saudi arabia tire market 2021 - brochure

M a r k e t I n t e l l i g e n c e . C o n s u l t i n g

S audi Arabia t ire Market Forecast & Opportunities , 2020

S audi Arabia Tire Market Forecast & Opportunities , 2021

T a b l e o f C o n t e n t s

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© TechSci Research

S. No. Contents

1. Research Methodology

2. Product Overview

3. Analyst View

4. Saudi Arabia Tire Market Outlook

4.1. Market Size & Forecast

4.1.1. By Value & Volume

4.2. Market Share & Forecast

4.2.1. By Vehicle Type

4.2.2. By Company

4.2.3. By Region

4.3. Market Attractiveness Index


5. Saudi Arabia Passenger Car Tire Market Outlook





5.3 Prominent Tire Sizes

6. Saudi Arabia Light Commercial Vehicle Tire Market Outlook





6.3 Prominent Tire sizes


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S. No. Contents

7. Saudi Arabia Medium & Heavy Commercial Tire Market Outlook





7.3 Prominent Tire Sizes

8. Saudi Arabia OTR Tire Market Outlook



8.2 Market Share & Forecast


8.3. Prominent Tire Sizes

8.4. Market Attractiveness Index


9. Saudi Arabia Two-Wheeler Tire Market Outlook



10. Import-Export Analysis

11. Market Dynamics

11.1. Drivers

11.2. Challenges

12. Market Trends & Developments

12.1. Establishment of Local tire manufacturing Facilities

12.2. Used Car Market © TechSci Research


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S. No. Contents

12.3. Tire Recycling Projects

12.4. Rising Automobile Sales

12.5. Tire Pressure Monitoring System

13. Policy & Regulatory Landscape

14. Saudi Arabia Economic Profile

15. Competitive Landscape

15.1. Bridgestone Middle East & Africa FZE

15.2. Compagnie Generale des Etablissements Michelin

15.3. Goodyear Middle East FZE

15.4. Yokohama Rubber Co. Ltd.

15.5. Pirelli & C. SpA

15.6. Hankook Tire Co. Ltd.

15.7. Cooper Tire & Rubber Company

15.8. Nixen Tire

15.9. TOYO TIRE & RUBBER CO. LTD.

15.10. Continental AG

16. Strategic Recommendations

17. About Us & Disclaimer

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© TechSci Research

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P r o d u c t O v e r v i e w

Global tire supplier Michelin defines tire as “A precisely engineered assembly of rubber,chemicals, fabric, and metal, designed to provide traction, cushion road shock andcarry a load under varying conditions.”

Classification According to Vehicle Type

Product Definition

Vehicle Segment Customer Segment

Passenger Car Individuals

Light Commercial Vehicle

Transport Companies, Logistics, Small Business Entrepreneurs, Government

Medium & Heavy Commercial vehicle

Two-wheeler Individuals

OTR (Off-the-Road) Vehicle (includes Mining, Construction & Industrial Equipment, Agriculture

Vehicles and Others)

Mining companies, Construction companies and Industries, Farmers, Sports companies, Adventure

activity industries etc.

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R e s e a r c h M e t h o d o l o g y

A

C

B

Primary Research

Company Analysis

Desk Research

Identifying Key Opinion

Leaders

Questionnaire Design

In-depth Interviews

Market Participants

Key Strengths

Tire Portfolio

OEM Tie-ups

Recent

Developments

Market Changing

Aspects/Dynamics

Government

Policies

Final Conclusion

LinkedIn TechSci Internal

database

Factiva Hoovers

Paid Sources

Company Website Company Annual

Reports White Paper Study Financial Reports Investor

Presentations Regulatory Body, Associations, etc.

Secondary Research

Primary Research

Data Collection

Data Filter& Analysis

Research &Intelligence

ActionableInsights

BusinessSolution

•In-depth secondary research was used todetermine top players in Saudi Arabia tiremarket, overall market size and to identify topautomobile tire manufactures.

Market Profiling

•In order to conduct industry experts interviews,TechSci Research formulated a detailedquestionnaire.

Formulating Questionnaire

•List of industry players (manufacturers),distributors, retailers, and industry specialistswas developed.

Developing list of respondents

•TechSci Research conducted interviews withindustry experts, industry players, for datacollection and verification.

Data Collection

•Data obtained as a result of primary andsecondary research was validated throughrigorous triangulation.

Data Validation

•The data was scrutinized using MS-Excel andstatistical tools such as Time Series analysis etc.to obtain qualitative and quantitative insightsabout the Saudi Arabia tire market.

Data Analysis


Baseline Methodology:

For the study, TechSci Research has gathered information through primary research surveys with leadingtire companies operating in Saudi Arabia, and subsequently verified information from majordealers/distributors of automobile tires in the country. We also put through an exhaustive search ofcredible paid databases such as Business Week, Factiva, Hoovers, etc., including our internal database.Our team of analysts has then prudently evaluated all collected information and presented the same inchronological order to depict a meaningful and clear picture of Saudi Arabia tire market.

While compiling the data, we have also cross-checked all the collected information from multiple sourcesand data warehouses, so as to present the most accurate and precise information of the concernedindustry. We use innovative business model that focuses on improving productivity, which ensuringcreation of high-quality reports. The reports are prepared with in-depth primary research, followed byexhaustive secondary research.

Primary Research – Company/Dealers & Distributors Interviewed

Few of Sources of Secondary Research

S. No. Company/Dealers & Distributor Names

1. Bridgestone

2. Yokohama

3 Michelin

4. Goodyear

5. Cooper Tire

6. Pirelli

S. No. Secondary Sources

1.The Association of Saudi Arabia AutomotiveIndustries

2. Saudi Arabian Rubber Council

3. Saudi Arabian Central Bureau of Statistics

4. ASEAN Automotive Federation

5.Saudi Arabian Motorcycles Industry Association

6. Economic Intelligence Unit (EIU)

7. IMF

8. World Bank

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© TechSci Research

For the preparation of Saudi Arabia tire report, bottom-up model has been used, which has been latercross validated by using top down approach.

Vehicle Sales & Fleet Size

The basic data points that are needed for the analysis of Saudi Arabia tire market are the historical,current and forecast figures for vehicle sales and fleet size. The data for vehicle sales and fleet size hasbeen extracted through various secondary sources and credible data portals. TechSci Research has alsomaintained a database for vehicle sales and fleet size for each vehicle segment (passenger cars, lightcommercial vehicles, medium & heavy commercial vehicles, two-wheelers, three-wheelers & off-the-road vehicles), which is regularly updated through various primary research surveys and secondarysources such as automotive associations & government publications.


Tire Demand

Replacement Tire Sales

Replacement tire demand of a particular country is directly dependent on the country’s vehicle fleet sizeand historical vehicle sales. The replacement demand is, therefore, extracted by multiplying the vehiclefleet with the replacement tire ratio, which is obtained by conducting a series of surveys with car ownersto understand the frequency of tire replacement as it varies for different countries depending uponfactors such as road conditions, climate, economic and regulatory policies applicable in a country. Thereplacement ratio is expressed as a percentage. For example, in case of passenger cars, replacementratio is considered to be 100% if four tire is replaced per vehicle per year.

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© TechSci Research

Example for passenger car replacement tire demand calculation:

Passenger Car

Fleet Size

(Volume)

XReplacement Ratio

(%)X No. of Tires =

Replacement Tire

Demand

1,00,000 X 100% X 4 = 400,000 Tires

The calculated replacement tire demand data is further analyzed by TechSci Research through Delphitechnique i.e. multiple rounds of telephonic interviews were conducted with tire companiesdealers/distributors in Saudi Arabia. The information thus gathered through primary interviews wascross-verified through industry experts and secondary sources such as annual reports and paiddatabases to generate meaningful results.

Total Tire Market

Replacement Tire

Sales= Total Tire Market


Note: There is no OEM tire demand in Saudi Arabia as the country does not have any automobile manufacturingplants. So, the entire tire demand in the country is managed by replacement tire market.

I n d u s t r y B r i e f

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Saudi Arabia Tire Market Forecast to Grow at CAGR 11% till 2021

Growing automobile sales coupled with expanding vehicle fleet to drive Saudi Arabia tire market through 2021

According to recently released TechSci Research report, “Saudi Arabia Tire Market Forecast & Opportunities,2021”, Saudi Arabia tire demand is projected to grow at a CAGR of over 11% during 2016 – 2021. Improvingmacroeconomic scenario, growing vehicle fleet, increasing automobile sales and favourable governmentpolicies are some of the major factors anticipated to boost the demand for tires in the country over the next fiveyears. The cumulative sales of passenger cars and commercial vehicles in the country grew at a CAGR of 8.91%during 2011-2015.

On the basis of vehicle type, the tire market in Saudi Arabia has been segmented into five categories,namely, passenger car, medium & heavy commercial vehicle, two-wheelers, off-the-road and light commercialvehicle. In 2015, passenger car segment dominated the country’s tire market. According to the World Bank, theGross National Income per capita of Saudi Arabia was USD23,550 in 2015. Moreover, the Government of SaudiArabia banned the import of used vehicles over the age of 5 years in 2009. Backed by increasing purchasing powerand favourable government policies, the passenger car segment is anticipated to maintain its dominance in thecountry’s tire market over the next five years as well.

“Eyeing robust demand for various vehicle types, some of the prominent tire suppliers such as Chinese,Bridgestone, Michelin, Continental, Goodyear, Yokohama, Hankook, etc. are operating in Saudi Arabia.Moreover, due to its strategic location in the Middle East region, many companies use Saudi Arabia as a re-exporting hub. Tire imports from Asian countries such as Thailand, China, Taiwan, South Korea, Japan, etc.,dominates the Saudi Arabia tire market. Tire imports from the aforementioned countries accounts for more than85% of the total tire imports in Saudi Arabia. Lower overheads and local raw material sources are the majorreasons for tires being imported from these countries.”, said Mr. Karan Chechi, Research Director with TechSciResearch, a research based global management consulting firm.

https://www.techsciresearch.com/report/saudi-arabia-tire-market-forecast-opportunities-2021/800.html

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S a m p l e D a t a - S n a p s h o t

1 2 3 4 5 7 8 9 10 11 123 5 7 9 11 15 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Value (USD Billion) Volume (Million Units)

Saudi Arabia Tire Market Size, By Value (USD

Billion), By Volume (Million Units), 2011-2021F

10 10 10 10 10 10 10 10 10 10 10

15 15 15 15 15 15 15 15 15 15 15

20 20 20 20 20 20 20 20 20 20 20

25 25 25 25 25 25 25 25 25 25 25

30 30 30 30 30 30 30 30 30 30 30

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

M&HCV OTR LCV Passenger Car Two-Wheeler

Saudi Arabia Tire Weighted Average Selling Prices,

By Vehicle Type, 2011-2021F (USD)

Saudi Arabia Tire Market Attractiveness Index, By

Vehicle Type, By Volume, 2015-2021F

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0.00 1.00 2.00 3.00 4.00 5.00 6.00

Passenger Cars

Medium & Heavy Commercial Vehicle

Light Commercial Vehicle

Two-Wheeler

OTR

Saudi Arabia Passenger Car Tire Market Share,

By Vehicle Type, By Volume, 2011 - 2021F

33% 33% 33% 33% 33% 33% 33% 33% 33% 33% 33%

34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34%

33% 33% 33% 33% 33% 33% 33% 33% 33% 33% 33%

2011 2012 2013 2014 2015 2016E2017F2018F2019F2020F2021F

Sedans SUVs/4X4 Small Cars

10% 10% 10% 10% 10% 10% 10%

15% 15% 15% 15% 15% 15% 15%

20% 20% 20% 20% 20% 20% 20%

25% 25% 25% 25% 25% 25% 25%

30% 30% 30% 30% 30% 30% 30%

2015 2016E 2017F 2018F 2019F 2020F 2021F

Central Region Western Region Eastern Region

Southern Region Northern Region

Saudi Arabia Tire Market Share, By Region, By Volume,

2015-2021F

Saudi Arabia Passenger Car Tire Market Size, By Value (USD

Billion), By Volume (Million Units), 2011-2021F

1 2 3 4 5 7 8 9 10 11 12

3 5 7 9 1115 17 19 21 23 25

2011 2012 2013 2014 2015 2016E 2017F 2018F 2019F 2020F 2021F

Value (USD Billion) Volume (Million Units)

Source:XXXXXNote: These are dummy figures; please purchase our report for actual data

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Disclaimer

The contents of this report are based on information generally available to the public from sources believed to be reliable. No representation is made thatit is timely, accurate or complete. TechSci Research has taken due care and caution in compilation of data as this has been obtained from various sourcesincluding which it considers reliable and first hand. However, TechSci Research does not guarantee the accuracy, adequacy or completeness of anyinformation and it is not responsible for any errors or omissions or for the results obtained from the use of such information and especially states that ithas no financial liability whatsoever to the subscribers / users of this report. The information herein, together with all estimates and forecasts, can changewithout notice. All the figures provided in this document are indicative of relative market size and are strictly for client’s internal consumption. Usage ofthe same for purpose other than internal will require prior approval of TechSci Research.

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