Report Overview

Growing investments in premium autos, rising government support and incentives for the local tire manufacturing business, expanding possibility for joint ventures and collaborations with international tire producers, and an increasing focus on developing road infrastructure could boost the growth of Nigeria Tire Market during the forecast period between 2023 and 2029.

Nigeria Tire Market – Industry Trends & Forecast Report, 2029

Nigeria tire market size is projected to grow at a CAGR of 3.42% during the forecast period between 2023 and 2029. Major factors driving the growth of the Nigeria tire market include the paradigm shift of people towards private ownership of vehicles for transportation, which has a direct impact on the demand for tires in the nation. Due to increasing demand for prompt maintenance, repairs, and tire replacement, the middle-class and lower-income population's growing preference for used automobiles is also playing a significant part in the market's rise. Also, the rapidly growing trade activities, i.e., the depicting of soaring import of tires & cars from countries, including the United States, Germany, and the Netherlands, are favorably impacting the expansion of the tire market across Nigeria.

Nigeria Tire Market - Overview

Tires, as one of the most visible components of a vehicle, require regular inspection and maintenance to ensure a safe and enjoyable ride. They play an important role in maintaining proper grip and traction and providing a safe driving experience by providing a stable interaction between the car and the road. Due to this, the leading tire manufacturers are actively working towards the production and distribution of strong tires throughout Nigeria, which is expected to boost the country's tire industry during the forecast period.

Growth Drivers

Increasing Investments in Vehicles

A significant factor driving the market's expansion is the introduction of the National Automotive Industry Development Plan (NAIDP), which has drawn numerous illustrious automakers and tire manufacturers and encouraged them to build small-scale assembly factories in Nigeria. Another lucrative opportunity for the Nigeria tire market to grow during the forecast period is the government's active involvement in setting goals to produce around 30% of Electric Vehicles by 2025 through various plans and associations like the National Automotive Design & Development Council (NADDC).

Restraints

High Variations in Raw Material Prices

Significant amounts of synthetic and natural rubber, sulfur, carbon black, and other materials are required in the production of automotive tires. The price of these raw materials fluctuates due to a variety of factors, including the availability of natural rubbers and government regulations prohibiting the excessive deforestation of rubber trees. The fluctuations in raw material prices limit the growth of the Nigeria tire market.

Impact of COVID-19 on the Nigeria Tire Market

The Covid-19 adversely affected most industries in Nigeria, including the tire market, which suffered severely from the crisis. While the government had to impose strict movement restrictions, lockdowns, and travel bans to prevent the spread of this dreadful virus, the tire market faced several unprecedented challenges related to the development, production, and distribution of tires across the country. Also, the industry faced a shortage of raw materials and labor, a halt in the import and export of tires and automobiles, decreased consumer demand, and the closure of several manufacturing units, among other issues. Because the duration of these restrictions was unknown, the public demonstrated a paradigm shift in their expenditure towards only essential goods.

Nigeria Tire Market

Segmental Coverage

Nigeria Tire Market - By Tire Type

On basis of tire type, Nigeria tire market is split into Radial Tires and Bias Tires segments. The radial tires segment is a higher contributor to the Nigeria tire market. As they cushion the rider from shocks, crashes, and bumps, they offer more comfort. Also, the higher fuel efficiency of radial tires has a significant effect on consumer demand. Radial tires are also in more demand because of their resistance to heat, wear, and cutting.

Nigeria Tire Market – By Rim Size

On basis of rim size, Nigeria tire market is divided into Below 15 inches, 15–20 inches, and Above 20 inches segments. The below 15 inches segment accounts for the highest market share. During the forecast period, considerable growth is expected. The tire is available on the Nigeria tire market in several sizes. For various vehicle types and layouts, a wide range of tire sizes is available. Rising fuel prices, increased worries over pollution and climate change, and a movement in customer preference toward electric vehicles have all contributed to an increase in tire demand.

Nigeria Tire Market – By Application

On basis of the application, Nigeria tire market is divided into On-road tires, Off-road Tires, Agricultural Tires, and other (including Industrial Tires and Aviation Tires) segments. The off-road tires segment dominates the Nigeria tire market by application. It is growing as mechanization penetrates industries including construction, mining, and agriculture. These tires are appropriate for harsh weather conditions and uneven roads since they contain thick threads that offer traction on a range of terrain, such as loose gravel, mud, and dirt. Their deeper and broader grooves boost rolling turbulence and stability in addition to penetrating sand and mud surfaces.

Competitive Landscape

Major players in the Nigeria Tire Market include Michelin Nigeria Limited, Dunlop Nigeria Plc, Bridgestone Nigeria Limited, Firestone Nigeria Limited, Infinity Tires Limited, Nexen Tire Nigeria Limited, Goodluck Tires Limited, Sumitomo Rubber Industries Limited, West African Tire Services Limited, and Kingsway Tires Limited. 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 March 2022 - The Ministry of Industry, Trade, and Investment in Nigeria announced its plans to introduce a new tariff of a 5% duty on imported tires from July 01, 2022, onwards. The new tariff was imposed in a bid to promote local tire manufacturing and support the growth of the Nigerian economy.

Scope of the Report

By Tire Type

• Radial Tires

• Bias Tires

By Rim Size

• Below 15 inches

• 15–20 inches

• Above 20 inches

By Application

• On-road Tires

• Off-road Tires

• Agricultural Tires

• Others (including Industrial Tires and Aviation Tires)