The paradigm shift toward the development of the non-oil sector is augmenting the construction activities in the country. Moreover, the favorable government initiatives, high purchasing power of consumers, surging foreign investment, and import-export competence are the key factors positively influencing the UAE Tire market. The increasing migration is infusing the highest demand for automobiles, thus proliferating the Tire market growth in UAE. However, the motorization rate of the country is around 234 vehicles per 1000 inhabitants.
According to the MarkNtel Advisors’ research report titled “UAE Tire Market Analysis, 2020”, the Tire market is projected to grow at a CAGR of around 3.8% during 2020-25. The country’s tire market is entirely import-driven with Japan, China, Thailand, and Korea were the prime source of import of tires in 2019.
The rim size of 15” to 18” are growing at a rapid rate on an account of growing traction toward SUVs and induction of larger rims in Sedan and SUVs by the manufacturers. The demand for rim size 16” and 17” has been rising from the automakers such as BMW, Mercedes, Honda, Hyundai, Ford, etc. These manufacturers are focused on providing distinctive looks to their vehicles in addition to lower rolling resistance and better wet traction.
Passenger Car Tires Dominated the Market
In 2019, the country’s Tire market was governed by Passenger Car tires followed by Light Commercial Vehicle and Medium and Heavy Commercial Vehicles. Sedan acquired lion’s share in the passenger car segment, however, surging sales of SUVs are anticipated to lead to a greater SUV tire demand in the forthcoming years.
Summer tires have made considerable progress in the country, however, the presence remained feeble in 2019. It is anticipated that summer tires would acquire a considerable market share by 2025.
Offline Sales Channel Dominated the Tire Market
The well-organized chain of dealers and distributors acquired a considerable market share in the UAE Tire market in 2019 as the country has no manufacturing of its own. Moreover, online distribution is gaining traction in the urban cities of the country. For instance, Dubai is a distribution hub for tires as a rising number of Japanese and Chinese companies have begun shifting their operations towards the Jebel Ali Free Zone.
According to the MarkNtel Advisors, the key players capturing a significant market share in the UAE Tire market in 2019 include Bridgestone, Yokohama, Hankook, Goodyear, Michelin, Continental, Kumho, Pirelli, and Cooper, etc.
Key Questions Answered in the Market Research Report
1. What are the key overall market statistics or market estimates (Market Overview, Market Size- By Revenue, Forecast Numbers, Market Segmentation, Market Shares) of UAE Tire Market?
2. What are the region wise industry size, growth drivers and challenges key market trends?
3. What are the key innovations, technology upgrades, opportunities, regulations, growth drivers and challenges in the UAE Tire Market?
4. Who are the key competitors or market players and how they perform in UAE Tire market on the basis of competitive benchmarking matrix?
5. What are the key results derived from the market surveys conducted during the course of UAE Tire Market study?