According to a report by TechSci Research, the tire market in Saudi Arabia, as of 2020, had a value of USD 2.07 billion and is expected to surpass USD 2.74 billion by 2026, with a compound annual growth rate (CAGR) of over 5.30%. This growth can be attributed to ongoing and upcoming government-supported construction and infrastructure projects, as well as the increasing number of vehicles on the road following the lifting of the ban on women drivers. The market is further supported by the improving economic scenario, which has led to an increase in purchasing power among citizens. Additionally, there is a growing preference for retreaded tires. Moreover, the adoption of green tires driven by environmental concerns is a significant trend observed in the Saudi Arabia tire market. As people become more aware and concerned about the environment, they are increasingly opting for green tires over conventional ones, a trend that is expected to continue in the coming years.
Browse 35 market data Figures spread through 70 Pages and an in-depth TOC on “Saudi Arabia Tire Market”
The Saudi Arabia tire market primarily relies on replacement tire sales due to the absence of vehicle manufacturing factories. Therefore, retail outlets play a crucial role in providing effective after-sales services and technical support related to tires. This helps tire companies enhance brand awareness and customer satisfaction. Consequently, new players in the market are advised to invest in developing a strong distribution network comprising tire retailing and service centers. This strategy has become the latest market diversification approach adopted by renowned tire manufacturers.
In terms of market segmentation, the passenger car tire segment accounted for over two-thirds of the market volume share in 2020, followed by light commercial vehicles, medium and heavy commercial vehicles, OTR vehicles, and two-wheelers. The dominance of the passenger car segment can be attributed to the increasing purchasing power parity and continuous growth in the country’s auto lease market. The Central and Western regions of Saudi Arabia witnessed high tire demand, accounting for a cumulative volume share of over 55% in 2020. This demand is driven by major cities with high population density and significant pilgrimage cities like Mecca and Madinah.
The tire market in Saudi Arabia is highly competitive, with multinational companies such as Bridgestone Corporation, Hankook Tire Co., Ltd., Pirelli & C. S.p.A., Goodyear Tire & Rubber Company, Michelin Group, Yokohama Rubber Company Limited, Toyo Tire and Rubber Company, Sumitomo Rubber Industries Limited, and Continental AG intensifying the competition. Competitive pricing of Japanese, Korean, and Chinese brands has made them preferred choices among customers, and their market share is expected to increase further during the forecast period. Moreover, the automotive tire market in Saudi Arabia has seen the emergence of cheaper Chinese imports. To capture a significant share of the Saudi Arabia tire market, companies are expanding their distribution networks across local areas. Premium brands are also collaborating with local dealers to sell and market their products in all target areas of Saudi Arabia. Mr. Karan Chechi, Research Director at TechSci Research, a global management consulting firm, stated that government spending on construction and infrastructure projects under Saudi Vision 2030 will be a major driver for the Saudi Arabia tire market in the forecast period. Furthermore, the preference for recycled tires is increasing due to rising environmental concerns, which will contribute to further market growth.
The report titled “Saudi Arabia Tire Market By Vehicle Type (Passenger Car, LCV, M&HCV, OTR, and Two-wheeler), By Tire Construction Type (Radial, Bias), By Sales Channel (Online, Offline), Competition, Forecast & Opportunities, 2016 – 2026” provides an analysis of the potential of the tire market in Saudi Arabia. It offers statistics, market sizes, shares, and trends, enabling clients to make informed investment decisions. The report also identifies and analyzes emerging trends, as well as the key drivers and challenges faced by the Saudi Arabia tire market.
Download Sample Report @ https://www.techsciresearch.com/sample-report.aspx?cid=2811
About TechSci Research:
TechSci Research is a research-based management consulting firm providing market research and advisory solutions to its customers worldwide, spanning a range of industries. TechSci Research’s core values are value, integrity and insight. Led by a team of dynamic industry experts, TechSci Research provides its customers with high value market research and advisory services that helps them identify new market opportunities, growth engines and innovative ways to capture the market share. As a result, TechSci’s client leads rather than follow market trends. Not bound by legacy, TechSci’s cutting-edge research model leverages its decades of research knowledge and an increased use of technology as engines of innovation to deliver unique research value. Provided as an alternative to traditional market research, TechSci Research reports do not just deliver data and knowledge rather highlights the insights in a more usable and interactive format for its clients.
Mr. Ken Mathews
708 Third Avenue,
New York – 10017