Nigeria Two-Wheeler Tire Market Research Report: Forecast (2024-2030)

Market Definition

Two-wheeler tires refer to the specialized tires designed for vehicles with two wheels, such as motorcycles, scooters, bicycles, and mopeds. These tires play a crucial role in providing traction, stability, and control for the rider, making them a critical component of the overall safety and performance of the two-wheeled vehicle.

Market Insights & Analysis: Nigeria Two-Wheeler Tire Market (2024-30):

The Nigeria Two-Wheeler Tire Market size is estimated to grow at a CAGR of around 8.64% during the forecast period, i.e., 2024–30. The Market growth is primarily driven by escalating traffic congestion and the heightened adoption of two-wheelers by urban residents & businesses, among other factors. The escalating issue of traffic congestion in Nigerian cities like Lagos and Kano has become a significant concern in recent years. According to the Danne Institute for Research 2023, residents of Lagos spent an average of 2.21 hours commuting daily, with approximately 45% enduring more than two hours of travel time. Consequently, individuals in these urban areas are opting for alternative modes of transportation, such as two-wheelers, to circumvent the challenges posed by traffic jams. As more people turn to motorcycles and scooters to navigate traffic congestion effectively, the number of these vehicles on the road increases. This upsurge in the usage of two-wheelers creates a heightened demand for tires, both for new vehicles and as replacements for existing ones undergoing wear and tear.

Furthermore, the market for two-wheelers in Nigeria has witnessed a rapid increase, particularly in the commercial sector. The country has seen many companies provide shared mobility services using two-wheelers. Additionally, enterprises such as Chowdeck and Gofood have expanded their food delivery operations throughout Nigeria. These platforms predominantly employ scooters and motorcycles for their delivery services, capitalizing on their convenience and maneuverability. Consequently, the surge in the adoption of two-wheelers for commercial applications has driven a notable uptick in sales across the country. Hence, as the sales of motorcycles are escalating for commercial purposes, they are expected to generate demand for two-wheeler tires in Nigeria. This ultimately is anticipated to augment the size & volume of the Nigeria Two-Wheeler Tire Market during the forecast period.

Nigeria Two-Wheeler Tire Market Driver:

Growing Adoption of Electric Two-Wheelers Driving the Market – Nigeria is battling growing air pollution, energy security concerns, and a gradual increase in carbon emissions. Nigeria has the highest population-weighted annual average PM2.5 concentrations, as per the State of Global Air 2021. To mitigate air pollution & carbon emissions, consumers in the country are increasingly inclined towards electric two-wheelers, as they contribute to a cleaner and greener transportation system. Further, government policies and initiatives aimed at promoting sustainable and eco-friendly transportation owing to reduced oil imports and reduced carbon emissions play a crucial role in the adoption of electric two-wheelers. Incentives such as tax benefits, subsidies, and favorable regulations for electric vehicles encourage consumers to choose electric two-wheelers. As a result, electric two-wheeler manufacturers such as Hero, Revolt, etc. in the country are ramping up their production & expanding their market to Nigeria. For instance,

• In 2024, Spiro, Africa's largest electric vehicle (EV) player, is excited to announce its expansion into Nigeria, introducing innovative electric bikes and advanced battery-swapping technology in Ogun Province.

Hence, increasing production and sales of electric two-wheelers are driving the two-wheeler tire demand from OEM.

Additionally, Nigeria has witnessed a surge in fuel prices attributed to economic reforms that include the elimination of fuel subsidies and opening the market to imported gasoline. This has prompted substantial concern among both citizens and businesses. According to the National Bureau of Statistics, the petrol price increased year-on-year by about 226.75% to around USD0.80/liter in September 2023, from USD0.24/liter recorded in the corresponding period of 2022. The escalating fuel prices directly impact the daily lives of Nigerians, prompting a notable shift towards the adoption of electric two-wheelers. These vehicles, powered by electricity, provide a more stable pricing structure compared to traditional fuels. Consequently, this transition escalates the demand for two-wheeler tires, and it is anticipated to augment the market demand in the forecast period as well. The increased usage of electric two-wheelers is anticipated to result in more frequent tire replacements, driven by the wear and tear associated with their heightened usage.

Nigeria Two-Wheeler Tire Market Challenge:

Growing Illicit Trade of Tires to Hamper Market Growth –  Nigeria is facing a growing issue of the illicit two-wheeler tire trade, marked by deceptive practices like misdeclaration and rerouting to bypass duties. The emergence of such illicit trade is primarily attributed to certain entities and individuals engaging in deceptive practices or opting for alternative routes to avoid the legal obligations and financial responsibilities associated with tire imports. The expanding illicit trade in two-wheeler tires is exacerbating the penetration of counterfeit products in the region and introducing unfair competition across the market. Thus, growing illegal trade activities in Nigeria would significantly impact the market’s future growth & expansion.

Nigeria Two-Wheeler Tire Market Trend:

Increasing Fleet of Ride-Hailing Companies to Support Market Growth – Nigeria has been severely facing traffic congestion issues due to poor road infrastructure. These traffic jams devour nearly half of the daily commute time of individuals. As a result, individuals in the country leave early for work and prefer to use bike taxis for daily commuting purposes. Thus, Nigeria is emerging as a hotbed for ride-hailing app usage. The high usage of bike taxis in the region is resulting in wear and tear of the tires, enhancing the requirement for replacement at frequent intervals. In addition, the growing demand for ride-hailing motorcycle taxis is also leading companies, such as Uber, Bolt, etc., to expand their motorcycle fleets in the country. For instance,

• In 2022, Uber announced the addition of a motorbike section, UberMoto, to its product offering in Nigeria.

Thus, the growing expansion of ride-hailing motorcycle taxis would further generate the demand for tires across the country and augment the size & volume of the Nigeria Two-wheeler Tire Market during the forecast period.

Nigeria Two-Wheeler Tire Market (2024-30): Segmentation Analysis

The Nigeria Two-Wheeler Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the national level. According to the analysis, the market has been further classified as:

Based on Vehicle Type:

• Scooter & Moped
• Motorcycle

The motorcycle segment held a prominent market share due to increasing consumer preference for motorcycles for delivery purposes. The preference for motorcycles in delivery services has been attributed to their more powerful engines, which offer higher speeds and quicker acceleration, enabling efficient navigation through traffic and swift coverage of longer distances. Additionally, motorcycles boast a higher payload capacity, making them suitable for transporting larger or heavier items.

Moreover, there is a gradual consumer shift towards adopting electric motorcycles for personal mobility needs. Advances in battery technology address concerns related to range and charging times, thereby enhancing the practicality and convenience of electric motorcycles for everyday commuting. Consequently, as consumers increasingly prioritize factors such as sustainability, cost efficiency, and technological advancements, the popularity of electric motorcycles for personal mobility purposes is anticipated to grow. This, in turn, is expected to boost the demand for two-wheeler tires in Nigeria in the coming years.

Based on Tire Type:

• Radial
• Bias

Radial tires are expected to capture a major share of the market during the forecast period. Growing urbanization and changing commuting patterns, especially in congested city areas, lead consumers to seek tires that provide better control and maneuverability. Radial tires, with their improved handling, have become a preferred choice, contributing to a heightened share in the Nigeria Two-Wheeler Tire Market. Additionally, radial tires are known for their lower rolling resistance, a feature that enhances fuel efficiency. With the escalating fuel costs in the country, consumers are inclined to embrace radial tires as a strategic choice to economize on fuel consumption, fueling its share in the market.

Moreover, with advancements in tire manufacturing and economies of scale, the affordability of radial tires has improved. This makes them more accessible to a broader range of consumers, contributing to increased demand in the coming years.

Gain a Competitive Edge with Our Nigeria Two-Wheeler Tire Market Report

1. Nigeria Two-Wheeler Tire Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Nigeria Two-Wheeler Tire Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.