Saudi Arabia Tyre Sales Set To Grow at 12% CAGR Till 2018 Says TechSci Research
Increasing demand for commercial vehicles, rising construction activities are among the key factors driving the demand for tyres in Saudi Arabia
January 6, 2014 (Newswire.com) - The tyre market in Saudi Arabia is expected to grow at the CAGR of 12% during 2013-2018 as a result of continuous growth in automotive sales coupled with the increasing demand for tyres in the replacement market, according to the recently published report by TechSci Research "Saudi Arabia Automobile Tyre Market Forecast and opportunity, 2018".
The majority sales in the country's tyre market are contributed by the passenger vehicle segment. The market is set to witness a swift increase in the demand for commercial vehicle tyres as a result of increasing investments in oil & gas sector, travel & tourism sector along and the building & construction sector. The growth in these sectors is anticipated to significantly contribute to the demand for commercial vehicles such as buses, trucks, heavy duty trucks, etc. Various construction projects like King Abdullah Economic City (KAEC), Jazan Economic City (JEC), etc. are fuelling the demand for heavy duty trucks in the country.
The government of Saudi Arabia is taking various measures to develop the domestic tyre production capabilities. National Industrial Clusters Development Program (NICDP) is one of the key projects that is dedicated in developing the domestic production of automotive in the country. NICDP aims at developing all aspects of the automotive supply chain, which would also include production of carbon black and synthetic rubber (for tyres). It is expected that by 2020, Saudi Arabia would be producing approximately 10 Million tyres per year for domestic market and for exports.
"Increasing demand of passenger and commercial vehicles is creating opportunities for foreign manufacturers to enter Saudi Arabia's tyre market. The hot climatic conditions resulting in short replacement cycles will continue to account for high replacement demand. The increasing preference and usage of small cars by the young population in the country will also contribute to the growth of tyre market over the coming years," said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Saudi Arabia Tyre Market Forecast and Opportunities 2018" has evaluated the future growth potential of Saudi Arabia tyre industry and provides statistics and information on market structure, exports and future growth of the tyre industry. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides all this, the report also identifies and analyses the emerging trends along with essential drivers, challenges and opportunities available in the tyre industry.