Saudi Arabia Tire Market Research Report Forecast: (2022-2027)
By Vehicle Type (Passenger Cars, Two Wheelers, Light Commercial Vehicles (LCV), Medium & High Commercial Vehicles (MHCV), Off-The-Road Vehicle (OTR)), By Demand (OEM, Aftermarket),...By Type of Tire (Radial, Bias), By Season (All-Season, Summer), By Sales Channel (Online, Dealers/ Exclusive Outlets), By Rim Size (Up to 12”, 12.1” to 15”, 15.1.” to 18”, 18.1” to 20”, 20.1” to 22.5”, 22.6” to 26”, 26.1” to 35”, 35.1” to 47”, Above 47”), By Price Category (Low, Medium, High), By Region (East, West, South, Central), By Company (Hankook, Bridgestone, Goodyear, Michelin, Continental, Nexen, Toyo, Kumho, Apollo, Others) Read more
- Tire
- Apr 2022
- 138
- PDF, Excel, PPT
Market Definition
As private ownership of vehicles is becoming more of a necessity than a luxury today, vehicle sales are rapidly rising and, in turn, augmenting the production of robust tires. However, people across Saudi Arabia see cars as a status symbol. As a result, the vehicle fleet is likely to rise at a notable pace in the country and portray remunerative prospects for the tire industry over the coming years.
Market Insights
The Saudi Arabia Tire Market is projected to grow at a CAGR of around 8% during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven primarily by the rapidly growing vehicle fleet due to the rising per capita income of people & their mounting inclination toward private ownership of vehicles across Saudi Arabia. It, in turn, is directly influencing the demand for tires and stimulating the overall market growth.
Report Coverage | Details |
---|---|
Study Period | Historical Data: 2017-20 |
Base Year: 2021 | |
Forecast Period: 2022-27 | |
CAGR(2022-27) | 8% |
Region Covered | East, West, South, Central |
Key Companies Profiled |
Hankook, Bridgestone, Goodyear, Michelin, Continental, Nexen, Toyo, Kumho, Apollo, Others |
Unit Denominations | USD Million/Billion |
In addition, the soaring government focus on infrastructural development to diversify the economy away from oil in line with the strategic plan Saudi Vision 2030 is leading to various ongoing & upcoming construction projects throughout the country. It, in turn, is infusing the requirement for different commercial vehicles for multiple applications & boosting the demand for tires.
Besides, the government is also investing substantially and laying out favorable policies to attract foreign investments in setting up tire manufacturing facilities in the country and expand the automotive & tire sectors through 2027.
- In March 2019, Continental AG, a German tire & technology company, inaugurated its first office in Jeddah, Saudi Arabia.
Moreover, the increasing population & influx of tourists, pilgrims, & migrants in Saudi Arabia is instigating the need for an extensive commercial sector, which has flooded the construction of airports, shopping malls, hotels, restaurants, etc. As a result, the demand for construction equipment & their robust tires is surging at a phenomenon pace.
On the other hand, the country also aims to build smart cities under its NEOM project and the National Industrial Development & Logistics Program (NIDLP), which shall also contribute to the expansion of the tire industry in the country. Furthermore, since there is a prominent volume of tire imports into the country due to the absence of manufacturing facilities, the penetration of international tire brands providing high quality & durable tires is escalating across Saudi Arabia and fueling the overall market growth.
Impact of Covid-19 on the Saudi Arabia Tire Market
In 2020, the automotive & tire industries witnessed severe impacts of the Covid-19 pandemic and introduced several unprecedented challenges for the leading tire manufacturers in Saudi Arabia. With the imposition of lockdown & strict movement restrictions, tire manufacturers & importers faced massive revenue losses due to a shortage of raw materials, supply chain disruptions, delivery & production delays, & price fluctuations amidst the crisis.
The government of Saudi Arabia didn't put any restrictions on construction activities since they are a prominent source of economic fluidity across the country. It, in turn, propelled the demand for commercial vehicles & tires and enabled the leading players to sustain in the market.
Furthermore, as Covid-19 cases started declining gradually, the government uplifted the restrictions & allowed the recommencement of industrial operations. It enabled the leading players to resume their usual production to cater to the varied end-user requirements. Furthermore, most tire manufacturers adopted online platforms to sell their products via e-commerce websites and offer door-step delivery & installation services to their customers, which further boosted the tire industry amidst the crisis.
Market Segmentation
Based on the Type of Vehicle:
- Passenger Cars
- Two Wheelers
- Light Commercial Vehicles (LCV)
- Medium & High Commercial Vehicles (MHCV)
- Off the Road Vehicles (OTR)
Of all types of vehicles, passenger cars are projected to dominate the Saudi Arabia Tire Market with the largest share during 2022-27. It owes principally to the improving economic conditions & greater inclination of people toward private ownership of vehicles, i.e., demonstrating rapid growth in the passenger car fleet and, consequently, mounting demand for tires.
Besides, as Saudi Arabia is one of the cheapest countries to buy vehicles, owing to the absence of Luxury Tax or VAT, it is generating lucrative prospects for automakers & tire manufacturers to introduce new models & versions. Hence, the country represents a big market for passenger car & their tires, which cites profitable growth prospects for the tire market through 2027.
Based on the Type of Tire:
- Radial
- Bias
Here, Radial Tires are anticipated to prominently contribute to the market growth for tires in Saudi Arabia through 2027. It owes to various ongoing & upcoming construction projects for infrastructural development & economic diversification of the country away from the oil & gas sector, i.e., augmenting the production of various construction equipment & commercial vehicles.
It, in turn, is driving the demand for radial tires for their greater fuel efficiency, massive load capacity, lower rolling resistance, improved traction, and exceptional operational efficiency in different construction activities. In addition, benefits like stable road contact & flexible sidewalls are also complementing the growing popularity of radial tires and, in turn, fueling the growth of the Saudi Arabia Tire Market.
Market Dynamics
Key Driver: Surging Inclination of Tire Manufacturers toward Digital Sales Platforms
The increasing government support for digital transformations across industries, i.e., enabling the leading tire manufacturers to adopt online platforms for tire sales, is allowing the customers to choose from a wide variety of tires of different brands, budgets, features, etc., and avail benefits like discounts, door-step deliveries & installation, among others. This rapidly increasing digital transformation of tire manufacturers is the key factor projected to drive the Saudi Arabia Tire Market during 2022-27.
Possible Restraint: Stringent Regulation on the Sales or Import of Used Tires
As used tires are more likely to cause accidents, the government of Saudi Arabia has imposed stringent restrictions on their imports or sales. Besides, these tires pose a high risk of causing fire & emitting toxic fumes that are dangerous to human health. Hence, these restrictions by the governments might restrain the growth of the Saudi Arabia Tire Market in the coming years.
Key Questions Answered in the Market Research Report:
- What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Saudi Arabia Tire Market?
- What are the region-wise industry size, growth drivers, and challenges?
- What are the key innovations, opportunities, current & future trends, and regulations in the Saudi Arabia Tire Market?
- Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Saudi Arabia Tire Market based on the competitive benchmarking matrix?
- What are the key results derived from surveys conducted during the Saudi Arabia Tire Market study?
Frequently Asked Questions
- Market Segmentation
- Introduction
- Product Definition
- Research Process
- Assumptions
- Executive Summary
- Saudi Arabia Tire Market Regulations, Policies and Product Standards
- Saudi Arabia Tire Market Trends & Developments
- Saudi Arabia Tire Market Dynamics
- Growth Drivers
- Challenges
- Saudi Arabia Tire Market Import Export Statistics
- Saudi Arabia Tire Market Value Chain & Stakeholder Margin Analysis
- Saudi Arabia Tire Market Outlook 2017- 2027
- Market Size & Analysis
- By Revenue (USD Million)
- By Units Sold (Thousand Units)
- Market Share & Analysis
- By Type of Vehicles
- Passenger Car
- Light Commercial Vehicle
- Medium and Heavy Commercial Vehicles
- Off the Road (OTR)
- Two Wheelers
- Three Wheeler
- By Demand Category
- OEM
- Aftermarket
- By Type of Tire
- Radial
- Bias
- By Sales Channel
- Direct Sales
- Exclusive Outlets & Multi-brand Stores
- Online
- By Price Category
- Budget
- Economy
- Premium
- By Rim Size
- Up to 12”
- 12.1” to 15”
- 15.1.” to 18”
- 18.1” to 20”
- 20.1” to 22.5”
- 22.6” to 26”
- 26.1” to 35”
- 35.1” to 47”
- Above 47”
- By Region
- East
- West
- South
- Central
- By Company
- Competition Characteristics
- Volume Shares
- By Type of Vehicles
- Market Size & Analysis
- Saudi Arabia Passenger Car Tire Market Outlook, 2017- 2027
- Market Size & Analysis
- Market Revenue
- Market Share & Analysis
- By Type of Vehicle
- Hatchback
- Sedan
- SUV
- By Demand Category
- By Type of Tire
- By Sales Channel
- By Price Category
- By Rim Size
- By Region
- By Type of Vehicle
- Market Size & Analysis
- Saudi Arabia Light Commercial Vehicle Tire Market Outlook, 2017-2027
- Market Size & Analysis
- Market Revenue
- Market Share & Analysis
- By Type of Vehicle
- Light Trucks
- Light Buses
- Pick-up Trucks and Vans
- By Demand Category
- By Type of Tire
- By Sales Channel
- By Price Category
- By Rim Size
- By Region
- By Type of Vehicle
- Market Size & Analysis
- Saudi Arabia Medium and Heavy Commercial Vehicle Tire Market Outlook, 2017-2027
- Market Size & Analysis
- Market Revenue
- Market Share & Analysis
- By Type of Vehicle
- Buses
- Trucks
- Ultra-Heavy trucks
- By Demand Category
- By Type of Tire
- By Sales Channel
- By Price Category
- By Rim Size
- By Region
- By Type of Vehicle
- Market Size & Analysis
- Saudi Arabia Two-Wheeler Tire Market Outlook, 2017-2027
- Market Size & Analysis
- Market Revenue
- Market Share & Analysis
- By Type of Vehicle
- Scooters
- Mopeds
- Motorcycles
- By Demand Category
- By Type of Tire
- By Sales Channel
- By Price Category
- By Rim Size
- By Region
- By Type of Vehicle
- Market Size & Analysis
- Saudi Arabia OTR Vehicle Tire Market Outlook, 2017-2027
- Market Size & Analysis
- Market Revenue
- Market Share & Analysis
- By Type of Vehicle
- Earthmoving Equipment
- Agricultural Vehicles
- Material Handling Vehicles
- By Demand Category
- By Type of Tire
- By Sales Channel
- By Price Category
- By Rim Size
- By Region
- By Type of Vehicle
- Market Size & Analysis
- Saudi Arabia Three-Wheeler Vehicle Tire Market Outlook, 2017-2027
- Market Size & Analysis
- Market Revenue
- Market Share & Analysis
- By Type of Vehicle
- Passenger Carrier
- Load Carrier
- By Demand Category
- By Type of Tire
- By Sales Channel
- By Price Category
- By Rim Size
- By Region
- By Type of Vehicle
- Market Size & Analysis
- Saudi Arabia Tire Market Key Strategic Imperatives for Success & Growth
- Competition Outlook
- Competition Matrix
- Product Portfolio
- Brand Specialization
- Target Markets
- Target End Users
- Research & Development
- Strategic Alliances
- Strategic Initiatives
- Company Profiles (Business Description, Product and Services Segments, Business Segments, Financials, Strategic Alliances/ Partnerships, Future Plans)
- Continental AG
- Bridgestone Corporation
- Pirelli & C. S.p.A.
- Yokohama Rubber Company Limited
- Hankook Tire Co., Ltd.
- Goodyear Tire & Rubber Company
- Toyo Tire and Rubber Company
- Michelin Group
- Sumitomo Rubber Industries Limited
- Apollo Tires
- Others
- Competition Matrix
- Disclaimer