by The Kingdom of Saudi Arabia (KSA) tire market consists of passenger car tires and commercial vehicle tires used in automobiles such as cars, trucks, buses, and trailers. Passenger car tires are used in vehicles for private or personal transportation purposes, while commercial vehicle tires are used in vehicles for commercial applications including public transportation and logistics. KSA has witnessed significant growth in vehicle production over the past few years owing to growing domestic demand and government initiatives to reduce dependence on oil exports. As vehicle production increases, demand for replacement tires also rises considerably.
The global KSA Tire Market is estimated to be valued at US$ 4288.49 in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing vehicle production has been a major driver of the KSA tire market. KSA is emerged as a major automotive hub in the Middle East region buoyed by government initiatives and investments to diversify the economy. The Saudi government has undertaken several reforms and launched industrial development programs like Saudi Vision 2030 to boost the manufacturing sector in the country. As a result, domestic assembly and production of vehicles in KSA has increased significantly over the past decade. For instance, vehicle production grew from 240,000 units in 2014 to over 500,000 units in 2019. This rapid growth in vehicle fleet has augmented the demand for replacement tires in KSA.
Another key factor propelling the market growth is rising popularity of sport utility vehicles (SUVs) and premium passenger vehicles among consumers in KSA. Changing lifestyles and rising disposable incomes have increased SUV sales in the country. SUVs have robust tire modules consisting of wider and larger tires than regular cars. This, in turn, is driving the consumption of higher-value tires in KSA.
Segment Analysis
The KSA tire market is segmented into passenger car tire and commercial vehicle tire. The passenger car tire segment dominates the market and accounts for around 60% share due to high demand for personal vehicles in the country. Trend of vehicles ownership is growing in KSA due to high disposable income and changing lifestyle that propels the demand for passenger car tires over the forecast period.
PEST Analysis
Political: The government focus on infrastructural development and logistics sector stimulates commercial vehicle demand which drives tire market growth.
Economic: Rising GDP, increasing per capita income, industrial growth expansions boost vehicle sales that augments tire market size.
Social: Changing consumer attitude towards vehicles as status symbol hike personal vehicle demand to drive market expansion.
Technological: Advancements in tire design with superior performance, fuel efficiency and safety features augment their replacement rate and new vehicle fitment.
Key Takeaways
Global KSA Tire Market Size is expected to witness high growth at a CAGR of 8.6% during 2023-2030.
Regional analysis comprising the Western region dominates with around 35% market share led by major cities Makkah and Madinah with large vehicle fleet.
Key players operating in the KSA tire market are F. Hoffmann-La Roche AG, Novartis International AG, and Pfizer, Inc. Key players focus on establishing local production plants to address replacement demand and benefit from lucrative opportunities. The government initiatives to enhance road infrastructure and promote industrialization programs spur commercial vehicle demand. This coupled with personal mobility trend augurs well for sustained tire replacement rate and new vehicle fitment over the forecast period.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
