Report Overview

Uganda Tire Market - Industry Trends & Forecast Report, 2029

Uganda tire market size was estimated at USD 402.94 million in 2022. During the forecast period between 2023 and 2029, the size of Uganda tire market is projected to grow at a CAGR of 3.81% reaching a value of USD 504.3 million by 2029. Major growth drivers for the Uganda tire market include the growing economy, rising vehicle ownership rates, improved road infrastructure, and increasing government regulations. Economic factors, including heightened consumer purchasing power and increased industrial activity, foster growing demand, while an expanding number of vehicles on the road, especially in response to population growth and urbanization, spurs the need for passenger car, commercial vehicle, and agricultural equipment tires. The condition of the road network and intensifying government regulations related to tire quality and safety also influence the market, with well-maintained roads potentially leading to an increase in tire longevity. These collective factors jointly mold the dynamics of the tire market in Uganda, with emerging trends like the adoption of eco-friendly and energy-efficient tires on the rise.

Uganda Tire Market – Overview

Uganda tire market refers to the sector within the Ugandan economy that involves the manufacturing, distribution, sale, and servicing of tires for various types of vehicles and equipment. This market encompasses a wide range of tire products, including those designed for passenger cars, commercial vehicles, trucks, agricultural machinery, construction equipment, and other specialized applications. It involves various stakeholders such as tire manufacturers, importers, wholesalers, retailers, service centers, and consumers. The market's dynamics are influenced by factors like economic conditions, consumer demand, vehicle ownership rates, government regulations, road infrastructure, and industry trends. The goal of this market is to meet the demand for tires in Uganda, ensuring that vehicles and equipment operate safely and efficiently on the country's roads and terrains.

Uganda Tire Market

Growth Drivers

Growing Demand for Automobiles

The Uganda tire market is experiencing robust growth, driven primarily by the escalating demand for automobiles. As the Ugandan economy expands, there is a notable surge in consumer purchasing power, leading to an increasing number of individuals and businesses investing in vehicles. This heightened demand for automobiles, spanning passenger cars and commercial vehicles, stimulates a corresponding need for tires. The market is witnessing a growing appetite for various tire types, including all-season, off-road, and performance tires, to cater to the diverse preferences of consumers. This trend is further propelled by urbanization, population growth, and improved road infrastructure, which collectively bolster the tire industry in Uganda.

Restraints

Lack of Skilled Labor

The Uganda tire market faces a significant constraint due to a lack of skilled labor. While the demand for tires is on the rise, the industry struggles to find an adequate workforce with the technical expertise required for tire manufacturing, distribution, and maintenance. This shortage of skilled labor impacts the quality of tire-related services and hampers the overall growth and efficiency of the market. To overcome this limitation and sustain market expansion, investment in training and skill development programs is essential, ensuring that the workforce is equipped to meet the evolving needs of the tire industry in Uganda.

Impact of COVID-19 on Uganda Tire Market

COVID-19 pandemic adversely affected the Uganda tire market. The government-imposed lockdowns, travel restrictions, and economic uncertainties led to reduced vehicle usage, impacting the demand for tires. Supply chain disruptions, both domestically and internationally, affected the availability of raw materials and tire imports. Additionally, manufacturing operations were hampered due to labor shortages and safety protocols. The market saw a shift in consumer priorities toward essential goods, further affecting tire sales. Despite these challenges, there was a growing need for transportation of goods and services, particularly for essential sectors, which partially offset the overall decline in the tire market.

Impact of Prolonging Israel-Hamas War on Uganda Tire Market

The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war.

Also, the war in Middle East will affect industries across verticals and regions. Oil & gas is one of the adversely affected industries by the war. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, The World Bank anticipates that the crude oil prices would spike to a range of USD 140–157 a barrel in the long term, if the war continues to escalate and spreads to other regions. This spike in oil and energy costs will have a domino effect on multiple industries. As fossil fuel is one of the main raw materials for the production of tires, companies and end users in the Uganda tire market face the brunt of rising fuel prices. Volatile and higher fuel prices could increase the cost of tires, resulting in the declined demand for tires affecting their sales and market growth.

Uganda Tire Market

Segmental Coverage

Uganda Tire Market – By Vehicle Type

By vehicle type, the Uganda tire market is divided into Passenger Cars, Light Commercial Vehicles (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Two-Wheelers, and Off-The-Road (OTR) Vehicles segments. The passenger cars segment holds the highest share in the Uganda tire market by vehicle type. The country's population and urbanization levels play a crucial role, with a significant urban population leading to higher demand for passenger cars for personal transportation, consequently driving up the need for tires in this segment. Notably, economic factors, including affordability and availability, make passenger cars more appealing to consumers compared to larger vehicles like commercial trucks or buses, and income levels and financing options influence vehicle choices. The quality and extent of road infrastructure also impact preferences, as well-maintained roads suitable for smaller vehicles can encourage the selection of passenger cars. Cultural and lifestyle factors, such as consumer preferences for convenience and comfort, can further sway the choice of vehicle type. Growing environmental awareness and the emphasis on fuel efficiency may lead to a preference for smaller, more fuel-efficient passenger cars over larger, less fuel-efficient options. Also, government policies, encompassing import duties, taxes, and regulations, have a direct effect on the cost and availability of different vehicle types, thereby shaping consumer decisions in the Uganda tire market.

Uganda Tire Market – By Demand Category

Based on demand category, the Uganda tire market is bifurcated into OEM and Replacement segments. The OEM segment holds a higher share in the Uganda tire market by demand category. The expansion of Uganda's automotive manufacturing industry is driving a growing need for OEM tires. With both local and international car manufacturers setting up assembly plants and production units within the country, there is a rising demand for dependable tire suppliers who can furnish original equipment for newly manufactured vehicles. This situation offers tire manufacturers the chance to establish collaborations with automotive firms for the supply of OE tires, creating mutually beneficial opportunities.

Uganda Tire Market – By Type of Tires

Based on type of tires, the Uganda Tire Market is bifurcated into Radial and Bias segments. The radial segment holds a higher share in the Uganda Tire Market by type of tires. It can be primarily due to its superior performance and durability, particularly well-suited for passenger cars. Radial tires offer better handling, improved fuel efficiency, and longer lifespan, making them the preferred choice for consumers seeking value and performance in their vehicles.

Uganda Tire Market – By Sales Channel

Based on sales channel, the Uganda tire market is bifurcated into Dealer/Exclusive Outlets and Online segments. The online segment holds a higher share in the Uganda tire market by sales channel. The growing use of e-commerce and online shopping is changing how Ugandan consumers buy tires. Online retail provides convenience, price comparisons, and a broader tire selection, especially in urban areas with better internet access. Manufacturers and retailers are adapting by creating online sales channels and offering comprehensive product information to cater to tech-savvy consumers.

Uganda Tire Market – By Tube Type

Based on tube type, the Uganda Tire Market is bifurcated into Tube and Tubeless segments.

Competitive Landscape

Major players operating in the Uganda tire market include Bridgestone Corporation, Goodyear Tire & Rubber Company, Continental AG, Michelin, Sumitomo Rubber Industries, Yokohama Rubber Co., Ltd, Cooper Tire & Rubber Company, Toyo Tire Corporation, and Kumho Tire Co., Ltd. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In August 2023  - Ugandan authorities, led by the Uganda National Bureau of Standards (UNBS), launched a campaign in Kampala to seize over 500 substandard tires valued at SHS 150 million from downtown traders. The crackdown was initiated in response to public concerns and complaints about dangerous tires on the market, which have contributed to an increase in accidents caused by tire failure. The UNBS has emphasized the importance of adhering to quality standards, promoting proper storage, and preventing exposure to direct light for pneumatic tires. The goal is to enhance road safety and protect the environment from low-quality tires.

Scope of the Report

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Medium And Heavy Commercial Vehicles (M&HCVs)

• Off The Road (OTR) Vehicles

• Two Wheelers

By Demand Category

• OEM

• Replacement

By Type of Tires

• Radial

• Bias

By Sales Channel

• Dealer/Exclusive Outlets

• Online

By Tube Type

• Tube

• Tubeless

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Uganda Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Growing demand for automobiles
         2. Increasing road infrastructure
      2. Restrains
         1. High import duties
         2. Lack of skilled labor
      3. Opportunities
         1. Growing demand for radial tires
         2. Development of new tire technologies
      4. Challenges
         1. High cost of raw materials
         2. Inadequate infrastructure
   3. Technological 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. Uganda Tire Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicles (LCVs)
         3. Medium And Heavy Commercial Vehicles (M&HCVs)
         4. Off The Road (OTR) Vehicles
         5. Two Wheelers
      2. By Demand Category
         1. OEM
         2. Replacement
      3. By Type of Tires
         1. Radial
         2. Bias
      4. By Sales Channel
         1. Dealer/Exclusive Outlets
         2. Online
         3. Others
      5. By Tube Type
         1. Tube
         2. Tubeless
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Insurance Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid–19 on Uganda Tire Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Bridgestone Corporation
   2. Goodyear Tire & Rubber Company
   3. Continental AG
   4. Michelin
   5. Sumitomo Rubber Industries
   6. Yokohama Rubber Co., Ltd
   7. Cooper Tire & Rubber Company
   8. Toyo Tire Corporation
   9. Kumho Tire Co., Ltd
   10. 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.  Assumptions & Limitations

*Financial information of case of non-listed companies can be provided as per availability.

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

List of Figures

Figure 1       Uganda Tire Segmentation                          

Figure 2       Uganda Tire Market Value Chain Analysis                        

Figure 3       Company Market Share Analysis, 2022                  

Figure 4       Uganda Tire Market Size, By Value (USD Million), 2019–2029                       

Figure 5       Uganda Tire Market Share, By Vehicle Type, By Value, 2019–2029                          

Figure 6       Uganda Tire Market Share, By Demand Category, By Value, 2019–2029                                                        

Figure 7       Uganda Tire Market Share, By Type of Tires, By Value, 2019–2029

Figure 8       Uganda Tire Market Share, By Sales Channel, By Value, 2019–2029

Figure 9       Uganda Tire Market Share, By Tube Type, By Value, 2019–2029

List of Tables

Table 1        Uganda Tire Market Size, By Value (USD Million), 2019–2029

Table 2        Uganda Tire Market Share, By Vehicle Type, By Value, 2019–2029                          

Table 3        Uganda Tire Market Share, By Demand Category, By Value, 2019–2029                                                        

Table 4        Uganda Tire Market Share, By Type of Tires, By Value, 2019–2029

Table 5        Uganda Tire Market Share, By Sales Channel, By Value, 2019–2029

Table 6        Uganda Tire Market Share, By Tube Type, By Value, 2019–2029

Table 7        Bridgestone Corporation Company Overview

Table 8        Bridgestone Corporation Financial Overview

Table 9        Goodyear Tire & Rubber Company Overview

Table 10      Goodyear Tire & Rubber Company Financial Overview

Table 11      Continental AG Company Overview

Table 12      Continental AG Financial Overview

Table 13      Michelin Company Overview

Table 14      Michelin Financial Overview

Table 15      Sumitomo Rubber Industries Company Overview

Table 16      Sumitomo Rubber Industries Financial Overview

Table 17      Yokohama Rubber Co., Ltd Company Overview

Table 18      Yokohama Rubber Co., Ltd Financial Overview

Table 19      Cooper Tire & Rubber Company Overview

Table 20      Cooper Tire & Rubber Company Financial Overview

Table 21      Toyo Tire Corporation Company Overview

Table 22      Toyo Tire Corporation Financial Overview

Table 23      Kumho Tire Co., Ltd Company Overview

Table 24      Kumho Tire Co., Ltd Financial Overview