Report Overview

Increasing automobile production and automobile services and maintenance, the government's increasing focus on infrastructure and industrial sector development, and growing safety & security concerns could boost the growth of Somalia Tire Market during the forecast period between 2023 and 2029.

Somalia Tire Market Trends & Forecast Report, 2029

Somalia tire market size is expected to expand at a CAGR of 9.4% during the forecast period between 2023 and 2029. One of the key factors driving the demand for tires is the rising sales of passenger cars, particularly in emerging regions of Somalia. The demand for tires is being fueled by the growth in the number of vehicles being used in developing countries, which is being fueled by rising income levels. The demand for tires is being driven primarily by the need for weather-resistant tires and tires that can withstand the stresses and pressures of driving. Additionally, increased exports of wheels as a result of rising demand are also beneficial to the tire industry. One of the industries in the nation that will grow the fastest is the auto industry. These factors will all support the growth of the tire industry, which is expected to increase during the forecast period.

Somalia Tire Market - Overview

The idea that a wheel with a tire on it is clad gives rise to the term tire. A tire is a ring of material that encircles the rim of a wheel. A tire is a flexible material membrane that encloses a rim, transfers the weight of the car on the ground, and creates a solid bond between the car and the road. Tire production involves the use of fabric, wire, natural rubber, carbon black, and synthetic rubber. They absorb vibrations because they are both strong and flexible. Tires are made to increase the overall performance of a variety of vehicles, including cars, motorcycles, buses, lorries, bicycles, shopping carts, wheelchairs, forklifts, aircraft, and parts used in the auto industry.

Growth Drivers

Rise in Vehicle Production and Sales

Increasing production and sales of vehicles across Somalia are the main factors driving the Somalia tire market. Sales of commercial vehicles like trucks, tractors, and trailers are also advancing the market. The market will grow during the forecast period due to consumer demand for luxury and premium vehicles as well as low-weight cars. Selling rate of vehicles is growing day by day. Tires are in high demand due to the rise in the sale and demand of automobiles across Somalia.

Growing Adoption of Electric Vehicles

The increasing production and sales of electric vehicles (EVs) is one of the key factors expected to drive the Somalia tire market between 2023 and 2029. Consumers are turning toward buying electric vehicles (EVs) as a result of rising environmental awareness and rising oil and gas prices, which would significantly boost the growth of the Somalia tire market. For a variety of reasons, special tires are needed for electric vehicles. Compared to ICE (internal combustion engine) vehicles, EV tires must handle more weight and deliver more torque. As a result, the demand for their tires is increasing significantly along with the growth of EV sales in developed countries, which will ultimately drive the Somalia tire market in the years to come.

Restraints

Highly Volatile Raw Material Prices

The growth of the Somalia tire market between 2023 and 2029 may be constrained by unstable raw material prices. The cost of tires is determined by the price of raw materials, just like all other commodities. The production and sales of tires are being hampered by the rising costs of butadiene and EPDM rubber as a result of their constrained supply. As a result of the uniform increase in tire prices brought on by the lack of a steady supply of raw materials, many potential customers are no longer able to afford replacement costs.

The amount of waste produced by tires is also significantly rising even though tire manufacturing companies are continually investing in the creation of sustainable materials. Because of this, governments from many different nations have imposed strict guidelines on tire manufacturers to adopt sustainable waste management solutions, which would result in increased costs and, as a result, impede the growth of the market as a whole due to the small number of consumers.

Impact of COVID-19 on Somalia Tire Market

The COVID pandemic has had a significant impact on the market in terms of sales, as more than 44% of unit sales have been hampered due to disruptions in manufacturers' transport capabilities as a result of stringent lockdown norms and rising safety concerns. Manufacturing operations have been halted, and the supply chain has been disrupted, resulting in a decrease in pandemic tire exports. Raw material costs account for 65-70 percent of total tire costs. When the cost of raw materials such as nylon and polyester, as well as rubber, rises, fluctuating raw material pricing occurs, which is a major challenge that the tire market faced as a result of the covid-19 pandemic.

Somalia Tire Market

Segmental Coverage

Somalia Tire Market - By Vehicle Type

Somalia tire market is divided into Passenger Cars, Two-Wheelers, Medium and Heavy Commercial Vehicles, Light Commercial Vehicles, Off the Road Vehicles (OTR), and Three-Wheelers. Due to their dominance in the market during the forecast period, passenger cars and light commercial vehicles' performance of a vehicle includes bearing the weight of the vehicle, sending acceleration and deceleration force to the ground, changing and maintaining direction, and absorbing shock from the road surface. One of the key factors boosting tire demand across Somalia is the revenue growth of passenger cars, particularly in emerging economies.

Somalia Tire Market - By Tire Type

On basis of the tire type, Somalia tire market is divided into Radial (Tube, Tubeless) and Bias segments. Due in large part to the superior strength & flexibility they provide, radial tires comprising tubeless tire are the market leaders on the international tire scene. Drivers experience greater comfort due to the impact and shock absorption of radial tires. They improve performance by transferring more of the vehicle's power to the road and thereby reducing fuel consumption. Radial tires' sidewalls and treads operate separately. Furthermore, their qualities—such as fewer vibrations, longer tire life due to less heat generated, and lower vehicle maintenance costs—are important factors that also contribute to their booming sales and dominance in the tire industry.

On the other hand, over the forecast years, the demand for Bias tires is expected to experience significant growth, primarily as a result of the expansion of the mining and construction industries as well as farm mechanization, which is boosting the need for machinery like excavators, loaders, heavy trucks, etc. and, as a result, Bias tires. These tires are less expensive than radial tires, have tougher sidewalls, enable smooth rides on uneven surfaces, and have a crosshatch construction. However, the high rolling resistance (HRR) and high traction of bias tires cause the tread to deteriorate quickly, which reduces fuel efficiency. As a result, their overall demand is considerably lower than that of radial tires.

Somalia Tire Market - By Demand Category

On basis of the demand category, Somalia tire market is divided into OEM and Replacement segments. The OEM (Original Equipment Manufacturer) segment currently holds the largest market share, and this trend is expected to continue throughout the forecast period (2023–2029). OEMs are currently investing in R&D to develop lightweight, environmentally friendly tires that meet regulatory standards. OEM tires are always of the highest quality and can be used for a wide range of applications. Because of its design goals of being quiet, durable, and useful on the road, it performs admirably outside of the showroom. As a result, the OEM segment is expected to control a large portion of the market in the coming years.

Competitive Landscape

Competition in Somalia tire market is intense. Major companies in the market include Apollo Tyres Ltd., CEAT Limited, JK Tyre & Industries Ltd., Michelin AIM FZE, Bridgestone Middle East & Africa FZE, MRF Limited, Shandong Wanda BOTO Tyre Co. Ltd., Hangzhou Zhongce Rubber Co. Ltd., GITI Tire, Prinx Chengshan, and Ascenso Tyres. 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.

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

1. Tube

2. Tubeless

   • Bias

By Demand Category

• • OEM

• • Replacement