Market Definition
The tire industry across Qatar is mainly import-driven due to the unavailability of manufacturing facilities in the country, where Asian brands continue to dominate. Besides, cars are becoming more of a status symbol among people, due to which, the vehicle fleet is also rising dramatically and, in turn, propelling the demand for tires and generating growth opportunities for the prominent tire manufacturers.
Market Insights
The Qatar Tire Market is projected to grow at a CAGR of around 12% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by rapidly improving living standards & disposable income of people, coupled with their growing inclination toward privately owning vehicles, which, in turn, is demonstrating a swift escalation in the vehicle fleet. As a result, the demand for tires is accelerating across the country and driving the market.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR(2021-26) | 12% |
| Key Companies Profiled | Bridgestone Corporation, Yokohama Ali Bin Khalifa Al Hitmi & Co., Hankook Tire Co. Ltd., Pirelli Tyre (Suisse) SA Middle East Branch, Michelin AIM FZE, Continental AG, TOYO Tire & Rubber Co., Ltd., Goodyear Tires, Apollo Tyres Ltd., Others |
| Unit Denominations | USD Million/Billion |
Besides, the growing focus of the government on infrastructural developments under its strategic plan Qatar Vision 2030 to diversify the economy away from oil is portraying various ongoing & upcoming construction projects. It, in turn, is propelling the demand for medium & heavy commercial vehicles and augmenting the production of robust tires. With this, the prominent tire manufacturers are witnessing opportunities to increase their tire import & distribution capacities to meet the burgeoning consumer requirements across Qatar and boost the market in the coming years.
Furthermore, since the ownership of private & luxurious vehicles is more like a status symbol among the population of Qatar, the vehicle fleet is rising rapidly, which, consequently, is infusing the demand for tires and fueling the overall market growth.
Impact of Covid-19 on the Qatar Tire Market
The Covid-19 pandemic in 2020 had a decelerating effect on most industries across Qatar, where the automotive & tire industries were no exception and witnessed a dual impact of the crisis. While the government imposed stringent movement restrictions & frequent lockdowns to curb the spread of this dreadful disease, the leading players in the market witnessed several unprecedented challenges, especially associated with the production, import, & distribution of tires across the country.
The disruptions in the supply chain causing unavailability of raw materials, delays in the deliveries of pre-produced goods, fluctuations in the prices of raw & finished goods, and cancellation of projects, among others, were some significant challenges that caused hindrance to the market growth.
However, since the construction sector is one of the prominent sources of economic fluidity across Qatar, the government did not suspend these operations & allowed them while following safety protocols. It, in turn, led to the continuous demand for commercial vehicles and, consequently, tires. As a result, the Qatar Tire Market was able to sustain itself amidst the crisis and generated lucrative prospects for the market leaders to enhance their production & distribution capacities & meet the rising end-user requirements.
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Market Segmentation
Based on the Vehicle Type:
Amongst them all, Passenger Cars are anticipated to dominate the Qatar Tire Market with the largest share during 2021-26. It attributes to the improving purchasing power of people, leading to their growing inclination toward private ownership of passenger cars, which in turn, is demonstrating a swift growth in vehicle fleet across the country. This aspect is likely to upsurge the demand for tires and positively influence market growth for passenger cars.
Besides, with the massive influx of tourists, pilgrims, and migrants in Qatar, the demand for taxis & cabs is rising rapidly. As a result, passenger car sales for commercial applications are burgeoning rapidly, thereby fueling the overall market growth.
Based on the Demand Type:
Here, with the absence of tire manufacturing facilities in Qatar, the demand for Replacement tires is anticipated to rise swiftly and dominate the market with the largest share through 2026. Additionally, the easy availability of multiple brands with varied budgets is another prominent factor demonstrating the growing demand for replacement tires across the country. Moreover, the mounting consumer awareness about the benefits & importance of timely repairs & replacement of tires is also instigating the sales of replacement tires and propelling the overall market growth.
Market Dynamics
Key Driver: Rising Construction Activities for Economic Diversification
The key factor driving the demand for Qatar Tire Market is the growing government focus on infrastructural developments, i.e., leading to swiftly accelerating construction projects in the country and mounting sales of medium & heavy commercial vehicles. This aspect is generating lucrative growth prospects for the leading players to increase their import & distribution capacities to meet the mounting tire requirements throughout the country over the forecast years.
Possible Restraint: Stringent Norms for Carbon Emissions & Fluctuating Raw Material Prices
The rising concerns over carbon emissions and stringent government regulations toward curbing them are the most prominent factors that might restrain the massive utilization of rubber for tire production and, in turn, hamper the growth of the tire market during 2021-26. Besides, the fluctuating prices of raw materials are also impacting the overall production cost of tires and making it difficult for tire manufacturers to decide on a set cost, i.e., another crucial aspect likely to restrain the market growth over the coming years.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Qatar Tire Market is projected to grow at a CAGR of around 12% during 2021-26.
A. Increasing construction activities, i.e., surging the need for medium & heavy commercial vehicles and directly influencing the demand for robust tires, is the most prominent factor driving the Qatar Tire Market through 2026. On the other hand, growing concerns over fluctuating prices of raw materials & stringent norms for carbon emissions might hinder the market growth in the coming years.
A. A gradually increasing consumer inclination toward Electric Vehicles (EVs) to curb carbon emissions, i.e., generating growth opportunities for tire manufacturers to produce EV-compatible tires, is the key trend in the Qatar Tire Market.
A. Passenger cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the Qatar Tire Market over the forecast years.
