Saudi Arabia Tyre Market Overview, 2029

The Saudi Arabian tire market has undergone significant transformation and growth, reflecting broader trends in the automotive sector and economic development within the country. Historically, the market has evolved in tandem with the rise of vehicle ownership, which has surged due to increasing disposable incomes and urbanization. The automotive sector's expansion has attracted substantial investments from both local and international players, fostering advancements in tire manufacturing technologies and production methods. The demand for tires is primarily driven by the growing vehicle fleet, particularly passenger cars, which dominate the market segment. This trend is bolstered by government initiatives aimed at reducing reliance on oil exports and promoting local manufacturing through programs like Saudi Vision 2030. The National Industrial Development Center's goal to produce over 300,000 vehicles by 2030 exemplifies these efforts. Furthermore, the influx of tourists and migrants has increased the need for commercial vehicles, further stimulating tire demand across various segments, including light and heavy commercial vehicles. In terms of market dynamics, the Northern and Central regions of Saudi Arabia lead in tire consumption due to higher population density and economic activity concentrated around cities like Riyadh. This urban environment fosters increased vehicle ownership rates, translating into higher demand for tires as vehicles require regular replacements and maintenance. The market is characterized by a mix of local manufacturers and international brands such as Michelin and Bridgestone, which are increasingly penetrating the market with high-quality products.

According to the research report "Saudi Arabia Tyre Market Overview, 2029," published by Bonafide Research, the Saudi Arabia Tyre market is expected to reach a market size of more than USD 8Billion by 2029. Key players in the Saudi tire market include both local manufacturers and international giants such as Michelin, Bridgestone, and Goodyear. These companies are increasingly focusing on innovation and sustainability, developing advanced tire technologies that enhance performance and fuel efficiency. The rise of electric vehicles (EVs) is particularly noteworthy, as it significantly influences tire demand due to the unique requirements of EVs compared to traditional internal combustion engine vehicles. The global shift towards environmentally friendly transportation options is prompting manufacturers to invest in eco-friendly tire production processes and materials, further shaping the market landscape. Several trends are driving growth in the Saudi tire market. The increasing prevalence of electric vehicles, coupled with government initiatives aimed at promoting local manufacturing and reducing carbon emissions, is expected to boost demand for specialized tires designed for EVs. Additionally, urbanization and infrastructure development projects in Saudi Arabia are anticipated to increase vehicle sales, thus elevating tire demand across various segments, including passenger cars and commercial vehicles. Moreover, the competitive landscape is evolving as regional players enhance their capabilities to meet local demands while contending with international brands that offer high-quality products at competitive prices. This dynamic environment encourages innovation and cost-effective solutions among manufacturers. The ongoing developments in smart tire technology—such as self-inflating systems and integrated sensors—also represent a significant trend that aligns with the global push for enhanced safety and performance in automotive components.

The Saudi Arabian tire market is segmented into various categories based on vehicle types, with each segment exhibiting unique developments and demand patterns. The passenger car segment remains the dominant force, driven by the increasing preference for private vehicles among the population. As more individuals opt for personal transportation, the demand for high-quality tires continues to grow, with a focus on safety, durability, and performance. Tire manufacturers in Saudi Arabia are adapting to this trend by offering a wide range of tire options to cater to the specific requirements of passenger vehicles, ensuring optimal performance and efficiency on the country's roads. The light commercial vehicle (LCV) segment is also experiencing steady growth, fueled by the expansion of the commercial sector and the construction of various infrastructure projects across Saudi Arabia. The increasing population, influx of tourists, and the need for extensive commercial activities have led to the construction of airports, shopping malls, hotels, and restaurants, which in turn has increased the demand for LCVs and their robust tires. The medium and heavy commercial vehicle (M&HCV) segment is another significant contributor to the Saudi Arabian tire market. The growing focus on infrastructural development and the diversification of the economy away from oil have led to various ongoing and upcoming construction projects throughout the country. The two-wheeler segment, although smaller compared to other vehicle types, is also witnessing growth in Saudi Arabia. The increasing popularity of motorcycles and scooters among the younger population has led to a rise in demand for two-wheeler tires. Tire manufacturers are responding to this trend by offering specialized tires designed for two-wheelers, focusing on factors such as grip, stability, and durability. The three-wheeler and off-the-road (OTR) vehicle segments make up a smaller portion of the Saudi Arabian tire market. However, these segments are expected to grow in the coming years, driven by the increasing demand for specialized vehicles for specific applications such as agriculture and mining. Tire manufacturers are focusing on developing tires that cater to the unique requirements of these vehicle types, ensuring optimal performance and efficiency in various terrains and conditions.

Radial tires have emerged as the dominant choice in the Saudi Arabian tire market, accounting for a significant portion of overall tire sales. This preference is driven by the superior performance and efficiency of radial tire technology compared to bias ply tires. Radial tires feature a construction where the cords run perpendicular to the direction of travel, resulting in a more flexible sidewall and reduced rolling resistance. This design allows for better fuel efficiency, improved handling, and enhanced comfort for drivers. The growing automotive industry in Saudi Arabia, marked by rising vehicle ownership and usage, has been a key driver of radial tire demand. As consumers become more aware of the benefits associated with radial tires, such as longer tread life and better performance in diverse driving conditions, the market for these tires continues to expand. Additionally, the shift towards more fuel-efficient vehicles and stringent safety regulations further propels the preference for radial tire technology. While radial tires dominate the Saudi Arabian tire market, bias ply tires still maintain a presence, particularly in certain vehicle segments and applications. Bias ply tires feature a construction where the cords run diagonally from bead to bead, creating a crisscross pattern. This design offers a more rigid structure and better puncture resistance compared to radial tires. In Saudi Arabia, bias ply tires are commonly used in applications where durability and puncture resistance are crucial, such as in the agricultural and off-road sectors. The country's harsh climate and challenging terrain can be particularly demanding on tires, and bias ply tires are often preferred for their ability to withstand these conditions.

The OEM segment represents tires that are supplied with new vehicles directly from manufacturers. This segment is characterized by a steady demand due to the continuous growth in vehicle sales, particularly as the Saudi government promotes local automotive production through initiatives like Saudi Vision 2030. OEM tires are typically bundled with new vehicles, ensuring a regular flow of sales as consumers purchase cars from dealerships. The OEM market is projected to account for a significant share of the overall tire market, estimated at around 61.5% in the near future. This dominance is attributed to the nature of vehicle purchases, where tires are an integral part of the vehicle package. Manufacturers leverage bulk purchasing agreements with tire suppliers, allowing them to secure competitive pricing and ensure quality standards that align with their vehicles' performance specifications. In contrast, the replacement tire segment has garnered a larger share of the market due to several factors. Replacement tires are purchased when existing tires wear out, which is influenced by driving habits, road conditions, and climatic factors prevalent in Saudi Arabia. The harsh desert climate accelerates tire wear, necessitating more frequent replacements. As consumers become more aware of safety standards and performance requirements, there is an increasing tendency to opt for high-quality replacement tires, often from reputable brands known for durability and performance. The distribution channels for both segments vary significantly. For OEM tires, distribution primarily occurs through authorized dealerships and automotive manufacturers who manage inventory and sales directly linked to new vehicle purchases. This channel ensures that consumers receive tires specifically designed for their vehicles, enhancing safety and performance.

COVID-19 Impact
The Covid-19 pandemic affected almost every industry vertical across the globe and the tire market in the region of North America was no exception. The enforcement of lockdowns along with the travel restrictions across countries significantly affect the tire market. The situation of lockdowns caused production in the automobile industry to stop which affected the demand from the OEM sector. On the other hand the market was also observing decline from the replacement sector during the pandemic as the requirement for new tires declined.

Key Players
Apollo Tires, Bridgestone, CEAT Tires, Continental, Giti, Goodyears Tires, Hankook, JK tires, Kenda Kumho, Maxxis International, Michelin, MRF, Nexen Tire Corp, Nokian Tires, Pirelli, Sailun Group Co., Ltd, Sumitomo Rubber Industries, Titan International , Toyo Tire Corporation, Triangle Tire Co, Zhongce Rubber Group Co, Yokohama, Doublestar Tire, Linglong, Nankang

Considered in the report
• Geography: Saudi Arabia
• Base Year: 2023
• Historical year: 2018
• Forecasted Year: 2029

Aspects covered in the report
• Market Size by Value (2018-2029F)
• Market Size by Volume (2018-2029F)
• Market Share by Vehicle Type
• Market Share by End Use
• Market Share by Design
• Market Share by Sales Channel
• Market Share by Country

The approach of the report:
We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free.

Intended Audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Automotive and Transport industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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