South Africa Tire Market- Industry Size, Share, Trend Analysis, Outlook, Growth, Opportunity and Forecast, 2017-2027, Segmented By Design (Radial, Bias), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium, and Heavy Commercial Vehicles, Two Wheelers, Three Wheelers, Off-The-Road (OTR)), By End-User (OEM, Replacements), By Distribution Channel (Online Distributors, Offline Distributors), By Region (Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, North West, Northern Cape, Western Cape, and the Republic of South Africa)

  • Published Date: January 2022
  • Report ID: BWC21201
  • Available Format: PDF
  • Page: 115

Report Overview

South Africa Tire market is gaining significant traction because of the dominant automobile manufacturing industry. Also, the growth of foreign investment in automobile and tire production facilities favors the market's growth.

South Africa Tire Market- Industry Trends & Forecast Report 2027

South Africa Tire market was worth USD 1,872.3 million in 2020 and is further projected to reach USD 2,693.4 million by the year 2027, growing at a CAGR of 5.2% in the forecast period (2021-2027). The South African tire market is proliferating due to the dominance of the automotive manufacturing industry and expanding foreign investment to increase tire production capacity. Moreover, as South Africans' living standards rise, the demand for vehicles will increase, further propelling the country’s tire market.

South Africa Tire Market

Source: BlueWeave Consulting

South Africa Tire Market- Overview

Tires are circular and ring-shaped parts of a vehicle fitted on rims and inflated with air. The tire's main purpose is to protect the wheel rim and provide tractive force between the road surface and the vehicle. Tires made of rubber provide a flexible cushion that reduces vibration and absorbs shock when they roll over rough surfaces. The natural rubber has been extensively used in tire manufacturing since its invention. Nevertheless, contemporary tires are made from synthetic rubber, carbon black, steel wires, and other substances.

South Africa Tire Market Forecast and Trends

Growth Drivers

Expanding Automobile Production and Foreign Investment

The presence of leading international tire manufacturers, including Continental, Bridgestone, Goodyear, and Sumitomo Rubber is significantly boosting the local production of tires in South Africa. These companies are active on the global market and have their production units established in South Africa’s prominent cities, such as Port Elizabeth, Brits, Uitenhage, and Ladysmith. Furthermore, tire importers are gaining traction among automotive OEMs that produce South African-assembled vehicles for the domestic markets and exports.

High Penetration of Chinese and European Importers

The availability of a wide range of products offered by Chinese and European tire importers contributes significantly to market growth. There are approximately 200 Chinese and European importers that import standard tires such as racing tires, mining, and agriculture, etc., to South Africa, which in turn is driving the growth of the country’s tire market. Also, Chinese importers, such as YTS offer cheaper and lower-quality tires which are appealing to the consumers. Additionally, imported Chinese tires are also gaining traction in the replacement segment, which is boosting the market growth.

Restraints

Increasing Penetration of Unsafe and Used Tires

The lack of government regulations regarding the sales and use of second-hand tires act as a major restraining factor for the South Africa tire market. The growing imports of used tires, which are luring consumers due to their lower prices compared to new ones, are going to cause a significant decrease in tire sales in the country, directly affecting the earnings of tire makers. Furthermore, these tires are often thrown away without proper processing, contributing to the pollution of the environment.

Impact of COVID-19 on South Africa Tire Market

The COVID-19 pandemic negatively impacted the growth of the South Africa tire market. Along with the heavy burden on the healthcare system, the pandemic also resulted in unemployment, fatality rates, financial losses, continuous lockdown, closure of non-essential services, etc. These factors contributed to slow tire production and a slowdown in local tire demand, which slowed the growth of the tire market. Additionally, the COVID-19 pandemic caused a decline in the South African GDP, which is expected to negatively affect the South Africa tire market in the coming years. Also, the fourth wave of COVID-19 has recently hit the country, which may further hamper the growth of the tire market.

South Africa Tire Market - By Design

Based on designs, the South Africa tire market is segmented into radial and bias. The radial tire holds the largest share in the South Africa tire market. This kind of tire is considered best for heavy commercial vehicles, such as dump trucks, loaders, dozers, etc. Radial tires also offer flexible sidewalls, reduced fuel consumption, and better stability with the road surface, which acts as a contributing factor for the growth of the segment. Additionally, the increasing demand for passenger vehicles is also projected to boost the growth of the radial tire market during the forecast period.

South Africa Tire Market - By Vehicle Type

Based on vehicle types, the South Africa tire market is segmented into passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR). The light and medium & heavy commercial vehicles segment accounted for the largest share in the market. In South Africa, truck and bus production has boomed while government investment in electric buses for urban transportation has increased to reduce carbon emissions. Such factors are boosting the demand for these types of vehicles.

South Africa Tire Market - Regional Insights

Geographically, the South Africa tire market is segmented into Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, North West, Northern Cape, Western Cape, and the Republic of South Africa. The Western Cape dominates the South Africa tire market. The flourishing economy of this province and high human development index are boosting the purchasing power of the residents of this region, which in turn is propelling the demand for automobiles, further driving the market growth of tires in South Africa. On the other hand, the Eastern Cape also covers a substantial share in the market because of the high concentration of leading automotive manufacturers, such as Ford, Nissan, Fiat, etc.

South Africa Tire Market - Competitive Landscape

The leading players in the South Africa tire market are Bridgestone Corporation, Sumitomo Rubber Industries, Continental Tyre SA Ltd., Yokohama Rubber Company, Goodyear South Africa Ltd., Apollo Tires, Auto and Truck Tyres Ltd., Bandag Southern Africa (Pty) Ltd., Michelin, Dunlop Tyres, and other prominent players.

The South Africa tire market is highly fragmented due to the high concentration of multinational tire manufacturers in the country. The companies increasingly launch a wide range of products for all types of vehicles to expand their market share and boost their revenue. They also invest extensively in research & development activities to launch new and innovative products, such as smart tires with sensors, to stay ahead in the market. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

  • In September 2021, the Goodyear Tire & Rubber Company, a US-based multinational tire manufacturing company, announced its goals to procure 100% renewable energy in all its manufacturing sites across South Africa, the Middle East, and Europe.

Scope of the Report

Attributes Details
Years Considered Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Facts Covered Revenue in USD Million
Market Coverage South Africa
Product Service/Segmentation ByDesign, By Vehicle Type, By End-User, By Distribution Channel, By Region
Key Players Bridgestone Corporation, Sumitomo Rubber Industries, Continental Tyre SA Ltd, Yokohama Rubber Company, Goodyear South Africa Ltd, Apollo Tires, Auto and Truck Tyres Ltd., Bandag Southern Africa (Pty) Ltd., Michelin, Dunlop Tyres, and other prominent players.

 

By Design

  • Radial
  • Bias

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two Wheelers
  • Three Wheelers
  • Off-The-Road (OTR)

By End-User

  • OEM
  • Replacements

By Distribution Channel

  • Online Distributors
  • Offline Distributors

By Region

  • Eastern Cape
  • Free State
  • Gauteng
  • KwaZulu-Natal
  • Limpopo
  • Mpumalanga
  • North West
  • Northern Cape
  • Western Cape
  • Republic of South Africa
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Expanding Automobile Production and Foreign Investment
        2. High Penetration of Chinese And European Importers
      2. Market Restraints
        1. Increasing Penetration of Unsafe Used Tires
      3. Market Challenges
        1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
        1. Increasing Demand for Heavy-Duty Vehicles
        2. Expanding Online Sales Channels
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. South Africa Tire Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Design
        1. Radial
        2. Bias
      2. By Vehicle Type
        1. Passenger Cars
        2. Light Commercial Vehicles
        3. Medium and Heavy Commercial Vehicles
        4. Two Wheelers
        5. Three Wheelers
        6. Off-The-Road (OTR)
      3. By End-User
        1. OEM
        2. Replacements
      4. By Distribution Channel
        1. Online Distributors
        2. Offline Distributors
      5. By Region
        1. Eastern Cape
        2. Free State
        3. Gauteng
        4. KwaZulu-Natal
        5. Limpopo
        6. Mpumalanga
        7. North West
        8. Northern Cape
        9. Western Cape
        10. Republic of South Africa
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on South Africa Tire Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Bridgestone Corporation
    2. Sumitomo Rubber Industries
    3. Continental Tyre SA Ltd
    4. Yokohama Rubber Company
    5. Goodyear South Africa Ltd
    6. Apollo Tires
    7. Auto and Truck Tyres Ltd.
    8. Bandag Southern Africa (Pty) Ltd.
    9. Michelin
    10. Dunlop Tyres
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: South Africa Tire Market Segmentation

 

Figure 2: South Africa Tire Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: South Africa Tire Market Size, By Value (USD Million), 2017-2027

 

Figure 5: South Africa Tire Market Share (%), By Design, By Value, 2017-2027

 

Figure 6: South Africa Tire Market Share (%), By Vehicle Type, By Value, 2017-2027

 

Figure 7: South Africa Tire Market Share (%), By End-User, By Value, 2017-2027

 

Figure 8: South Africa Tire Market Share (%), By Distribution Channel, By Value, 2017-2027

 

Figure 9: South Africa Tire Market Share (%), By Region, By Value, 2017-2027

 

 

List of Tables

 

 

Table 1: South Africa Tire Market Size, By Design, By Value, (USD Million), 2017-2027

 

Table 2: South Africa Tire Market Size, By Vehicle Type, By Value, (USD Million), 2017-2027

Table 3: South Africa Tire Market Size, By End-User, By Value, (USD Million), 2017-2027

Table 4: South Africa Tire Market Size, By Distribution Channel, By Value (USD Million), 2017-2027

Table 5: South Africa Tire Market Size, By Region, By Value (USD Million), 2017-2027

Table 6: Bridgestone Corporation Financial Analysis

Table 7: Bridgestone Corporation Business Overview

Table 8: Sumitomo Rubber Industries Financial Analysis

Table 9: Sumitomo Rubber Industries Business Overview

Table 10: Continental Tyre SA Ltd Financial Analysis

Table 11: Continental Tyre SA Ltd Business Overview

Table 12: Yokohama Rubber Company Financial Analysis

Table 13: Yokohama Rubber Company Business Overview

Table 14: Goodyear South Africa Ltd. Financial Analysis

Table 15: Goodyear South Africa Ltd. Business Overview

Table 16: Apollo Tires Financial Analysis

Table 17: Apollo Tires Business Overview

Table 18: Auto and Truck Tyres Ltd. Financial Analysis

Table 19: Auto and Truck Tyres Ltd. Business Overview

Table 20: Bandag Southern Africa (Pty) Ltd. Financial Analysis

Table 21: Bandag Southern Africa (Pty) Ltd. Business Overview

Table 22: Michelin Financial Analysis

Table 23: Michelin Business Overview

Table 24: Dunlop Tyres Financial Analysis

Table 25: Dunlop Tyres Business Overview

 

Market Segmentation

By Design

  • Radial
  • Bias

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two Wheelers
  • Three Wheelers
  • Off-The-Road (OTR)

By End-User

  • OEM
  • Replacements

By Distribution Channel

  • Online Distributors
  • Offline Distributors

By Region

  • Eastern Cape
  • Free State
  • Gauteng
  • KwaZulu-Natal
  • Limpopo
  • Mpumalanga
  • North West
  • Northern Cape
  • Western Cape
  • Republic of South Africa
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