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 & Analysis: Africa Tire Market (2023-28)
The Africa Tire Market is projected to grow at a CAGR of around 5.5% during the forecast period, i.e., 2023-28. 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.
|Study Period||Historical Data: 2018-21|
|Base Year: 2022|
|Forecast Period: 2023-28|
|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 2028.
Based on the Vehicle Type:
Amongst them all, passenger cars are projected to dominate the Africa Tire Market with the largest share during 2023-28. It attributes principally to improved living standards of people & their mounting inclination toward private vehicle ownership for their daily commute, i.e., portraying a rapid surge in the vehicle fleet and, consequently, tire production & sales. Besides, the growing adoption of second-hand cars, especially by the cost-sensitive & middle-class population across different regional countries, is also driving the tire industry for passenger cars in Africa.
Moreover, the increasing penetration of taxi/cab services is another prominent aspect promulgating the adoption of passenger cars for commercial applications and, as a result, promoting tire sales. Furthermore, the growing government focus on improving road connectivity shall further boost the sales of passenger cars and, in turn, positively influence the tire industry in Africa over the coming years.
Based on the Demand Category:
Of two, the aftermarket is anticipated to dominate the Africa Tire Market with the largest share during 2023-28. It attributes principally to the growing number of vehicle owners & mounting awareness among them about the benefits of aftermarket tires, such as easy availability, extensive options, different budgets, etc. Besides, the increasing awareness among vehicle owners about the timely inspection of tire conditions, i.e., leading to frequent tire replacements, is another aspect propelling the sales of aftermarket tires, which, in turn, project a pool of profitable opportunities for the overall market growth through 2028
Geographically, the Africa Tire Market expands across:
Amongst all countries across Africa, South Africa is anticipated to dominate the market with the largest share during 2023-28. The increasing trade agreements are aiding South Africa in establishing itself as an innovative tire production hub across Africa. Besides, APDP (Automotive Production & Development Program) launched by South Africa is another prominent aspect projected to expand its tire industry in the coming years.
Moreover, various ongoing & upcoming construction projects, coupled with the rapidly expanding transportation & logistics sectors, are infusing the need for commercial vehicles & positively influencing the demand for tires for better operational efficiency & safer driving. Hence, these aspects project lucrative prospects for the tire market in South Africa during the forecast period.
On the other hand, countries like Algeria are likely to significantly contribute to the overall expansion of the tire industry in Africa over the forecast years, owing to the shift of tire manufacturers toward online platforms to sell tires via e-commerce websites.
Besides, since the automotive sector is a prominent pillar of Egypt's economy, the government is bringing favorable policies to attract foreign investments toward establishing automobile & tire manufacturing facilities across the country & bolster the overall growth of the tire market through 2028.
Nonetheless, Nigeria is portraying a swiftly escalating demand for second-hand cars, i.e., leading to increased aftermarket sales owing to frequent tire replacements and, in turn, propelling the tire market growth across the country.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Africa Tire Market is projected to grow at a CAGR of around 5.5% during 2023-28.
A. The rapidly increasing fleet size of both new & second-hand vehicles is the prime aspect projected to drive the Africa Tire Market through 2028.
A. Passenger cars would continue driving lucrative opportunities for the leading players in the Africa Tire Market over the forecast years.