Off-the-Road (OTR) tires are designed specifically for delivering higher traction on uneven & rough surfaces while enhancing the overall vehicle performance. Benefits like high heat & rolling resistance, greater mobility, & durability, among others, coupled with the massive construction industry, are the key reasons behind the burgeoning penetration of OTR tires across the Middle East.
The Middle East Off-the-Road (OTR) Tire Market is projected to grow at a CAGR of more than 9% during the forecast period, i.e., 2022-27. The major market expansion attributes to the growing focus of governments of different countries across the region on infrastructural developments for economic diversification away from oil & gas. It, in turn, is leading to numerous ongoing construction activities and mounting demand for vehicles like trucks, excavators, bulldozers, etc., thereby boosting the demand for OTR tires.
Besides, governments are also laying out favorable policies to attract foreign investments & leading players for establishing OTR tire manufacturing units to cater to the burgeoning end-user requirements. Moreover, the exponentially rising population & the growing influx of migrants, tourists, and pilgrims into the Middle East are playing a crucial role in instigating the need for up-gradation in the commercial sector for better hospitality, coupled with developments in the residential sector. As a result, the mounting demand for OTR vehicles is promoting the market expansion for OTR tires across the region.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Country Covered||Saudi Arabia, UAE, Qatar, Kuwait, Turkey, Rest of Middle East|
|Key Companies Profiled||
Goodyear, Bridgestone, Continental, Zhongce Rubber, Kumho, Toyo, Yokohama, Trelleborg, Triangle Group
|Unit Denominations||USD Million/Billion|
Additionally, growing awareness among vehicle owners about the significance & benefits of timely replacement of tires to ensure passenger & vehicle safety and enhance operational efficiency is another prominent aspect fueling the overall market growth. Furthermore, various government initiatives for encouraging the adoption of automated machinery across different industries to enhance productivity are also escalating the demand for OTR tires and driving the market. Nonetheless, the emerging trend of dirt bikes & sports vehicles for recreational purposes across the region further projects remunerative growth prospects for the Middle East Off-the-Road (OTR) Tire Market in the years to come.
Impact of Covid-19 on the Middle East Off-the-Road (OTR) Tire Market
The automotive & tire sectors witnessed severe impacts of the Covid-19 pandemic in 2020, which led to several unprecedented challenges for the leading players in the Middle East Off-the-Road (OTR) Tire Market. The lockdowns & strict movement restrictions imposed by governments of different countries across the region resulted in the suspension of all business operations associated with the tire industry. As a result, the leading OTR tire manufacturers faced massive revenue losses due to less availability of raw materials, price fluctuations, delivery & production delays, & supply chain disturbances amidst the crisis.
Yet, as construction is a prominent source of economic fluidity across the Middle East, governments did not suspend these operations in many countries, which, in turn, surged the demand for OTR vehicles & their tires for various construction operations.
Furthermore, as Covid-19 cases started diminishing gradually, it helped OTR tire manufacturers resume their usual business operations to cater to the end-user requirements. Moreover, in light of the pandemic, most OTR tire manufacturers have adopted e-commerce platforms to sell their products online & provide quick delivery & installation to their customers.