The KSA tire market consists of tires used in various automotive and non-automotive applications such as passenger cars, trucks & buses, two-wheelers, and industrial equipment. tires provide comfort and safety during vehicle rides and transportation of goods. Their resistance to abrasion and durability enhances fuel efficiency and reduces replacement costs. Moreover, the incorporation of advanced technologies like self-inflating tires and AI-enabled sensors in tires improves traction control, wear & tear detection, and auto-pressure adjustment.
The Global KSA Tire Market is estimated to be valued at US$ 4940.35 Bn in 2024 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the KSA Tire are Honeywell International Inc., Renishaw plc, Sensata Technologies, Inc., US Digital, Rockwell Automation, Inc., Allied Motion Technologies Inc., and Grayhill Inc. These players are focusing on developing advanced tires with sensors and electronics for real-time traction and wear & tear monitoring.
The growing automobile industry in KSA along with increasing consumer spending on luxury and premium vehicles is driving the demand for high-performance tires in the country. Moreover, favorable government initiatives to promote electric vehicles are augmenting the tire market.
Tire manufacturers are expanding their operations in KSA to cater to the rising local demand. For instance, Goodyear established a new tire manufacturing plant in Jeddah in 2022 with an investment of $330 million. Several international players are also forming joint ventures with local firms to enhance their presence.
Market Key Trends
One of the major trends in the KSA Tire Market is the increasing focus on tire technologies for improving safety. With rising road accidents in the country, manufacturers are developing tires embedded with sensors, AI , and connectivity capabilities. These smart tires can monitor pressure, temperature, friction in real-time and alert drivers about potential safety issues through smartphone apps. The collected tire data also helps in predictive maintenance and behavior-based optimization of tire performance. This trend is expected to drive the KSA tire market growth during the forecast period.
Porter's Analysis
Threat of new entrants: The tire market in KSA requires high capital investment to produce quality products and develop a brand, which acts as barrier for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power due to presence of several tire brands in the country providing alternatives.
Bargaining power of suppliers: Major tire manufacturers have strong control over raw material suppliers due to their scale of operations and integration across supply chain.
Threat of new substitutes: There is no close substitute for tires used in automotive vehicles. However, bicycle tires are a weak alternative for short distance commuting.
Competitive rivalry: The market is dominated by global giants like Michelin and Bridgestone. Intense competition keeps prices competitive and forces companies to invest in quality and innovation.
Geographical Regions
The tire market in the Asia Pacific region currently holds the largest share in terms value sale globally, led by countries like China, India and Japan. High automobile production and sales coupled with growing consumer preference for branded tires drives the market.
The Middle East and Africa region is expected to witness the fastest growth in the global tire market during the forecast period. This can be attributed to increasing vehicle parc, infrastructure growth and demand for high-performance tires in countries like KSA, UAE, South Africa and Egypt.
Get more insights on KSA Tire Market
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
Comments
0 comment