The tire industry in Botswana is driven mainly by imports since the country does not have manufacturing facilities for tire production. The government is focusing on improving the trade business by laying out favorable policies and enhancing the county's infrastructure, i.e., displaying significant construction & mining activities to attract foreign investments & leading companies for establishing tire production facilities in the country.
The Botswana Tire Market is projected to grow at a CAGR of around 5% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the increasing construction activities toward infrastructural developments in Botswana entwined with favorable government policies associated with the import, production, & distribution of tires across the country.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Dunlop Tyres, MRF Tires, Apollo, Vredestien, Bridgestone Corp., TVS Tires|
|Unit Denominations||USD Million/Billion|
Botswana is rich in diamonds, i.e., a prominent source of income for the country. Hence, the number of mining activities is rapidly escalating in the country and propelling the need for heavy commercial vehicles & mining equipment. Due to this, the demand for robust Off-the-Road tires is mounting and, in turn, fueling the overall growth of the Botswana Tire Market through 2026.
Moreover, swiftly improving road connectivity, coupled with the increasing inclination of people toward private vehicle ownership, are leading to the growing vehicle sales & fleet, which, in turn, is projecting a burgeoning demand for tires through 2026.
Impact of Covid-19 on the Botswana Tire Market
The advent of Covid-19 in 2020 had a decelerating impact on most industries, and the Botswana Tire Market was no exception. The imposition of stringent movement restrictions, lockdown, & travel bans by the government to curb the spread of this dreadful disease resulted in several unprecedented challenges for the market growth.
Cross-border trade barriers led to a temporary halt on tire imports. On the other hand, prominent players observed severe disruptions in the supply chain of raw materials, a shortage of human power, & demand-supply gaps. Additionally, delays in the distribution & production of tires entwined with the shutdown of manufacturing units further introduced massive financial losses to the manufacturers.
However, with the gradual improvement in the pandemic situation, the government uplifted the restrictions & allowed the recommencement of operations associated with the import, distribution, & production of tires after observing a swift decline in the Covid-19 cases. Currently, the leading players are witnessing significant growth opportunities & have raised their demand for tire imports to meet the burgeoning consumer requirements across the country.
Based on the Demand Type:
Amongst both, the Replacement demand is anticipated to demonstrate the fastest growth in the Botswana Tire Market during 2021-26. It owes principally to the growing import of tires in Botswana due to favorable government policies and the unavailability of manufacturing units of prominent tire companies, i.e., leading to the dominance of replacement tires.
Besides, the availability of an extensive range of tires of multiple brands & budgets is another aspect projected to play a crucial role in stimulating the growth of the replacement market during the forecast period. Moreover, increasing penetration of low-cost Chinese tires in the country, especially among the cost-sensitive population, would further propel the replacement demand and boost the overall market growth in the coming years.
Based on Type of Tires:
Here, Bias tires dominated the Botswana Tire Market with the largest share in the previous years. It attributes principally to their benefits, such as multiple rubber layers that overlap each other & provide resistance from puncture.
Besides, since bias tires are excellent for carrying heavyweight, their demand has witnessed a notable surge in the previous few years. Moreover, growing construction & mining activities in the country that utilize heavy commercial vehicles & equipment are other prominent aspects behind the mounting adoption of bias tires in Botswana, which, in turn, would augment the overall market growth in the coming years.
Key Driver: Increasing Mining Activities toward Procuring Diamonds in Botswana
Botswana has a significant amount of diamonds, which contribute significantly to the country's economy. Hence, the government is projecting several mining activities for the procurement of diamonds, for which there's a burgeoning demand for heavy commercial vehicles & mining equipment.
As a result, the need for robust tires for those equipment & vehicles is escalating swiftly and driving the Botswana Tire Market. Additionally, the growing awareness about timely vehicle & tire safety & maintenance is another crucial aspect projected to continue boosting the demand for tires across the country.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Botswana Tire Market is projected to grow at a CAGR of around 5% during 2021-26.
A. Bias Tires are anticipated to emerge as an area of remunerative opportunities for the leading players in the Botswana Tire Market during the forecast period.
A. The increasing mining activities for procuring diamonds in Botswana, i.e., displaying a growing need for heavy commercial vehicles & mining equipment, are the key factors projected to drive the Botswana Tire market in the coming years.
A. In the coming years, the Botswana Tire Market is anticipated to witness steady growth due to rapid construction & mining activities, i.e., propelling the need for different construction vehicles & mining equipment and surging the production & sales of tires.