The GCC tire market is expected to experience astronomical growth in the forecast years on an account of the presence of numerous tire-manufacturing plants in the region and the imposition of stringent tire safety rules in the UAE. Apart from these, the burgeoning presence of Chinese brands, rising discretionary income, and a host of international events in the GCC region such as FIFA 2022 in Qatar and World Expo 2021 in UAE which lead to a surge in the demand for vehicles in the region. Thus, this is leading to an optimistic impact on the growth of the market in the forthcoming years.
Moreover, the COVID-19 crisis has had an adverse impact on the tire market in the GCC region due to disruption in the supply chain, closing down of borders, and shutdown of a manufacturing facility, since the region has a high dependency on import. The decline in the demand for passenger and light commercial vehicles and suspension in the construction activities has hampered the growth of the market. However, the market is expected to revive in the coming years.
According to MarkNtel Advisors’ research report “GCC Tire Market Analysis, 2020”, the GCC Tire market is expected to grow at a CAGR of 5% during 2020-25. Based on the Demand Category, the Replacement segment dominated the GCC tire market in 2019 and the same trend is expected to go on in the forthcoming years as well. This is due to the region is mostly dependent on import high rate of wear & tear of the tire due to the weather condition of the GCC countries. However, the OEM segment is also projected to grow at a steady rate owing to the rising partnership among Chinese and UAE towards the inauguration of car and truck tire manufacturing plant in Abu Dhabi by the fourth quarter of 2020.
“GCC Tire Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the industry potential, key factors impacting sales and purchase decisions, hotspots, and opportunities available for Tire providers across the region. Moreover, the report also encompasses the 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 formulation of Go to Market Strategies and identifying the blue ocean for its offerings.
UAE is Expected to Attain the Highest CAGR by 2025
UAE is expected to attain the highest CAGR in the GCC tire market by 2025. Abu Dhabi is anticipated to grow at a robust rate due to the wide setup of the number of car and truck tire manufacturing plants in the country under KIZAD’s China-UAE Industrial Capacity Cooperation Demonstration Zone. However, under the Roadbot Tire Project KIZAD, the factory is aiming to produce up to 10 million passengers and 1 million truck/bus radials tire by 2022. This move would strengthen Abu Dhabi’s position in regional original equipment manufacturers (OEM) and replacement tire market in as stated in the MarkNtel Advisors’ research report “GCC Tire Market Analysis, 2020”.
According to MarkNtel Advisors, the key players with a considerable market share in the GCC Tire market include Continental, Bridgestone, Yokohama, Goodyear, Michelin, Hankook, Pirelli, Toyo, and Cooper, etc.
Key questions answered in the study: