Market Overview:
The KSA tire market is estimated to be valued at US$3,431 million in 2021 and is expected to witness significant growth over the forecast period of 2023-2030. The market is driven by the increasing demand for electric and autonomous vehicles in the Kingdom of Saudi Arabia (KSA). The rising environmental concerns and government initiatives promoting electric mobility are fueling the adoption of electric vehicles, which in turn is boosting the demand for tires. Additionally, the implementation of stringent safety regulations and the growing preference for advanced tire technologies are further contributing to the market growth.
Market Dynamics:
The KSA tire market is expected to exhibit a CAGR of 11.8% over the forecast period. The market dynamics are influenced by two main drivers:
1. Increasing Electric Vehicle Adoption:
The KSA government has set ambitious targets to increase the adoption of electric vehicles in the country. This is driven by the need to reduce carbon emissions and promote sustainable transportation. As electric vehicles require specialized tires for optimal performance and efficiency, the demand for electric vehicle tires is expected to witness significant growth.
2. Rise in Autonomous Driving Technologies:
The KSA government is also actively working towards the advancement of autonomous driving technologies. The deployment of autonomous vehicles requires high-quality tires that can provide superior grip, traction, and control. This is anticipated to drive the demand for advanced tires equipped with features such as sensors and self-inflating technology.
Market key trends:
The key trend in the KSA tire market is the increasing demand for radial tires. Radial tires offer several advantages over bias-ply tires such as improved fuel efficiency, better handling, and longer tread life. These tires have become popular among consumers and fleet operators in Saudi Arabia, leading to a shift in consumer preferences. As a result, the demand for radial tires is expected to witness significant growth in the forecast period.
SWOT Analysis:
Strength: The KSA tire market benefits from the strong presence of key players such as The Bridgestone Group and Michelin Group. These companies have established brand reputation and a wide distribution network, which allows them to effectively cater to the demand for tires in Saudi Arabia.
Weakness: One of the weaknesses of the KSA tire market is the high competition among key players. The market is highly fragmented, and companies need to invest heavily in marketing and product innovation to stay ahead. Additionally, the market is susceptible to fluctuations in raw material prices, which can affect the profitability of tire manufacturers.
Opportunity: There are several opportunities for growth in the KSA tire market. The increasing vehicle sales, rising disposable income, and government initiatives to develop the automotive sector present a favorable market landscape. Moreover, the growing popularity of electric vehicles in the region is expected to drive the demand for specialized tires.
Threats: The KSA tire market faces threats from counterfeit products and the presence of low-cost imports. These factors can negatively impact the sales and brand image of key players. Additionally, the volatility in oil prices can have an indirect impact on the market, as it affects consumer spending and the overall economic conditions in the country.
Key Takeaways:
The KSA tire market is expected to witness high growth, exhibiting a CAGR of 11.8% over the forecast period. This growth can be attributed to increasing vehicle sales, the rising disposable income of consumers, and government initiatives to boost the automotive sector.
In terms of regional analysis, Saudi Arabia is anticipated to be the fastest-growing and dominating region in the KSA tire market. The presence of a large population, growing urbanization, and strong demand for passenger vehicles contribute to the market’s growth in this region.
Key players operating in the KSA tire market include The Bridgestone Group, Hankook Tire Company, Apollo Tires Ltd., Michelin Group, Toyo Tire & Rubber Company Ltd., Goodyear Tire and Rubber Company, Yokohama Rubber Company Ltd., Pirelli & C SpA Company, Cooper Tire & Rubber Company, and Continental AG. These players leverage their brand reputation and distribution network to cater to the growing demand for tires in Saudi Arabia.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it