The tire industry in Kuwait is highly import-driven due to the absence of any manufacturing facilities across the country. Hence, it imports tires from countries like China, India, Japan, Thailand, and others to cater to the growing vehicle fleet in the country. The government of Kuwait is also supporting the expansion of the tire industry through massive funding and favorable policies to attract foreign investments for the establishment of tire manufacturing facilities in the country.
The Kuwait Tire Market is projected to grow at a CAGR of around 6% during the forecast period, i.e., 2022-27. As Kuwait is amongst the richest countries with a majority of the urban population, the purchasing power of people & their inclination toward private ownership of vehicles is rising rapidly and demonstrating a swift escalation in the vehicle fleet. It, in turn, is augmenting the demand for tires and driving the market.
Additionally, as the government is focusing on infrastructural developments and portraying several construction projects across the commercial, residential, & industrial sectors, it, in turn, is augmenting the need for various construction equipment & commercial vehicles and positively impacting the demand for tires. Besides, growing consumer awareness about the benefits & need for timely inspection, repairs, replacement, & maintenance of tires to ensure passenger & vehicle safety and enhance driving experience are other crucial factors propelling the growth of the Kuwait Tire Market.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Region Covered||Jahra, Asima, Farwaniya, Hawalli, Ahmadi|
|Key Companies Profiled||Continental, Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Sumitomo, Kumho, Pirelli, Toyo|
|Unit Denominations||USD Million/Billion|
Furthermore, construction projects like Kuwait International Airport Expansion, Jahra Road Development, Kuwait National Rail Network Expansion, & Kuwait National Railroad, among others, further indicate the accelerating growth of the tire industry in Kuwait through 2027.
Impact of Covid-19 on the Kuwait Tire Market
The automotive & tire sectors witnessed severe impacts of the Covid-19 pandemic in 2020, which led to several unprecedented challenges for the leading players in the Kuwait Tire Market. The imposition of lockdown & stringent movement restrictions by the government resulted in the suspension of all business operations associated with the industry.
As a result, the prominent tire manufacturers faced massive financial losses due to unavailability of raw materials, disruptions in the supply chain, delays in delivery & production, & price fluctuations amidst the crisis.
However, as Covid-19 cases started subsiding gradually, restrictions were uplifted, which allowed the recommencement of different business operations. It, in turn, helped tire manufacturers resume their usual workflow to cater to the requirements of end-users. Moreover, in light of the pandemic, most tire manufacturing companies adopted digital platforms to sell their products through e-commerce websites and offer door-step delivery & installation to their customers.
Based on the Type of Vehicle:
Amongst them all, passenger cars are anticipated to dominate the Kuwait Tire Market with the largest share during 2022-27. It attributes principally to the swiftly improving living standard of people & their increasing interest in private vehicle ownership for local commute, which, in turn, is demonstrating an elevation in the passenger car fleet & fueling the demand for tires across the country.
Besides, growing awareness among people about the importance of timely replacement of tires for better safety & driving experience is another crucial aspect anticipated to propel the demand for tires for passenger cars. As a result, the leading players are extending their import & distribution capacities to meet the mounting end-user requirements for passenger car tires, which would stimulate the overall market growth over the forecast years.
Based on the Type of Tire:
Here, radial tires are anticipated to witness the highest demand across Kuwait and acquire the largest market share through 2027. It owes to the growing awareness among vehicle owners about the benefits of radial tires like flexible sidewalls, stable surface contact, reduced fuel consumption & rolling resistance, and greater efficiency in different construction operations, i.e., leading to the surging demand for these tires in various medium & heavy commercial vehicles across the country.
Besides, with the increasing passenger car fleet in the country and the swift expansion of the logistics sector surging the demand for light commercial vehicles, the demand for radial tires is expected to accelerate at a rapid pace and, in turn, boost the Kuwait Tire Market in the years to come.
Possible Growth Restraint for the Kuwait Tire Market
With the growing awareness among people about the timely replacement of tires for utmost safety & improved driving experience entwined with the easy availability of low-cost Chinese tires, the demand for tires of premium brands is declining rapidly and hindering the expansion of the Kuwait Tire Market.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Kuwait Tire Market is projected to grow at a CAGR of around 6% during 2022-27.
A. Rapidly growing construction activities in the country, i.e., surging the demand for medium & heavy commercial vehicles, coupled with the mounting sales of passenger cars owing to improving living standards of people, are the prominent factors projected to drive the Kuwait Tire Market through 2027. On the other hand, the easy availability of low-cost Chinese tires, i.e., affecting the sales of premium tires & the expansion of prominent players, might hamper the fledged growth of the tire industry in Kuwait over the forecast years.
A. The growing inclination of people toward timely replacement of tires to ensure both passenger & vehicle safety and enhance the overall driving experience is the key trend in the Tire Market across Kuwait.
A. Passenger cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the Kuwait Tire Market over the forecast years.