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

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

The Tanzania Two-Wheeler Tire Market size is estimated to grow at a CAGR of around 13.43% during the forecast period, i.e., 2024-30. The country grapples with persistent traffic congestion, particularly in cities such as Dar es Salaam, Mwanza, etc., due to poor road infrastructure. Rapid urbanization and population growth have led to increased vehicle ownership, straining the existing road infrastructure in the country. Additionally, inadequate public transportation options contributed to a higher dependency on private vehicles, exacerbating congestion in the country.

According to a survey by Mzumbe University, about 78.3% of consumers spend more than two to three hours in traffic jams in Dar es Salaam City. Therefore, the surged traffic congestion in various regions of the country has led individuals to opt for motorcycles and scooters to commute easily from the traffic, resulting in an increased demand for two-wheeler tires for these vehicles, thus driving market growth & expansion during the historical period.

Furthermore, the surge in tourism in the country has also led to the growth of two-wheeler tires in Tanzania. The country's diverse attractions, including Mount Kilimanjaro, Serengeti National Park, etc., have attracted many tourists. Moreover, with its rich cultural heritage & historic sites like Stone Town, the country offers a unique blend of experiences for tourists, which has further surged the tourism sector.

According to the National Bureau of Statistics, the number of international tourists arriving has risen to around 1,454,000 in 2022, up from approximately 620,000 in 2020. The increased number of tourists has necessitated the demand for rental motorcycles & scooters. Companies such as Riderly, Moshi, etc., provide two-wheelers for rent, which has led to enhanced sales of two-wheelers in the country. Hence, as rental bikes and scooters operating on various terrains suffer from the deterioration of tires, it is projected to ultimately create a demand for tire replacement in the coming years.

Tanzania Two-Wheeler Tire Market Driver:

The Emergence of Online Food Delivery Services – The increasing accessibility of the Internet and the expanding reach of mobile connectivity in the nation have been driving the surge in online food delivery services. Prominent platforms such as MyFoodness, Uber Eats, and Piki Tanzania are gaining traction, offering a diverse array of food and grocery items. Furthermore, the widespread adoption of digital payment solutions, including mobile money services, has been instrumental in overcoming traditional banking obstacles, contributing significantly to the burgeoning growth of the online food delivery sector in the country.

As a result, the combination of faster internet connections and the convenience of doorstep delivery has facilitated the widespread adoption of online food delivery platforms. Consequently, delivery service providers such as Duka, Mosidrop, etc., are now integrating two-wheelers such as motorbikes and scooters into their fleets to ensure swifter deliveries to customers. Given that these vehicles cover longer distances for timely deliveries, the consequential extensive wear and tear on their tires creates a demand for regular replacements.

Additionally, the growing popularity of online food delivery platforms has led to the introduction and expansion of new services in the country. For instance,

• In 2022, BeU Delivery, an on-demand food delivery service in Ethiopia, expand its services to Dar es Salaam, Tanzania.

This influx of new entrants in the food delivery industry prompted a higher reliance on motorcycles and scooters, favored for their agility, cost-effectiveness, and suitability for navigating congested urban areas for last-mile deliveries. The escalating use of these two-wheelers for food delivery has increased wear and tear on their tires, creating a sustained need for tire replacements. As a result, this factor is anticipated to drive the market for two-wheeler tires in the country during the forecast period.

Tanzania Two-Wheeler Tire Market Opportunity:

Rising Disposable Income of Individuals Offering Lucrative Business Opportunities – Economic growth is a fundamental driver of disposable income growth. Tanzania's economy has been expanding in recent years due to infrastructure developments, foreign direct investment, etc. In 2020, Tanzania was declared to have attained a lower-middle-income country by the World Bank, thus graduating from the lower-income country category. This growth is creating a conducive environment for businesses to thrive, resulting in increased job opportunities across various sectors. With more people gaining employment, there is a rise in aggregate wages and salaries, leading to higher household incomes in the country.

According to the National Bureau of Statistics, net national disposable income increased to USD 58,531.83 in 2021 from USD 54,458.75 in 2020, equivalent to an increase of around 7.5%. With growing disposable income, more individuals could afford to purchase two-wheelers in Tanzania. These vehicles are often more affordable than cars and require less maintenance and fuel, making them an attractive option for individuals looking for transportation solutions. Hence, the demand for two-wheeler tires is expected to surge in the coming years.

Tanzania Two-Wheeler Tire Market Challenge:

Surging Raw Material Prices to Hinder Market Growth – The surging global prices of raw materials like natural rubber and synthetic rubber, influenced by supply and demand imbalances, geopolitical events, and rising energy prices, are adversely affecting the Tanzanian Two-Wheeler Tire Market. The direct consequence of elevated raw material prices is an increase in production costs for tire manufacturers, leading to higher prices for two-wheeler tires in the country. For instance, in 2021, Michelin announced a global hike in the Africa, India, and Middle East regions by about 6% on motorcycles and other tires. This, in turn, impedes market growth as consumers explore more economical alternatives, such as purchasing used or retreaded tires, which negatively impacts the market for new two-wheeler tires.

Furthermore, Tanzania commonly grapples with economic challenges, making consumers particularly sensitive to changes in product prices. The rise in the cost of two-wheeler tires may render them less affordable for a significant portion of the population, thereby affecting both the replacement and new tire market segments in the coming years.

Tanzania Two-Wheeler Tire Market Trend:

Increasing Popularity for Electric Two-Wheelers – The growing number of electric two-wheelers across the country is driving the demand for tires in Tanzania. The transition to electric two-wheelers aligns with environmental goals, contributing to emissions and carbon reduction benefits. Additionally, the lower fuel and maintenance costs of electric vehicles make them economically attractive, further boosting their adoption. The rising usage of electric two-wheelers, driven by both environmental concerns and economic incentives, results in higher wear and tear on tires. As these vehicles cover more distances for various purposes, the need for frequent tire replacements becomes a significant factor driving the demand for two-wheeler tires.

Further, organizations like UNEP, the EU, and others are actively involved in introducing electric two- and three-wheelers in several African countries, including Tanzania. For instance,

• In 2021, the SOLUTIONSplus project, funded by the European Union, played a supportive role in facilitating Dar es Salaam's transition to electric mobility. This initiative involved the incorporation of bicycles for distribution services and assisted in piloting electric bicycles for urban delivery services.

Pilot projects and initiatives, supported by these organizations, could create a more favorable environment for the adoption of electric two-wheelers in the coming years, positively impacting the demand for associated tires.

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

The Tanzania 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

Motorcycle tires hold a major share of the two-wheeler tire industry in the country and are expected to account for the majority of the market owing to the demand for motorcycle taxi services, the demand for food delivery companies, etc. Motorcycle taxis, commonly known as "boda-bodas," in Tanzania offer a swift & cost-effective means of navigating congested roads, which has further surged their demand. Additionally, as digital platforms and mobile applications became more prevalent, the ease of hailing motorcycle taxis through these technologies further catalyzed their adoption, making them a prominent and in-demand mode of transportation in Tanzania. This surge in demand for boda-bodas in the country has resulted in a heightened need for replacement tires for motorcycles during the historical years.

Additionally, the country’s improving economic condition has led to an expansion of the middle class and an increase in disposable income. In 2020, the World Bank announced that the Tanzanian economy had been upgraded from low to lower-middle income status. This economic progress has translated into increased purchasing power for Tanzanians, enabling a larger portion of the population to afford motorcycles. Consequently, there is a potential rise in the number of motorcycles on the roads, which is anticipated to create a higher demand for motorcycle tires during the forecast period.

Based on Tire Type:

• Radial
• Bias

Bias Tire held the highest market share in the Tanzania-Two Wheeler Tire Market due to price-sensitive consumers, adoption of rural transportation, availability of sizes and varieties, etc. Bias two-wheeler tires are often more affordable compared to radial tires. This cost advantage is a significant driver, especially in Tanzania, where price sensitivity plays a crucial role in purchasing decisions. Moreover, bias tires excel in off-road conditions, making them popular among rural consumers owing to their challenging terrain.

Further, the availability of a wide range of sizes and varieties in the bias tire segment allows riders to choose tires that match their specific motorcycle models and riding preferences. This diversity contributes to increased demand for bias tires in the coming years.

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

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