The tire industry in Israel is highly import-driven and depends on countries like the US, Germany, & China, among others, to cater to consumer requirements for tires. As the country is prosperous, the government is investing substantially in the development of the tire industry and laying out favorable policies for attracting foreign investments in the establishment of tire manufacturing facilities, which projects remunerative growth prospects for the tire market across Israel in the coming years.
The Israel Tire Market is projected to grow at a CAGR of around 4.6% during the forecast period, i.e., 2022-27. Most of the market expansion is driven by the high disposable income of the people of Israel, which portrays a high rate of private vehicle ownership in the country. As a result, the escalating vehicle fleet is playing a crucial role in augmenting the demand for tires and driving the market.
Besides, as the country is also rich in diamonds and practices numerous excavation activities, the surging need for heavy equipment is positively influencing the demand for robust tires for stability, reliability, & greater operational efficiency.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Region Covered||East, West|
|Key Companies Profiled||Alliance Tires, Giti, Bridgestone, Continental, Hankook, Michelin, Pirelli, Toyo, Sumitomo, Goodyear Tire, Shandong Hengfeng Rubber & Plastic Co., Ltd.|
|Unit Denominations||USD Million/Billion|
Moreover, the rising population levels are instigating the government of Israel to develop a well-structured housing infrastructure, i.e., leading to numerous ongoing & upcoming construction projects across the residential sector across the country. Similarly, the massive influx of tourists & migrants is stimulating the need for a developed commercial sector and, in turn, fueling the construction of airports, shopping malls, railway stations, hotels, restaurants, etc.
Hence, these increasing construction activities across the residential & commercial sectors are soaring the need for commercial vehicles for multiple applications, which, in turn, is propelling the demand for tires and augmenting the overall growth of the tire market in Israel.
Impact of Covid-19 on the Israel Tire Market
The advent of Covid-19 in 2020 severely impacted the automotive & tire industries in Israel and introduced several unprecedented challenges for the leading companies operating in the market. The supply chain disruptions, delivery & production delays, & price fluctuations caused due to the imposition of lockdown & import/export restrictions amidst the crisis introduced massive revenue losses for the leading market players.
However, as Covid-19 cases started decreasing gradually, the government uplifted all movement & trade restrictions, which enabled the market players to resume tire imports to cater to the end-user requirements. Moreover, several companies operating in the Israel Tire Market shifted to digital platforms to sell their products via e-commerce websites & offer door-step delivery & installation to their customers, which promoted the market expansion amidst the crisis in 2020