The Saudi Arabia 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 of 2021-2028, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The Saudi Arabia Tire Market comprises various types of tires such as radial tires, bias tires, tubeless tires, and others. These tires find extensive application in the automotive industry for passenger cars, commercial vehicles, and motorcycles. The increasing vehicle sales in Saudi Arabia, driven by factors such as rising disposable income and changing lifestyles, are contributing to the growth of the tire market.
B) Market key trends:
One key trend observed in the Saudi Arabia Tire Market is the growing demand for smart tires. Smart tires are equipped with sensors that provide real-time data on tire pressure, temperature, and tread wear. This technology helps in improving safety, fuel efficiency, and overall performance of the vehicle. For instance, Michelin launched its smart tire called "MICHELIN Vision" which is embedded with sensors that provide real-time information to the driver.
C) PEST Analysis:
- Political: The political stability in Saudi Arabia provides a conducive environment for foreign investments in the tire market.
- Economic: The increasing disposable income and favorable economic conditions have led to higher vehicle sales in Saudi Arabia, thus driving the demand for tires.
- Social: The growing population and changing lifestyles of the Saudi Arabian people are leading to increased vehicle ownership, thereby boosting the tire market.
- Technological: Advancements in tire technology, such as the development of smart tires, are driving innovation and improving the overall performance of vehicles.
D) Key Takeaways:
- The KSA Tire Market Insights is expected to witness high growth, exhibiting a CAGR of 11.8% over the forecast period, due to increasing vehicle sales in Saudi Arabia.
- In terms of regional analysis, Saudi Arabia is anticipated to be the fastest-growing and dominating region in the tire market due to rising vehicle sales and technological advancements.
- Key players operating in the Saudi Arabia Tire Market 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.
In conclusion, the Saudi Arabia Tire Market is poised to experience significant growth in the coming years, driven by increasing vehicle sales and technological advancements in tire technology. The demand for smart tires is also expected to fuel market growth. As the market continues to expand, key players need to focus on product innovation and strategic partnerships to gain a competitive edge in this lucrative market.
