The Kingdom of Saudi Arabia (KSA) tire market is expected to witness robust growth. Demand for tires in Kingdom of Saudi
Arabia will be positively influenced by growing sales of four-wheeler
vehicles.
Driven by favorable government policies and lack of luxury or value-added
taxations (VATs), the Kingdom of Saudi Arabia tire market is anticipated
to reach US$ 2,123 Mn in revenues by 2016. Growing demand for
four-wheeler vehicles and robust sales of luxury and top-end cars will
continue to influence the growth of the KSA tire market.
Sales will continue to remain strong through the OEM channel, owing to
consumer preference for buying tires directly from manufacturers. While
overall revenues are expected to increase steadily, stringent regulation
regarding used tires coupled with Implementation of stringent import
standards by Saudi Arabia Standard Organization (SASO) can pose
challenges to the growth of the market.
By vehicle-type, the four-wheeler segment will continue to account for a
leading share of the market. Demand will be substantial for cars and
other passenger four-wheelers, owing to high temperatures recorded in
Saudi Arabia throughout the year. As a result, the passenger cars will
continue to be the most-prominent four-wheeler sub-segment, accounting
to more than US$ 1,435 Mn revenues in 2016.
Key Companies-
- The Bridgestone Group
- Michelin Group
- Goodyear tire and Rubber Company
- Pirelli & C Spa
- Continental AG
- Hankook Tire Company
- Cooper tire & rubber company
- Yokohama rubber company ltd.
- Toyo tire & rubber company ltd.
- Apollo tyres ltd.
- Other.
Rising R&D initiatives by manufacturers will fuel the product-wise growth
of the Kingdom of Saudi Arabia tire market, which is expected to
supplement the sales of pneumatic and non-pneumatic tires. Increasing
penetration of internet and online transactions in Saudi Arabia is will
continue to influence the growth of the market.
Compared to the rest of the provinces, the Western and Central Provinces of the
Kingdom are forecasted to represent a speedy growth in the demand for
four wheeler vehicle tires. In the future, the provincial cities of
Riyadh and Mecca are expected to be the concentrated hubs of Saudi
Arabia’s total tire retail outlets.
Prominent global tire companies such as The Bridgestone Group, Continental AG,
Pirelli & C Spa, and Michelin Group, will continue to strengthen
their dominance in the Kingdom of Saudi Arabia tire market. Companies
such as Apollo Tyres Ltd., Yokohama Rubber Company Ltd., and Goodyear
Tire & Rubber Company are also expected to create stiff competition
for the existing key players in the tire market in KSA.
PMR Long-term Outlook: The tire market in the Kingdom of Saudi Arabia is expected to expand at a
CAGR of 10.8% during the forecast period 2016-2026. Four-wheeler vehicle
segments will continue to account for a sizeable demand for tires
during the forecast period.
