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.
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
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.
Based on the Vehicle Type:
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:
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.
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:
Frequently Asked Questions
A. The Egypt Tire Market is projected to grow at a CAGR of around 8% during 2021-26.
A. Increasing buying power & growing inclination of consumers toward private vehicle ownership, i.e., portraying a significant escalation in the vehicle fleet is the key factor anticipated to drive the Egypt Tire Market during 2021-26. On the other hand, fluctuating prices of raw materials affecting the overall cost of the final product might restrain the growth of the market in the years to come.
A. The mounting government focus on promoting the adoption of EVs across the country to curb the increasing carbon emissions is generating lucrative growth opportunities for the leading players to manufacture EV-compatible tires in the coming years and is the key trend in Egypt Tire Market.
A. Passenger cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the Egypt Tire Market over the forecast years.