KSA Tire Market Poised to grow owing to Growth in Automotive Industry
The tire market in Kingdom of Saudi Arabia (KSA) involves production and sales of various types of tires such as radial, bias and others. Tires play a crucial role in automotive industry as they serve the purpose of rolling motion as well as contributing to overall structural support of vehicles. The growing automotive fleet size in KSA has augmented the demand for replacement tires over the past few years. Additionally, increasing sale of passenger cars, commercial vehicles and two-wheelers is anticipated to drive the replacement demand for tires in the country.
The Global KSA Tire Market is estimated to be valued at US$ 4940.35 Bn in 2024 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024 To 2031.
Key Takeaways
Key players operating in the KSA tire market are Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc. These companies are focused on expanding their product portfolio and introducing technologically advanced tires.
The growing automotive industry in KSA is expected to offer new market opportunities to tire manufacturers. Rapid urbanization and rising per capita income are encouraging vehicle ownership in the country. This is anticipated to boost the replacement demand for tires during the forecast period.
Many international tire companies are focusing on establishing manufacturing facilities in KSA to cater to the growing local demand. Strategic partnerships with regional distributors help international players expand their presence across the country. Favorable government policies are encouraging foreign investments in the domestic tire market.
Market Drivers
Growth in automotive industry: KSA Tire Market has witnessed strong growth in vehicle sales over the recent years on account of rapid urbanization, rising incomes and government initiatives. This has augmented the demand for tires from OEM as well as replacement channels. According to industry estimates, around 1.5 million new passenger vehicles are sold annually in KSA.
Market Restrain
Volatility in raw material prices: Fluctuations in prices of key raw materials including natural rubber, nylon, silica and carbon black affect the production costs for tire manufacturers. Any increase in raw material costs leads to a corresponding rise in the tire prices, affecting the overall demand-supply dynamics in the market.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
(https://www.linkedin.com/in/money-singh-590844163)
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