Market Definition
The tire industry in Israel is highly import-driven and depends on countries like the US, Germany, & China, among others, to cater to consumer requirements for tires. As the country is prosperous, the government is investing substantially in the development of the tire industry and laying out favorable policies for attracting foreign investments in the establishment of tire manufacturing facilities, which projects remunerative growth prospects for the tire market across Israel in the coming years.
Market Insights
The Israel Tire Market is projected to grow at a CAGR of around 4.6% during the forecast period, i.e., 2022-27. Most of the market expansion is driven by the high disposable income of the people of Israel, which portrays a high rate of private vehicle ownership in the country. As a result, the escalating vehicle fleet is playing a crucial role in augmenting the demand for tires and driving the market.
Besides, as the country is also rich in diamonds and practices numerous excavation activities, the surging need for heavy equipment is positively influencing the demand for robust tires for stability, reliability, & greater operational efficiency.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) | 4.6% |
| Region Covered | East, West |
| Key Companies Profiled | Alliance Tires, Giti, Bridgestone, Continental, Hankook, Michelin, Pirelli, Toyo, Sumitomo, Goodyear Tire, Shandong Hengfeng Rubber & Plastic Co., Ltd. |
| Unit Denominations | USD Million/Billion |
Moreover, the rising population levels are instigating the government of Israel to develop a well-structured housing infrastructure, i.e., leading to numerous ongoing & upcoming construction projects across the residential sector across the country. Similarly, the massive influx of tourists & migrants is stimulating the need for a developed commercial sector and, in turn, fueling the construction of airports, shopping malls, railway stations, hotels, restaurants, etc.
Hence, these increasing construction activities across the residential & commercial sectors are soaring the need for commercial vehicles for multiple applications, which, in turn, is propelling the demand for tires and augmenting the overall growth of the tire market in Israel.
Impact of Covid-19 on the Israel Tire Market
The advent of Covid-19 in 2020 severely impacted the automotive & tire industries in Israel and introduced several unprecedented challenges for the leading companies operating in the market. The supply chain disruptions, delivery & production delays, & price fluctuations caused due to the imposition of lockdown & import/export restrictions amidst the crisis introduced massive revenue losses for the leading market players.
However, as Covid-19 cases started decreasing gradually, the government uplifted all movement & trade restrictions, which enabled the market players to resume tire imports to cater to the end-user requirements. Moreover, several companies operating in the Israel Tire Market shifted to digital platforms to sell their products via e-commerce websites & offer door-step delivery & installation to their customers, which promoted the market expansion amidst the crisis in 2020
Market Segmentation
Based on the Type of Tire:
Of both, radial tires are anticipated to dominate the Israel Tire Market with the largest share during 2022-27. It attributes principally to the mounting awareness among vehicle owners about their benefits like flexible sidewalls, low rolling resistance, reduced fuel consumption, & superior vehicle stability in different road conditions.
Besides, with ply placement & flexible structure, radial tires offer more safety and reduced vibrations to vehicles. Hence, the demand for these tires is rising rapidly among vehicle owners and contributing significantly to the expansion of the tire industry in Israel.
Based on the Type of Vehicle:
Here, passenger cars and medium & heavy commercial vehicles are the prominent contributors to the expanding Israel Tire Market, principally due to Israel's economy gradually becoming stable, i.e., showcasing a higher per capita income of its dense population and a greater inclination toward private ownership of vehicles for local commute. It, in turn, is flashing a rise in the passenger car fleet and positively influencing the demand for tires in the country.
Besides, the growing influx of tourists & pilgrims in Israel due to Jerusalem being a prominent attraction is augmenting the need for passenger cars for cab & taxi services. Since these applications demonstrate longer driving hours and quicker wear & tear of tires, it is propelling the demand for robust tires and stimulating the overall growth of the tire industry in Israel.
Moreover, this expanding tourism in the country is instigating significant developments in the commercial sector, including various construction projects associated with hotels, airports, railway stations, restaurants, etc. It, in turn, is surging the demand for medium & heavy commercial vehicles and their tires, thereby projecting profitable prospects for the market growth through 2027.
Based on the Demand Category:
Among these two, aftermarket tires are expecting the largest market share through 2027. It owes to the growing consumer awareness about the benefits & importance of timely inspection, repairs, & replacement of tires to ensure utmost safety for both vehicles & passengers and enhance the driving experience.
Besides, since the country lacks the presence of OEMs (Original Equipment Manufacturers) and is highly import-driven with the prevalence of tires from China, the US, Germany, etc., aftermarkets are scaling rapidly across the country. Moreover, with a wide range of options to choose from different brands, budgets, features, etc., more and more people are inclining toward aftermarket tires and augmenting the overall growth of the tire industry in Israel.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Israel Tire Market is projected to grow at a CAGR of around 4.6% during 2022-27.
A. Increasing construction activities leading to the mounting demand for commercial vehicles, coupled with the rise in passenger car fleet on account of the growing consumer inclination toward private ownership of vehicles, are the prominent aspects projected to drive the Israel Tire Market during 2022-27.
A. The immense support from the government through favorable policies for attracting foreign investments in the establishment of tire manufacturing facilities across the country is a key trend in the Israel Tire Market.
A. Passenger cars and medium & heavy commercial vehicles are anticipated to emerge as an area of remunerative opportunities for the leading players in the Israel Tire Market over the forecast years.
