Rising discretionary income and consistent growth in automobile fleet in Africa propels the demand for automotive tires. Growth projected in the infrastructure sector in the country is positively influencing the demand for tires in the region. Rise in the sales of light commercial vehicles, influx of imported automotive components from China and growth in the domestic production of vehicles in the country by international OEMs is expected to reflect growth in the demand for automotive tires in the region, during the forecast period.
According to MarkNtel Advisors’ research report “Africa Tire Market Analysis, 2020”, the tire market in Africa is projected to grow at a CAGR of around 5.5% during 2020-25 and is anticipated to cross USD 8.1 billion mark, by 2025. Increasing activities involving new vehicle launches, vehicle production capacity expansion, mergers, and manufacturing setups by automobile OEMs are estimated to reflect growth in demand for tires in the region. However, the replacement will continue to overpower the OEM demand during the forecast period.
South Africa has witnessed tremendous demand for vehicles in the country during the historic period, followed closely by Egypt. The Egyptian tire market is recovering from volatility and set to register a CAGR of more than 2.2%, in terms of units sold during 2020-25, revealed by MarkNtel Advisors’ research report “Africa Tire Market Analysis, 2020”.
Africa is the Fastest Tire Demand Generating Region in the World
As per MarkNtel Advisors’ study, the major manufacturers of tire in the region are focusing on expansion to gain market share. A large chunk of the market is still import driven and players are trying to gain automotive market share by expanding their production base in African nations. As a result, many of the vehicle OEMs are setting up production facilities in the region which will augment tire demand, through 2025. Chinese players have been expanding at an exponential pace on account of considerable low prices in contrast to their American and the European counterparts.
As of 2019, Africa remains the fastest-growing market for tires to the world. The leading players in the market involve Bridgestone, Continental AG, Goodyear, Hankook, Michelin, Pirelli, Sumitomo Tires, Kumho Tires, Yokohama and Apollo Tires, Triangle, Zhongce, Maxxis, etc.
“Africa Tire Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the market potential, regional opportunities, key factors impacting sales and purchase decisions, hotspots, and opportunities available for tire providers across the globe. Moreover, the report also encompasses the expert verbatim, key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the competition assessment, formulation of Go to Market Strategies and identifying the blue ocean for their offerings.
1. By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium and High Commercial Vehicles, Two-Wheelers, Three-Wheelers and OTR)
2. By Demand Category (OEM & Replacement)
3. By Tire Type (Radial and Bias)
4. By Sales Channel (Direct Sales, Online, Channel Partners)
5. By Season (All Season, Winter, Summer)
6. By Rim Size (Up to 12”, 12.1” to 15”, 15.1” to 18”, 18.1” to 20”, 20.1” to 22.5”, 22.6” to 26”, 26.1” to 35”, 35.1” to 47”, 47” and above)
7. By Country (Nigeria, Algeria, Egypt, South Africa, Morocco, Ethiopia, Angola, Libya, Kenya, Zimbabwe and Others)
8. By Company (Continental AG, Bridgestone, Goodyear, Hankook and Yokohama among others)
Key questions answered in the study:
1. What are the current and future trends of the Africa Tire Market?
2. How the market has been evolving in terms of vehicle type demand, technology trends and demand category?
3. What is the expert opinion on the future current and future outlook of the Africa Tire Market?
4. How the competition has been shaping across various regions followed by competitor’s comparative factorial indexing?
5. What are the key growth drivers, challenges and hotspots coming up in the Africa Tire Market across various geographies?
6. What are the margins of stakeholders at various levels of the value chain of Tire Market?