The Africa Tire Market is projected to grow at a CAGR of 5.5% in the forecast period of 2022-27, cites MarkNtel Advisors in their recent research report. The market growth is likely to be driven primarily by the growing prevalence of Chinese & budget tires across Africa due to massive cross-border trade across different regional countries. Besides, since most regional countries lack tire production facilities, governments are actively laying out favorable policies to attract foreign investments in order to establish tire manufacturing facilities and boost the local production capacity.
In addition, the increasing government focus on infrastructural developments across Africa, i.e., leading various ongoing construction activities, is propelling the need for commercial vehicles and, in turn, infusing the demand for massive production & sales of robust OTR tires across the region, further states the research report, “Africa Tire Market Analysis, 2022.”
Increasing Passenger Car Ownership to Boost the Market through 2027
Passenger cars are anticipated to dominate the Africa Tire Market with the largest share during the forecast period. It owes principally to the improving economic conditions of people & their growing inclination toward private vehicle ownership for local commute, i.e., leading to an accelerating fleet size of passenger cars and, as a result, tire sales.
Besides, as the majority population in the region still belong to the lower-income category, the sales of second-hand vehicles are escalating at a rapid pace. Since such vehicles require timely replacement of tires, the tire industry is set to observe remunerative prospects through 2027.
With Increasing Trade Agreements, South Africa to Contribute Significantly to the Market Growth
To make itself an innovative tire production hub across Africa, South Africa is witnessing a swift escalation in trade agreements. Besides, plans like APDP (Automotive Production & Development Program) for the expansion & sustainability of the tire industry are acting as a prominent driver for the tire industry in the country.
Moreover, the rapidly expanding transportation & logistics sectors, i.e., surging the need for commercial vehicles, shall also positively influence the demand for robust tires for enhanced operational efficiency & safer driving. Hence, the aspects cited above indicate that the coming years are projected to create a pool of profitable prospects for the South Africa Tire Market.
The leading players in the Africa Tire Market are Michelin, Bridgestone, Continental, Goodyear, Triangle, Pirelli, Sumitomo, Others.
Key Questions Answered in the Research Report