Saudi Arabia Tyre Market: Current Analysis and Forecast (2022-2028)

Report Description

Saudi Arabia Tyre Market is expected to grow at a significant rate of around 6.0% during the forecast period. The ring-shaped component known as a tyre, which is encircled by a wheel’s rim, aids in transferring the weight of the vehicle to the ground while supplying traction on the surface being travelled over. The rubber compound and additional components used in tyres enable effective performance under various circumstances. The tread, sidewall, inner liner, belts, and body ply are just a few of the components that make up a tyre. The body ply gives the tyre its structure, and the belt gives the tread area of the tyre stability and strength. In most passenger cars, commercial vehicles, two-wheelers, and three-wheelers, tyres are used. To support the Saudi Vision 2030, the Saudi Arabian government is making significant investments in infrastructure development, such as the creation of “NEOM” smart cities and other initiatives like the National Industrial Development and Logistics Program (NIDLP). The Saudi Arabian tyre market will expand as a result of the ongoing expansion of construction activities, which will significantly increase demand for commercial vehicles like trucks and trailers. Another factor that will support the market growth in this region is the growing need for replacing tyres within a short time due to extreme weather conditions.

APOLLO TYRES LTD, Michelin, Al-Talayi Ltd., Continental ME, THE YOKOHAMA RUBBER CO., LTD., Hankook Tire & Technology, Toyo Tire Corporation, BRIDGESTONE MIDDLE EAST & AFRICA FZE, General Group, and Pirelli Tyre S.p.A are some of the key players in the Saudi Arabia tyre market.

Insights Presented in the Report

“Amongst tyre type, Radial Tyres category is anticipated to witness higher CAGR during the forecast period”

Based on the tyre type, the market is segmented into radial and bias. It is anticipated that the Radial Tyres will grow at a higher CAGR during the forecast period. The major factor behind this is exceptional benefits offered by the radial tyres, such as better strength and enhanced flexibility as compared to the regular Tyres. Also, the radial Tyres can easily absorb the bumps and shocks while providing a comfortable ride to the drivers and passengers in the vehicle. Further, it also lessens ground compaction and reduces the chances of damage caused to the vehicles.

“Amongst vehicle type, the passenger cars segment accounted for the largest revenue share in 2020”

Based on vehicle type, the market is divided into passenger cars, light commercial vehicles (LCV), medium & heavy commercial vehicles (M&HCV), off-the-road (OTR), and two-wheelers. The most dominant market segment in Saudi Arabia is passenger car tyres, followed by commercial vehicle tyres and other vehicle tyre segments.

“Amongst end-use, the OEM segment accounted for the largest revenue share in 2020”

Based on end-use, the market is segmented into OEM and replacement. OEM (original equipment manufacturer) tyres dominated the global tyre market in 2020, accounting for more than half of all sales. Tyres is most useful in passenger cars and light trucks globally. Applications in commercial vehicles like trucks and off-highway vehicles came after passenger cars and light trucks. Additionally, because of the extreme weather, tyre replacement intervals are relatively shorter, which is another important factor driving up replacement tyre sales in the Saudi Arabia.

“Amongst distribution channel, the online segment is anticipated to witness higher CAGR during the forecast period”

Based on the distribution channel, the market is segmented into offline and online. Because of the trend of rising sales via e-commerce platforms like Amazon, eBay, etc., the online segment is anticipated to experience a higher CAGR during the forecast period. The development of web portals by tyre manufacturers themselves is another development that will enhance online tyre sales.

Reasons to buy this report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
• The report presents a quick review of overall industry performance at one glance.
• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
• The study comprehensively covers the market across different segments.
• Deep dive Saudi Arabia analysis of the industry.

Customization Options:

The Saudi Arabia tyre market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.

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Research Methodology

Research Methodology for the Saudi Arabia Tyre Market Analysis (2022-2028)

Analyzing the historical market, estimating the current market, and forecasting the future market of the Saudi Arabia tyre market were the three major steps undertaken to create and analyze the adoption of tyres in Saudi Arabia. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the Saudi Arabia tyre market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the Saudi Arabia tyre market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Saudi Arabia tyre market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments. Major segments are included in the report as tyre type, vehicle type, end-use, and distribution channel.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the Saudi Arabia tyre market. Further, we conducted factor analysis using dependent and independent variables such as platforms, sources of revenue generation, and subscription models of Saudi Arabia Tyre. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the Saudi Arabia tyre market.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the Saudi Arabia tyre market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across Saudi Arabia. The research methodology adopted to estimate the market size encompasses:

• The industry’s market size, in terms of revenue (USD) and the adoption rate of Saudi Arabia Tyre across the major markets domestically
• All percentage shares, splits, and breakdowns of market segments and sub-segments
• Key players in the Saudi Arabia tyre market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the Saudi Arabia tyre market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the platform and revenue generation in the Saudi Arabia tyre market.

The main objective of the Saudi Arabia Tyre Market Study

The current & future market trends of the Saudi Arabia tyre market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a country level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:

• Analyze the current and forecast market size of the Saudi Arabia tyre market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
• Segments in the study include tyre type, vehicle type, end-use, and distribution channel.
• Define and analysis of the regulatory framework for the Saudi Arabia Tyre
• Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviours of the industry.
• Analyze the current and forecast market size of the Saudi Arabia tyre market
• Company profiles of the Saudi Arabia tyre market and the growth strategies adopted by the market players to sustain in the fast-growing market
• Deep dive country-level analysis of the industry

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