BURNABY, Canada, December 16, 2014 /PRNewswire/ --
Expanding automobile fleet, favorable government policies and increasing foreign investments in automotive sector driving tyre industry in Saudi Arabia
According to the recently released TechSci Research report, "Saudi Arabia Tyre Market Forecast & Opportunities, 2019", tyre market in Saudi Arabia is forecast to grow at a CAGR of 17.19% in value terms during 2014-19. Prominent factors driving the market include growing automobile sales, rising automobile fleet, encouraging government policies and increasing foreign investments in automotive sector. Passenger car tyre segment remains the dominant market segment in Saudi Arabia, followed by commercial vehicle tyre segment. These two segment cumulatively accounted for majority portion in the overall Saudi Arabia tyre in 2013.
Passenger car tyre segment is anticipated to continue dominating Saudi Arabia tyre market, exhibiting fastest growth rate across all tyre segments over the next five years. Western Saudi Arabia, comprising holy cities of Mecca and Madinah, along with Central region that includes Riyadh province, held significant market share in the country's tyre market. Considering the growth opportunities existing in these regions, Government of Saudi Arabia is also promoting tyre industry in western and central region due to various infrastructural projects and developments and coming up in the region.
Low-cost tyres procured from Chinese players occupy a large chunk in Saudi Arabia, especially within the unorganized sector. Prominent tyre players like Bridgestone, Michelin, Continental, Goodyear and Yokohama have a strong presence in Saudi Arabia's organized tyre market. In the coming years, sales of Chinese brands is likely to diminish on account of rising consumer demand for premium quality branded tyres.The fact that Saudi Arabia experience extreme climatic conditions throughout the year also make superior quality tyres inevitable.
"Increasing industrialization, new investments, shorter tyre replacement cycle, and rising commercial vehicle sales are set to influence the growth trajectory of tyre market in Saudi Arabia." said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Saudi Arabia Tyre Market Forecast & Opportunities, 2019" has evaluated the future growth potential of Saudi Arabia tyre market and provides statistics and information on market structure, imports/exports and future growth potential of Saudi Arabia tyre market. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in the Saudi Arabia tyre market.
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