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 an integral part of automobiles which help provide traction, absorb shocks, and transmit load to the ground. They are made from natural and synthetic rubber along with components such as steel wire, nylon or polyester, and fabric. Different types of tires include radial tires, bias-ply tires, and retread tires. Growing automotive production in Saudi Arabia is expected to drive demand for tires over the forecast period. As per India Brand Equity Foundation, Saudi Arabia was the largest producer of automobiles in the Middle East with an output of over 400,000 vehicles in 2020.
Market key trends:
One of the key trends in the KSA tire market is the adoption of radial tires. Radial tires offer better handling at high speeds, better road grip in wet conditions, lower heat generation, better fuel efficiency, and longer tire life as compared to bias-ply tires. As a result, they are becoming increasingly popular in replacement markets worldwide including Saudi Arabia. Furthermore, technological advancements in tire manufacturing such as use of green tires, run-flat technology, and self-inflating tires are expected to gain traction in the coming years. Green tires are manufactured using sustainable and environment friendly techniques and raw materials. They help reduce carbon footprint. Run flat and self-inflating tires prevent vehicles from getting stranded due to flat tires and provide mobility until they can reach a repair facility. Their adoption is anticipated to increase in the KSA market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to high capital requirements for manufacturing facilities and established brand recognition of existing players.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitute products and undifferentiated nature of tires.
Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the availability of substitute raw materials and less differentiation in raw materials.
Threat of new substitutes: The threat of new substitutes is low as tires have few product substitutes and are considered an essential automotive part.
Competitive rivalry: High due to the large number of tire manufacturers offering similar products.
Key Takeaways
Global KSA Tire Market Size is expected to witness high growth, exhibiting a CAGR of 11% over the forecast period, due to increasing vehicle ownership and sales in the country. The KSA Tire Market size for 2023 is estimated to be US$ 4288.49 Mn.
Regionally, the Western region dominates the KSA Tire Market with the largest market share owing to the presence of major automobile manufacturers. However, the Southern region is anticipated to be the fastest-growing market due to rapid urbanization and establishment of manufacturing plants by tire manufacturers.
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. Key players are focusing on capacity expansion and product innovation to strengthen their foothold in the market.
Read More- https://www.ukwebwire.com/ksa-tire-market-size-share-and-growth-insights/
