for Agricultural, Construction and Industrial Machinery Tire in Brazil

Market Overview
The Brazilian market for tyres for agriculture, forestry, construction, industry and other off the road vehicles skyrocketed to $ in , jumping by % 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). Overall, the total consumption indicated a measured increase from 2007 to : its value increased at an average annual rate of +% over the last fourteen years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, consumption increased by +% against 2016 indices. Over the period under review, the market attained the peak level at $ in 2013; however, from 2014 to , consumption stood at a somewhat lower figure.

In value terms, production of tyres for agriculture, forestry, construction, industry and other off the road vehicles reduced slightly to $ in estimated in export price. Over the period under review, the total production indicated a moderate increase from 2007 to : its value increased at an average annual rate of +% over the last fourteen-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on figures, production increased by +% against 2015 indices. The growth pace was the most rapid in 2010 when the production volume increased by % against the previous year. Over the period under review, production of tyres for agriculture, forestry, construction, industry and other off road vehicles attained the peak level at $ in 2014; however, from 2015 to , production failed to regain momentum.


Consumption
In , consumption of tyres for agriculture, forestry, construction, industry and other off the road vehicles in Brazil shrank modestly to units, remaining relatively unchanged against the previous year's figure. In general, consumption, however, saw a strong expansion. As a result, consumption reached the peak volume of units, leveling off in the following year.

The revenue of the market for tyres for agriculture, forestry, construction, industry and other off the road vehicles in Brazil dropped to $ in , reducing by -% 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). Over the period under review, the total consumption indicated perceptible growth from 2007 to : its value 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 increased by +% against 2016 indices. Over the period under review, the market attained the maximum level at $ in 2013; however, from 2014 to , consumption remained at a lower figure.


Market Forecast
The market for agricultural, construction and industrial machinery tire is expected to start a downward consumption trend over the next eight-year period. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -% for the eight-year period from to , which is projected to depress the market volume to units by the end of .

In value terms, the market is forecast to contract 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
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
Brazil remains a net importer of agricultural, construction and industrial machinery tire; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of units, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.