Uganda Tire Market
Uganda Tire Market Size Set to Expand at Steady CAGR of 3.81% during 2023–29, Crossing Value of USD 504 Million by 2029
Published | 23 November 2023
Uganda tire market is flourishing because of the growing automotive fleet and expanding mining sector.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Uganda tire market size at USD 402.94 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects Uganda tire market size to grow at a significant CAGR of 3.81% reaching a value of USD 504.3 million by 2029. Major growth drivers for the Uganda tire market include the growing economy, rising vehicle ownership, improved road infrastructure, and increasing government regulations. Economic factors, including heightened consumer purchasing power and increased industrial activity, foster growing demand, while an expanding number of vehicles on the road, especially in response to population growth and urbanization, spurs the need for passenger car, commercial vehicle, and agricultural equipment tires. The condition of the road network and intensifying government regulations related to tire quality and safety also influence the market, with well-maintained roads potentially leading to an increase in tire longevity. These collective factors jointly mold the dynamics of the tire market in Uganda, with emerging trends like the adoption of eco-friendly and energy-efficient tires on the rise. However, high import duties and lack of skilled labor are anticipated to restrain the overall market growth during the period in analysis.
Uganda Tire Market – Overview
Uganda tire market refers to the sector within the Ugandan economy that involves the manufacturing, distribution, sale, and servicing of tires for various types of vehicles and equipment. This market encompasses a wide range of tire products, including those designed for passenger cars, commercial vehicles, trucks, agricultural machinery, construction equipment, and other specialized applications. It involves various stakeholders such as tire manufacturers, importers, wholesalers, retailers, service centers, and consumers. The market's dynamics are influenced by factors like economic conditions, consumer demand, vehicle ownership rates, government regulations, road infrastructure, and industry trends. The goal of this market is to meet the demand for tires in Uganda, ensuring that vehicles and equipment operate safely and efficiently on the country's roads and terrains.
Impact of COVID-19 on Uganda Tire Market
COVID-19 pandemic adversely affected the Uganda tire market. The government-imposed lockdowns, travel restrictions, and economic uncertainties led to reduced vehicle usage, impacting the demand for tires. Supply chain disruptions, both domestically and internationally, affected the availability of raw materials and tire imports. Additionally, manufacturing operations were hampered due to labor shortages and safety protocols. The market saw a shift in consumer priorities toward essential goods, further affecting tire sales. Despite these challenges, there was a growing need for transportation of goods and services, particularly for essential sectors, which partially offset the overall decline in the tire market.
Impact of Prolonging Israel-Hamas War on Uganda Tire Market
The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war.
Also, the war in Middle East will affect industries across verticals and regions. Oil & gas is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, The World Bank anticipates that the crude oil prices would spike to a range of USD 140-157 a barrel in the long term, if the war continues to escalate and spreads to other regions. This spike in oil and energy costs will have a domino effect on multiple industries. As fossil fuel is one of the main raw materials for the production of tires, companies and end users in the Uganda tire market face the brunt of rising fuel prices. Volatile and higher fuel prices could increase the cost of tires, resulting in the declined demand for tires affecting their sales and market growth.
Uganda Tire Market – By Demand Category
Based on demand category, the Uganda tire market is bifurcated into OEM and Replacement segments. The OEM segment holds a higher share in the Uganda tire market by demand category. The expansion of Uganda's automotive manufacturing industry is driving a growing need for OEM tires. With both local and international car manufacturers setting up assembly plants and production units in the country, there is a rising demand for dependable tire suppliers who can furnish original equipment for newly manufactured vehicles. This situation offers tire manufacturers the chance to establish collaborations with automotive firms for the supply of OE tires, creating mutually beneficial opportunities.
Major players operating in the Uganda tire market include Bridgestone Corporation, Goodyear Tire & Rubber Company, Continental AG, Michelin, Sumitomo Rubber Industries, Yokohama Rubber Co., Ltd, Cooper Tire & Rubber Company, Toyo Tire Corporation, and Kumho Tire Co., Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of Uganda Tire Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in Uganda Tire Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.
BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing qualitative and quantitative data to boost the performance of your business solutions. BlueWeave has built its reputation by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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- Uganda Tire Market, By Vehicle Type (Passenger Cars, Light Commercial Vehicles (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Two-Wheelers, Off-The-Road (OTR) Vehicles); By Demand Category (OEM, Replacement); By Type of Tires (Radial, Bias); By Sales Channel (Dealer/Exclusive Outlets, Online); By Tube Type (Tube, Tubeless), Trend Analysis, Competitive Landscape & Forecast, 2019–2029
Publish Date: November 2023
The growing demand for automobiles and increasing road infrastructure are projected to propel the expansion of the Uganda tire market during the forecast period between 2023 and 2029.
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