by The Saudi Arabia Tire Market is estimated to be valued at US$ 3,431 million in 2021 and is expected to exhibit a CAGR of 11.8% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The Tire Market is driven by the growing automotive industry in the region. The automotive sector in Saudi Arabia has been witnessing significant growth over the years, driven by increasing disposable income, rising population, and urbanization. This has led to an increased demand for vehicles, thereby driving the demand for tires. Moreover, the government initiatives and investments to diversify the economy and reduce dependence on oil have further boosted the growth of the automotive sector in the region.
Tires are an essential component of vehicles, providing traction, handling, and braking capabilities. They are designed to withstand various road conditions and provide a comfortable and safe driving experience for the passengers. The market offers a wide range of tire types, including passenger car tires, commercial vehicle tires, and specialty tires for off-road vehicles and motorcycles.
B) Market Dynamics:
1. Driver: Growing Automotive Industry
The growing automotive industry in Saudi Arabia is a major driver for the tire market. The increasing population, rising disposable income, and urbanization have led to a surge in demand for vehicles. This, in turn, is driving the demand for tires. The government’s focus on diversifying the economy and reducing dependence on oil has further fueled the growth of the automotive sector in the region.
For example, Saudi Arabia’s Vision 2030 aims to transform the country’s economy by reducing its reliance on oil revenue and promoting other sectors, including automotive manufacturing. This has attracted investments from major automotive companies, leading to the establishment of manufacturing plants in the country. This, in turn, is expected to drive the demand for tires in the coming years.
2. Opportunity: Increasing Demand for Electric Vehicles
With the increasing focus on reducing carbon emissions and promoting sustainable transportation, the demand for electric vehicles (EVs) is on the rise. Saudi Arabia is also embracing the shift towards electric mobility, with various initiatives and investments to promote the adoption of EVs. The government has set a target of having 1 million EVs on the road by 2030.
The adoption of EVs is expected to create new opportunities for the KSA Tire Market Insights. Electric vehicles have unique tire requirements, including low rolling resistance and improved range. This has led to the development of specialized tires for electric vehicles, driving innovation and growth in the tire market. As the adoption of EVs increases in Saudi Arabia, the demand for tires specifically designed for electric vehicles is expected to grow.
C) Segment Analysis:
The passenger car tire segment dominates the Saudi Arabia Tire Market. This can be attributed to the growing population, rising disposable income, and increasing demand for passenger vehicles in the region. The passenger car tire segment is further segmented into radial tires and bias tires. Radial tires dominate the market due to their superior performance, fuel efficiency, and durability.
D) PEST Analysis:
Political: The political stability in Saudi Arabia provides a conducive business environment for the tire market. The government’s initiatives to diversify the economy and reduce dependence on oil encourage investments in the automotive sector, driving the growth of the tire market.
Economic: The fluctuating oil prices have an impact on the economic stability of Saudi Arabia. However, the government’s focus on diversification and investments in non-oil sectors, including automotive manufacturing, provides economic opportunities for the tire market.
Social: The increasing population, rising disposable income, and urbanization in Saudi Arabia are driving the demand for vehicles, leading to the growth of the tire market. Additionally, the government’s focus on promoting women’s participation in the workforce has contributed to the growth of the automotive sector.
Technological: The tire market is witnessing technological advancements, including the development of specialized tires for electric vehicles and advancements in tire manufacturing processes. These advancements enhance tire performance, durability, and fuel efficiency, driving the growth of the market.
E) Key Takeaways:
– The Tire Market is expected to witness high growth, exhibiting a CAGR of 11.8% over the forecast period, due to the increasing demand for vehicles in the region.
– The passenger car tire segment dominates the market, with radial tires being the most preferred choice due to their superior performance.
– The growing automotive industry and government initiatives to diversify the economy are driving the growth of the tire market in Saudi Arabia.
– Increasing adoption of electric vehicles presents opportunities for specialized tires designed for EVs.
– Key players operating in the Saudi Arabia Tire Market include 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.
