Saudi Arabia Tire Market Expected to Grow 17.19%
According to the recently released TechSci Research report, "Saudi Arabia Tyre Market Forecast & Opportunities, 2019," the tire market in Saudi Arabia is forecast to grow at a CAGR of 17.19 percent in value terms during 2014-19. Prominent factors driving the market include growing automobile sales, rising automobile fleet, encouraging government policies, and increasing foreign investments in automotive sector, according to researchers. The passenger car tire segment remains the dominant market segment in Saudi Arabia, followed by commercial vehicle tire segment. These two segment cumulatively accounted for majority portion in the overall Saudi Arabia tire makret in 2013.
The passenger car tire segment is anticipated to continue dominating Saudi Arabia tire market, exhibiting fastest growth rate across all tire segments over the next five years. Western Saudi Arabia, comprising the holy cities of Mecca and Madinah, along with Central region that includes Riyadh province, held significant market share in the country's tire market, according to researchers. Considering the growth opportunities existing in these regions, Government of Saudi Arabia is also promoting tire industry in western and central region due to various infrastructural projects and developments and coming up in the region.
Low-cost tires procured from Chinese players occupy a large chunk in Saudi Arabia, especially within the unorganized sector. Prominent tyre players like Bridgestone, Michelin, Continental, Goodyear and Yokohama have a strong presence in Saudi Arabia's organized tyre market. In the coming years, sales of Chinese brands is likely to diminish on account of rising consumer demand for premium quality branded tyres, according to researchers.
"Increasing industrialization, new investments, shorter tire replacement cycle, and rising commercial vehicle sales are set to influence the growth trajectory of tyre market in Saudi Arabia." said Karan Chechi, research director with TechSci Research, a research based global management consulting firm.