According to the latest report by IMARC Group, titled “GCC Tire Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025,” the GCC tire market reached a volume of 46 Million Units in 2019, growing at a CAGR of around 6% during 2014-2019. A tire refers to a ring-shaped, pneumatically inflated structure that is primarily manufactured using natural or synthetic rubber, wire, fabric and carbon black. It is attached to the rim of a wheel and aids in transferring the vehicle’s load onto the road. It also helps in providing a gripping surface for traction while serving as a cushion for the wheels of a moving vehicle. Moreover, it aids in efficiently withstanding the tractive force between the surface of the road and the vehicle, and is utilized to reduce the impact of vibrations and absorb shocks, thereby enhancing the overall performance of the vehicle.
GCC Tire Market Trends:
The market in the GCC region is primarily driven by a significant increase in the per capita income levels of the majority of the population. This, along with rapid urbanization and improving standards of living, has contributed to a boost in the sales of luxury vehicles, thereby providing a thrust to the market growth. Moreover, the rugged terrain and hot climatic conditions in the GCC region lead to constant wearing and tearing of automobile tires, which are creating an escalating demand for replacement tires. The growing trend of using second-hand vehicles, along with continual research and development (R&D) to improve the rubber quality and tire design, is acting as another major growth-inducing factor. Manufacturers are launching new product variants that offer greater mileage and improved performance, especially in extreme weather conditions. They have also introduced non-pneumatic tires (NPT) or airless tires, which do not deflate under any circumstances and offer lower rolling resistance for higher fuel economy. Apart from this, the shifting preference among users toward green and eco-tires is anticipated to create a positive outlook for the market. The flourishing tourism sector, along with the increasing establishment of local tire manufacturing facilities, are some of the other factors facilitating the market growth. On account of the aforementioned factors, the market is anticipated to reach a volume of around 65 Million Units by 2025.
- On the basis of type, the market has been segmented into OEM and replacement tires.
- Based on the application, the market has been divided into passenger vehicles, light commercial vehicles and heavy commercial vehicles.
- On the geographical front, Saudi Arabia holds the leading position in the market. Saudi Arabia is followed by the UAE and other countries.
- The competitive landscape of the market has also been examined in the report with the detailed profiles of the key players operating in the market.
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