According to the latest report by IMARC Group, titled “GCC Tire Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, the GCC tire market exhibited a CAGR of more than 6% during 2010-2017, reaching a volume of nearly 42 Million Units in 2017. A tire is a ring-shaped structure that covers the rim of a wheel and transfers the vehicle’s load onto the road as well as provides traction. Tires are manufactured using various materials including natural rubber, synthetic rubber, wire and fabric along with other chemical compounds like carbon black. In the GCC region, the overall sales of tires have been increasing on account of rugged terrain and hot climatic conditions which have a negative effect on the lifespan of the tires. Additionally, as the mass consumers in these countries prefer to buy used vehicles instead of new ones, it has created a steady demand for replacing old tires.
GCC Tire Market Trends:
Over the past few years, the tire market in the GCC region has been gaining momentum owing to the improving economic scenario which has resulted in a rise in the disposable incomes of the consumers. This has increased their purchasing power, in turn, stimulating the sales of luxury vehicles and tires from premium brands. The growth can also be accredited to rising investments in the construction sector which have provided a boost to the production of commercial vehicles. Apart from this, flourishing tourism sector and increasing vehicle motorization rate are some of the other factors which have positively influenced the growth of the market. The introduction of technologically improved tire varieties which offer enhanced vehicle safety and fuel efficiency has further impelled the market. However, there is a lack of tire manufacturing establishments in the region which acts as a major hinderance to the GCC tire market. Looking forward, the market volume is projected to reach around 59 Million Units by 2023.
GCC Tire Market Summary:
- On the basis of type, the market has been segmented into OEM and replacement tires. The demand for OEM tires is being fuelled by a stable growth in automobile production, whereas, replacement cycles and rising vehicle population drive the sales of replacement tires.
- Tires currently find myriad applications across various sectors. Some of the major application segments include passenger vehicles, light commercial vehicles and heavy commercial vehicles.
- On a geographical front, Saudi Arabia enjoys the leading position in the GCC tire market. This is due to the increasing automobile sales and large fleet size across the country. Saudi Arabia is followed by the UAE, Kuwait, Qatar, Bahrain and Oman.
- The competitive landscape of the market has also been examined with some of the key players being Bridgestone, Michelin, Continental, Goodyear and Yokohama.
IMARC Group is a leading market research company that offers management strategy and market research worldwide. We partner with clients in all sectors and regions to identify their highest-value opportunities, address their most critical challenges, and transform their businesses.
IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations. Market forecasts and industry analysis for biotechnology, advanced materials, pharmaceuticals, food and beverage, travel and tourism, nanotechnology and novel processing methods are at the top of the company’s expertise.
Follow us on twitter : @imarcglobal