Saudi Arabia Tire Market Industry Trends, Demand, Forecast

 A recent study, conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that the Saudi Arabia tire market was worth USD 3753.0 million in the year 2020. The data generated by the study reveals that the market is estimated to grow at a CAGR of 7.4%, earning revenue of around USD 5984.0 million by the end of 2027. Saudi Arabia tire market is rising due to a rapidly growing consumer base and favorable economic conditions. The market is also booming due to a fast-expanding consumer base and rising per capita expenditure on luxury vehicle components, both of which are contributing to market expansion. Another important issue is the increasing presence of multinational tire brands in Saudi Arabia, which provides superior quality assurance and longer product life than domestic competitors. Additionally, the implementation programs such as National Industrial Development and Logistics Program (NIDLP) supporting the Saudi Vision 2030 are anticipated to propel the growth of the Saudi Arabia tire market.

Rising demand from the automotive sector and EVs are driving the growth of the Saudi Arabia tire market

The growing concerns about climate change, declining production of fossil fuels, and favorable government subsidies for enhancing the demand for hybrid and electric passenger vehicles are contributing to the growth of the Saudi Arabia tire market. According to one estimate from the Global EV Outlook Report 2021, EVs enjoyed their best year in 2020, recording a 43% rise in stocks, as opposed to the 2019 statistic showing an increase in sales at about 10 million units. Saudi Arabia's government announced that at least 30% of the total number of cars it will be driving on the roads by 2025 will be electric-powered with the support of the growing number of EV initiatives underway in the country. As EV and hybrid passenger tires showcase some differences in torque and higher load-bearing capabilities, the demand for such tires may also witness a rise in the coming years, positively impacting the growth of the Saudi Arabia tire market.

Increasing Investment Toward Automobile Production Activities Favoring Market Growth

The economy of Gulf countries is largely dependent on the production and export of oil & petroleum, which is pushing the growth of the other sectors. The royal commission of Saudi Arabia is anticipating an investment of USD 10.6 billion in the coming years and seeking to develop the first Saudi-made car by the end of 2022, which has led to a spike in the demand for automobiles in the market, positively impacting the growth of the Saudi Arabia tire market. In addition to this, the National Industrial Development Center is looking forward to generating production possibilities of over 300,000 vehicles between 2020-2030, initiating a major shift in the production capacities in Saudi Arabia, which is propelling the growth of the Saudi Arabia tire market.

Saudi Arabia Tire Market - By Type

Based on types, the Saudi Arabia tire market is grouped into radial and bias. The radial tire segment acquired a larger share in the Saudi Arabia tire market in 2020. The factors contributing to the growth of the segment in the Saudi Arabia tire market comprise exceptional benefits, such as better strength and enhanced flexibility as compared to regular tires. The radial tires easily absorb the bumps and socks while providing a comfortable ride to the driver and passenger in the vehicle. It also reduces the ground compaction and minimizes the chances of damage caused to the vehicles. All these factors make it more suitable for the end-users, thus accelerating the demand for radial tires in the Saudi Arabia tire market.


About Us

BlueWeave Consulting provides comprehensive Market Intelligence (MI) Solutions to businesses regarding various products and services online and offline. We offer all-inclusive market research reports by analyzing both qualitative and quantitative data to boost the performance of your business solutions. BWC has built its reputation from the scratch by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.

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