Market Definition
Off-the-Road (OTR) tires are designed specifically for delivering higher traction on uneven & rough surfaces while enhancing the overall vehicle performance. Benefits like high heat & rolling resistance, greater mobility, & durability, among others, coupled with the massive construction industry, are the key reasons behind the burgeoning penetration of OTR tires across the Middle East.
Market Insights
The Middle East Off-the-Road (OTR) Tire Market is projected to grow at a CAGR of more than 9% during the forecast period, i.e., 2022-27. The major market expansion attributes to the growing focus of governments of different countries across the region on infrastructural developments for economic diversification away from oil & gas. It, in turn, is leading to numerous ongoing construction activities and mounting demand for vehicles like trucks, excavators, bulldozers, etc., thereby boosting the demand for OTR tires.
Besides, governments are also laying out favorable policies to attract foreign investments & leading players for establishing OTR tire manufacturing units to cater to the burgeoning end-user requirements. Moreover, the exponentially rising population & the growing influx of migrants, tourists, and pilgrims into the Middle East are playing a crucial role in instigating the need for up-gradation in the commercial sector for better hospitality, coupled with developments in the residential sector. As a result, the mounting demand for OTR vehicles is promoting the market expansion for OTR tires across the region.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR(2022-27) | 9% |
| Country Covered | Saudi Arabia, UAE, Qatar, Kuwait, Turkey, Rest of Middle East |
| Key Companies Profiled |
Goodyear, Bridgestone, Continental, Zhongce Rubber, Kumho, Toyo, Yokohama, Trelleborg, Triangle Group |
| Unit Denominations | USD Million/Billion |
Additionally, growing awareness among vehicle owners about the significance & benefits of timely replacement of tires to ensure passenger & vehicle safety and enhance operational efficiency is another prominent aspect fueling the overall market growth. Furthermore, various government initiatives for encouraging the adoption of automated machinery across different industries to enhance productivity are also escalating the demand for OTR tires and driving the market. Nonetheless, the emerging trend of dirt bikes & sports vehicles for recreational purposes across the region further projects remunerative growth prospects for the Middle East Off-the-Road (OTR) Tire Market in the years to come.
Impact of Covid-19 on the Middle East Off-the-Road (OTR) 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 Middle East Off-the-Road (OTR) Tire Market. The lockdowns & strict movement restrictions imposed by governments of different countries across the region resulted in the suspension of all business operations associated with the tire industry. As a result, the leading OTR tire manufacturers faced massive revenue losses due to less availability of raw materials, price fluctuations, delivery & production delays, & supply chain disturbances amidst the crisis.
Yet, as construction is a prominent source of economic fluidity across the Middle East, governments did not suspend these operations in many countries, which, in turn, surged the demand for OTR vehicles & their tires for various construction operations.
Furthermore, as Covid-19 cases started diminishing gradually, it helped OTR tire manufacturers resume their usual business operations to cater to the end-user requirements. Moreover, in light of the pandemic, most OTR tire manufacturers have adopted e-commerce platforms to sell their products online & provide quick delivery & installation to their customers.
Market Segmentation
Based on the Type of Tire:
Amongst both, Radial tires are anticipated to demonstrate the fastest growth in the Middle East Off-the-Road (OTR) Tire Market during 2022-27. It attributes principally to the mounting consumer awareness about the benefits of these tires to offer better control, enhanced durability & fuel efficiency, and massive load-carrying capacity.
Besides, as most regional countries are highly import-driven in terms of their tire requirements, the rising need for radial OTR tires is encouraging the leading manufacturers to boost their distribution capacities & imports in order to meet the surging consumer demand across the region.
Based on the Type of Vehicle:
Here, Earthmoving & Construction Equipment is anticipated to dominate the market with the largest share over the forecast years. It owes principally to the rapidly increasing number of construction activities across different regional countries due to the growing government focus on infrastructural developments in line with their strategic plan for economic diversification away from oil.
As a result, the increasing production of different earthmoving & construction equipment like excavators, backhoe loaders, crawler loaders, bulldozers, motor graders, dump trucks, etc., is driving the demand for OTR tires across the Middle East.
Besides, as the region is rich in oil & gas, it is also undergoing mining, excavation, & exploration activities, which adds up as another prominent aspect attributing to the growing requirement for these vehicles & OTR tires. Hence, in the coming years, the Middle East Off-the-Road (OTR) Tire is set to witness a notable upswing.
Country Landscape
Geographically, the Middle East Off-the-Road (OTR) Tire Market expands across:
`Of all countries across the Middle East, the UAE is anticipated to demonstrate the fastest market growth in the coming years. It owes to the increasing government focus on infrastructural development to diversify the economy aware from oil in the view of UAE Vision 2030. It, in turn, is portraying massive investments in different industries, including the automotive & tire sectors. Additionally, the government is also imposing favorable policies to attract foreign investments in order to establish more automobile & tire manufacturing facilities across the country to meet the burgeoning demand for OTR tires.
Besides, the increasing number of construction, mining, and industrial activities in the country is also propelling the demand for OTR vehicles and directly impacting the requirement for OTR tires. Moreover, with the mounting influx of tourists, pilgrims, & migrants in the UAE, the government is extensively focusing on expanding the commercial sector, i.e., displaying several construction projects related to shopping malls, airports, railway stations, hotels, restaurants, etc., and, as a result, infusing the demand for OTR vehicles & tires.
Furthermore, the exponentially rising population across the UAE is also well-contributing to the growing need for developing & upgrading the residential sector and constructing new housing complexes & smart cities. As a result, the surging requirements for heavy vehicles & construction equipment is leading to the burgeoning demand for OTR tires and, in turn, boosting the Middle East Off-the-Road (OTR) Tire Market across the UAE.
Market Dynamics
Key Driver: Increasing Construction Activities for Economic Diversification
Various ongoing & upcoming construction projects owing to the mounting focus of governments on infrastructural developments for economic diversification away from the oil & gas sector, are driving the Middle East Off-the-Road (OTR) Tire Market through 2027.
Possible Restraint: Absence of Manufacturing Facilities
The unavailability of automobile & tire manufacturing units & OEMs across the region is the key aspect likely to hamper the sales of OTR tires and, in turn, restrain the fledged growth of the Middle East Off-the-Road (OTR) Tire Market over the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Middle East Off-the-Road (OTR) Tire Market is projected to grow at a CAGR of more than 9% during 2022-27.
A. Across the Middle East, increasing construction activities for diversifying the economy away from oil are driving the Off-the-Road (OTR) Tire Market. On the other hand, the absence of automobile & OTR tire manufacturing facilities & OEMs might restrain the growth of the market over the forecast years.
A. Growing government focus on the construction of smart cities entwined with the popularity of dirt bikes & sports vehicles is the key trend in the Middle East Off-the-Road (OTR) Tire Market.
A. Earthmoving & Construction Equipment would emerge as an area of remunerative opportunities for the leading players in the Middle East Off-the-Road (OTR) Tire Market over the forecast years.
