Egypt Tire Market Research Report Forecast: (2021-2026)

Market Overview

Over a few years, Egypt's tire industry has been witnessing a steady growth rate, owing to the growing adoption of vehicles across Egypt and rising consumer awareness about the importance & benefits of timely inspection & replacement of tires for utmost safety & enhanced driving experience. As a result, numerous foreign investments are portraying a swift escalation in the establishment of various automakers & growing import business of tires in the country.

Market Insights

The Egypt Tire Market is projected to grow at a CAGR of around 8% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the increasing disposable income of people and their growing inclination toward private vehicle ownership. Thus, the mounting vehicle fleet is positively influencing the growth of the tire industry in Egypt. 

In addition, the increasing government focus on infrastructural development, i.e., leading to various ongoing construction projects, is propelling the requirement for many Light, Medium, & Heavy commercial vehicles. It, in turn, is infusing the massive production & sales of robust OTR tires and driving the market. 

Besides, with the automotive sector being the prominent pillar of Egypt's industrial developments, the government is laying out favorable policies in order to attract foreign investments toward establishing as many automotive & tire manufacturing units in the country. Such aspects are likely to bolster the overall market growth through 2027. 

Moreover, with only a few prominent tire manufacturers across Egypt, the country is dependent mainly on tire imports to meet the burgeoning consumer requirements. Hence, it is another aspect generating growth prospects for the leading players to tap the opportunities offered in the trade business and drive the Egypt Tire Market in the years to come.

Key Trend in the Egypt Tire Market

• Growing Penetration of Electric Vehicles 

With the alarming emission levels and growing encouragement by the government of Egypt to curb them, the growing adoption of Electric Vehicles (EVs) is emerging as a key trend in the country. WIth this swift escalation in EV sales, the leading players in the market are witnessing growth opportunities for developing EV-compatible tires and meet the burgeoning consumer requirements.

Impact of Covid-19 on the Egypt Tire Market

The advent of Covid-19 in 2020 had a decelerating effect on most industries across Egypt, and the Tire Market was no exception and underwent a significant decline. While the government had to impose stringent movement restrictions & lockdowns to curb the spread of this dreadful disease, the leading players observed massive financial losses amidst the crisis.

As the government suspended operations, the market witnessed supply chain disruptions, unavailability of raw materials, delays in deliveries of pre-produced goods, project cancellations, & price fluctuations, among others. However, with the gradual improvement in the pandemic situation demonstrating a declining number of Covid-19 cases, restrictions were uplifted & business operations got recommenced as usual.

Yet, the public still had concerns over the spread of the disease, owing to which many were hesitant to purchase tires from physical stores. As a result, several prominent leaders shifted to online platforms and started offering an extensive range of tires with easy availability, doorstep deliveries & installation, discounts, etc.

It, in turn, helped manufacturers expand their product portfolio, visibility, and customer base throughout the country and recover from the losses that occurred amidst the crisis, which projects remunerative prospects for the tire market in the coming years.

Market Segmentation

Based on the Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles (LCV)
• Medium & Heavy Commercial Vehicles
• Two Wheelers
• Off the Road (OTR)

Amongst them all, Passenger cars are anticipated to dominate the Egypt Tire Market with the largest share during 2021-26. It owes principally to the rapidly growing consumer interest in private ownership of vehicles, coupled with improving road connectivity across the country, which, in turn, is demonstrating a swift escalation in the vehicle fleet and mounting demand for tires.

Besides, the growing establishment of automakers & tire manufacturers across the country is also playing a crucial role in instigating the sales of passenger cars across the country and fueling the demand for tires. Moreover, the rising penetration of cab services is another prominent aspect augmenting passenger car sales for commercial purposes and, in turn, surging the demand for tires.

Based on the Demand Type:

• OEM 
• Replacement

Here, the Replacement demand type is anticipated to dominate the market with the largest share during 2021-26, principally due to the growing consumer awareness about the benefits of timely tire repairs & replacement to increase the overall vehicle life.

Besides, the easy availability of an extensive range of tires of different brands, budgets, & features is another notable aspect augmenting the demand for replacement tires and boosting the market. Furthermore, as the tire industry in Egypt relies largely on imports from different countries, the rapidly burgeoning sales of replacement tires would stimulate the overall market growth during the forecast period.

Growth Restraint

• Fluctuating Prices of Raw Materials

As prices of raw materials like crude & rubber are volatile, it makes it difficult for tire manufacturers to produce & provide tires at fixed rates, which might restrain the fledged growth of the Egypt Tire Market during the forecast period.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Egypt Tire Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Egypt Tire Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Egypt Tire Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Egypt Tire Market study?