The KSA tire market is estimated to be valued at US$ 4288.49 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 essential components of vehicles that provide traction and protects the wheel rims. In KSA, tires are majorly used in passenger cars, light commercial vehicles, trucks, buses and other heavy-duty vehicles. Growing automotive production and sales in the country has bolstered the demand for tires. Passenger car sales in KSA reached over 500k units in 2021.
Market Dynamics:
The tire market in KSA is primarily driven by increasing demand for lightweight and fuel efficient vehicles. Given the rising fuel prices and energy costs in the nation, automotive manufacturers are focusing on developing vehicles with improved fuel economy. Lightweight tires play a vital role in reducing the overall weight of vehicles and enhancing mileage. Additionally, strict fuel efficiency and emission regulations by KSA government are also propelling the need for eco-friendly tires. The second major driver is strong growth in replacement tire sales. As the vehicle parc expands in the country, the replacement rate of worn-out and damaged tires is elevating significantly. With rising per capita income, consumers are willing to spend more on high-quality replacement tires. This uptrend bodes well for the tire industry in Saudi Arabia over the forecast period.
SWOT Analysis
Strength: The KSA tire market has high demand from automotive, OEM and replacement sectors. Growing automotive fleet supported by rising disposable incomes increase demand for tires. Presence of leading global tire brands provide high quality products. Growing interest of international companies to enter KSA market.
Weakness: High dependency on crude oil prices affects the automotive sector and hence tire market. Presence of some local unorganized players impact market competitiveness and pricing. Lack of recycling infrastructure increases environmental burden.
Opportunity: Shift towards premium and high-performance tires from conventional tires boost margins. Increasing focus on tire retreading and recycling present new revenue streams. Growth in construction and mining activities widen replacement tire market.
Threats: Slow economic growth impacts vehicle sales and adoption of new tires. Stiffer competition from cheap Asian imports pressures pricing. Stringent fuel efficiency and emission norms raise R&D and compliance costs.
Key Takeaways
Global KSA Tire Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing vehicle parc supported by economic diversification and rising incomes.
Regional analysis: KSA dominates the MEA tire market with over 30% share. Western region accounts for majority demand owing to higher vehicle ownership and density of industries. Initiatives to boost local production and develop aftermarket spurs growth in central regions.
Key players: 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. They cater to OEMs and replacement segments through extensive distribution networks.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it