The tire market plays a crucial role in facilitating transportation through roads. Tires provide traction for vehicles such as passenger cars, commercial vehicles, two-wheelers, agricultural machinery and others to function smoothly. Advances in material science have led to continual improvements in tire design for optimized performance. The growth of the automotive sector in Saudi Arabia has emerged as a key driver for the domestic tire market. With rising disposable income and expansion of road infrastructure, vehicle ownership is surging rapidly across the country.

The global Saudi Arabia Tire Market is estimated to be valued at US$ 4288.49 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The rising demand for vehicles owing to economic growth and increasingurbanization has emerged as the dominant driver bolstering the Saudi Arabia tire market. As per recent statistics, over 5 million vehicles were sold in the country last year. Commercial activities along with improving living standards have encouraged high vehicle usage for transportation. Furthermore, the government's focus on infrastructure projects such as new roads, rail networks and urban expansion is augmenting the demand for tires from construction machinery as well as passenger cars. Heavy investments in industrialization, mining and energy sectors have contributed to the procurement of off-road vehicles that heavily utilize tires for operational needs.The Saudi Arabia tire market players are gaining from these favorable macroeconomic factors and rising replacement market driven by the large in-use parc of vehicles across diverse applications.

SWOT Analysis

Strength: The KSA tire market benefits from strong demand from the automotive industry in the country. Rising vehicle ownership is driving demand for replacement tires. The government's focus on developing local manufacturing is adding to production capabilities.

Weakness: Tire imports comprise a major share of the KSA market currently. Reliance on imported brands increases vulnerability to fluctuations in costs and supply chains. Local manufacturers need to further improve production technology and product quality.

Opportunity: Penetration of electric vehicles is expected to pick up in KSA, creating opportunities for specialized tires catering to EVs. The growing population and economic development are supporting increased road construction, boosting demand for tires used in commercial vehicles.

Threats: Rising environmental regulations globally could impact raw material costs for tire makers. Strict safety and performance norms may necessitate upgrading production facilities. Intense competition from international brands poses pricing pressures.

Key Takeaways

Global KSA Tire Market Size is expected to witness high growth. Factors such as expanding fleet of passenger and commercial vehicles, rising road infrastructure development projects, and government initiatives to develop local manufacturing are driving strong demand. The global Saudi Arabia Tire Market is estimated to be valued at US$ 4288.49 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.

Regional analysis related content comprises The GCC region dominates the KSA tire market currently due to the large vehicle parc and high replacement rates. Countries such as KSA and UAE account for over 60% share due to their economic importance. North Africa is emerging as a fast growing market supported by highway construction and mining industry growth.

Key players related content comprises Key players operating in the KSA tire market are F. Hoffmann-La Roche AG, Novartis International AG, and Pfizer, Inc. These companies are focusing on expanding local production to strengthen market positions. Technology upgrades and new product additions are key strategies to cater to the changing industry and regulatory environment.

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