The tire industry across the Gulf was driven formerly by imports, with massive penetration of Chinese tires owing to their easy availability & affordability. However, over recent years, the region has been witnessing an increasing establishment of new automakers & tire manufacturers.
The GCC tire industry offers the assurance of high-quality tires with superior durability, owing to which their demand is escalating swiftly. Hence, its growth prospect in gulf countries is highly opportunistic for the leading tire manufacturers over the coming years.
The GCC Tire Market is projected to grow at a CAGR of around 4.8% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the rapidly increasing vehicle sales across the GCC region, owing prominently to the improving economy, changing living standards, & growing preference for private vehicle ownership, i.e., propelling the demand for vehicles and directly impacting the tire market.
Besides, the mounting focus of governments of different countries across the region on infrastructural developments is displaying a rapid acceleration in construction projects, i.e., surging the need for heavy vehicles and, as a result, for tires. It is instigating tire manufacturers to increase their production capacities and meet the increasing end-user requirements, thereby driving the market. Moreover, favourable government policies are playing a vital role in attracting foreign investments, establishing new production facilities, & enhancing the import & export business of tires & automobiles.
Furthermore, with the mounting influx of tourism, pilgrims, & migrants across the GCC, the construction of residential complexes, hotels, shopping malls, highways, & airports, among others, is also escalating swiftly. It, in turn, is augmenting the demand for heavy construction equipment and positively influencing the tire market across the GCC region.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||GCC: UAE, Saudi Arabia, Oman, Qatar, Bahrain, Kuwait|
|Key Companies Profiled||Hankook, Bridgestone, Goodyear, Michelin, Continental, Toyo, Kumho, Apollo, Dunlop|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the GCC Tire Market
The advent of Covid-19 in 2020 had a decelerating effect on most industries across the GCC, yet the tire industry witnessed moderate impacts. With the imposition of stringent movement restrictions & lockdowns, the leading players in the market observed several challenges associated with the development & distribution of tires.
International travel & trade were put on a temporary halt, and the influx of migrants & tourism substantially declined and caused severe economic fluctuations. Besides, the hampered transportation & logistics sector resulted in the delayed or canceled deliveries of pre-produced tires.
Moreover, the disruptions in the supply chain of raw materials, shortage of labor, demand-supply gaps, & shut down of manufacturing units, among others, were other prominent challenges that introduced massive revenue losses for the leading players in the GCC Tire Market.
However, since the economy of GCC countries relies immensely on the construction sector, governments of some countries allowed its operations amidst the crisis, which fueled the demand for heavy vehicle & construction equipment and, consequently, for tires.
With the gradual improvement in the pandemic situation, governments uplifted the restrictions and allowed the recommencement of market operations. As a result, the leading players increased their production capacities to meet the burgeoning tire demand across the region. Currently, they are working on introducing new product lines to expand their visibility & contribute to the recovery of the market growth.
Based on the Vehicle Type:
Here, Passenger Cars are projected to display the fastest growth in the GCC Tire Market during the forecast period. It owes principally to their growing sales due to the swiftly improving economic status, changing living standards, and a surging inclination toward private ownership of vehicles, thereby expanding the vehicle fleet and directly impacting the tire market across GCC.
Besides, better road connectivity & network across cities are also augmenting the adoption of vehicles for transportation. Moreover, favorable government policies are attracting substantial foreign manufacturers of tires to establish their manufacturing facilities across GCC and offer an extensive range of tires & vehicles to consumers.
Furthermore, the growing influx of migrants & tourists is another prominent aspect fueling the sales of passenger vehicles for commercial use like cabs, taxis, etc., thereby positively influencing the GCC Tire Market through 2027.
Geographically, the GCC Tire Market expands across:
Of all countries across the GCC region, the UAE is more likely to display the fastest growth in the Tire Market during 2022-27, owing principally to the mounting demand for tires due to the increasing vehicle fleet in the country. It is generating lucrative growth opportunities for the leading players to increase their production capacities & fuel the overall market growth in the coming years.
Besides, rapidly increasing construction activities due to the growing government focus on infrastructural developments, in line with Vision 2030, are infusing the demand for heavy commercial vehicles & construction equipment and, in turn, propelling the demand for tires in the country.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The GCC Tire Market is projected to grow at a CAGR of around 4.8% during 2022-27
A. Medium & Heavy Commercial Vehicle is anticipated to emerge as an area of remunerative opportunities for the leading players in the GCC Tire Market during the forecast period.
A. Increasing construction activities and expanding vehicle fleet across the GCC region are anticipated to generate remunerative growth opportunities for the leading players to increase production and drive the GCC Tire Market through 2027.