Report Overview

Kenya Tire Market - Trends & Forecast Report, 2029

Kenya tire market size is expected to grow at a significant CAGR of 5.98% by 2029. Major factors driving the growth of Kenya tire market include the country's rising vehicle sales volume and its swift fleet size expansion. Due to a lack of domestic tire production, Kenya imports tires from several nations to satisfy its demand for tires. The country's tire market is also expected to expand rapidly during the coming years due to rising per capita income and increasing international investments.

Kenya Tire Market - Overview

Passenger cars, two-wheelers, three-wheelers, off-the-road (OTR), and light, medium, and heavy commercial vehicles all use tires. This is due to its widespread availability and low rolling resistance. Steel, rubber, wire, cotton, glass, silica, and wire reinforced with carbon black are among the synthetic and natural materials used to make it. It is available in tubed and tubeless tires with a bead, bead filler, belts, body ply, inner liner, sidewall, and tread. It assists in dealing with forces acting on the vehicle while it is moving, supports the vehicle's load, and provides shock-absorbent cushions. It contributes to increased vehicle performance, mileage, and passenger safety. Also, it provides grip, improves vehicle control on incline roads, and facilitates stopping.

Growth Drivers

Growing Population and Disposable Income

The country's growing middle class has increased demand for cars, which is fueling the growth of Kenya's tire market share. A growing population and increasing disposable income are both contributing to the market's growth. The market is also being boosted by the increasing penetration of car maintenance.

Restraints

High Fluctuations in Raw Material Cost

Kenyan tire industry is constrained by volatile raw material costs, increasing input costs brought on by a lack of natural rubber and rising oil prices. As almost all raw materials are derived from crude, their prices are influenced by crude oil. The majority of the cost is attributable to the raw materials used in tire production, with synthetic and natural rubber acting as the main raw materials. Nationwide, the cost of crude oil has recently increased significantly. As a result, it is anticipated that the price of synthetic rubber and other raw materials used in tire production will increase in the upcoming years.

Impact of COVID-19 on Kenya Tire Market

Covid-19 pandemic affected Kenya tire market hindered the expansion of most industries. To stop the spread of this terrible sickness, the government enacted harsh mobility restrictions, lockdowns, and cross-border trade restrictions, which presented the market with various unheard-of difficulties. Because imports are the main source of tires in Kenya, trade restrictions have a big influence on the availability of tires throughout the nation.

Kenya Tire Market

Segmental Coverage

Kenya Tire Market - By Vehicle Type

On basis of the vehicle type, Kenya tire market is divided into Passenger Car, Two-Wheeler, Medium & Heavy Commercial Vehicle, Light Commercial Vehicle, Off-The-Road Vehicle (OTR), and Three-Wheeler segments. Passenger cars have taken the largest share of the Kenya tire market, and this trend is expected to continue in the coming years. It is primarily due to the increasing demand for private vehicle ownership, resulting in a growing fleet of passenger vehicles. As a result, automakers are increasing their production and import capabilities to meet the increasing consumer demand for passenger cars. Rising demand is positively influencing tire production and distribution, as well as their availability and affordability across the country. Also, as a large portion of the country's population is cost-conscious, sales of used passenger cars are gaining traction across the country and driving the tire market.

Kenya Tire Market - By Tire Type

On basis of tire type, Kenya tire market is split into Radial and Bias segments. The radial segment, which also includes the tubeless tire market segment, made up a sizable portion of the Kenyan tire industry in terms of revenue. Due to their low rolling resistance and slow rate of deflation, tubeless tires are typically found on bicycles. The need for tubeless tires is expected to increase across Kenya as tube tires require more fuel than tubeless tires do.

Kenya Tire Market – By Demand Category

On basis of the demand category, Kenya tire market is divided into OEM and Replacement segments. Kenya tire market's replacement demand is predicted to expand at the quickest rate throughout the projection period. It primarily reflects the nation's excessive reliance on tire imports as a result of the lack of automobile & tire manufacturing facilities, i.e., demonstrating the dearth of OEMs (Original Equipment Manufacturers). However, advantages like the simplicity of finding a wide variety of tires for all vehicle kinds at various price points are also likely to encourage the replacement market's expansion. Moreover, throughout the projection period, increasing consumer awareness of the importance of proper tire replacement and maintenance is another significant factor expected to boost replacement demand.

Competitive Landscape

Major players in the Kenya tire market are Bridgestone, Michelin, Goodyear, Continental, Pirelli, Continental, Dunlop, Yokohama, BF Goodrich, Cooper Tire, and Firestone. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Recent Developments

• In 2021 - Goodyear introduced a new ElectricDrive all-season tire along with two new sizes of the ultra-high-performance (UHP) ElectricDrive GT tire. The product primarily targets crossover utility vehicles & commuter touring sedans, fundamentally equipped with a load index exhibiting higher potential in enduring the heavier weight associated with EVs. Also, the tire demonstrates excellent handling capabilities in different weather scenarios owing to its asymmetric tread pattern. In 2022, the brand announced its plans to further expand its product portfolio with the initial release of the Goodyear ElectricDrive GT, available in size 255/45R19 104W XL.

Scope of the Report

By Vehicle Type

• • Passenger Car

  • Two-Wheeler

  • Medium & Heavy Commercial Vehicle

  • Light Commercial Vehicle

  • Off-The-Road Vehicle (OTR)

  • Three-Wheeler

By Tire Type

• • Radial

  • Bias

By Demand Category

• OEM

• Replacement

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Kenya Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Surging demand for tires in replacement market
         2. Increasing disposable income
         3. Improving country’s economy
      2. Restraints
         1. Decline in production and delivery amid COVID-19
      3. Opportunities
         1. Growing infrastructure developments across the country.
         2. International government’s support for infrastructure projects
      4. Challenges
         1. Volatility in prices of raw material
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Kenya Tire Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Passenger Car
         2. Two-Wheeler
         3. Medium & Heavy Commercial Vehicle
         4. Light Commercial Vehicle
         5. Off-The-Road Vehicle (OTR)
         6. Three-Wheeler
      2. By Tire Type
         1. Radial
         2. Bias
      3. By Demand Category
         1. OEM
         2. Replacement
5. Competitive Landscape
   1. List of Key Players and Their Range
   2. Kenya Tire Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
6. Impact of Covid-19 on Kenya Tire Market Industry
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Bridgestone
   2. Michelin
   3. Goodyear
   4. Pirelli
   5. Continental
   6. Dunlop
   7. Yokohama
   8. BF Goodrich
   9. Cooper Tire
   10. Firestone
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents
   5. Assumption & Limitation

*Financial information in case of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures                                                                                           

Figure 1       Kenya Tire Market Segmentation

Figure 2       Kenya Tire Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

Figure 4       Kenya Tire Market Size, By Value (USD Million), 2019–2029

Figure 5       Kenya Tire Market Share, By Vehicle Type, By Value, 2019–2029

Figure 6       Kenya Tire Market Share, By Tyre Type, By Value, 2019–2029

Figure 7       Kenya Tire Market Share, By Demand Category, By Value, 2019–2029

List of Tables

Table 1        Kenya Tire Market Size, By Vehicle Type, By Value, 2019–2029

Table 2        Kenya Tire Market Size, By Tyre Type, By Value, 2019–2029

Table 3        Kenya Tire Market Size, By Demand Category, By Value, 2019–2029

Table 4        Bridgestone Company Overview

Table 5        Bridgestone Financial Overview

Table 6        Michelin Company Overview

Table 7        Michelin Financial Overview

Table 8        Goodyear Company Overview

Table 9        Goodyear Financial Overview

Table 10      Pirelli Company Overview

Table 11      Pirelli Financial Overview

Table 12      Continental Company Overview

Table 13      Continental Financial Overview

Table 14      Dunlop Company Overview

Table 15      Dunlop Financial Overview

Table 16      Yokohama Company Overview

Table 17      Yokohama Financial Overview

Table 18      BF Goodrich Company Overview

Table 19      BF Goodrich Financial Overview

Table 20      Cooper Tire Company Overview

Table 21      Cooper Tire Financial Overview

Table 22      Firestone Company Overview

Table 23      Firestone Financial Overview