Saudi Arabia Commercial Vehicle Tire market is growing at a high CAGR because of the rising demand for commercial vehicles including trailers and trucks also the growing construction industry along with the e-commerce sector. Moreover, heavy investment in R&D activities by key market players to find advanced solutions to improve efficiency and performance boosts the market growth.
A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Saudi Arabia Commercial Vehicle Tire market reached 22 million units in the year 2021 and is further projected to reach 26 million units by the year 2028, exhibiting a CAGR of 2.4% in the forecast period. Rising investments by tire manufacturers, the longer life expectancy of vehicles, and an increasing number of commercial vehicles on the road are the major factors driving the Saudi Arabian commercial vehicle tire market during the forecast period. The growing construction industry and the expansion of the waste disposal industry will need commercial vehicles, which also positively affect the commercial vehicle tire market. These are expected to drive demand in the Saudi Arabia market for commercial vehicle tires over the forecast years.
Advances in tire technology boost market growth
Market participants invest heavily in R&D activities to find advanced solutions to improve existing commercial tire infrastructure by increasing efficiency and performance. In 2021, Bridgestone Corporation will spend more than USD 912 million on research and development worldwide. A commercial tire manufacturer is developing smart tires that can commute information about performance and provide real-time updates to help predict when it’s time to change and predict current tire conditions. Bridgestone’s smart strain sensor technology, equipped with the Internet of Things (IoT) tools, allows vehicle owners to track tire pressure and temperature and measure the dynamic changes in the load that occurs when the tire is in use. Manufacturers are also introducing commercial tires that are durable and fuel efficient. A report on Enhancing Vehicles Energy Efficiency in Saudi Arabia by Saudi Energy Efficiency Center stated fuel efficiency could be expected to improve due to tire rolling resistance standards of 2-4% for LDV, and 6-8% for HDV. The introduction of efficient and advanced commercial vehicle tires by market players is expected to be a positive factor for the commercial vehicle tire market in Saudi Arabia over the forecast period.
The radial Tire segment has largest market share by tire construction type
Based on tire construction type, the market is divided into radial and bias. Radial tires are expected to dominate the market over the forecast period. In an era of global warming and rising oil prices, the radial tire is increasingly used in commercial vehicles to save fuel and reduce the emission of harmful greenhouse gases. Radial tires are primarily designed for road systems and offer excellent sidewall adaptability, excellent driving comfort, reduced tire heat generation at high speeds, excellent resistance to tread-related damage, and reduced fuel consumption due to increased transfer of energy from the machine to the road. At normal driving speed, a tire accounts for more than 30% of a truck’s fuel consumption. Radial tires help significantly increase mileage, resulting in up to 10% savings on fuel costs. Growing consumer awareness of the benefits of purchasing radial tires is expected to spur demand for radial tires across the country.
Impact of COVID-19 on Saudi Arabia Commercial Vehicle Tire Market
The sluggish business progress in the automotive sector during the COVID-19 pandemic dampen the growth of the Saudi Arabia commercial vehicle tire market. However, the decline is expected to subside the recovery. As Covid-19 cases declined, the government lifted restrictions and allowed the industry to resume operations. This has allowed key players to resume normal production to meet the various demands of end users. Market players are increasing their presence on e-commerce websites to increase sales.
The key players in the Saudi Arabia Commercial Vehicle Tire market are Bridgestone Middle East & Africa FZE, Hankook Tire, Continental ME, Michelin AIM FZE, Yokohama Rubber Company, and Other Prominent Players. Key players are focused on adopting various technology for the production of tires, which significantly help to reduce the wear and tear of tires.
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