Kuwait Tire Market to Grow During 11 Points Through 2021
According to the TechSci Research report "Kuwait Tire Market Forecast and Opportunities, 2021,'’ the Kuwait tire market is forecast to grow at a CAGR of more than 11% during 2016 - 2021. In June 2015, the government announced its Five-Year Plan worth US$116 billion, for filling infrastructure gaps and boosting construction, real estate, and transportation sectors in the country. This is projected to fuel demand for tires, especially from commercial and OTR segments, in the country during 2016 - 2021.
Vehicle sales in Kuwait grew at a CAGR of around 5.8% during 2011 - 2015, with unit sales increasing from 110,000 units in 2011 to 140,000 units in 2015. This resulted in expansion of automotive fleet size from 1.48 million units in 2011 to 1.95 million units in 2015. Growing fleet size boosted demand for tires from the replacement segment during the same period and the trend is anticipated to continue in the coming years as well, according to the report.
Moreover, passenger car tire segment dominated Kuwait tire market in 2015, followed by light commercial vehicle tire segment. Moreover, due to the largest fleet size, passenger cars segment would continue its dominance in Kuwait tire market during the forecast period. Nevertheless, on the back of growing construction and logistics industries, medium and heavy commercial vehicle tire segment is expected to demonstrate robust growth over the next five years, according to the report.