Market Definition
The swiftly expanding automotive sector in Oman is the most prominent aspect influencing its tire industry. Hence, the growing sales of passenger cars, light commercial, medium & heavy commercial, Off-the-Road (OTR) vehicles, & two wheelers in the country are positively influencing the demand for radial & bias tires, the easy availability of which is boosting the tire industry of Oman.
Market Insights
The Oman Tire Market is projected to grow at a CAGR of around 3.3% during the forecast period, i.e., 2021-26. The growth of the market is likely to be driven primarily by the increasing construction activities in Oman owing to the escalating government focus on infrastructure developments in line with Oman Vision 2030, i.e., propelling the need for heavy commercial vehicles & construction equipment. It, in turn, is stimulating the demand for tires and driving the market.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR(2021-26) | 3.3% |
| Key Companies Profiled | Bridgestone Corporation, Sumitomo Rubber, Compagnie Générale Des Établissements Michelin, Yokohama Rubber, Pirelli & C.Spa, Hankook Tire Co., Toyo Tire & Rubber Company Ltd., Continental, Apollo Tyres, Goodyear Tires |
| Unit Denominations | USD Million/Billion |
Besides, since the country is rich in oil, the rising number of mining, exploration, & production activities are other crucial aspects soaring the demand for mining equipment and boosting the demand for Off-the-Road (OTR) tires.
Moreover, the burgeoning vehicle sales in Oman owing to swiftly improving economic conditions & living standards, purchasing power, & growing inclination of people toward vehicle ownership are also projected to boost the market through 2026.
Impact of Covid-19 on the Oman Tire Market
The advent of Covid-19 in 2020 had a catastrophic impact on the Oman Tire Market. The imposition of stringent movement restrictions, travel bans, & lockdown by the government led to several unprecedented challenges like disruptions in the supply chain of raw materials, shortage of manpower, demand-supply gaps, delays in distribution, & shut down of manufacturing units. As a result, the leading players in the industry observed massive financial losses amidst the crisis.
However, with the upliftment of restrictions & recommencement of business operations, the leading market players are witnessing lucrative opportunities and have increased the demand for tire imports to meet the burgeoning requirements across the country. In the coming years, they are likely to play a crucial role in bringing back the usual growth pace of the market.
Market Segmentation
Based on the Demand Type:
Of both, the Replacement demand is anticipated to acquire the largest share of the Oman Tire Market during the forecast period. It attributes principally to its benefits like easy availability of an extensive range of tires of different brands, budgets, qualities, & applications, i.e., attracting more and more consumers. The tire industry in Oman is dependent solely on the replacement demand since there are no automobile manufacturers present in the country.
Besides, the rapidly growing vehicle sales and mounting awareness among customers about timely inspecting tire conditions & providing replacements are also attracting a large customer base for replacement tires, mainly Chinese & flagship brands imported into Oman, and, in turn, fueling the overall market growth.
Based on the Type of Tire:
Here, the demand for Radial Tires is projected to witness the fastest growth in the Oman Tire Market during the forecast period, principally due to their benefits like lower fuel consumption, improved vehicle stability, better traction, low rolling resistance, & improved cut resistance, among others, i.e., fueling their adoption in different heavy-duty vehicles for a smooth driving experience.
Moreover, growing construction activities & mining projects are playing a crucial role in propelling the demand for vehicles that require radial tires to yield better operational efficiency. Hence, based on these aspects, the Oman Tire Market is anticipated to witness a surging demand for radial tires during 2021-26.
Market Dynamics:
Key Driver: Strict Government Regulations for Vehicle & Passenger Safety
With an escalating number of road accidents in Oman, the government is imposing strict regulations for vehicle owners to timely inspect the condition of their vehicles & tires and ensure proper replacements to increase their safety, which, in turn, is augmenting the sales of tires in the country and generating growth opportunities for the Oman Tire Market through 2026.
Growth Opportunity: Rapid Expansion of Online Platforms
With the mounting inclination of customers toward online shopping, several tire manufacturers in Oman are increasingly adopting digital platforms to offer an extensive range of tires. It, in turn, is generating growth opportunities for them to expand their product portfolio & visibility across the country, which, in turn, would contribute to the overall expansion of the Oman Tire Market in the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Oman Tire Market is projected to grow at a CAGR of around 3.3% during 2021-26.
A. The Replacement demand is anticipated to emerge as an area of remunerative opportunities for the leading players in the Oman Tire Market during 2021-26.
A. Strict government regulations for vehicle & passenger safety entwined with the rapid expansion of online platforms are the key growth opportunities projected to drive the Oman Tire Market in the coming years.
A. In the coming years, the leading players in the Oman Tire Market are anticipated to increase the distribution of tires across the country to meet the burgeoning consumer demand and lead the market toward regaining its usual growth pace.
