Saudi Arabia Tire Market By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle, Two Wheelers, Three Wheelers, OTR), By Tire Construction Type (Radial, Bias), By Demand Category (OEM, Replacement), By Region, Competition, Forecast & Opportunities, 2019-2029F
Published Date: March - 2025 | Publisher: MIR | No of Pages: 320 | Industry: Automotive | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request Customization| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 537.57 Million |
| CAGR (2024-2029) | 4.79% |
| Fastest Growing Segment | Passenger Car |
| Largest Market | Northern & Central |
| Market Size (2029) | USD 711.80 Million |
Market Overview
Saudi Arabia Tire Market is estimated at USD 537.57 million in 2023 and is expected to reach 711.80 million by 2029, advancing with a CAGR of 4.79% during the forecast period.
The Saudi Arabian tire market is about to witness substantial growth over the next few years. This expansion is brought about by the booming automobile industry, which is experiencing a growing demand, in addition to growing purchasing power on the part of the population. The market is dominated by severe competition between leading global players, leading to an ongoing stream of innovative products designed to meet constantly changing needs and tastes of the consumers. With a great focus on innovation and quality, the Saudi Arabian tire market is going to flourish and play a part in the overall progress of the automotive sector within the country.
Download Sample Ask for Discount Request Customization
The Saudi Arabian tire market has witnessed steady and remarkable growth over the recent years. This increase is due to a number of reasons, such as the growth of the automotive industry and the rising number of car owners in the nation. The Saudi Arabian automotive industry has seen significant development, with industry giants investing in production units and the setup of research and development units. These investments have resulted in tire technology and production improvements, which have created Saudi Arabian tires as highly demanded products both within and outside the country. The growth in population disposable income and the increased urbanization have driven vehicle demand, resulting in the fast development of the tire market. As more individuals migrate to urban areas and enjoy greater purchasing power, the demand for automobiles has grown significantly, leading to a greater demand for tires. In addition, the government has initiated programs to enhance public transport infrastructure, which has also led to increased demand for tires. The growth of public transport networks, including buses and light rail, necessitates a large quantity of tires to enable their operation.
Despite this, it should be noted that the tire industry in Saudi Arabia also encounters challenges. One of the greatest challenges is the high import tariffs charged on tires, which can influence the price and quantity of imported brands. This has led tire manufacturers and distributors to concentrate on manufacturing and marketing locally produced tires, which are exempt from import tariffs. There has been a trend in the nation towards electric vehicles that are less frequent in terms of tire replacement because they use energy efficiently. This movement in the auto industry presents a prospective challenge to the tire market because it will cut down the total number of tires needed in the long term. Yet, manufacturers of tires are responding to this trend by investigating possibilities in providing tires for electric vehicles and prioritizing the development of sustainable and durable tire solutions. In spite of these obstacles, the Saudi Arabian tire market is resilient and responsive. Through ongoing technological progress, innovative methods of production, and increasing attention to sustainability, the market is poised to transcend challenges and continue its upward growth in the future.
The Saudi Arabian tire market is positively working in collaboration with research centers and undertaking knowledge-sharing programs to further develop the performance, durability, and environmental efficiency of tires. Tire manufacturers are also investing in sophisticated manufacturing technologies like automated tire production and the use of environmentally friendly raw materials in order to satisfy changing market needs and sustain long-term growth. The Saudi Arabian tire industry offers a very promising and rewarding market for domestic and international industry players alike. With a vibrant automobile industry and rising consumer demand, the industry provides tremendous potential for expansion, growth, and innovation in the years to come. The sound economic environment, conducive government policies, and burgeoning number of automobile owners further lend strength to the market's potential. With the nation continuing to invest in urbanization and infrastructure development, the need for tires is likely to skyrocket, providing a good climate for companies to flourish and gain a solid presence in this vibrant market.
Key Market Drivers
Economic Prosperity and Automotive Industry Growth
One of the primary market drivers for the tire industry in Saudi Arabia is the country's economic prosperity and the subsequent growth of its automotive sector. The Kingdom's oil-rich economy has led to increased disposable income among its citizens, which, in turn, has resulted in higher car ownership rates. As more people invest in vehicles, the demand for tires rises, driving market growth. Saudi Arabia has also been actively encouraging automotive manufacturing and assembly within the country, leading to an expansion of the local automotive industry. This growth further bolsters the tire market as it provides a domestic market for manufacturers. In March 2024, Saudi Arabia prepared to launch The Rig, a groundbreaking floating theme park that aimed to transform adventure tourism. Covering nearly 1.6 million square feet, it was set to be one of the largest structures ever built on water. Located on a decommissioned oil rig, The Rig promised exciting attractions along with top-notch amenities, including hotels and restaurants.
Infrastructure Development and Road Network Expansion
Saudi Arabia has embarked on an ambitious plan for infrastructure development, including road network expansion and improvements. The government's commitment to upgrading the country's transportation infrastructure has led to an increase in the construction of new roads, highways, and infrastructure projects. These developments not only require a substantial number of tires for construction vehicles and machinery but also stimulate demand for tires for passenger vehicles that use these newly constructed and upgraded roads. As a result, the expansion of the road network has a direct and positive impact on the tire market. In 2023, EVIQ, a new company backed by the Public Investment Fund (PIF), was established with a mission to advance electric vehicle (EV) infrastructure nationwide. The company also announced plans to extend the country’s rail network to over 8,000 kilometers, an increase from the existing 5,000 kilometers.
Download Sample Ask for Discount Request Customization
Climate Variability and Extreme Weather Conditions
Saudi Arabia experiences a diverse range of weather conditions, from scorching desert heat to occasional heavy rainfall and flash floods. These climate variations can have a profound impact on the lifespan and performance of tires. In the extreme heat, tires may wear out more quickly, necessitating frequent replacements. On the other hand, sudden rain and flash floods can cause damage to tires or increase the demand for specialized tires designed for wet conditions. Consequently, climate variability and extreme weather conditions serve as market drivers, compelling consumers to replace or upgrade their tires to better suit the changing weather patterns.
Key Market Challenges
Economic Volatility and Oil Price Fluctuations
One of the most significant challenges facing the Saudi Arabia tire market is the country's vulnerability to economic volatility, particularly in relation to fluctuations in global oil prices. The Kingdom heavily relies on oil exports for its revenue, and as such, its economy is intricately tied to the price of oil. When oil prices experience sharp declines, the Saudi economy can suffer, leading to reduced consumer spending and economic uncertainty. These factors directly impact the demand for tires, as consumers may postpone purchases of non-essential items, including tires, during economic downturns. To mitigate this challenge, the tire industry needs to adapt to the cyclical nature of the Saudi economy and implement strategies to weather economic downturns.
Import Dependency and Currency Exchange Rates
The Saudi Arabia tire market faces a challenge related to its dependency on tire imports. While the country has been actively encouraging the development of domestic industries, including tire manufacturing, it still relies on imports for a significant portion of its tire supply. The exchange rate fluctuations and currency devaluation can lead to increased tire prices, making them more expensive for consumers. This can potentially hinder the growth of the tire market, as higher prices may discourage consumers from replacing their tires as often as needed. To address this challenge, the tire industry should strive to enhance local production and reduce reliance on imports while also developing strategies to manage exchange rate risks effectively.
Download Sample Ask for Discount Request Customization
Harsh Environmental Conditions and Tire Wear
Saudi Arabia's extreme climate conditions pose a unique challenge to the tire market. The country experiences scorching temperatures during the summer, which can accelerate tire wear and reduce the lifespan of tires. The occasional heavy rainfall and flash floods can damage tires and create a need for replacements. The combination of extreme heat, abrasive road surfaces, and sudden weather changes can result in frequent tire replacements, increasing the cost of vehicle ownership for consumers. Tire manufacturers and retailers need to address this challenge by offering tires that are better suited for Saudi Arabia's climate, such as heat-resistant and wet-weather tires, and by educating consumers on proper tire maintenance to maximize their lifespan.
Competition and Market Saturation
The Saudi Arabia tire market is becoming increasingly competitive, with numerous domestic and international tire manufacturers vying for market share. This competition has led to market saturation, making it challenging for businesses to differentiate themselves and maintain profit margins. The proliferation of e-commerce platforms and online tire retailers has intensified competition by providing consumers with more choices and the ability to compare prices easily. As a result, tire companies operating in the Saudi market must continually innovate, develop strong marketing strategies, and focus on customer service to stand out and thrive in a crowded marketplace.
Key Market Trends
Shift Towards
One prominent trend in the Saudi Arabia tire market is the increasing demand for premium and specialty tires. As the country's economy has grown, consumers have become more discerning, looking for tires that offer enhanced performance, durability, and safety. Premium tire brands, known for their advanced technology and superior quality, have gained popularity among Saudi consumers. There is a growing interest in specialty tires designed for specific applications, such as off-road driving, high-speed performance, and extreme weather conditions. This trend is driven by the desire for a better driving experience and increased safety, leading to an expanding market for high-end and specialized tire options.
Sustainable and Eco-Friendly Tire Options
The global trend towards environmental sustainability has made its mark in the Saudi Arabia tire market as well. With increasing awareness of environmental issues and the desire to reduce carbon footprints, consumers are showing interest in eco-friendly tire options. Tire manufacturers are responding by developing and marketing tires that are more fuel-efficient and have lower rolling resistance, which contributes to reduced fuel consumption and lower greenhouse gas emissions. There is a growing demand for tires made from sustainable and recycled materials, furthering the industry's commitment to sustainability. This trend aligns with the broader shift towards environmental consciousness and corporate responsibility.
Online Retail and E-Commerce Growth
The rise of e-commerce and online retail has significantly impacted the tire market in Saudi Arabia. Consumers are increasingly turning to online platforms to research and purchase tires. The convenience of online shopping, coupled with the ability to compare prices and read reviews, has made it a preferred method for tire purchases. Moreover, online retailers often offer a wide range of tire options and convenient delivery services. This trend is transforming the way consumers interact with the market, and tire companies have adapted by investing in e-commerce platforms, improving their online presence, and enhancing their digital marketing strategies to remain competitive in this evolving landscape.
Government Initiatives and Road Safety Regulations
Government initiatives and regulations related to road safety are driving trends in the Saudi Arabia tire market. The government has implemented strict regulations regarding tire quality, including standards for tread depth and labeling. These measures are designed to enhance road safety by ensuring that vehicles are equipped with safe and compliant tires. In addition to these regulations, the government is actively promoting road safety awareness campaigns, which are influencing consumer behavior and emphasizing the importance of using high-quality, well-maintained tires. This trend underscores the role of government policies and regulations in shaping the tire market's dynamics in Saudi Arabia.
Segmental Insights
Vehicle Type Insights
The Saudi Arabian tire industry is characterized by its mix of vehicle types for the diverse demands of the population. From small hatchbacks to high-end sedans and SUVs, there are plenty of options available. But out of all these vehicle types, the passenger car segment is the most prominent. This is owing to the rise in the popularity of private vehicles, fueled by convenience, comfort, and a need for individual transportation. The more people move towards using private cars for day-to-day travel, the greater the demand for quality tires keeps rising. Prioritizing performance, durability, and safety, Saudi Arabia's tire industry attempts to satisfy constantly changing consumer requirements with a promise of smooth, comfortable rides over the nation's varied road networks.
The commercial vehicle market is also seeing consistent growth in the Saudi Arabian tire market. The growth is due to the booming logistics and transport industries in the country. As the economy grows and companies flourish, demand for commercial vehicles increases to help transport goods and services.
The use of two-wheelers has seen a tremendous boom in recent years, and as a result, demand for motorcycle tires has increased accordingly. Several reasons can be cited for this trend, including the ease and affordability of motorcycles to ride through crowded city traffic, and increased popularity of recreational cycling. Motorcycles provide a quick and agile means of travel, which has made them popular among many.
As Saudi Arabia continues its urbanization and economic diversification path, these trends are likely to continue and continue to mold the landscape of the tire market in this Middle Eastern country. Players in the market are constantly responding to these changing dynamics, providing a multitude of tire models to match the particular needs of every vehicle segment, thus ensuring maximum performance, security, and efficiency on the roads of Saudi Arabia. The Saudi Arabian tire market is ready for sustained expansion and development as it addresses the changing demands of the nation's multicultural population and constantly growing transport sector.
Regional Insights
Saudi Arabia tyre market, divided into Northern & Central, Western, Eastern, and Southern, dominates in the Northern & Central region. This dominance is possible due to various reasons such as economic growth, infrastructural development projects, urbanization, and increased population density, all of which together propel the demand for tyres in this region.
Saudi Arabia's Northern & Central region, specifically including Riyadh, the capital city, is the economic hub of the nation. Riyadh and other large cities such as Qassim and Hail are marked by urbanization and industrialization. The strong economic activity in this region promotes higher ownership of vehicles, both commercial and private, which creates a huge demand for tyres. The success of the businesses and greater disposable incomes of these urban agglomerations contribute further to the buying of automobiles, thus powering the tyre market. The Saudi Vision 2030 initiative by the government plays a central part in driving infrastructural growth within the Northern & Central region. The vision for diversification from oil and cutting dependence on the same results in huge investments being made in infrastructure. Some of the notable projects include the Riyadh Metro, King Salman Energy Park, and road expansion and maintenance projects. These projects require a large number of commercial vehicles like trucks, buses, and construction vehicles, which in turn increases the demand for tyres. The continuous construction work and the requirement of heavy-duty vehicles are the major contributors to tyre consumption in this region.
The Northern & Central region is home to a large share of Saudi Arabia's population. Riyadh alone has a large share of the population, thus resulting in a congested urban area. The population density has its correlate in increased rates of vehicle ownership. With an expanding middle class and growing urban migration, the number of vehicles on the road increases. This increase in vehicle population has a direct effect on the tyre market since more vehicles translate to greater tyre replacement and maintenance requirements. The rise of ride-sharing and the use of personal vehicles instead of public transport also increases tyre demand. In conclusion, the Northern & Central region's supremacy in the Saudi Arabia tyre market is due to a combination of factors. Economic growth, urbanization, and development of infrastructure generate a prosperous context for higher vehicle usage and ownership.
The population density of the region, combined with intense commercial and industrial activity, further accelerates tyre demand. Automotive sector government initiatives and investments also add momentum to market expansion. All these factors make the Northern & Central region the market leader in the Saudi Arabia tyre industry, making it an essential center of tyre consumption and distribution within the country.
- In 2024, Kumho Tire, a major South Korean tire manufacturer, has signed a technology licensing agreement with Blatco, a Saudi Arabian tire company. According to the deal, Kumho Tyre will supply Blatco with technology assistance for the production of passenger car tyres supplied in Saudi Arabia and the Middle East for the next 20 years. This deal follows a memorandum of understanding signed between the two companies in 2022 to establish a joint tire venture, and is supported by the Saudi government's Vision 2030 policy.
- In 2023, PIF and Pirelli have announced a joint venture to build a tire manufacturing facility in Saudi Arabia. The plant will produce high-quality tires for passenger vehicles under the Pirelli brand, as well as a new local brand targeting the domestic and regional market. The overall investment in the JV is roughly $550 million, and the plant is anticipated to begin production in 2026. This partnership aims to establish Saudi Arabia as a global automotive manufacturing hub and create a national and regional champion in the tire industry.
- In March 2023, Continental introduced a new, more durable, and environmentally friendly version of its CrossContact tyre for the third season of Extreme E. As a founding partner of the series, Continental focused on increasing the sustainability of their tyre. The updated CrossContact Extreme E, launched in NEOM, Saudi Arabia, featured about 43% recycled and renewable materials, including silica from rice husk ash, an agricultural waste product.
Key Market Players
- Bridgestone Corporation
- Continental AG
- Goodyear Tire & Rubber Company
- Sumitomo Rubber Industries Ltd
- Michelin Group
- Pirelli & C. S.p.A.
- Yokohama Rubber Company Limited
- Kumho Tire Co. Inc.
- Hankook Tire & Technology Co., Ltd
- JK Tyre & Industries Ltd.
|
By Vehicle Type |
By Tire Construction Type |
By Demand Category |
By Region |
|
|
|
|
Related Reports
FAQ'S
For a single, multi and corporate client license, the report will be available in PDF format. Sample report would be given you in excel format. For more questions please contact:
Within 24 to 48 hrs.
You can contact Sales team (sales@marketinsightsresearch.com) and they will direct you on email
You can order a report by selecting payment methods, which is bank wire or online payment through any Debit/Credit card, Razor pay or PayPal.
Discounts are available.
Hard Copy