Report Overview

Rising disposable income, improving country's economy, expanding infrastructure developments across the country, and international government support for infrastructure projects could boost the growth of the Djibouti Tire Market during the forecast period between 2023 and 2029.

Djibouti Tire Market - Industry Trends & Forecast Report, 2029

Djibouti tire market size is expected to expand at a CAGR of 7.20% during the forecast period between 2023 and 2029. The major factors driving the growth of the Djibouti tire market are the rising sales of passenger, luxury, and electric vehicles (EVs) as a result of rapid urbanization and rising consumer spending power. The demand for premium quality tires with a longer operational life improved stability and reliability, and high puncture resistance is being fueled by the increased focus on driver and passenger safety as well as the rise in fatal traffic accidents. Major players are introducing airless, lightweight, and three-dimensional (3D) printed) variants. They are putting a lot of effort into recovering and recycling old tires to reduce their negative environmental effects and save a lot of the energy needed to make new ones. More logistics and transportation tasks are being performed to deliver packages on schedule. In turn, this is fueling market expansion. It is expected that an increase in farming activities in the agricultural sector will open up lucrative growth opportunities for the market.

Djibouti Tire Market- Overview

A tire is a ring-shaped, circular auto part that houses a wheel rim and is inflated with compressed air. Wire, silica, carbon black, steel, natural or synthetic rubber, and other materials are used in its production. By lowering vibrations and improving shock absorption, it transfers the car's weight from the axle to the ground and gives the car stability. It improves the vehicle's performance, mileage, passenger safety, and wear and tear. Depending on the type of automobile, it is currently frequently offered in a variety of sizes and variants.

Growth Drivers

Increasing Concerns about Fuel Efficiency and Safety

In response to growing safety concerns, many countries are enacting stringent tire performance regulations, including fuel savings and wet grip-related braking distance reduction. There is a significant opportunity for tire manufacturing companies to develop tires that meet standards. Suppliers are developing extremely effective tires that improve the overall fuel efficiency of automobiles as a result of increased technological breakthroughs. Tire manufacturers use self-inflating and low rolling resistance (LRR) technology to improve safety and fuel efficiency. Pneumatic tires are becoming increasingly popular for increasing fuel efficiency. Pneumatic tires are primarily concerned with safety and fuel efficiency, and high demand for these tires is expected in the coming years. Therefore, it is expected that growing concerns about safety and fuel efficiency will present the companies with significant growth potential.

Restraints

Volatile Raw Material Prices

Djibouti tire market is under pressure due to factors like rising crude oil prices, shifting raw material costs, and higher input costs brought on by the lack of natural rubber and other things. In addition, almost all raw materials are derivatives of crude oil, which makes them dependent on the price of crude oil. The majority of the cost of making tires is also attributed to the raw materials used in their production, primarily synthetic and natural rubber. Prices for crude oil have significantly increased across Djibouti. As a result, it is anticipated that in the coming years, the cost of synthetic rubber and other crude derivatives used in the manufacture of tires will rise.

Impact of COVID-19 on Djibouti Tire Market

In 2020, the global coronavirus pandemic caused a significant decline in the value of the passenger tire industry. Tire production was temporarily halted due to interruptions in the supply chain for raw materials and temporary shutdowns of production lines in various industries, including the automotive and automobile industries, which harmed the expansion of the passenger tire market. Sales of passenger tires declined as a result of large companies like Bridgestone and Goodyear being forced to halt production.

Djibouti Tire Market

Segmental Coverage

Djibouti Tire Market - By Vehicle Type

Djibouti tire market is divided into Passenger Cars, Two-Wheelers, Medium, and Heavy Commercial Vehicles, Light Commercial Vehicles, Off the Road Vehicles (OTR), and Three-Wheelers. Due to their dominance in the market during the forecast period, passenger cars and light commercial vehicles' performance of a vehicle includes bearing the weight of the vehicle, sending acceleration and deceleration force to the ground, changing and maintaining direction, and absorbing shock from the road surface. One of the key factors boosting tire demand across Djibouti is the revenue growth of passenger cars, particularly in emerging economies.

Djibouti Tire Market - By Tire Type

On basis of the tire type, Djibouti tire market is divided into Radial (Tube, Tubeless) and Bias segments. In terms of revenue, the radial segment comprising tubeless tire market segment accounted for a sizeable portion of the Djibouti tire market. The majority of motorcycles are equipped with tubeless tires because they offer low resistance while driving and have a slow rate of deflation. Since tube tires waste more fuel than tubeless tires, the demand for tubeless tires is expected to rise across Djibouti.

Djibouti Tire Market - By Demand Category

On basis of the demand category, Djibouti tire market is divided into OEM and Replacement segments. Currently, the OEM (Original Equipment Manufacturer) segment holds a higher market share, and it is expected that this trend will persist throughout the forecast period (2023–2029). OEMs are currently spending money on R&D to produce lightweight, environmentally friendly tires that meet regulatory requirements. OEM tires are always of the highest caliber and can be used for a variety of purposes. It performs admirably outside of the showroom due to its design goals of being quiet, durable, and useful on the road. This encourages the OEM segment to control a large portion of the market in the coming years.

Competitive Landscape

Djibouti tire market is fiercely competitive. Prominent players in the market include Mantrac Group, Bridgestone, SPORTRAK TIRE GROUP LIMITED, MRF, Michelin, CEAT Limited, APOLLO TYRES LTD, Kilotreads (Paarl) (PTY) Ltd, Yokohama Tires, and Dudhia Tires Manufacturers. The key strategies used by these market leaders are new product launches, mergers & acquisitions, and alliances. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

By Vehicle Type

• • Passenger Car

  • Two-Wheeler

  • Medium & Heavy Commercial Vehicle

  • Light Commercial Vehicle

  • Off-The-Road Vehicle (OTR)

  • Three-Wheeler

By Tire Type

• • Radial

1. Tube

2. Tubeless

   • Bias

By Demand Category

• • OEM

• • Replacement