by The KSA tire market is estimated to be valued at US$ 3,431 million in 2021 and is expected to exhibit a CAGR of 11.8% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The KSA tire market refers to the demand and sales of various types of tires in the Kingdom of Saudi Arabia. The market includes passenger car tires, commercial vehicle tires, and off-road vehicle tires. With the increasing sales of automobiles and the expanding transportation industry in KSA, the demand for tires is also witnessing significant growth. The market offers a wide range of products with different specifications and features to cater to the diverse needs of consumers. These tires not only ensure safe and comfortable rides but also contribute to fuel efficiency and vehicle performance.
Market Dynamics:
The high growth of the KSA tire market can be attributed to two major drivers. Firstly, the increasing automotive sales in the country, driven by factors such as rising disposable income, urbanization, and changing consumer lifestyles. The growing number of vehicles on the road is boosting the demand for tires. Secondly, the expanding transportation industry, including logistics and construction sectors, requires a large fleet of commercial vehicles, which in turn drives the demand for commercial vehicle tires. The development of modern transportation infrastructure and the government’s focus on expanding the public transportation network also contribute to the growth of the KSA tire market. Overall, the market is expected to witness substantial growth in the forecast period, driven by these key drivers.
Segment Analysis:
The KSA tire market can be segmented based on product type, vehicle type, sales channel, and region. In terms of product type, the market is dominated by the radial tire segment. Radial tires offer better fuel efficiency, higher mileage, and improved handling, making them the preferred choice among consumers. Moreover, advancements in tire technology and the increasing demand for passenger and commercial vehicles have further boosted the growth of the radial tire segment in the KSA market.
PEST Analysis:
Political: The political stability in KSA has created a favorable business environment for tire manufacturers and suppliers. The government’s support for the automotive industry through various initiatives and policies has contributed to the growth of the tire market.
Economic: The KSA tire market has experienced steady growth due to the country’s strong economy and increasing disposable income. The rise in vehicle ownership and demand for tires from both the passenger and commercial vehicle segments have positively impacted the market.
Social: The growing population and urbanization in KSA have led to increased demand for vehicles, resulting in a higher demand for tires. Moreover, the increasing awareness about road safety and the importance of proper tire maintenance have also contributed to market growth.
Technological: Technological advancements in tire manufacturing have led to the development of more durable and efficient tires. The use of advanced materials and innovative manufacturing processes has improved tire performance and safety, driving the market growth in KSA.
Key Takeaways:
The KSA tire market is expected to witness high growth, exhibiting a CAGR of 11.8% over the forecast period. The increasing vehicle ownership, rising disposable income, and government support for the automotive industry are the key drivers of market growth.
In terms of regional analysis, KSA is the fastest-growing and dominating region in the market. The country’s strong economy, growing population, and favorable government policies have created a conducive environment for the tire market.
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 key players contribute significantly to the market through their product innovations, distribution networks, and brand reputation.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
