Saudi Arabia Tire Market, By Type (Radial, Bias), By End Use (OEM, Replacement), By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium, and Heavy, Commercial Vehicle, Two Wheelers, Off-The-Road), By Distribution Channel (Offline, Online) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: September 2021
  • Report ID: BWC2190
  • Available Format: PDF
  • Page: 119

Report Overview

The growth of Saudi Arabia tire market is attributable to the increasing penetration of automobiles because of customers’ high purchasing power and living standards in this region. Furthermore, the launch of various Chinese automobile brands at affordable costs is also driving the market growth.

Saudi Arabia Tire Market- Industry Trends & Forecast Report 2027

Saudi Arabia tire market was worth USD 3.8 billion in 2020 and is further projected to reach USD 5.6 billion by the year 2027, growing at a CAGR of 6.0% in the forecast period. The growth of Saudi Arabia tire market is attributable to the increasing penetration of automobiles because of customers’ high purchasing power and living standards in this region. The need for frequent tire replacements due to harsh weather conditions in Saudi Arabia and the country's favorable economic conditions are driving the demand for tires in the region. Additionally, the launch of various Chinese automobile brands at affordable costs is also driving the market growth. Also, the development of smart cities such as NEOM is favoring the growth of Saudi Arabia tire market.

Saudi Arabia Tire Market

Source: BlueWeave Consulting

Saudi Arabia Tire Market- Overview

Tires are the essential component of automobiles as they surround the wheels and support their load to the ground. They also provide friction on the surface which prevents the vehicle from slipping and keeping the drivers and passengers safe. Tires are usually made up of modern materials such as synthetic rubber, natural rubber, fabric, and wire, along with carbon black and other chemical compounds. These tires are used for many types of vehicles including cars, motorcycles, buses, trucks, heavy equipment, etc.

Saudi Arabia Tire Market Forecast and Trends

Growth Drivers

Increasing Investment Toward Automobile Production Activities

The gulf countries whose economies are dependent on oil and petroleum exports are significantly making efforts towards pushing for the growth of the other sectors. Likewise, the Saudi Arabia government is making efforts into expanding the production of automobiles in the country to reduce their dependence on oil exports and create job opportunities for the people. Moreover, implementation of programs such as National Industrial Development and Logistics Program (NIDLP) that support the Saudi Vision 2030 continue to propel market growth in Saudi Arabia. Such efforts are expected to boost the demand for tire in Saudi Arabia in the forecast period, propelling the overall tire market growth.

Advancements in Tire Technology

Tire manufacturers in Saudi Arabia are increasingly introducing and adopting innovations in their tire technologies to offer safety and improved comfort. Such advancements are boosting the tire demand in the Saudi Arabiamarket. For instance, Hankook Tire has pioneered the creation of non-pneumatic tires with its iFlex tire, which employs cutting-edge technology. It has passed slalom and high-speed testing and is extremely tough and safe.

Additionally, tire manufacturers are also introducing improvements, including run-flat tires that resist deflation when punctured. Tire manufacturers are working to eliminate flat tires and create environmentally friendly tires, which is likely to boost the tire market in Saudi Arabia.

Restraints

High Price of Tires

The high price of tires is one of the major restricting factors for Saudi Arabia tire market. The exorbitant cost of tires compels many car owners to choose low-cost tires that prove fatal in the long run. Low-priced tires are often under or over-inflated and dangerous to run on roads with hazardous conditions such as potholes, railroad crossings, rain, hot tarmac, etc. Moreover, because of its high cost, most people often avoid replacing their tires with OEMs.

Impact of COVID-19 on Saudi Arabia Tire Market

The sudden outbreak of the COVID-19 pandemic has had a negative impact on Saudi Arabia tire market. The import and export of vehicles were temporarily halted, resulting in a shorter supply of tires. The production activities of OEMs with operations in Saudi Arabia were also limited. The demand for tires in the country declined significantly, incurring losses to the market. However, wth the emergence of online platforms for the purchase and sale of tires, the market is expected to recover soon.

Saudi Arabia Tire Market - By Type

Based on types, Saudi Arabia tire market is segmented into radial and bias. The radial tire segment accounts for the largest market share due to its advantages and high safety. Radial tires feature radially placed plies, resulting in a flexible tire wall. Such tires also provide improved durability and maneuverability as well as comfort compared to their counterparts. Therefore, these tires witness higher demand in the Saudi Arabia market. Most passenger cars use these tires since they provide better bump and shock absorption and prevent vehicle damage.

Saudi Arabia Tire Market - By End-Use

Based on end-use, Saudi Arabia tire market is segmented into OEM and replacement. The OEM segment accounts for the largest market share with the presence of four major global OEMs. i.e., Isuzu Motors, Mercedes, Man, and Volvo, etc. These OEMs currently have a combined production capacity of around 12,000 heavy-duty vehicles. By 2022, these OEMs are likely to grow their production capacity to 39,000 heavy-duty trucks. Such production activities are propelling the demand for tires among OEMs, further propelling the market growth.

Saudi Arabia Tire Market - By Vehicle Type

Based on vehicle types, Saudi Arabia tire market is segmented into passenger cars, light commercial vehicles, medium and heavy, commercial vehicles, two-wheelers, and off-the-road. The passenger car segment holds the largest market share because of the high and rising number of passenger vehicles for personal use. On the other hand, the heavy vehicle segment is projected to witness the highest CAGR during the forecast period because of the production operations of global OEMs, such as Isuzu Motors, Mercedes, Man, and Volvo.

Saudi Arabia Tire Market - Distribution Channel

Based on distribution channels, Saudi Arabia tire market can be classified into offline and online. The offline distribution channel accounts for the largest market share because of the bulk supply among original car and replacement purposes. Furthermore, the dependence on authorized dealers for genuine and high-quality products propels the growth of the offline segment. However, the online segment is likely to gain significant traction during the forecast period, especially after the COVID-19 pandemic with the emergence of various online platforms for vehicle parts.

Competitive Landscape

The leading players in Saudi Arabia tire market are Michelin, Bridgestone, Continental, Goodyear, Sumitomo, Pirelli, Yokohama, Cooper Tyre& Rubber Company, Apollo Tyres Ltd, Dunlop, Compagnie Generale des Établissements Michelin SCA,Hankook, Toyo, Kumho, and other prominent players.

The tire market of Saudi Arabia is highly fragmented and consolidated, with leading global and regional players. The market players offer a wide range of tires of various materials and sizes to meet the growing demand for different vehicles. The adoption of competitive strategies like mergers, acquisitions, partnerships, etc., is also very prominent in this market.

Recent Developments

  • In December 2019, Apollo Tyres Ltd., an Indian multinational tire manufacturing company, announced to have entered Saudi Arabia market through an agreement with Al-JomaihTyres Company Ltd., the exclusive distributor for the Kingdom.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Product Service/Segmentation

By Type, By End-Use, By Vehicle Type, By Distribution Channel

Key Players

Michelin, Bridgestone, Continental, Goodyear, Sumitomo, Pirelli, Yokohama, Cooper Tyre& Rubber Company, Apollo Tyres Ltd, Dunlop, Compagnie Generale des Établissements Michelin SCA,Hankook, Toyo, Kumho, and other prominent players.

 

By Type

  • Radial
  • Bias

By End-Use

  • OEM
  • Replacement

By Vehicle Type

  • Passenger Car
  • Light Commercial Vehicle
  • Medium and Heavy Commercial Vehicle
  • Two Wheelers
  • Off-The-Road

By Distribution Channel

  • Offline
  • Online

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