Off-the-Road (OTR) Tires Market to Reach USD 26.02 Billion by 2035, Reports Radial Insights

The global Off-the-Road (OTR) tires market is forecast to grow from USD 17.63B in 2026 to USD 26.02B by 2035 (4.42% CAGR), supported by construction and mining equipment fleet expansion and increased installed base from infrastructure spending (US public construction USD 544.1B annual rate in June 2026; USD 150.9B for highways/streets). Demand is shifting toward radial tires and connected/IoT monitoring to improve uptime and lower cost per hour, while ultra-class mining tires (37–63 inch) drive higher replacement intensity. However, raw material cost volatility for natural/synthetic rubber, steel cord and specialty chemicals remains a profitability risk.

Analysis

The actionable signal is not unit growth; it is mix. Growth in ultra-class and radial tires plus connected monitoring shifts value from one-time tire sales toward recurring service, tighter fleet lock-in, and better pricing discipline for suppliers with real dealer reach. That favors premium, vertically integrated players such as YORUY and BRDCY over commodity-heavy or less differentiated producers; the earnings lift should show up gradually over 1-3 quarters, not in the next print.

Second-order effects matter more than the headline CAGR. Fleet telemetry and uptime contracts can turn tire vendors into quasi-software/service providers, expanding margin quality and making customer switching harder, while mining capex from names like RIO indirectly supports the highest-value replacement cycle in the industry. Equipment OEMs such as KMTUY benefit only if the monitoring stack reduces downtime enough to justify bundled pricing; otherwise this is mostly a tire supplier story, not a broad machinery re-rating.

The main risk is input-cost inflation: natural rubber, synthetic rubber, steel cord and logistics can absorb a meaningful share of the volume upside if pricing lags. A slower public-infrastructure rollout or a pause in mining capex would defer the replacement wave by 6-12 months. Contrarian view: the market may be overestimating near-term earnings impact from a mid-single-digit TAM; the better trade is relative share gain and margin mix, not chasing sector beta.

Key Decisions for Investors

• Long YORUY / short GT as a 1-3 month relative-value pair: YORUY has cleaner exposure to premium OTR mix and the acquired business footprint; GT still looks like the weaker way to own the tire complex. Falsify if YORUY fails to show mix-driven margin expansion next earnings cycle.
• Buy BRDCY on pullbacks for a 6-12 month hold if management confirms faster adoption of radial and connected monitoring in mining and construction. Upside comes from higher ASPs and stickier aftermarket revenue; risk is rubber/steel inflation outrunning price.
• Treat KMTUY as a conditional beneficiary, not a core long: only add if mining equipment orders and telematics attach rates inflect together. This is a slower catalyst with lower direct torque than the tire makers.
• Use RIO only as an indirect capex proxy, not as a pure OTR trade. Initiate only if copper/lithium capex guidance moves higher; otherwise the market has likely already priced the mining support story.