Singapore Tire Market Research Report Forecast: (2022-2027)
The tire industry of Singapore witnessed a growth decline in the previous few years, with a reduced number of new vehicle registrations. However, it is likely to observe a gradual upsurge in the coming years owing to the improved cross-border trade, the emergence of Electric Vehicles (EVs) & setting up of charging stations, infrastructural developments across residential, commercial, & industrial sectors, and the expansion of transportation & logistics across the country.
The Singapore Tire Market is projected to grow at a CAGR of around 2% during the forecast period, i.e., 2022-27. Most of the market expansion would be driven primarily by the improving economic conditions of people & their mounting inclination toward the private ownership of vehicles, i.e., portraying an escalating vehicle fleet & an accelerating demand for tires.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Key Companies Profiled||Michelin Asia, Continental, Pirelli, Hancook, Bridgestone, Goodyear, Giti, Toyo, Stamford Tyres Corporation, Others|
|Unit Denominations||USD Million/Billion|
Due to the absence of manufacturing facilities for tires, Singapore imports them from countries like China, Thailand, Germany, Japan, etc. In view of this, the government is laying out favorable policies to attract foreign investments for establishing tire production units across the country while also encouraging the adoption of EVs to curb carbon emissions.
Moreover, the government is actively working on developing the country's infrastructure and enhancing tourism, i.e., displaying a rapid rise in the construction & up-gradation of airports, shopping malls, railway stations, and roads, among others, and propelling the demand for commercial vehicles for various applications. As a result, the need for robust tires is escalating and driving the tire industry across Singapore.
Impact of Covid-19 on the Singapore Tire Market
The emergence of Covid-19 in 2020 introduced numerous unprecedented challenges for the leading companies operating in the Singapore Tire Market. With lockdowns and import/export restrictions in place, they underwent massive revenue losses on account of disruptions in the supply chain, shortage of raw materials, delays in the deliveries & import of tires, & fluctuations in the raw material & tire prices, among others, amidst the crisis.
As a result, they made a strategic transformation to online platforms to sell their products via e-commerce websites & provide door-step delivery & installation to their customers. Later, with the gradual decline in Covid-19 cases & ease of norms, the tire market in Singapore witnessed a notable hike with the resumption of imports & exports across the country.
Based on the Vehicle Type:
Amongst them all, Light Commercial Vehicles are projected to become the prominent contributors to the expansion of the Singapore Tire Market during 2022-27. It attributes principally to various ongoing construction & development projects, coupled with the rapidly growing logistics sector across the country, i.e., augmenting the demand for light commercial vehicles for different applications and, in turn, driving the tire industry.
Besides, the increasing government focus on making significant developments in public transportation infrastructure is another aspect contributing to the market growth for light commercial vehicles. Moreover, as the country aims to attain its sustainability agenda by 2030, the deployment of electric buses is likely to accelerate swiftly in the coming years and generate opportunities for tire manufacturers to import EV tires and drive the Singapore Tire Market.
On the other hand, passenger cars are anticipated to dominate the market with the largest share over the forecast years. It owes to the growing purchase power of people, which has led to a rapid expansion in the passenger car fleet and augmented tire sales across Singapore. Besides, the surging penetration of ride-hailing services in the country is another prominent aspect fueling the production & sales of passenger cars. Since these services include longer driving hours, it leads to early wear & tear of tires and, in turn, frequent tire replacements. Hence, it is another reason behind the rising tire sales for passenger cars in Singapore and accelerating overall market growth.
Based on the Demand Category:
Here, aftermarket tires are anticipated to lead the Singapore Tire Market during 2022-27. Since the industry is highly import-driven and depends on countries like China, Thailand, Japan, & Germany, to cater to the varied consumer requirements for tires across the country, the sales of aftermarket tires are growing at a rapid pace and hold the largest share in the market.
These tires come in a wide variety, different brands, budgets, etc. The mounting consumer awareness about the significance & benefits of timely inspection of tires to ensure the utmost passenger & vehicle safety is leading to periodic tire replacements, i.e., driving the demand for aftermarket tires and fueling the overall market growth.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Singapore Tire Market is projected to grow at a CAGR of around 2% during 2022-27.
A. The active efforts by the government toward encouraging the adoption of EVs and its growing focus on making notable developments in the public transportation infrastructure that have led to an increased fleet size of both passenger & commercial vehicles are driving the Singapore Tire Market.
A. The rising popularity of ride-hailing & rental car services, i.e., accelerating the sales of passenger cars & their tires, is the key trend in the Singapore Tire Market.
A. Light commercial vehicles are anticipated to emerge as an area of remunerative opportunities for the leading players in the Singapore Tire Market over the forecast years.