Saudi Arabia Tyre Market: Current Analysis and Forecast (2022-2028)

Saudi Arabia Tyre Market: Current Analysis and Forecast (2022-2028)

A tyre is a ring-shaped component that surrounds the rim of the wheel and transfers the weight of a vehicle from the axle through the wheel to the ground. The two types of tyres that are available are pneumatic and non-pneumatic. The pneumatic tyre is supported by air pressure, but the non-pneumatic tyre is made of solid rubber and plastic compounds. Common applications for these tyres include lawn mowers, scooters, and other light-duty vehicles like carts and trailers. Pneumatic tyres, on the other hand, are flexible, hollow-shaped rubber tyres that maintain their shapes through air pressure. The materials used to make these tyres include synthetic rubber, rubber, wire, fabric, carbon black, and other chemical substances. The Saudi Arabian tyre market is anticipated to grow significantly between 2022 and 2028. The demand for tyres in Saudi Arabia is primarily driven by rising sales of passenger cars, a growing fleet of cars, supportive government policies, and significant foreign investments in the automotive industry. Leading authorities are currently working on a number of initiatives, including the National Transformation Program and the Saudi Vision 2030 for promoting construction activities. To finish upcoming and ongoing mega-construction projects like The Sakani Housing Program, Amaala, the Red Sea Project, Neom Business City, Qiddiya City Riyadh, and many others, there is an increase in the use of commercial vehicles like pick-up trucks, dump trucks, concrete mixer trucks, front loaders, and many other commercial vehicles.

The market players in Saudi Arabia are following both organic and inorganic growth strategies to sustain the competitive edge. For instance, in March 2021, The Ministry of Commerce and Industry shut four tyre recycling factories in Jeddah, Riyadh, and Khamis Mushayt (Saudi Arabia) due to increased violations of quality and safety regulations. Similarly, in March 2019, Continental AG, a German tyre and technology company, opened its first office in Jeddah, Saudi Arabia.

• Based on the tyre type, the market is segmented into radial and bias. It is anticipated that the Radial Tyres will grow at a higher CAGR during the forecast period. The major factor behind this is the exceptional benefits offered by the radial tyres, such as better strength and enhanced flexibility as compared to regular Tyres. Also, the radial Tyres can easily absorb bumps and shocks while providing a comfortable ride to the drivers and passengers in the vehicle. Further, it also lessens ground compaction and reduces the chances of damage caused to the vehicles.
• Based on vehicle type, the market is divided into passenger cars, light commercial vehicles (LCV), medium & heavy commercial vehicles (M&HCV), off-the-road (OTR), and two-wheelers. The most dominant market segment in Saudi Arabia is passenger car tyres, followed by commercial vehicle tyres and other vehicle tyre segments.
• Based on end-use, the market is segmented into OEM and replacement. OEM (original equipment manufacturer) tyres dominated the global tyre market in 2020, accounting for more than half of all sales. Tyres are most useful in passenger cars and light trucks globally. Applications in commercial vehicles like trucks and off-highway vehicles came after passenger cars and light trucks. Additionally, because of the extreme weather, tyre replacement intervals are relatively shorter, which is another important factor driving up replacement tyre sales in Saudi Arabia.
• Based on the distribution channel, the market is segmented into offline and online. Because of the trend of rising sales via e-commerce platforms like Amazon, eBay, etc., the online segment is anticipated to experience a higher CAGR during the forecast period. The development of web portals by tyre manufacturers themselves is another development that will enhance online tyre sales.
• During the forecast period, the Saudi Arabia tyre market is anticipated to grow at a high pace due to the growing automotive industry. The light-commercial and passenger vehicle markets have seen rapid expansion in recent years. Moreover, 15.35 million passenger and light commercial vehicle units were registered in KSA in 2011, and that number rose to 20.93 million units in 2015, representing an 8% CAGR. As a result, it is anticipated that the country's demand for tyres will rise in the coming years.
• Some of the major players operating in the market include APOLLO TYRES LTD, Michelin, Al-Talayi Ltd., Continental ME, THE YOKOHAMA RUBBER CO., LTD., Hankook Tire & Technology, Toyo Tire Corporation, BRIDGESTONE MIDDLE EAST & AFRICA FZE, General Group, and Pirelli Tyre S.p.A.

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