Report Overview

Yemen Tire Market - Industry Trends & Forecast Report, 2029

Yemen tire market size was estimated at USD 300.84 million in 2022. During the forecast period between 2023 and 2029, the size of Yemen tire market is projected to grow at a CAGR of 5.76% reaching a value of USD 420.96 million by 2029. Major growth drivers for the Yemen tire market include an increasing climatic diversity, growing urbanization and infrastructure development, and growing vehicle preferences. Yemen's extreme climatic conditions, which range from scorching desert heat to coastal humidity, contribute to a substantial demand for specialized tires capable of withstanding these challenging environments. Off-road and all-terrain tires are particularly in demand, catering to the preference for SUVs, 4x4 vehicles, and luxury cars in the region. Additionally, the high temperatures in Yemen emphasize the need for durable and heat-resistant tire options. Economic factors also play a pivotal role in shaping the tire market in Yemen. Some regions, particularly those with oil-based economies, exhibit strong consumer spending power and a preference for luxury vehicles. This results in an increased demand for premium and high-performance tires that align with the luxury vehicle segment. In contrast, other areas in Yemen may face economic challenges that lead consumers to prioritize affordability, potentially driving the demand for budget-friendly tire options. Yemen's rapidly growing urban centers and ongoing infrastructure projects contribute to the expansion of the commercial vehicle segment. Industries like construction, logistics, and transportation are the driving forces behind the demand for heavy-duty and commercial tires. Also, Yemen's status as a major business hub and tourist destination underscores the need for reliable and safe tires, reflecting consumers' preferences for quality and comfort in their vehicles.

Yemen Tire Market – Overview

Yemen tire market refers to the specific sector within Yemen's economy that deals with the production, distribution, sale, and maintenance of tires for various types of vehicles, including passenger cars, SUVs, trucks, and commercial vehicles. This market encompasses the entire tire industry in Yemen, covering aspects such as tire manufacturing, import and distribution, consumer preferences, and the factors influencing the demand and supply of tires within the country. It plays a crucial role in meeting the transportation needs of the Yemeni population, including those related to diverse climatic conditions and vehicle preferences. The market is shaped by economic factors, climatic variations, and the evolving infrastructure, making it a dynamic and essential component of Yemen's automotive industry.

Yemen Tire Market

Growth Drivers

Increasing Demand for Tires from Replacement Market

Yemen tire market experiences a notable boost from the replacement market, with the predominant factor being economic considerations. Many Yemeni consumers favor used tires as replacements, primarily due to their affordability when compared to new ones. The significant price difference, often amounting to substantial savings, acts as a strong incentive for this choice. While this surge in the replacement market is a key driver for the tire industry in Yemen, it is essential to recognize the safety concerns associated with used tires. These concerns arise because the prevalence of used tires has been linked to a considerable number of vehicular accidents in Yemen, emphasizing the need to balance economic considerations with road safety in the market.

Restraints

Poor Infrastructure

Poor infrastructure acts as a substantial constraint on the growth of the Yemen tire market. The country's road network suffers from inadequate maintenance, potholes, and uneven surfaces, leading to accelerated tire wear and frequent damage. As a result, consumers are burdened with higher costs due to the need for more frequent tire replacements. This condition not only impacts the lifespan of tires but also raises safety concerns, increasing the risk of vehicular accidents. To overcome this challenge and promote market growth, significant investments in infrastructure development are imperative to create safer and more reliable road networks that reduce the economic and safety burdens placed on consumers in Yemen.

Impact of COVID-19 on Yemen Tire Market

COVID-19 pandemic adversely affected the Yemen tire market. Lockdowns, supply chain interruptions, and economic challenges stemming from the pandemic have impacted both tire production and consumer demand. Reduced economic activity led to a decline in new tire purchases, while the closure of businesses and restrictions on mobility affected the maintenance and replacement tire market. Supply chain disruptions further exacerbated tire shortages, increasing prices for available stock. Moreover, the overall economic strain on consumers in Yemen has led to a shift towards more budget-oriented tire choices. The Yemen tire market has faced formidable challenges due to the pandemic, requiring adaptability and resilience for recovery.

Impact of Prolonging Israel-Hamas War on Yemen 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 Yemen tire market face the brunt of rising fuel prices. Increased fuel costs can lead to higher tire production expenses, potentially reducing demand and hindering market growth. Concurrently, the Yemen oil market's ongoing conflict, infrastructure attacks, and overall instability result in supply chain disruptions and increased operational expenses, thereby affecting consumer purchasing power and vehicle sales. These dynamics impact both domestic tire production and imports, potentially giving rise to concerns regarding quality and availability. Also, regional geopolitical tensions exacerbate complexities in trade, pricing, and the broader tire industry landscape in Yemen.

Yemen Tire Market

Segmental Coverage

Yemen Tire Market – By Vehicle Type

By vehicle type, the Yemen tire market is divided into Passenger Cars, Light Commercial Vehicle (LCVs), Medium & Heavy Commercial Vehicles (M&HCVs), Two-Wheeler, Three-Wheeler, and Off-The-Road (OTR) Vehicle segments. The passenger cars segment holds the highest share in the Yemen tire market by vehicle type. Passenger cars are the most common mode of personal transportation in the country, making them a prevalent choice among consumers. Notably, the challenging road conditions and varying terrains in Yemen necessitate durable and versatile tires, which are readily available for passenger cars. Also, economic factors play a role, with consumers often opting for affordable and cost-effective tire options. The combination of practicality, accessibility, and the prevalent use of passenger cars solidifies their dominance in the Yemen tire market.

Yemen Tire Market – By Demand Category

Based on demand category, the Yemen tire market is bifurcated into OEM and Replacement segments. The replacement segment holds a higher share in the Yemen tire market by demand category. Economic considerations play a significant role, with consumers often opting to replace worn-out tires with more affordable alternatives. Given the challenging economic conditions in the region, used or budget-friendly tires are a practical choice for many. Also, the high prevalence of road hazards in Yemen's diverse terrains necessitates more frequent tire replacements, further boosting the demand for replacement tires. Overall, these economic and environmental factors contribute to the replacement segment's higher share in the market, highlighting the significance of this category for consumers in Yemen.

Yemen Tire Market – By Tire Type

Based on tire type, the Yemen tire market is bifurcated into Radial and Bias segments. The radial segment is expected to hold a higher share in the Yemen tire market during the forecast period by tire type. Radial tires are known for their durability, stability, and fuel efficiency, making them well-suited for a wide range of vehicles, including passenger cars and commercial vehicles. Given Yemen's diverse and challenging terrains, consumers prioritize tires that offer optimal traction and control, which radial tires deliver. Moreover, their longer lifespan and enhanced fuel economy contribute to cost savings, an important consideration in this market. These advantages position radial tires as the preferred choice, thus ensuring their higher market share in Yemen's tire market.

Competitive Landscape

Major players operating in the Yemen tire market include Bridgestone, MAXXIS TIRES, PRESA TIRES, MRF, WOSEN TIRES, TORQUE TIRES, Continental AG, Pirelli, Michelin, and Hankook Tire Company 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.

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

• Three-Wheelers

• Two-Wheelers

By Demand Category

• OEM

• Replacement

By Tire Type

• Radial

• Bias

1. Research Framework
   1. Research Objective
   2. Tire Type Overview
   3. Market Segmentation
2. Executive Summary
3.  Yemen Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Replacement market
         2. Economic situation
      2. Restraints
         1. Poor infrastructure
         2. Supply chain disruption
      3. Opportunities
         1. Consumer preference
         2. Government policies related to imports and trade
      4. Challenges
         1. Economic instability
         2. Political conflicts
   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.  Yemen Tire Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share and Forecast
      1. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicle (LCVs)
         3. Medium & Heavy Commercial Vehicles (M&HCVs)
         4. Two-Wheelers
         5. Three-Wheelers
         6. Off-The-Road (OTR) Vehicles
      2. By Tire Type
         1. Radial
         2. Bias
      3. By Demand Category
         1. OEM
         2. Replacement
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Yemen Tire Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid-19 on Yemen Tire Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Bridgestone
   2. MAXXIS TIRES
   3. PRESA TIRES
   4. MRF
   5. WOSEN TIRES
   6. TORQUE TIRES
   7. Continental AG
   8. Pirelli
   9. Michelin
   10. Hankook Tire Company Ltd
   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 Demand Category
   5.    Assumptions & Limitations

*Financial information 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       Yemen Tire Segmentation

Figure 2       Yemen Tire Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2022

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

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

Figure 6       Yemen Tire Market Share, By Tire Type, By Value, 2019–2029

Figure 7       Yemen Tire Market Share, By Demand Category, By Value, 2019–2029

List of Tables

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

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

Table 3        Yemen Tire Market Share, By Tire Type, By Value, 2019–2029

Table 4        Yemen Tire Market Share, By Demand Category, By Value, 2019–2029

Table 5        Bridgestone Company Overview

Table 6        Bridgestone Financial Overview

Table 7        MAXXIS TIRES Company Overview

Table  8       MAXXIS TIRES Financial Overview

Table 9        PRESA TIRES Company Overview

Table 10      PRESA TIRES Financial Overview

Table 11      MRF Company Overview

Table 12      MRF Financial Overview

Table 13      WOSEN TIRES Company Overview

Table 14      WOSEN TIRES Financial Overview

Table 15      TORQUE TIRES Company Overview

Table 16      TORQUE TIRES Financial Overview

Table 17      Continental AG Company Overview

Table 18      Continental AG Financial Overview

Table 19      Pirelli Company Overview

Table 20      Pirelli Financial Overview

Table 21      Michelin Company Overview

Table 22      Michelin Financial Overview

Table 23      Hankook Tire Company Ltd Company Overview

Table 24      Hankook Tire Company Ltd Financial Overview