Tire market in Saudi Arabia is growing rapidly, owing to Increase in a number of per capita vehicle in the Kingdom. As per Persistence Market Research analysis revenue from Saudi Arabia, tire market is expected to grow 3.2X by 2026 compared to that in 2016. Growth is primarily driven by the increasing demand coming from the four wheeler vehicle tire segment. The company forecasts the four wheeler vehicle tire segment market to grow at a strong CAGR during the 10 year forecast period of 2016 through 2026.
Based on vehicle type, the four wheeler vehicle tire segment is estimated to account for more than 60% volume share of the overall KSA market by 2016 end, which is expected to increase further by the end of 2026. The KSA tire market volume, by the four wheeler vehicle tire type segment, is forecasted to grow at a double digit CAGR for the period of 2016 through 2026.
Amongst the four-wheeler tire segment, the Passenger car tire segment is projected to be the most prominent sub-segment over the forecast period as a result of growing light truck & passenger car demands in the Kingdom. As per Persistence Market Research analysis, the passenger car vehicle tire segment which accounts for more than half of KSA vehicle tire segment is anticipated to grow at a CAGR which is estimated to be over 2% higher than the CAGR of commercial car segment, during the forecast period. According to the study, a growth in the replacement demand for four-wheeler tire segment is observed, indicated by the growth in the import of light truck & passenger cars in the Kingdom at a CAGR of about 8% from 2011 through 2015.
Owing to the increasing size of the overall automobile industry across the KSA market, and a significant number of light motor vehicles on the road, as compared with the heavy vehicles, the passenger car segment is forecast to remain the dominating four wheeler vehicle segment in terms of volume through 2026. KSA Government’s favorable taxation policies also support the growth of tire demand through cheaper pricing of the vehicles. In comparison to the other countries in the world, KSA is the cheapest country to buy automobiles and its part with no Luxury Tax or VAT. The country also offers the opportunity to buy automobiles with affordable financing plans. As a result, availability of four wheeler vehicle segment is higher which represents a higher market for four-wheeler tire.
The Kingdom’s Western and Central Province is demonstrating a rapid growth in the demand for four wheeler vehicle tire as compared with rest of the provinces in the region. The Western & central province comprises of cities such as Riyadh, Mecca and Medina, which accounts for more than 80% of total tire retail outlets in the kingdom, and has been the largest concentration of four wheeler vehicle tire retail outlets in future.
Commercial car segment is the currently the second most remarkable segment in the market, while the four-wheeler tire segment is projected to register an above average CAGR during 2016-2026. The Others segment which comprises of three wheeler vehicle tire accounts for the smallest market share in the year 2015, is expected to observe a low Year-on-Year growth rate of about 1.5%.
Persistence Market Research (PMR) offers a ten-year forecast of the Kingdom of Saudi Arabia (KSA) tire market between 2016 and 2026. The report defines 2015 as the base year and provides data for the following 10 years. In terms of market value, the KSA tire market is expected to register a CAGR of 10.8% during the forecast period.
This research report provides a detailed analysis of the KSA tire market while identifying the factors contributing to the growth of the market across the key province. This study offers insights into the market dynamics and trends of various regional markets that are influencing the current nature and future dynamics of the KSA tire market during the forecast period.
The report provides insights on various tire product types that include pneumatic and non-pneumatic. The increase in the demand of vehicle sale and favorable government policy is a major factor creating a significant growth in KSA tire market. In order to meet varying consumer demands, manufacturers and new players in the market are investing in R&D initiatives to develop and launch new and innovative products, which is met through imports in the kingdom. A detailed analysis by each product type further empowers clients to formulate strategies for every stage of their business.
As per the analysis, product availability plays a very important role, and hence this report further offers an in-depth analysis of the number of tire retail outlets in the kingdom and their impact analysis. The growth of the KSA tire market is primarily driven by robust sales through channels such as original equipment manufacturer (OEM) and Replacement. This report covers all the data and analysis on growth and strategic insights on sales channel in the market.
Increasing product penetration in markets in the various province through replacement channel is getting prominence in the kingdom. Sales of a tire through e-Commerce is further anticipated to result in significant growth over the forecast period, owing to increasing penetration of the Internet in various untapped markets across the Kingdom. This report offers business insights to clients about how all channels are contributing to growth and enhancement of this rapidly growing market.
The next section of the report includes analysis of the KSA tire market on the basis of vehicle type. It provides a market outlook for 2016–2026 and sets the forecast within the context of tire markets. This study discusses the tire market size and its dynamics on the basis of a type of end use vehicle (two-wheeler, four wheeler, aircraft & others). It talks about the market share of each of the segment in the overall KSA tire market. Four-wheeler vehicle tire segment is the prominent segment among the rest three types of vehicle segment. The four-wheeler tire segment is further bifurcated on the basis of type (passenger car, commercial car, others) for the period 2016-2026.
In the final section of the report, a competitive landscape has been provided to present the client with a dashboard view of various comparison points including brand share, product offerings, strategy, and technology amongst others. It also enables identification and evaluation of key competitors based on an in-depth assessment of their capabilities and success in the marketplace.
Report covers in-depth analysis on the following key segments:
By Product type, the market is segmented into:
By Vehicle type, the market is segmented into:
By Application, the market is segmented into:
By Region, the market is segmented into:
Key companies covered:
List of Companies