Market Definition
The tire industry in Africa is expansive & full of opportunities, especially across countries like South Africa, Algeria, Egypt, & Nigeria, among others, with a massive automotive sector. A steady rise in new registration of vehicles and growing cross-border trade agreements project lucrative growth prospects for the Africa Tire Market in the coming years.
Market Insights
The Africa Tire Market is projected to grow at a CAGR of around 5.5% during the forecast period, i.e., 2022-27. The growth of the market would be fueled primarily by the rapidly increasing vehicle fleet across different countries in Africa, owing to the burgeoning interest of people in private ownership of vehicles.
With the swift expansion of the cross-border trade of tires entwined with the growing prevalence of Chinese & budget tires across Africa, the overall availability of tires has improved significantly, with an extensive range to choose from for vehicle owners.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) | 5.5% |
| Country Covered | Nigeria, Algeria, South Africa, Egypt, Morocco, Ethiopia, Angola, Libya, Kenya, Zimbabwe, Sudan, Eritrea, Somalia, Djibouti, Morocco, Tanzania, Ghana, Tunisia |
| Key Companies Profiled | Michelin, Bridgestone, Continental, Goodyear, Triangle, Pirelli, Sumitomo, Others |
| Unit Denominations | USD Million/Billion |
Moreover, the growing government focus on infrastructural developments has led to various ongoing & upcoming construction projects, coupled with a propelling need for commercial vehicles, i.e., facilitating the massive production & sales of OTR tires across the region.
In addition, since Africa lacks manufacturing facilities, it principally fulfills the tire requirements by importing them from different countries. As a result, governments are laying favorable policies for foreign tire brands to establish their production units and expand the local tire production across the region, which, in turn, is citing remunerative growth prospects for the tire market through 2027.
Impact of Covid-19 on the Africa Tire Market
The emergence of Covid-19 in 2020 had a catastrophic impact on the Africa Tire Market. As governments of different regional countries imposed lockdowns & stringent movement restrictions to curb the virus spread, challenges like shortage of raw materials, delays in deliveries & production, and price fluctuations resulted in significant revenue losses for the leading market players.
Such situations compelled tire manufacturers to adopt online platforms to sell tires via e-commerce websites & provide door-step delivery & installation services to their customers in order to sustain themselves in the market amidst the crisis. Later, with a gradual decline in Covid-19 cases, restrictions were uplifted, which enabled the leading players in the Africa Tire Market to resume their usual business operations and cater to varied consumer requirements.
