The KSA Tire Market is estimated to be valued at US$ 4288.49 Mn 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.
The demand for tires has been increasing in the Kingdom of Saudi Arabia primarily driven by increasing vehicle production and sales. Tires are crucial components of vehicles as they provide traction and ensure safety during driving. Increased economic activities along with rising per capita income have been boosting the sales of commercial and passenger vehicles in the country. This in turn is propelling the demand for replacement and OEM tires in the automotive aftermarket.
Tires are rubber components mounted on wheels to provide traction for propulsion and safety for steering and stability during vehicle operation. Different types of tires are available based on vehicle type including passenger vehicles, commercial vehicles, off-road vehicles, agriculture vehicles and others. Premium and performance tires offer better mileage, grip and durability compared to standard or basic tires.
Market key trends:
One of the key trends propelling the KSA tire market is growing demand for high performance tires from sports cars and luxury vehicles owners. High performance tires are specifically designed for racing, high-performance sports, and luxury vehicles. They are engineered to provide better control, braking, and traction on roads. The materials and tread patterns used in high performance tires help improve handling capabilities. Features like lower rolling resistance also enhance fuel efficiency. Moreover, performance tires last longer and offer smooth and comfortable ride. The rising sales of premium and luxury cars in the country has led to increasing replacement demand for high performance tires in the aftermarket. This is expected to drive the KSA tire market during the forecast period.
Threat of new entrants: The KSA tire market has high barriers for new entrants due to established brands, capital requirement for production facilities and strong customer loyalty.
Bargaining power of buyers: Buyers have moderate power due to availability of substitutes but brands create loyalty which lower buyers leverage.
Bargaining power of suppliers: Suppliers have moderate power due to availability of raw material sources but suppliers are fragmented without strong bargaining position against brands.
Threat of new substitutes: Threat is low as tires are essential product for vehicles with no close substitutes.
Competitive rivalry: Intense due to presence of global and regional brands competing on pricing and product differentiation.
Strength: Strong brand image and loyal customers of existing players. Diversified product portfolio and technologies used by major brands.
Weakness: Increased dependency on raw material price volatility and import. High customer acquisition cost.
Opportunity: Growing vehicle parc and replacement market driven by economic growth. Shift towards premium and special application tires.
Threats: Restrictions on import due to localization initiatives. electric vehicles with different tire technologies can impact demand.
Global KSA Tire Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing vehicle parc and rapidly growing replacement market in the country. As per a recent report, the market size for 2023 is estimated at US$ 4288.49 Mn.
Regional analysis fasted growing region is Western region led by cities like Jeddah and Makkah accounting for over 35% market share in 2023. Eastern region is also growing rapidly with infra development projects.
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 companies have strong distribution and dealership network across major cities in the country.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it