Tire Market to Grow at a CAGR of 10.8% through 2026

Posted by Vikas Bahurupi on August 16th, 2018

Proliferating demand for tires from four wheeler vehicles segment will continue to provide an impetus to tire market in the Kingdom of Saudi Arabia. The market is expected to gain revenues around US$ 2. 12 Bn by 2016. Driven by robust sales of tires throughout the forecast period, KSA tire market will witness an impressive CAGR of 10.8% through to 2026.  

Scorching heat all over the KSA resulting in burgeoning demand of four wheeler vehicles, is estimated to remain a key driver propelling the tire market across the KSA. Moreover, increasing number of light motor vehicles is escalating tire demand. Favorable taxation policies set by the KSA Government, resulting in cheaper vehicle prices, will also remain a key factor influencing the market growth.

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Rising inclination of population to purchasing top-end, luxury cars is expected to have a positive impact on the market in the long run. Increasing consumer preference toward OEMs will continue to fuel tire sales. Overall market revenues are foreseen to witness steady increase. Implementation of strict import standards by SASO and regulatory legislation associated with used tire sales may however restrain the market growth during the forecast period.

By vehicle type, four wheeler vehicles will remain the most prominent segment, led by cars and passenger vehicles, accounting for more than US$ 1.43 Bn to total market revenues in 2016. Within four wheeler vehicles segment, passenger cars are anticipated to attract the maximum growth opportunities, owing to growing demand for passenger cars and light trucks. Commercial cars are expected to retain the second largest market position. KSA Tire Market Projected to Reach a Value of US$ 2,123 Mn in 2016, Registering a Healthy CAGR of 10.8% by 2026 End

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Based on product type, pneumatic and non-pneumatic tire segments will witness strong sales, owing to increasing R&D initiatives by manufacturers. Online tire sale is anticipated to capture a significant revenue share in the KSA tire market.

By region, the Western and Central Provinces of Saudi Arabia are predicted to record the maximum consumption of four wheeler tires, compared to other provinces. These two regions will witness significant growth over the forecast period. Retail tire sales is estimated to be highly concentrated in the provincial cities of Riyadh and Mecca, over 80% of total sales.

Key Players

Key players identified in the KSA tire market include The Bridgestone Group, Continental AG, Pirelli & C Spa, and Michelin Group, will continue to strengthen their dominance in the KSA tire market. Major brands will face strong competition from other companies, including Apollo Tyres Ltd., Yokohama Rubber Company Ltd., and Goodyear Tire & Rubber Company.