Namibia's automotive & tire industries are undergoing significant developments and expect steady growth in the near future. Since the country has only a few prominent tire manufacturers, the tire industry is mainly import-driven. In addition to this, with superior road infrastructure, Namibia is experiencing a swift acceleration in the vehicle fleet, which, in turn, would generate lucrative opportunities for tire manufacturers and promote the overall growth of the tire industry in the coming years.
The Namibia Tire Market is projected to grow at a CAGR of around 4% during the forecast period, i.e., 2021-26. The market growth is likely to be driven principally by the high-income population group and the growing consumer inclination toward private vehicle ownership, i.e., leading to a rising vehicle fleet and increasing demand for tires in the country. In addition, the immense government focus on infrastructural developments is also showcasing a growing number of vehicles on roads and, in turn, positively influencing the market growth across Namibia.
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Bridgestone Corporation, Continental, Sumitomo Rubber Co., Goodyear, Michelin, Pirelli, CST Tires|
|Unit Denominations||USD Million/Billion|
Besides, since the automotive & tire industry of the country is highly import-driven, the easy & extensive availability of tires is attracting a massive consumer base and stimulating the overall market growth. Furthermore, as vehicles have become a necessity for people instead of luxury, the sales of second-hand cars are also escalating swiftly, i.e., augmenting the need for timely repairs & replacement of tires and, in turn, driving the Namibia Tire Market.
Impact of Covid-19 on the Namibia Tire Market
The advent of Covid-19 in 2020 had a decelerating effect on most businesses across Namibia, including the tire industry. Due to the severity of the pandemic, the government imposed stringent movement restrictions & lockdowns to curb the spread of this disease. With this, the leading players in the tire market witnessed several unprecedented challenges associated with the trade & distribution of tires across the country. Moreover, the unavailability of raw materials, delivery delays, and fluctuating prices of raw materials like rubber, etc., brought massive revenue losses for the industry players.
Nonetheless, with the gradually declining number of Covid-19 cases, the government uplifted the restrictions & allowed the recommencement of business operations. As a result, the leading players in the market resumed imports, distribution, and other business operations throughout the country to recover from losses that occurred amidst the crisis.
Based on the Vehicle Type:
Amongst all vehicle types, passenger cars are expected to dominate the Namibia Tire Market with the largest share during 2021-26. It attributes principally to the growing inclination of the people toward private ownership of vehicles, which, in turn, is demonstrating growth in the passenger car fleet and a burgeoning requirement for tires across the country.
Besides, the increasing penetration of ride-hailing services is another aspect gaining swift traction in the market & stimulating the production & sales of passenger cars for commercial applications. As a result, the need for timely tire repairs & replacements is rising and positively impacting the tire industry in Namibia. Moreover, the country is also showcasing a growing adoption of second-hand passenger cars for everyday traveling, which, in turn, is portraying more frequent tire replacements and significant market expansion in the years to come.
Based on the Demand Type:
Here, Replacement tires acquired the largest market share in the previous few years, and the same trend is expected through 2026. It owes to the automotive & tire industries of the country, which are highly import-driven and offer an extensive range of tires for vehicle owners. Besides, the easy availability & affordability of replacement tires, coupled with the growing consumer awareness about the various benefits of timely repairs & replacement of tires, are also stimulating the overall market growth. It, in turn, is further creating lucrative prospects for the leading players to increase their import & distribution capacities across the country and contribute to the overall market expansion over the forecast years.
Furthermore, the growing adoption of second-hand vehicles and the increasing proliferation of ride-hailing services are leading to an escalating need for frequent tire replacements, owing to longer driving hours and rapid wear & tear. Consequently, the demand for affordable & durable tires is rising rapidly and boosting the overall growth of the tire market across Namibia.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Namibia Tire Market is projected to grow at a CAGR of around 4% during 2021-26.
A. The rapidly growing vehicle fleet, owing to the increasing buying power of people & their mounting inclination toward private vehicle ownership, coupled with rising penetration of second-hand vehicles, are the most prominent factors projected to drive the Namibia Tire Market through 2026.
A. The rising public interest in adopting second-hand vehicles, i.e., positively impacting the demand for tires, is a key trend benefitting the Tire Market in Namibia.
A. Passenger cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the Namibia Tire Market over the forecast years.