Saudi Arabia’s tyre market is expected to grow at a compound annual growth rate (CAGR) of 6.42% from 2023 to 2030. Valued at USD 2.99 billion in 2022, the market is projected to reach USD 5.06 billion by 2030. The expansion of the automotive sector in the country is a key driver of this growth, further supported by rising consumer demand, improving living standards, and increased spending on premium vehicle components.
The development of smart cities like ‘Neom’ and initiatives such as the National Industrial Development and Logistics Program (NIDLP) under Saudi Vision 2030 are also fueling market growth. Additionally, extreme weather conditions contribute to the frequent replacement of tyres, while an improving economy boosts demand.
A major trend in the market is the increasing popularity of tyre retreading, particularly for off-the-road (OTR) tyres. For instance, Toyo Tire Co., Ltd. supplied Open Country MT/R tyres for Toyota Land Cruiser vehicles, which won the T2 production car category in the 2023 Dakar Rally held in Saudi Arabia.
Technological advancements in tyre manufacturing and the rising preference for online tyre sales are also shaping the market. These trends provide consumers with better choices and reduce the time and cost associated with traditional tyre purchasing.
Increasing Vehicle Ownership and Rising Car Sales
Higher vehicle sales and ownership rates, driven by population growth, economic improvement, and increased disposable income, are fueling tyre demand. The passenger car segment dominates the market, as personal vehicle ownership continues to rise. Additionally, urbanization, industrialization, and infrastructure development contribute to the expansion of the tyre industry. Government policies and revenue opportunities for manufacturers, distributors, and retailers further support market growth.
Growing Demand for Racing Tyres
The market is witnessing increased demand for high-performance and racing tyres due to the rise in motorsport events and off-road activities. Events such as Formula One and NASCAR are contributing to the growing adoption of high-performance tyres.
For example, in February 2023, Hankook Tires became the exclusive tyre supplier for Formula E racing, debuting at the Diriyah race in Saudi Arabia. The company introduced its iON Race Tyres, made from eco-friendly materials, reducing carbon dioxide emissions by over 15% compared to conventional tyres. Additionally, Pirelli supplied tyres for the Formula 1 event in Saudi Arabia in 2022.
Growing Popularity of Tyre Retreading
The demand for retreaded tyres is increasing, particularly in logistics and cargo transportation. Fleet operators are opting for cost-effective retreaded tyres to reduce expenses while maintaining vehicle efficiency. Leading tyre manufacturers are enhancing retread technology to match the quality and performance of new tyres. Environmental concerns are also encouraging the adoption of retreaded and green tyres, positioning the market for further growth.
Impact of COVID-19
The pandemic posed challenges for the tyre industry, with lockdowns disrupting manufacturing and supply chains. Factory closures, workforce shortages, and raw material supply constraints led to production delays. Additionally, restrictions on transportation and logistics affected tyre sales across industries such as mining, construction, and agriculture. However, the market rebounded in the post-pandemic phase and is expected to maintain steady growth throughout the forecast period.
Future Market Outlook (2023–2030F)
- Rising vehicle ownership and demand for premium tyres will drive market growth.
- Technological advancements in tyre production will enhance performance and durability.
- The tyre retreading sector is expected to expand due to cost-effectiveness and sustainability concerns.
- Online tyre sales will continue to gain traction, offering convenience and affordability.
Report Scope:The “Saudi Arabia Tyre Market Assessment, Opportunities, and Forecast, 2016–2030F” by Markets and Data provides an in-depth analysis of market trends, industry dynamics, and challenges. The report covers market size, segmental growth, COVID-19 impact, and future projections. Additionally, it profiles key market players, detailing their market share, business models, and competitive strategies.
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