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Saudi Arabia Commercial Vehicle Tire Market

Saudi Arabia Commercial Vehicle Tire Market

Saudi Arabia Commercial Vehicle Tire Market, By Vehicle Type (Large Commercial Vehicle and Medium & Heavy Commercial Vehicle); By Tire Construction Type (Radial and Bias); By Price Segment (Budget, Ultra Budget and Premium); Trend Analysis, Competitive Market Share & Forecast, 2018-2028

  • Published Date: September 2022
  • Report ID: BWC22334
  • Available Format: PDF
  • Page: 121

Report Overview

Saudi Arabia Commercial Vehicle Tire market is growing due to increasing construction activity and rapid infrastructure development projects. Also, growth in the e-commerce sector and continued advancements in commercial vehicle tire manufacturing processes and technologies are expected to drive the growth of the Saudi Arabian commercial vehicle tire market during the forecast period.

Saudi Arabia Commercial Vehicle Tire Market - Industry Trends & Forecast Report 2028

Saudi Arabia commercial vehicle tire market reached 22 million units in 2021 and is further projected to reach 26 million units by the year 2028, exhibiting a CAGR of 2.4% in the forecast period. The rapid expansion of the market is predominantly due to the increasing construction activity and rapid infrastructure development projects. Moreover, increasing investment in R&D activities to find advanced solutions to improve existing commercial tire infrastructure by increasing efficiency and performance also propelling the Saudi Arabia commercial vehicle tire market.

Saudi Arabia Commercial Vehicle Tire Market

Commercial Vehicle Tire - Overview

Tires are important vehicle components that connect trucks and trailers to the road and enable drivers to safely navigate a variety of terrains. They play such an important role in vehicle service that it is helpful for drivers to learn how to avoid wear and tear. These Commercial Vehicle tires generally require lower pressures than other types of tires. The LT designation stands for light trucks, but these are commonly found alongside larger 3/4 and 1-ton pickup trucks. Commodity prices, foreign taxes, processing costs, and the availability of production equipment affect the Saudi Arabia Commercial Vehicle Tire industry.

Saudi Arabia Commercial Vehicle Tire Market Forecast and Trends

Growth Drivers

Increasing development and construction activity helping the market growth

Increased efforts by key authorities to reduce dependence on the oil and gas industry and find new revenue streams are positively supporting the growth of other industries. Several ongoing reforms and initiatives being implemented by key authorities, such as the National Transformation Programme, Saudi Vision 2030, and high-end private sector investment, will provide significant growth opportunities for the Saudi construction industry in the forecast period. The government is introducing construction and infrastructure development projects to strengthen its economic position and create quality living conditions. According to the report of the US-Saudi business council in 2022, Saudi Arabia spends around USD 12.3 billion in the first quarter of 2022 in construction spending. Upcoming mega construction projects such as Sakani Housing Program, Amaala, Red Sea Project, Neom Business City, and Qiddiya City Riyadh require commercial vehicles such as pickup trucks, dump trucks, cement mixers, and front-end loaders commercial vehicles. Continued use of commercial vehicles on harsh construction sites leads to increased wear and tear of tires. The need to replace tires and invest in higher-performance commercial vehicles is expected to drive the growth of the commercial vehicle tire market in Saudi Arabia over the forecast period.

A thriving e-commerce sector supports market demand

Tech-savvy youth are shifting their purchases of groceries and daily-use products to online platforms. E-commerce customers spend a lot more money and make more purchases than they would in a physical store because they can order so conveniently and from the comfort of their homes. The growing e-commerce industry requires the development of efficient supply chains to meet increasing customer demand. Commercial vehicles transport products to storage locations and deliver them to distributors and customers. Commercial vehicles have longer driving distances and larger storage capacities than passenger car transportation. Increasing consumer demand is driving market participants to invest more in commercial vehicle purchases. This is expected to boost the demand for the commercial vehicle tire market in Saudi Arabia over the forecast period.

Restraints

The increasing price of tires

In Saudi Arabia, tire prices are increasing due to soaring raw materials and transportation costs. In 2020, Saudi Arabia increased various customs duty rates on imports, including raw materials for tire production and motor vehicles. In addition, tire market supply chains have been disrupted worldwide due to a growing driver shortage in the trucking industry, negatively impacting prices across Saudi Arabia. The commercial tire industry is also suffering from shortages due to increased demand for commodities that directly affect truck mileage and the huge need for tires across Saudi Arabia.

Impact of COVID-19 on Saudi Arabia Commercial Vehicle Tire Market

The automotive and tire industry has been severely impacted by the Covid-19 pandemic, presenting some unprecedented challenges for Saudi Arabia's leading tire manufacturers. With lockdowns imposed and movement severely restricted, tire manufacturers and importers have been hit hard by raw material shortages, supply chain disruptions, delivery, production delays, and price volatility companies have faced huge revenue losses. The Saudi government does not impose restrictions on construction activity as it is a source of superior economic flow across the country. This has increased the demand for commercial vehicles and tires, allowing major players to compete in the market.

As Covid-19 cases declined, the government lifted restrictions and allowed the industry to resume operations. This has allowed key players to resume normal production to meet the various demands of end users. Additionally, most tire manufacturers have launched online platforms to sell their products through e-commerce sites and offer customers doorstep delivery and installation services, further boosting the tire industry.

Saudi Arabia Commercial Vehicle Tire Market - By Vehicle Type

Based on vehicle type, the market is divided into large commercial vehicles and medium & heavy commercial vehicles. The large commercial vehicle segment is expected to capture the largest market share during the forecast period. Light commercial vehicles or LCVs are in high demand in the logistics industry. This is because it offers several advantages, such as lower running costs, longer mileage, and easier navigation than its counterparts. In addition to that, upcoming mega construction projects in Saudi Arabia require the use of large commercial vehicles such as pickup trucks, dump trucks, cement mixers, front-end loaders, etc., which help boost the market share for this segment. Due to the country's continued strong economic activity, the growing number of small and medium enterprises is accelerating the demand for commercial vehicles and is expected to boost the growth of the commercial vehicle tire market in Saudi Arabia over the forecast years.

Saudi Arabia Commercial Vehicle Tire Market - By Price

Based on the price segment, the market is divided into budget, ultra-budget, and premium. The Premium tires segment is expected to capture a large market share in the forecast period due to its high-quality materials and advanced manufacturing processes. Demand is increasing for use in commercial vehicles as they provide better fuel economy than cheaper tires. Industry bodies rigorously test Premium tires to validate performance in braking, handling, aquaplaning, and cabin noise optimization. The benefits of using premium quality tires over others are expected to impact market demand over the forecast years.

Competitive Landscape

Key players operating in Saudi Arabia Commercial Vehicle Tire market are Bridgestone Middle East & Africa FZE, Hankook Tire, Continental ME, Michelin AIM FZE, Yokohama Rubber Company, and Other Prominent Players. The Saudi Arabia Commercial Vehicle Tire market is consolidated with the presence of a few manufacturing companies in the country. Due to ongoing digitization, increased R&D spending and increased vehicle sales are helping companies to strengthen their product portfolios.

Recent Development

  • February 2020 - Bridgestone's latest innovation, the smart strain sensor technology equipped with the tools of the Internet of Things (IoT). This feature allows vehicle owners to track tire pressure and temperature and measure the dynamic changes in the load that occur when the tire is in use.

 

Scope of the Report

Attributes Details
Years Considered Historical data – 2018-2021
Base Year – 2021
Estimated Year - 2022
Forecast – 2022 – 2028
Facts Covered Revenue in USD Million
Volume in Million Units
Market Coverage Saudi Arabia
Product Service/Segmentation By Vehicle Type, By Tire Construction Type, By Price Segment.
Key Players Bridgestone Middle East & Africa FZE, Hankook Tire, Continental ME, Michelin AIM FZE, Yokohama Rubber Company, Other Prominent Players.

 

 

By Vehicle Type

· Large Commercial Vehicle

· Medium & Heavy Commercial Vehicle

 

By Tire Construction Type

· Radial

· Bias

 

By Price Segment

· Budget

· Ultra Budget

· Premium

 

  1. Research Framework
    1. Research Objective
    2. Type Overview
    3. Market Segmentation
  2. Executive Summary
  3. Saudi Arabia Commercial Vehicle Tire Market Insights
    1. Industry Value Chain Analysis
    2. DROC Analysis
      1. Growth Drivers
        1. Growing construction industry
        2. Flourishing e-commerce sector
        3. Increasing advancements in the commercial vehicle tire manufacturing process.
      2. Restraints
        1. Increasing price of tires due to rising various customs duty rates
      3. Opportunity
        1. Rising Adoption of advance commercial vehicle tire
        2. Ongoing Infrastructure Development and Construction activities
      4. Challenges
        1. Shortages due to increased demand for commercial vehicle tire
        2.  
    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. Saudi Arabia Commercial Vehicle Tire Market Overview
    1. Market Size & Forecast, by Value & Volume, 2018–2028
      1. By Value (USD Billion)
      2. By Volume (Million Units)
    2. Market Share & Forecast
      1. By Vehicle Type
        1. Large Commercial Vehicle
        2. Medium & Heavy Commercial Vehicle
      2. By Tire Construction Type
        1. Radial
        2. Bias
      3. By Price Segment
        1. Budget
        2. Ultra Budget
        3. Premium
  5. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Saudi Arabia Commercial Vehicle Tire Company Market Share Analysis, 2021
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
  6. Impact of Covid-19 on Saudi Arabia Commercial Vehicle Tire System Market
  7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT)
    1. Bridgestone Middle East & Africa FZE                        
    2. Hankook Tire                       
    3. Continental ME                 
    4. Michelin AIM FZE
    5. Yokohama Rubber Company
    6. 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, By Region
    5. Assumptions & Limitations

 

*Financial information of 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        Saudi Arabia Commercial Vehicle Tire Segmentation

Figure 2        Saudi Arabia Commercial Vehicle Tire Market Value Chain Analysis

Figure 3        Company Market Share Analysis, 2021

Figure 4        Saudi Arabia Commercial Vehicle Tire Market Size, By Value (USD Million), 2018–2028

Figure 5        Saudi Arabia Commercial Vehicle Tire Market Size, By Volume (Million Units), 2018–2028

Figure 6        Saudi Arabia Commercial Vehicle Tire Market Share, By Vehicle Type, By Value, 2018–2028

Figure 7        Saudi Arabia Commercial Vehicle Tire Market Share, By Vehicle Type, By Volume, 2018–2028

Figure 8        Saudi Arabia Commercial Vehicle Tire Market Share, By Tire Construction Type, By Value, 2018–2028

Figure 9        Saudi Arabia Commercial Vehicle Tire Market Share, By Tire Construction Type, By Volume, 2018–2028

Figure 10       Saudi Arabia Commercial Vehicle Tire Market Share, By Price Segment, By Value, 2018–2028

Figure 11       Saudi Arabia Commercial Vehicle Tire Market Share, By Price Segment, By Volume, 2018–2028

 

List Of Tables

 

Table 1         Saudi Arabia Commercial Vehicle Tire Market Size, By Value (USD Million), 2018–2028

Table 2         Saudi Arabia Commercial Vehicle Tire Market Size, By Volume (Million Units), 2018–2028

Table 3         Saudi Arabia Commercial Vehicle Tire Market Share, By Vehicle Type, By Value, 2018–2028

Table 4         Saudi Arabia Commercial Vehicle Tire Market Share, By Vehicle Type, By Volume, 2018–2028

Table 5         Saudi Arabia Commercial Vehicle Tire Market Share, By Tire Construction Type, By Value, 2018–2028

Table 6         Saudi Arabia Commercial Vehicle Tire Market Share, By Tire Construction Type, By Volume, 2018–2028

Table 7         Saudi Arabia Commercial Vehicle Tire Market Share, By Price Segment, By Value, 2018–2028

Table 8         Saudi Arabia Commercial Vehicle Tire Market Share, By Price Segment, By Volume, 2018–2028

Table 9         Bridgestone Middle East & Africa FZE Company Overview

Table 10        Bridgestone Middle East & Africa FZE Financial Overview

Table 11        Hankook Tire Company Overview

Table 12        Hankook Tire Financial Overview

Table 13        Continental ME Company Overview

Table 14        Continental ME Financial Overview

Table 15        Michelin AIM FZE Company Overview

Table 16        Michelin AIM FZE Financial Overview

Table 17        Yokohama Rubber Company Overview

Table 18        Yokohama Rubber Company Financial Overview

 

Market Segmentation

By Vehicle Type

· Large Commercial Vehicle

· Medium & Heavy Commercial Vehicle

 

By Tire Construction Type

· Radial

· Bias

 

By Price Segment

· Budget

· Ultra Budget

· Premium

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