Report Overview

Saudi Arabia OTR Vehicle Market - Industry Trends & Forecast Report, 2028

Saudi Arabia OTR (Off-the-Road) Vehicle Market size is expected to expand at a steady CAGR of 6.7% during the forecast period between 2022 and 2028. Saudi Arabia OTR vehicle market is being driven by expanding e-commerce platforms, surging demand for efficient and compact equipment, and increasing focus on off-road sports. Furthermore, the rising adoption of off-highway vehicles due to lower maintenance, insurance costs, and improved fuel efficiency, is expected to drive the demand for Saudi OTR vehicle market. Also, OTR vehicles are employed in various industries, such as construction, agriculture, and mining coupled with its usage in exploration operations in areas without paved roads contribute to the market expansion. Finally, due to expansion of automotive sector along with soaring demand for off-the-road and challenging terrain vehicles is expected to further boost the market growth during the period in analysis.

Saudi Arabia OTR Vehicle Market

Growth Drivers

Rising infrastructural developments and increase in construction and mining activities

Saudi Arabia has witnessed increasing infrastructural development, such as transportation means, roads, bridges and tunnels, and increasing number of manufacturing units. Factors, such as rising labor costs, enhancing productivity, and the need to maximize resource utilization are expected to boost the demand for advanced machines in construction and mining. Private and public infrastructure investments are expected to drive the increasing demand for construction and mining equipment. In addition, rapid growth of urbanization is predicted to raise the requirement for infrastructural development to support rising commutation, electricity, and water needs. Therefore, a high growth in construction and mining activities and in infrastructure spending is expected to spur the demand for construction and mining equipment. Hence, Saudi Arabia OTR market is expected to grow at a steady CAGR during the forecast period.

Restraints

Expensive research and development activities

Construction, mining, agriculture, and industrial applications all make use of OTR vehicles. These vehicles' tires are built and modified to function in challenging situations such as high load bearing, hard surfaces, varying weather conditions, and durability. Material compositions, tread patterns, and other OTR tire parameters vary according to vehicle type and requirements. Designing, manufacturing, and testing OTR tires include R&D activities wherein tires are developed considering all the requirements and standards. Manufacturing of OTR tires involve large special press machines wherein process like vulcanization and curing takes place. The cost of raw materials involved in manufacturing OTR tires as well as the cost of the press machines involved in the process are high. Thus, all market players cannot afford to invest heavy amounts in research and development activities. Consequently, it is anticipated to limit the growth of Saudi Arabia OTR vehicle market.

Impact of COVID–19 on Saudi Arabia OTR Vehicle Market

COVID-19 had a detrimental impact on the Saudi Arabia off-the-road vehicle market. Construction had come to a halt in the initial half of 2020 due to the pandemic. Industry closure, reverse labor migration in the Middle East, and inadequate logistics support for construction equipment made an impact on the entire construction industry. Furthermore, volatile crude oil prices and supply during the same period restricted the construction activities in several Middle Eastern and African economies, including in Saudi Arabia, adversely affecting the new orders for OTR vehicles and tires. This, in turn, hampered the growth of Saudi Arabia OTR vehicle market.

Saudi Arabia OTR Vehicle Market

Segmental Coverage

Saudi Arabia OTR Vehicle Market - By Tire Type

Based on tire type, Saudi Arabia OTR vehicle market has Radial, Bias, and Solid segments. The bias tire segment holds the highest market share in Saudi Arabia OTR vehicle market, as the bias tire gives a smoother ride on hard surfaces and are affordable. The radial tire segment is also expected to grow at a significant rate during the forecast period.

Saudi Arabia OTR Vehicle Market - By Application

Based on application, Saudi Arabia OTR vehicle market has Construction & Mining, Agriculture and Industrial segments. The construction and mining segment is expected to dominate the market because of the country's numerous ongoing building and infrastructure development projects. The government is transforming the country and has a variety of construction initiatives, including the Riyadh Metro, the Ministry of Housing's Sakani program, Neom, the Red Sea Project, Qiddiya entertainment city, Makkah Grand Mosque - Third Expansion, Jeddah Tower, Amaala, and Jean Nouvel's. Furthermore, the key players in the OTR vehicle industry are focused to enhance integrated technologies to meet the changing requirements of their customers, particularly those in the mining industry. Companies are developing integrated tire and rim management solutions to optimize and report tire condition, saving time and boosting productivity.

Saudi Arabia OTR Vehicle Market - By Rim Size

Based on rim size, Saudi Arabia OTR vehicle market has <25”, 29–41”, and 51–63” segments.

Saudi Arabia OTR Vehicle Market - By Sales Channel

On the basis of sales channel, Saudi Arabia OTR vehicle market is bifurcated into OEM and Aftermarket. The aftermarket segment holds a higher market share due to longer life span than OEM tires. In addition, increasing investments by large corporations to improve their production facilities and services drive market growth during period in analysis.

Competitive Landscape

Saudi Arabia OTR vehicle market is fiercely competitive with Caterpillar Inc., Epiroc Middle East FZE, Sany Heavy Industry Co., Ltd., Abdul Latif Jameel IPR Company Limited, Hyundai Construction Equipment Co., Hitachi Ltd., Komatsu Ltd., Volvo Construction Equipment Corporation, Manitowoc Company Inc., and Liebherr. To further enhance their market share, these players are primarily focused on the development of innovative and efficient products, new product releases, market initiatives, mergers and acquisitions, and other collaborative activities.

Recent Development

• In April 2019 - Bridgestone Europe NV/SA, a division of Bridgestone Corporation in EMEA, acquired TomTom Telematics, a Europe-based provider of digital fleet solutions, for USD 910 million. The acquisition of TomTom Telematics is expected to assist in making fleet operations more effective and efficient, as well as strengthening the company's footprint in the transportation solution.

Scope of the Report

By Tires Type

• Radial

• Bias

• Solid

By Application

• Construction & Mining

• Agriculture

• Industrial

By Rim Size

• <25”

• 29–41”

• 51–63”

By Sales Channel

• OEM

• Aftermarket

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia OTR Vehicle Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing construction and mining activities
         2. Government subsidies for agricultural machinery
         3. Increasing need for affordable and sustainable tires
      2. Restraints
         1. Expensive research and development activities
         2. Low-cost tires from unorganized markets
      3. Opportunities
         1. Increasing technology advancements
         2. Environmental protection activities
      4. Challenges
         1. Volatile raw material prices
   3. Technology Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia OTR Vehicle Market Overview
   1. Market Size & Forecast by Value, 2018–2028
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Tire Type
         1. Radial
         2. Bias
         3. Solid
      2. By Application
         1. Construction & Mining
         2. Agriculture
         3. Industrial
         4. Others
      3. By Rim Size
         1. <25
         2. 29-41”
         3. 51-63”
      4. By Sales Channel
         1. OEM
         2. Aftermarket
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Saudi Arabia OTR Vehicle Market
7. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Caterpillar Inc.
   2. Epiroc Middle East FZE
   3. Sany Heavy Industry Co., Ltd.
   4. Abdul Latif Jameel IPR Company Limited,
   5. Hyundai Construction Equipment Co.
   6. Hitachi Ltd.
   7. Komatsu Ltd
   8. Volvo Construction Equipment Corporation
   9. Manitowoc Company Inc.
   10. Liebherr
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation

*Financial information in case of non-listed companies will be provided as per availability

**The segmentation and the companies are subjected to modifications based on in-depth secondary for the final deliverable

List of Figures

Figure 1  Saudi Arabia OTR Vehicle Market Segmentation

Figure 2  Saudi Arabia OTR Vehicle Market Value Chain Analysis

Figure 3  Company Market Share Analysis, 2021

Figure 4  Saudi Arabia OTR Vehicle Market Size, By Value (USD Billion), 2018–2028

Figure 5  Saudi Arabia OTR Vehicle Market Share, By Tire Type, By Value, 2018–2028

Figure 6  Saudi Arabia OTR Vehicle Market Share, By Application, By Value, 2018–2028

Figure 7  Saudi Arabia OTR Vehicle Market Share, By Rim Size, By Value, 2018–2028

Figure 8  Saudi Arabia OTR Vehicle Market Share, By Sales Channel, By Value, 2018–2028

List of Tables

Table 1       Saudi Arabia OTR Vehicle Market Size, By Tire Type, By Value (USD Billion), 2018–2028

Table 2       Saudi Arabia OTR Vehicle Market Size, By Application, By Value (USD Billion), 2018–2028

Table 3       Saudi Arabia OTR Vehicle Market Size, By Rim Size, By Value (USD Billion), 2018–2028

Table 4       Saudi Arabia OTR Vehicle Market Share, By Sales Channel, By Value (USD Billion), 2018–2028

Table 5       Caterpillar Inc. Company Overview

Table 6       Caterpillar Inc. Financial Overview

Table 7       Epiroc Middle East FZE Company Overview

Table 8       Epiroc Middle East FZE Financial Overview

Table 9       Sany Heavy Industry Co., Ltd. Company Overview

Table 10     Sany Heavy Industry Co., Ltd. Financial Overview

Table 11     Abdul Latif Jameel IPR Company Limited Company Overview

Table 12     Abdul Latif Jameel IPR Company Limited Financial Overview

Table 13     Hyundai Construction Equipment Co. Company Overview

Table 14     Hyundai Construction Equipment Co. Financial Overview

Table 15     Hitachi Ltd. Company Overview

Table 16     Hitachi Ltd. Financial Overview

Table 17     Komatsu Ltd Company Overview

Table 18     Komatsu Ltd Financial Overview

Table 19     Volvo Construction Equipment Corporation Company Overview

Table 20     Volvo Construction Equipment Corporation Financial Overview

Table 21     Manitowoc Company Inc. Company Overview

Table 22     Manitowoc Company Inc. Financial Overview

Table 23     Liebherr Company Overview

Table 24     Liebherr Financial Overview