Press Release Description

Increasing Tire Replacement Demand to Strengthen the UAE Tire Market

The increasing disposable income of people, rapid urbanization and upcoming mega-events in the country is increasing the demand for passenger cars and commercial vehicles thereby placing a positive impact on the UAE tire market. Moreover, being an import driven country, Japan is the largest exporter of tires followed by China, Thailand, and Korea to UAE.

According to the MarkNtel Advisors’ research report, UAE Tire Market Analysis, 2020”, the tire market is projected to grow at a CAGR of around 3.8% during 2020-25. The demand for commercial and OTR vehicle tires is boosting on account of growing construction activities in the region such as hotel and infrastructure projects such as Dubai Metro and Abu Dhabi Metro. Moreover, the Surface Transport Master Plan, an initiative by government is expected to infuse the demand for OTR tires.

The replacement tires dominated the UAE tire market in 2019 on account of the absence of tire manufacturing in the country. On account of extreme climatic conditions, the period for replacement tires is shorter. Moreover, with the rise in sales of vehicles, mounting vehicle fleet size and burgeoning construction activities are anticipated to place a demand for replacement tires. 

The dealers and distributors captured the highest market share in the UAE tire market in 2019 as the country has no production of its own. Moreover, the rising internet penetration is expected to fuel the online sales channel in years to come as revealed by MarkNtel Advisors’ in their research report, “UAE Tire Market Analysis, 2020”.
According to the MarkNtel Advisors the major leading players are Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Kumho, Pirelli, Toyo and Cooper among others. Although, Chinese branded tires are gaining popularity in the country on account of cheaper prices.

“UAE Tire Market Analysis, 2020”, provides comprehensive qualitative and quantitative insights on the industry potential, key factors such as trends, drivers, hotspots and opportunities and challenges available for tire providers in UAE. Moreover, the report also encompasses the key leading players in the industry, along with competitive benchmarking and competition matrix and company profiling.

Industry Segmentation: 

1.    By Type of Vehicles (Passenger Car, Light Commercial Vehicle, Medium and Heavy Commercial Vehicles, Off the Road (OTR), Two Wheelers)
2.    By Demand Category (OEM and Replacement)
3.    By Type of Tires (Radial and Bias)
4.    By Sales Channel (Dealer/Exclusive stores, Online and Others)
5.    By Season (All season and Summer)
6.    By Price Category (Budget, Economy, Premium)
7.    By Rim Diameter (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”, Above 47”)
8.    By Region (Dubai, Abu Dhabi, Sharjah, Ras-al-Khaimah, Others)
9.    By Company (Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Kumho and Pirelli)

Key questions answered in the study: 

1.    What are the current and future trends of the UAE tire market? 
2.    How the industry has been evolving in terms of end-user demand and application areas?
3.    What are the future plans and customer expectations of end-users across the country? 
4.    How the competition has been shaping across the countries followed by their comparative factorial indexing?
5.    What are the key growth drivers and challenges for the UAE tire market?
6.    What are the customer orientation, purchase behavior, and expectations from UAE tire suppliers across various regions?