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Impact Analysis of Covid-19

The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.

A tire is a ring-shaped component that encloses the wheel’s rim, in order to transfer a vehicle’s load from the axle through the wheel to the ground. It also provides traction on the surface it travels. A variety of rubbers are used in the production of a single standard tire. There are two types of tires available namely non-pneumatic tires and pneumatic tires. The non-pneumatic tire is manufactured from solid rubber and plastic compounds and is not supported by air pressure. These tires are typically used for lawn mowers, scooters, and other types of light industry vehicles including carts, trailers, etc. On the contrary, pneumatic tires are flexible, hollow-shape rubber tire, and are maintained their shapes with air pressure. These tires are manufactured from synthetic rubber and rubber, wire, fabric, carbon black, and other chemical compounds.

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 (2021-2028).

Recent Developments:

In February 2021, Al-Amoudi Co. Ltd., agents of “Toyo Tires Japanese and Korean Nexen Tires” in the Kingdom of Saudi Arabia, introduced its new “Platinum Warranty” for a period of 3 years on all its products.

In March 2021, The Ministry of Commerce and Industry has shut four tire recycling factories in Riyadh, Jeddah and Khamis Mushayt (Saudi Arabia) for violating quality and safety regulations.

In March 2019, German tire and technology company, Continental AG opened its first office in Jeddah, Saudi Arabia.

Statistics:

Figure 1. KSA Tire Market Value (US$ Mn), By Province, 2020

KSA Tire  | Coherent Market Insights

Western province held dominant position in the KSA tire Market Value in 2020, accounting for 40.12% share in terms of Value, followed by Central, Eastern, Northern and Southern, respectively.

KSA Tire Market- Drivers

High growth of the automotive sector is expected to drive growth of the KSA tire market during the forecast period. Light commercial and passenger vehicle segments have witnessed a significant growth in the recent past. According to Coherent Market Insights’ analysis, in 2011, 15.35 million units of passenger and light commercial vehicles were registered in KSA, which increased at a CAGR of 8% and reached 20.93 million units in 2015. As a result of this, the demand for tires in the country is expected to increase in the near future.

Rapid industrialization and construction activities are expected to propel the KSA tire market growth over the forecast period. In 2014, the government of KSA announced development plans as a part of its Vision 2030, thereby emphasizing the development of manufacturing and construction sectors in the country. According to Coherent Market Insights’ analysis, the total GDP of the manufacturing industry increased from US$ 4 billion in 1975 to US$ 45.6 billion in 2013. Rapid industrialization and high growth of the construction sector have increased the demand for commercial vehicles in the country. As a result of this, the demand for commercial wheel-tire has increased significantly.

Market Opportunity

KSA automotive and automotive parts markets are majorly driven by imports from other countries around the world, as there are very few if any, manufacturing units in the region. Increasing vehicle parking in the region, in turn, is expected to create significant growth opportunities for global and local tire companies to set up manufacturing plants in the region. Supportive government policies such as 100% ownership of plant, equipment, projects, and other property by global players with lack of personal income tax, value-added tax, sales tax, land tax, property tax and maximum 20% tax on corporate profit further have created conducive environment market players.

Generally, steel is used to make tires durable. However, vehicles traveling on tough terrains require stronger and durable alternative. Kevlar is a specific type of aramid material, which is five times stronger and durable than steel and has a similar weight. Furthermore, Kevlar provides greater sidewall resistance to cuts and abrasion and is more resistant to punctures. Thus, integrating Kevlar instead of steel into tires is expected to provide major growth opportunities in the near future.

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KSA Tire Market Report Coverage

Report Coverage Details
Base Year: 2020 Market Size in 2021: US$ 3,431 Mn
Historical Data for: 2017 to 2020 Forecast Period: 2021 to 2028
Forecast Period 2021 to 2028 CAGR: 11.8% 2028 Value Projection: US$ 7,494.4 Mn
Geographies covered:
  • Kingdom of Saudi Arabia:  Western,  Central,  Eastern,  Northern,  Southern
Segments covered:
  • By Vehicle Type: Two Wheeler, Four Wheeler (Passenger Car, Commercial Car, Others (Industrial & Agricultural)), Aircraft, Others (Three Wheeler)
  • By Application: On Road, Off Road
  • By Sales: OEM, Aftermarket
Companies covered:

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.

Growth Drivers:
  • High growth of the automotive sector 
  • Rapid industrialization and construction activities
Restraints & Challenges:
  • Strict regulatory policies regarding used tires 
  • High cost associated with tire in commercial vehicle segment

Market Trends

Various OEMs in the market such as Goodyear, Michelin, and Bridgestone are focused on adopting nanotechnology for production of tires. It helps to significantly reduce wear and tear of tires. Moreover, these tires are majorly preferred in KSA due to the extreme testing that tires are subjected to.

New regulations by Saudi Centre for energy efficiency (SCEE) mandate all distributors, agencies, and manufacturers to produce/sell fuel-efficient tires in the region by 2018. The rule is applicable to imported tires as well.

Key Takeaways of the Graph:

KSA Tire  | Coherent Market Insights

  • The On Road held dominant position in the market and accounted for 91.24% share in the KSA tire market in 2020. The segment is expected to reach US$ 6,932.35 million in 2028. This is owing to increasing demand for four wheeler vehicles.
  • In 2020, the Aftermarket accounted for the largest share of 71.91% in the KSA tire market and is expected to be valued at US$ 5,478.4 million by 2028.

Market Dynamics- Restraints

Strict regulatory policies regarding used tires are expected to hamper the KSA tire market growth during the forecast period. The Saudi Ministry of Commerce has prohibited the sales and import of used tires. This is done to reducing increasing traffic accidents in the region attributed to the use of low-quality tires. Moreover, the ministry has banned sales of overhauled tires for use in vehicles other than those they were originally manufactured for. This is expected to adversely affect the used tire market in the region. Furthermore, Saudi Arabia standard organization (SASO) mandates that a certificate of conformity is required to import of auto aftermarket parts. Shipments arriving without a certificate of conformity are rejected at the Saudi port of entry. It is also crucial for the labelling and marketing of any product imported into Saudi Arabia.

High cost associated with tire, especially in commercial vehicle segment, is expected to restrain growth of the KSA tire market over the forecast period. The price of tires used for commercial vehicles such as trucks, trailers, Lorries, and more is very high. The average price of a commercial truck tire set is around US$ 100-130. Although these tires are long-lasting, initial investment, especially for a small transporter, is significantly high.

Competitive Section

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.

Key Developments

  1. Key companies in the market are focused on capacity expansion, in order to enhance the market presence. For instance, in February 2018, Yokohama Rubber Company Ltd. announced to invest US$ 60 million in its Yokohama India Pvt. Ltd., in order to double the annual capacity for tires.
  2. Major players in the market are involved in mergers and acquisitions, in order to gain a competitive edge in the market. For instance, in November 2019, Cooper Tire & Rubber Company expanded its ownership in its joint venture by acquiring 100% shares from Trabajadores Democráticos de Occidente (TRADOC).

A tire or wheel is a flat-area ring-like part that surrounds the rim of a tire to transport the weight of a vehicle through the wheel to a fixed surface and to give traction on that surface over which the tire travels. Today, tires are used in a wide variety of vehicles and purposes. Some are used for commuting; they have treads for traction on streets and highways, while others have radial tires with larger diameters that are intended for use on tracks. The type of vehicle, tire, and occasion determine which type of tire is most appropriate. Common types of tires are Urethane (also known as rubber) and Metalibond (an alloy of a metal with a steel ring). There are other common types of tires such as compound, solid, split and tubeless. Rubber is the most plentiful material for tires; however, it is also the heaviest. This makes it impractical for most rural users. Since it is so heavy, rubber is usually made with additives that make it stiffer and more durable; this means that it will last longer, although it also means that it requires a more intensive maintenance regimen.

Market Drivers

Rising demand for four-wheelers is expected to accelerate growth of the KSA tire market during the forecast period. As per the Organisation Internationale des Constructeurs d'Automobiles (OICA), total vehicle (commercial + passenger) sales reached 96 million units in 2017, increasing from 86 million units in 2013 globally. This, in turn, has increased the demand for tires across the globe. Hence, such factors are expected to accelerate the market growth over the forecast period.

Rising demand for commercial vehicles including trailers and trucks is expected to boost the KSA tire market growth in the near future.

Key features of the study:

  • This report provides in-depth analysis of the KSA tire market, and provides market size (US$ Million) and compound annual growth rate (CAGR%) for the forecast period (2021–2028), considering 2020 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrices for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, market trends,  regional outlook, and competitive strategies adopted by key players
  • It profiles key players in the KSA tire market based on the following parameters – company highlights, products portfolio, key highlights, financial performance, and strategies
  • Key companies covered as a part of this study 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.
  • Insights from this report would allow marketers and the management authorities of the companies to make informed decisions regarding their future product launches, type up-gradation, market expansion, and marketing tactics
  • The KSA tire market report caters to various stakeholders in this industry including investors, suppliers, product manufacturers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through various strategy matrices used in analyzing the KSA tire market

Detailed Segmentation:

  • KSA Tire Market, By Vehicle Type:
    • Two Wheeler
    • Four Wheeler
      • Passenger Car
      • Commercial Car
      • Others (Industrial & Agricultural)
    • Aircraft
    • Others (three wheeler)
  • KSA Tire Market, By Application:
    • On Road
    • Off Road
  • KSA Tire Market, By Sales:
    • OEM
    • Aftermarket
  • KSA Tire Market, By Province:
    • Western
      • Central
      • Eastern
      • Northern
      • Southern
  • Company Profiles
    • The Bridgestone Group*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • 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
    • Continental AG.

*Browse all the market data tables and figures on “KSA Tire Market- Forecast to 2028”

Table of Contents

  1. Research Objectives and Assumptions
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Vehicle Type
      • Market Snippet, By Application
      • Market Snippet, By Sales
      • Market Snippet, By Province
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
    • Regulatory Scenario
    • Industry Trend
    • Merger and Acquisitions
    • New system Launch/Approvals
  4. KSA Tire Market, By Vehicle Type, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • Two Wheeler
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Four Wheeler
      • Passenger Car
      • Commercial Car
      • Others (Industrial & Agricultural)
        • Introduction
        • Market Size and Forecast, 2017–2028, (US$ Million)
    • Aircraft
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Others (three wheeler)
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  5. KSA Tire Market, By Application, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • On Road
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Off Road
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  6. KSA Tire Market, By Sales, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, 2020 and 2028 (%)
      • Segment Trends
    • OEM
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
    • Aftermarket
      • Introduction
      • Market Size and Forecast, 2017–2028, (US$ Million)
  7. KSA Tire Market, By Province, 2017-2028 (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2020 and 2028 (%)
    • Western
      • Province Trends
      • Market Size and Forecast, By Vehicle Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Sales, 2017–2028 (US$ Million)
    • Central
      • Province Trends
      • Market Size and Forecast, By Vehicle Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Sales, 2017–2028 (US$ Million)
    • Eastern
      • Province Trends
      • Market Size and Forecast, By Vehicle Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Sales, 2017–2028 (US$ Million)
    • Northern
      • Province Trends
      • Market Size and Forecast, By Vehicle Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Sales, 2017–2028 (US$ Million)
    • Southern
      • Province Trends
      • Market Size and Forecast, By Vehicle Type, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Application, 2017–2028 (US$ Million)
      • Market Size and Forecast, By Sales, 2017–2028 (US$ Million)
  8. Competitive Landscape
    • Company Profiles
      • The Bridgestone Group
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Hankook Tire Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Apollo Tires Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Michelin Group
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Toyo Tire & Rubber Company Ltd.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Goodyear Tire and Rubber Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Yokohama Rubber Company Ltd
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Pirelli & C SpA Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Cooper Tire & Rubber Company
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Continental AG.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
  9. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse XX market data tables and XX figures on “KSA Tire Market-forecast to 2028”.

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