by 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 11% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Tires are components of wheels that provide traction between the surface of the wheel and the road. They are made up of natural rubber, synthetic rubber, carbon black and various chemical additives. Tires help in providing a comfortable ride, handling in different road conditions and protecting wheels from wear and tear. The tire industry in KSA is witnessing significant demand owing to rapid growth of automotive industry and increasing transportation needs. Advances in technology have led to development of tires with improved traction, endurance, and fuel efficiency.
Market key trends:
One of the major trends in the Ksa tire market is rising adoption of high performance and premium tires. These tires are made up of advanced rubber compounds that offer superior grip on wet and dry roads along with lower rolling resistance to improve fuel efficiency. They also have reinforced sidewalls and tread patterns for longer life. Growing popularity of luxury and sports vehicles is a key driver for premium tires demand in KSA. Furthermore, increasing consumer awareness about benefits of different season tires is supporting seasonal tire replacement market. Rising aftermarket is another notable trend as consumers are frequently replacing old tires with new ones for better performance. However, stringent fuel efficiency norms worldwide may restrict market growth to some extent.
Porter’s Analysis:
Threat of new entrants: The tire manufacturing process requires high initial investments in R&D, machinery, production facilities, brand cultivation etc. which acts as a barrier for new companies.
Bargaining power of buyers: There are multiple well established tire brands operating in the market providing quality products at competitive prices. This gives buyers higher bargaining power.
Bargaining power of suppliers: Major raw materials required are natural rubber and synthetic rubber. Alternative suppliers are available minimizing suppliers power.
Threat of new substitutes: There are limited substitutes available for tires currently. However, advances in public transport and electric vehicles could provide some alternative solutions.
Competitive rivalry: The presence of global leaders and local manufacturers leads to intense competition. Companies focus on new technologies, durable products and expansion plans.
Key Takeaways:
The Global Ksa Tire Market Size is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing automotive production and sales in the country. KSA has witnessed an increase in vehicle fleet size, supported by economic development programs like Vision 2030.
Regionally, the western province dominated the KSA tire market in 2023 with a share of over 35%, owing to the presence of major cities like Jeddah and Makkah. However, central and eastern provinces are expected to witness fastest growth during the forecast period, with infrastructure and industrial development initiatives in these regions.
Key players operating in the Ksa Tire Market are The Bridgestone Group, Hankook Tire Company, Apollo Tires Ltd., Michelin Group, Toyo Tire & Rubber Company Ltd., Goodyear Tire and Rubber Company, Yokohama Rubber Company Ltd., Pirelli & C SpA Company, Cooper Tire & Rubber Company, and Continental AG. Leading companies are focusing on expanding their manufacturing footprints and distribution networks in KSA to leverage the growing demand.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
