A new report by Persistence Market Research estimates Saudi Arabia’s tyre market to hit US$2.12 billion by the end of this year and to grow at a CAGR of 10.8% for the forecast period of 2016 to 2026. This market trend is expected due to the favorable government regulations and rising demand for passenger cars in the country.
According to the report titled “Kingdom of Saudi Arabia (KSA) Market Study on Tire: Industry Analysis and Forecast, 2016–2026”, the number of people choosing cars, including passenger cars, are increasing due to recorded year-round high temperatures. Another major driver is the lack of luxury or value-added tax on the purchase of commodities in the region.
The market is segmented into two product types: pneumatic and non-pneumatic tyres. The demand for both products in the country’s tyre market is expected to be driven by the manufacturer’s rising research and development efforts. The market is also expected to be influenced by the growing power of the Internet in the region and the rising number of online transactions.
In terms of vehicle type, the market is segmented into two-wheeler, four-wheeler, aircraft, and others. The four-wheeler segment is further sub-segmented into passenger car, commercial car, and others. It is projected to continue leading the market through the forecast period. The passenger car sub-segment is the most prominent sub-segment in the market and is expected to continue the market trend, accounting for over US$1.43 billion at the end of 2016.
The market is also segmented into five regions: East Province, West Province, Central Province, South Province, and North Province. The Western and Central Provinces are expected to grow the fastest in terms of demand for four-wheeler tyres. Provincial cities of Riyadh and Mecca are projected to develop as concentrated hubs of tyre retail outlets in Saudi Arabia.
Major players in the Saudi Arabia’s tyre market include Pirelli & C Spa, Yokohama Rubber Company Ltd., Apollo Tyres Ltd., Toyo Tire & Rubber Company Ltd., The Bridgestone Group, Hankook Tire Company, Continental AG, Cooper tire & Rubber Company, Goodyear Tire and Rubber Company, and Michelin Group.
Prominent global players such as The Bridgestone Group, Michelin Group, Pirelli & C Spa, and Continental AG are expected to continue their dominance in the local tyre market. Apollo Tyres Ltd., Goodyear Tire & Rubber Company, and Yokohama Rubber Company Ltd. are expected to provide stiff competition to the major players with cost-efficient options.