May 22, 2024
KSA Tire Market

The Global KSA Tire Market Is Estimated To Propelled By Rising Automobile Production And Sales

Tire is critical component of automotive and transportation industry that provides traction and protects wheels. Demand for different types of tires such as bicycle tires, lorry tires, passenger car tires depend on vehicle production and sales. The KSA tire market is primarily driven by robust performance of automobile industry in the country. Growing population, rising disposable income and expansion of road infrastructure have been boosting automobile demand in KSA.

The global KSA Tire Market is estimated to be valued at US$ 4288.49 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
Rising automobile production and sales have been positively impacting the KSA tire market growth. KSA is one of the largest automobile markets in Middle East and North Africa region. Growing focus of the government on development of local automobile manufacturing industry through initiatives such as National Industrial Development and Logistics Program (NIDLP) and Made in KSA program is encouraging establishment of production facilities of leading automakers in the country. This is augmenting overall vehicle manufacturing in KSA which in turn is driving demand for tires from OEMs. Higher sales of new vehicles require replacement of tires which is further contributing to the market growth over the forecast period.

SWOT Analysis
Strength: KSA Tire Market has strong demand from large automobile sector in the country. It has presence of major global tire manufacturers which ensure availability of wide range of products.
Weakness: Presence of cheaper Chinese tires impacts the margins of local and global manufacturers. Cost of raw materials is prone to volatility.
Opportunity: Increasing vehicle parc in Saudi Arabia along with government focus on developing local manufacturing offers scope for market expansion. Emerging trends of specialty tires present new avenues.
Threats: Stiff competition among existing players affects pricing. Shift towards alternative modes of transportation act as a threat.

Key Takeaways
Global KSA Tire Market Size is expected to witness high growth over the forecast period supported by automotive sector growth. The global KSA Tire Market is estimated to be valued at US$ 4288.49 Mn in 2023 and is expected to exhibit a CAGR of 8.6% over the forecast period 2023 to 2030.

The Middle East region dominates the market with Saudi Arabia being the major contributor accounting for over 30% share of the regional tire market. The government initiatives to enhance local manufacturing and launch of new vehicle models by automakers are driving the demand for tires in the country.

Key players operating in the KSA tire market are F. Hoffmann-La Roche AG, Novartis International AG, and Pfizer, Inc. These companies have strong distribution network across the region helping them maintain leadership position. In addition, several domestic and international tire manufacturers are expanding capacity to cater to the rising needs. The competitive intensity is also prompting companies to focus on differentiated product offerings and adopt innovative technologies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it