The global KSA Tire Market is estimated to be valued at US$ 4288.49 Mn or Bn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Tires are an essential part of automobiles and heavy vehicles. They provide traction to keep the vehicle moving and absorbing shocks from the road. Advances in material science and tire technology provide improved performance in terms of safety, lower rolling resistance, and longer life.
Market key trends:
One of the major trends driving the growth of the KSA tire market is the rapidly growing automotive industry in the country. According to OICA, KSA's automobile production has grown from around 561 thousand units in 2015 to over 1 million units in 2020, thereby increasing the demand for new replacement tires. Furthermore, the government's vision 2030 focuses on developing local manufacturing capabilities, including that for tires. This is expected to boost domestic tire production and reduce import dependence of the country over the coming years.
SWOT Analysis
Strength: Large domestic market in KSA driven by high vehicle ownership and replacement market.
Weakness: Dependence on crude oil prices exposes market to volatility.
Opportunity: Shift towards premium and high-performance tires present an opportunity for industry players.
Threats: Increasing penetration of electric vehicles may impact demand for conventional tires in the long run.
Key Takeaways
Global KSA Tire Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing vehicle fleet in the country. KSA has one of the highest rates of vehicle ownership in the Middle East region with over 14 million vehicles currently registered. This growing fleet continuously fuels the replacement tire market.
Regional analysis: The Western region of KSA dominates the tire market currently holding around 35% share, led by the presence of major cities like Jeddah and Makkah. However, cities in other regions are also witnessing rapid motorization supported by infrastructure development. This is expected to drive faster adoption of tires in other parts of KSA.
Key players operating in the KSA Tire Market are 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 are focusing on expanding their operations and distributions networks across major cities to tap into increasing replacement demand.
Read More- https://www.zupyak.com/p/3914280/t/rising-automotive-production-to-fuel-growth-of-the-ksa-tire-market
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