by The Ksa Tire Market is estimated to be valued at US$ 4288.49 Mn or Mn in 2023 and is expected to exhibit a CAGR of 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Tires are an essential component of automobiles and other vehicles like bicycles and motorcycles. They provide traction to propel vehicles and allow for a smooth comfortable ride. The major products in the KSA tire market include truck and bus radials, light truck tires, passenger car radial tires, two wheeler tires, aircraft tires, and others. The rising vehicle fleet in KSA due to urbanization and growing transportation sector has been a major driver of demand in the country.
Market Dynamics:
The key drivers fueling growth of the Ksa Tire Market are rapid urbanization and growth of transportation sector in the country. Saudi Arabia has been witnessing strong urban transition as the government is investing heavily in development of new cities to reduce overdependence on oil. This has led to increased demand for private vehicles as well as public transportation systems. As per estimates, the total vehicle fleet in KSA increased from around 12 million in 2017 to over 15 million in 2020. The growing vehicle numbers will continue driving market demand over the forecast period. Additionally, investments in expanding road networks and rail projects are also increasing replacement demand for tires in the transportation sector. However, volatile raw material costs remain a key challenge for market players. Fluctuations in crude oil prices affect the pricing of rubber, a primary raw material in tire production.
Segment Analysis:
The KSA tire market is dominated by the replacement tire segment which holds around 85% of the total market share. Being an extremely hot region with temperatures soaring up to 50 degree Celsius during summers, tires wear out and go bald very quickly in KSA due to the harsh weather conditions. This leads to higher replacement rates of tires as compared to new car sales. Many consumers in KSA prefer to stick to reputed international brands like Michelin, Bridgestone, Goodyear etc. for replacement tires due to quality and reliability concerns leading to the dominance of this segment.
PEST Analysis:
Political: The government of KSA has made massive investments in infrastructure development projects like roads, rail networks etc. under Vision 2030 plan to diversify the economy. This will boost demand for construction and heavy commercial vehicles thereby fueling growth in tire market.
Economic: KSA has a young and growing population with rising disposable income levels. This encourages personal vehicle ownership leading to new vehicle sales and subsequently the tire market. The economy is expected to grow at an average rate of 2-3% during the forecast period.
Social: Young Saudi consumers are inclined towards latest vehicle models and premium products. This drives replacement demand for high performance tires from international brands. Growing tourism and religious tourism industry is also fueling the transportation sector.
Technological: Tire manufacturers are focusing on developing tires with improved mileage, all-season capability and self-inflating technologies suited for the extreme weather conditions in KSA. Some key players are also establishing local production facilities to meet demand.
Key Takeaways:
The Global Ksa Tire Market Growth is expected to witness high, exhibiting CAGR of 11% over the forecast period, due to increasing vehicle parc along with infrastructure development projects under the Vision 2030 plan. The increasing disposable income levels are encouraging personal vehicle ownership in KSA.
The Western region dominates the Ksa Tire Market with more than 30% share, followed by the Central region. The heavy investments in road connectivity and industrial projects under Vision 2030 in these regions are driving the regional tire market.
Key players operating in the Ksa Tire Market are The Bridgestone Group, Hankook Tire Company, Apollo Tires Ltd., Michelin Group, Toyo Tire & Rubber Company Ltd., Goodyear Tire and Rubber Company, Yokohama Rubber Company Ltd., Pirelli & C SpA Company, Cooper Tire & Rubber Company, and Continental AG. These players are focusing on establishing local production plants and introducing advanced technologies like self-inflating tires to dominate the lucrative Ksa market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
