Press Release

Nigeria Two-Wheeler Tire Market to Flourish at an Impressive CAGR of Around 8.64% During 2024-30

The Nigeria Two-Wheeler Tire Market is anticipated to grow at a CAGR of about 8.64% during the forecast period of 2024–30, cites MarkNtel Advisors in the recent research report. The substantial growth in the market is primarily propelled by the increasing production of two-wheelers and the heightened adoption of these vehicles by urban residents and businesses, among other contributing factors. Over the years, the expansion of two-wheeler manufacturing activities across Nigeria has played a crucial role in driving the demand for two-wheeler tires in the country. Major manufacturers such as Hero MotoCorp and Yamaha have significantly increased their production of scooters and motorcycles in Nigeria to meet the rising demand. This surge in production is attributed to the high maneuverability of two-wheelers, making them a popular choice for commuting through the bustling streets of the country.

Furthermore, the increasing issue of traffic congestion in Nigerian urban centers, including prominent cities like Lagos and Kano, has become a major concern in recent years. For instance, in 2023, Lagos was ranked number one on the list of the world's worst-traffic cities, according to the World of Statistics, a UN body. Subsequently, individuals residing in these urban areas are turning to alternative modes of transportation, such as two-wheelers, to overcome the challenges posed by traffic jams. As more people opt for motorcycles and scooters as effective solutions to navigate traffic congestion, the number of these vehicles on the roads significantly rises. This surge in the utilization of two-wheelers creates an increased demand for tires, both for newly purchased vehicles and as replacements for existing ones undergoing wear and tear.

Additionally, enterprises like Chowdeck and Gofood have expanded their food delivery operations across Nigeria, predominantly relying on scooters and motorcycles for their delivery services due to their convenience and maneuverability. This substantial increase in adopting two-wheelers for commercial applications has resulted in a significant boost in sales nationwide. Consequently, as motorcycle sales continue to rise for commercial purposes, they are anticipated to drive the demand for two-wheeler tires in Nigeria in the upcoming years, further states the research report, “Nigeria Two-Wheeler Tire Market Analysis, 2024.”

Nigeria Two-Wheeler Tire Market Segmentation Analysis

The Motorcycle Segment Holds a Major Market Share

Based on the vehicle type, the market is further bifurcated into scooters, scooter & moped, and motorcycle segments. Among them, the motorcycle segment has captured a significant market share due to the growing inclination of consumers toward using motorcycles for delivery purposes. The preference for motorcycles in delivery services is linked to their robust engines, which provide higher speeds and faster acceleration. This allows for efficient navigation through traffic and swift coverage of extended distances. Moreover, motorcycles exhibit a higher payload capacity, rendering them suitable for transporting larger or heavier items.

Furthermore, there is a gradual shift among consumers towards embracing electric motorcycles for their mobility requirements. Advancements in battery technology are effectively addressing concerns related to the range and charging times of electric motorcycles, thereby enhancing their practicality and convenience for everyday commuting. As consumers increasingly prioritize factors such as sustainability, cost efficiency, and technological advancements, the popularity of electric motorcycles for personal mobility is expected to increase. This shift is anticipated to stimulate the demand for two-wheeler tires in the country.

Radial Tire to Witness Heightened Growth During the Forecast Period

Radial tires are projected to dominate the market in the forecast period. The increasing urbanization and evolving commuting patterns, especially in congested city areas, prompt consumers to seek tires that offer better control and maneuverability. Radial tires, renowned for their enhanced handling capabilities, emerge as a preferred choice, contributing to an increased market share in Nigeria. Furthermore, radial tires are celebrated for their lower rolling resistance, a feature that improves fuel efficiency. Given the rising fuel costs in the country, consumers are inclined to adopt radial tires as a strategic measure to economize on fuel consumption, thereby bolstering their prominence in the market.

Nigeria Two-Wheeler Tire Market Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Bridgestone Corporation, Goodyear Tire and Rubber Company (Dunlop), Michelin, Continental AG, Yokohama TWS (Mitas), Pirelli Tyre S.p.A, Apollo Tire, JK Tyre, CEAT, and others, are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the country?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?