Route based tunnels can also be configured as on-demand.
In practice, if you have a dynamic routing protocol running across the tunnel this will be sending traffic periodically so the tunnel will not come down. The nature of the communication on the routing protocol keeps the tunnel active. But the IPSEC configuration itself is still an on-demand tunnel.
With static routes the tunnel will tear down when traffic is no longer passing after the configured time. The local routing table still has the static route pointing to the tunnel interface so that when the traffic arrives the tunnel will be built again and pass the routed packets.