Report Overview

UAE tire market has been delivering an outstanding performance. The market’s growth is driven by the increasing demand for automobiles due to the high disposable income and living standards of the people. Additionally, favorable government initiatives and strict tire safety regulations favors the market’s growth.

UAE Tire Market- Industry Trends & Forecast Report 2027

UAE tire market is thriving and is estimated to grow at a CAGR of 8.5% in the forecast period. The growth of the market can be attributed to the increasing demand for automobiles due to the high disposable income and living standards of the people here. Furthermore, a flourishing economy and increasing construction activities are also influencing the growth of commercial vehicles in the region, which is further propelling the demand for tires in the UAE

UAE Tire Market- Overview

A tire is made of rubber and consists of a cushion of compressed air that fit around the wheel. Its primary purpose is to protect the wheel’s rim and provide tractive force between the vehicle and the road surface. Tires also provide a flexible cushion that reduces vibrations and absorbs shock from vehicles. A rubber tire is composed of tread, jointless cap piles, beads, and other materials, such as synthetic rubber, carbon black, and fabric. The UAE tire market is growing at an impressive pace due to an increasing demand for sedans and SUVs, as well as an increasing number of tourists. As the country's principal commercial and business centers, Dubai dominates the UAE tire market, followed by Abu Dhabi and Sharjah.

UAE Tire Market Forecast and Trends

Growth Drivers

Increasing Demand for Private Vehicles

Due to the high disposable income and stable fuel prices, the UAE is one of the most important markets for private vehicles in the world. It is estimated that there are around 3.5 million cars on the road, with Dubai having 40% of its shares. Both the new and used car markets in UAE are growing at a very fast rate, which is likely to fuel tire demand in the forecast period.

Favorable Government Initiatives Towards Tire Safety

Favorable government initiatives and tire safety regulations play a crucial role in fueling the growth of the UAE tire market. According to the UAE regulations, passenger car tires need to be sold within two years of their date of manufacture and should be replaced within five years. Vehicles failing to adhere to these rules are fined heavily. Therefore, the vehicle owners in the UAE periodically have their vehicles serviced and have them changed every five years. Such initiatives are propelling the growth of the tire market in the UAE.

Restraints

Increasing Pollution Due to the Use of Rubber Tires

Large volumes of rubber tires are disposed of as waste in UAE due to stringent tire safety rules. The burning of tires produces harmful smoke, which is extremely harmful to humans and the environment. There are more than 60 million used vehicle tires dumped in Kuwait's tire graveyard, which is considered the largest globally. Recently, a fire broke out on April 29, 2021, releasing a gas that was considered carcinogenic to the human body. These factors act as a major obstacle to the growth of the UAE’s tire market.

Impact of COVID-19 on UAE Tire Market

The sudden outbreak of the COVID-19 pandemic significantly halted the economic activities of the UAE. Consequently, the UAE tire market had to face several challenges to overcome the turbulence caused by the pandemic. As the government imposed strict lockdown, the imports and exports activities were temporarily barred creating a shortage of tires during this period. Moreover, as a result of lockdown restrictions, fewer replacement tires were sold. Furthermore, during this time, the demand for automobiles declined sharply causing the tire market to suffer enormous losses. As the region gets back on track with large-scale projects, the market is expected to rebound over the next five years.

UAE Tire Market - By Design

Based on designs, the UAE tire market is segmented into radial and bias. The radial tires segment holds the largest market share as these types of tires are mostly used in passenger cars. Radial tires also provide better grip to the vehicles on the road to enhance safety and durability. Furthermore, these tires are also comfortable compared to their counterparts and consume less fuel due to less rolling resistance. However, bias tires also cover a substantial share in the market because of their use in commercial vehicles.

UAE Tire Market - By Vehicle Type

Based on vehicle types, the UAE tire market is grouped into passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR) segments. Among these, the passenger car segment accounts for the largest market share. Passenger cars make up more than 80% of the UAE's automotive market. The high disposable income of consumers is driving the demand for passenger cars in the region, specifically luxury vehicles, which is further propelling the growth of the UAE tire market.

UAE Tire Market - By End-User

Based on end-users, the UAE tire market is grouped into OEM and replacements segments. The OEM segment holds the largest share in the UAE market because of the increasing automobile production in the country. Though the UAE has limited local production of vehicles, this sector is booming at a high rate as several leading companies including Ashok Leyland, W Motors, Hafilat Industries, etc., have established automobile production plants in this region, which is anticipated to fuel the segment’s growth during the forecast period.

UAE Tire Market - Competitive Landscape

The leading market players of the UAE tire market are Michelin, Goodyear Tire and Rubber Company, Dunlop Tyres, Continental AG, Bridgestone Corporation, Pirelli & C. S.p.A., Yokohama Rubber Company, Cooper Tire and Rubber Company, Hankook Tire & Technology, Firestone Tire and Rubber Company, and other prominent players.

The tire market in the UAE is intensely competitive with the presence of leading multinational tire manufacturers such as Bridgestone, Pirelli, Michelin, etc. The companies offer a wide range of tires of various materials and for different types of vehicles to grab a larger share in the market. There is also a strong trend among major tire manufacturers operating in the UAE tire market to expand their dealer network and product range. Furthermore, the adoption of marketing strategies like partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

• In May 2020, Roadbot, a Chinese tire manufacturer, announced the construction of a new manufacturing plant in Abu Dhabi for radial tires for passenger cars and trucks & buses and is investing around USD 614 million into the project.

Scope of the Report

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