Report Overview

Saudi Arabia Tire Market- Industry Trends & Forecast Report 2027

In 2020, the Saudi Arabia tire market was worth USD 3,753.0 million, with a CAGR of 1.8% between 2017 and 2020. The market is further expected to reach USD 5,984.0 million by 2027 at a CAGR of 7.4% during the forecast period (2021-2027). Rapid development in the Saudi Arabia’s automobile sector is contributing to the growth of the Saudi Arabia tire market. The expanding consumer base bolstered by the elevating living standards and increasing per capita expenditure on luxury vehicle components further augments the growth of the Saudi Arabia tire market. Additionally, the rising penetration of international tire brands offering high-quality assurance and extended product life has led to their growing presence in the Saudi Arabia tire market.

Source: BlueWeave Consulting

Saudi Arabia Tire Market Overview

A tire is the a ring-like structure attached to a wheel rim. It offers traction on the surface upon which the wheel travels. Typically, the tires used for bicycles and automobiles are pneumatically inflated structures, providing a flexible cushion for absorbing shocks as the tire rolls over rough patches on the surface. Because of the increase in the number of vehicles per capita in Saudi Arabia, the tire market is rapidly booming across the region. Moreover, tire manufacturers are increasingly focusing on advanced technologies such as 3D printing, organic raw materials, and autonomous vehicles, which is expected to contribute to market’s growth.

Saudi Arabia Tire Market Trend

Growth Drivers

Rising demand from the automotive sector

Over the past few years, rising environmental concerns, fossil fuel shortages, and government subsidies have all contributed to the increase in electric vehicle consumption. According to the Global EV Outlook Report 2021, even a pandemic (2020) couldn't dampen the growth witnessed by the EV industry. Moreover, the ongoing measures to increase the percentage of electric vehicles on the road to at least 30% by 2025 reflect the country's EV sector's growth, which is projected to continue in the next years as the Saudi Arabia tire market grows. EV tires have a larger load-bearing capacity and more torque power for a better ride, which has led in the expansion of such tires across automobile segments, contributing to the growth of the Saudi Arabia tire market.

Growing investment toward automobile production activities

Saudi Arabia is the largest market in the Middle East, with about 40% of the market share in automotive sales and auto components. The Saudi Arabian government has started making efforts into widening the production of automobiles in the country, thereby reducing the dependence on oil exports and creating new job opportunities for the people in the country. According to the center, the National Industrial Development Center plans to produce more than 300,000 vehicles between 2020-2030. It is contributing to the growth of the Saudi Arabia Tire market by bolstering the automotive manufacturing units across the kingdom and demonstrating support for Saudi Vision 2030.  Such efforts are anticipated to enhance the demand for tire production in Saudi Arabia in the forecast period, propelling the growth of the Saudi Arabia tire market.

Restraints

High Price of Tires

In Saudi Arabia, tire prices have risen rapidly as raw material costs and transportation costs have risen. As a result of the growing number of driver shortages in the trucking industry, the supply chain of the tire market has been disrupted globally, negatively impacting prices across Saudi Arabia. The commercial tire industry has also been experiencing shortages, including the rising demand for goods, which has directly impacted the truck fleet miles, fueling the need for tires across the kingdom. One of the major tire manufacturing giants, Goodyear, in a conference in December 2020, said its raw material costs jumped from USD 125 million to USD 175 million compared to last year. This reflects the increase in tire prices, which is hindering the growth of the Saudi Arabia tire market.

Saudi Arabia Tire Market - Impact of COVID-19

The sudden outbreak of the COVID-19 pandemic has negatively impacted the Saudi Arabia tire market. The import and export of vehicles were temporarily halted, resulting in a shorter supply of tires. The demand for tires in the country declined significantly, incurring significant losses to the market. Moreover, due to lockdown guidelines imposed by several states, there has been a noticeable decrease in traffic volume in the last few months. A report by the Auto Care Association revealed that personal travel had dropped 38% – 48% during the workweek amid the pandemic. Likewise, commercial trucking travel has also decreased by 20% around mid-March 2020. As traffic levels dropped across the country, so did the demand for tires and tire products. However, with the advent of online platforms for buying and selling tires and expanding steps to support the automotive sector, the Saudi Arabian tire market is predicted to regroup and recover in the short term.

Saudi Arabia Tire Market: By Type

Based on types, the Saudi Arabia tire market is grouped into radial and bias. The radial tire segment acquired the larger share in the Saudi Arabia tire market. The factors attributing to the growth of the market include higher flexibility on the sidewalls, less fuel consumption owing to reduced rolling resistance. Radial tires also facilitates a smoother ride, which has assisted the segment to hold a higher position than its counterpart. Such advantages over the bias tires have resulted in a higher share for the segment in the Saudi Arabia tire market.

Source: BlueWeave Consulting

Saudi Arabia Tire Market: By End-Use

Based on end-use, the Saudi Arabia tire market is segmented into OEM and replacement. The replacement segment of the market has garnered a higher share in 2020. Topographical travel, off-road driving, and some other limitations have hindered the demand for OEM tires, making them less feasible than the replacement tires. The other factor that adds to the declining market for the OEM tires over the replacement tires is the price tag of the OEM tires. OEM tires are more expensive and less durable than  replacement tires, which has resulted in a higher market share for the latter, thereby bolstering the growth of segment.

Saudi Arabia Tire Market – Vehicle Type

Based on vehicle types, the Saudi Arabia tire market is segmented as passenger cars, light commercial vehicles, medium & heavy commercial vehicles, two-wheelers, and off-the-road vehicles. The passenger vehicles segment of the Saudi Arabia tire market accumulated the highest share in 2020.  The growth of the segment can be attributed to various factors, including the increasing demand for electric vehicles across the country. A rising concern about pollution and climate change, increases in fuel prices, and a shift in consumer preferences towards electric vehicles are driving the growth of the segment.

Saudi Arabia Tire Market - Competitive Landscape

Some of the key players in the Saudi Arabia tire market are Apollo Tyres Ltd., Michelin, Bridgestone Corporation, Continental Aktiengesellschaft, Sumitomo Rubber Industries, Ltd., Pirelli Tyre S.p.A., Yokohama Tire Corporation, Hankook Tire & Technology Co., Ltd., Toyo Tire Corporation, The Good Year Tire & Rubber Company, and other prominent players. The rising advancements in digitalization, growing expenditure in the R&D sector, and the number of automotive vehicle sales has assisted the companies in strengthening their product portfolio. The Saudi Arabia tire market is consolidated in nature with a few players demonstrating a higher share in the market.

Recent Development

• In September 2021, Michelin and Dorna Sports announced a new three-year contract extension with Michelin, which will keep the iconic French company as MotoGP's sole official tire supplier until at least 2026. With the latest three-year deal, MotoGP and Michelin are expected to celebrate their ten years of racing together.

• In August 2021, Apollo Tyres and KONAMI, a major video game publisher, announced the creation of the 'Apollo Tyres United League,' an ambitious eSports tournament played on eFootball PES 2021 for mobile, in collaboration with Manchester United. The mobile-based eSports Tournament will take place throughout India, Australia, South Africa, the Middle East, Southeast Asia, Sri Lanka, and Nepal and will be the first of its type in terms of tournament structure and overall collaboration.

Scope of the Report

By Type 

• Radial

• Bias

By Size

• 10”-12”

• 13”-15”

• 16”-18”

• 19”-21”

• >21 inches

By Distribution Channel

• Online

• Offline

By End-Use

• OEM

• Replacement

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles

• Medium and Heavy Commercial Vehicles

• Two-Wheeler

• Off-The-Road (OTR)

1. Research Framework
1. Research Objective
2. Product Overview
3. Market Segmentation
2. Research Methodology
1. Qualitative Research
1. Primary & Secondary Research
2. Quantitative Research
3. Market Breakdown & Data Triangulation
1. Primary & Secondary Research Application
2. Secondary Research
3. Primary Research
4. Breakdown of Primary Research Respondents, By Region
5. Assumption & Limitation
3. Executive Summary
4. Saudi Arabia Tire Market Overview
1. Market Size & Forecast by Value, 2017-2027
1. By Value (USD Million)
2. Market Share & Forecast
1. By Type
1. Radial
2. Bias
2. By Size
1. 10”-12”
2. 13”-15”
3. 16”-18”
4. 19”-21”
5. >21 inches”
3. By End-Use
1. OEM
2. Replacement
4. By Vehicle Type
1. Passenger Cars
2. Light Commercial Vehicles
3. Medium and Heavy Commercial Vehicles
4. Two-Wheeler
5. Off-The-Road (OTR)
5. By Distribution Channel
1. Online
2. Offline
5. Competitive Landscape
1. List of Key Players and Their Offerings
2. Market Share Analysis, 2020
3. Competitive Benchmarking, By Operating Parameters
6. Saudi Arabia Tire Market Import Analysis, By Brand (It will be available on best effort basis)
7. Impact of COVID-19 on Saudi Arabia Tire Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, SWOT Analysis, Contact Address, and Strategic Outlook) **
1. Apollo Tyres Ltd.
2. Michelin
3. Bridgestone Corporation
4. Continental Aktiengesellschaft
5. Sumitomo Rubber Industries, Ltd.
6. Pirelli Tyre S.p.A.
7. Yokohama Tire Corporation
8. Hankook Tire & Technology Co.,Ltd.
9. Toyo Tire Corporation

8.10. The Good Year Tire & Rubber Company

9. Saudi Arabia Tire Market Aftermarket
1. Saudi Arabia Tire Aftermarket Analysis, By Tire Sizes
2. Saudi Arabia Tire Aftermarket Market Share, By Brands
3. Saudi Arabia Tire Aftermarket Analysis, By Sales Channel
4. Saudi Arabia Tire Aftermarket Analysis, By Distributors
10. Key Strategic Recommendations

*Financial details of unlisted companies will be available as per data availability in final deliverable

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

List of Figures

Fig 1: Saudi Arabia Tire Market Segmentation

Fig 2: Saudi Arabia Tire Market Size, By Value (USD Million)

Fig 3: Saudi Arabia Tire Market Share (%), By Type, By Value, 2020

Fig 4: Saudi Arabia Tire Market Size, By Value (USD Million), 2017-2027

Fig 5: Saudi Arabia Tire Market Share (%), By Type, By Value, 2017-2027

Fig 6: Saudi Arabia Tire Market Share (%), By Size, By Value, 2017-2027

Fig 7: Saudi Arabia Tire Market Share (%), By End-Use, By Value, 2017-2027

Fig 8: Saudi Arabia Tire Market Share (%), By Vehicle Type, By Value, 2017-2027

Fig 9: Saudi Arabia Tire Market Share (%), By Distribution Channel, By Value, 2017-2027

Fig 10: Saudi Arabia Tire Market: Market Share Analysis, 2020

Fig 11: Saudi Arabia Tire Aftermarket Size, By Value (USD Million), 2017-2027

Fig 12: Saudi Arabia Aftermarket Share (%), By Tire Sizes, By Value, 2017-2027

Fig 13: Saudi Arabia Tire Aftermarket: Market Share Analysis, 2020

Fig 14 : Saudi Arabia Tire Aftermarket Share (%), By Sales Channel, By Value, 2017-2027

List of Tables

Table 1: Saudi Arabia Tire Market Size, By Type, By Value (USD Million), 2017-2027

Table 2: Saudi Arabia Tire Market Size, By Size, By Value (USD Million), 2017-2027

Table 3: Saudi Arabia Tire Market Size, By End-Use, By Value (USD Million), 2017-2027

Table 4: Saudi Arabia Tire Market Size, By Vehicle Type, By Value (USD Million), 2017-2027

Table 5: Saudi Arabia Tire Market Size, By Distribution Channel, By Value (USD Million), 2017-2027

Table 6: List of Key Players and Their Offerings

Table 7: List of Key Players and Their Offerings

Table 8: List of Key Players and Their Offerings

Table 9: Competitive Benchmarking, by Operating Parameters

Table 10: Saudi Arabia Tire Market Import Analysis, By Brand, By Value and Volume

Table 11: Apollo Tyres Ltd.  Business Overview

Table 12: Apollo Tyres Ltd. Financial Analysis (USD Million)

Table 13: Michelin Business Overview

Table 14: Michelin Financial Analysis (USD Million)

Table 15: Bridgestone Corporation Business Overview

Table 16: Bridgestone Corporation Financial Analysis (USD Million)

Table 17: Continental Aktiengesellschaft Overview

Table 18: Continental Aktiengesellschaft Financial Analysis (USD Million)

Table 19: Sumitomo Rubber Industries, Ltd. Overview

Table 20: Sumitomo Rubber Industries, Ltd. Financial Analysis (USD Million)

Table 21:  Pirelli Tyre S.p.A. Overview

Table 22:  Pirelli Tyre S.p.A. Financial Analysis (USD Million)

Table 23: Yokohama Tire Corporation Overview

Table 24: Yokohama Tire Corporation Financial Analysis (USD Million)

Table 25: Hankook Tire & Technology Co.,Ltd. Overview

Table 26: Hankook Tire & Technology Co., Ltd. Financial Analysis (USD Million)

Table 27: Toyo Tire Corporation Overview

Table 28: Toyo Tire Corporation Financial Analysis (USD Million)

Table 29: The Good Year Tire & Rubber Company Overview

Table 30: The Good Year Tire & Rubber Company Financial Analysis (USD Million)

Table 31: Saudi Arabia Tire Aftermarket Size, By Tire Size, By Value (USD Million), 2017-2027

Table 32: Saudi Arabia Tire Aftermarket Size, By Sales Channel, By Value (USD Million), 2017-2027

Table 33: Saudi Arabia Tire Aftermarket Analysis, By Distributors

Table 34: Saudi Arabia Tire Aftermarket Analysis, By Distributors

Table 35: Saudi Arabia Tire Aftermarket Analysis, By Distributors