BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Bangladesh tire market size at USD 186.6 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Bangladesh tire market size to grow at a CAGR of 2.9% reaching a value of USD 227.5 million by 2029. Urbanization and economic growth in Bangladesh have catalyzed rapid urban development, leading to increased migration from rural to urban areas. This shift has spurred the growth of industries, commercial activities, and infrastructure projects. As cities expand, the demand for housing, transportation, and services has risen. This urban surge has contributed to higher disposable incomes, consumer spending, and job opportunities. However, it also poses challenges such as congestion, inadequate infrastructure, and environmental strains. The government’s focus on sustainable urban planning and development aims to harness the positive aspects of this trend while addressing its associated complexities.
Opportunity: Expanding Road Infrastructure across Bangladesh
The expansion of road infrastructure in Bangladesh has emerged as a pivotal growth driver for the tire market. The government’s substantial investments in road development projects, including highways, expressways, and rural road networks, have substantially increased transportation connectivity across the country. For example, Dhaka-Mawa Expressway project, Dhaka-Chattogram Highway project, Padma Bridge which are currently under construction. This enhancement in infrastructure has led to a surge in demand for vehicles, particularly automobiles and commercial vehicles, subsequently fueling the demand for tires. Improved road networks have facilitated more efficient movement of goods and people, bolstering economic activities and trade. This, in turn, has spurred the need for high-quality and durable tires to ensure optimal vehicle performance and safety. As a result, the tire market has experienced a significant upswing, attracting both local and international tire manufacturers to cater to the escalating demand. Furthermore, the growing urbanization and rising middle-class population in Bangladesh have stimulated a higher rate of vehicle ownership, further boosting the tire market. To harness this growth, tire manufacturers are focusing on innovative products that offer better fuel efficiency, longer lifespan, and enhanced safety features.
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Bias Segment Held Larger Market Share byTypes of Tires
Based on the type of tires, the Bangladesh tire market is segmented into radial and bias. The bias tire segment has a larger share due to their lower manufacturing costs and suitability for certain vehicles and conditions. They are commonly used in commercial vehicles and off-road applications due to their robust construction.
Radial tires will grow at a higher rate over the forecast period due to their superior performance, longevity, and fuel efficiency. As vehicle technology and road infrastructure improve, radial tires have become more appealing to consumers seeking better handling and comfort. While the bias tire segment remains significant, the radial tire market has been growing steadily as consumers increasingly value the benefits they offer. The shift towards radial tires reflects an evolving preference for improved performance and efficiency, though the exact market share balance can vary based on factors like vehicle types, consumer preferences, and economic conditions.
Dealer/Exclusive Outlets Segment Held Largest Market Share bySales Channel
Based on the sales channel, the Bangladesh tire market is segmented into dealer/exclusive outlets, online, and others. The dealer/exclusive outlets segment is the largest sales channel attributed to the country’s traditional buying patterns, where consumers prefer to physically examine tires and seek expert advice before making a purchase. The exclusive outlets provide a firsthand experience, allowing customers to assess tire quality, size, and suitability for their vehicles. Moreover, the automotive market in Bangladesh has been offline, reinforcing the significance of brick-and-mortar dealerships.
While online sales have been on the rise, especially accelerated by the pandemic, they have yet to surpass the dominance of physical outlets. Challenges like limited internet access in certain areas, digital literacy, and customer preference for personalized assistance continue to favour traditional outlets. However, with improving digital infrastructure and changing consumer behaviours, the online segment is steadily growing, emphasizing the importance of a multi-channel strategy for tire manufacturers and retailers to cater to diverse customer preferences.
Impact of COVID-19 on Bangladesh Tire Market
The COVID-19 pandemic caused substantial disruptions in the Bangladesh tire market. Lockdowns, reduced mobility, and economic uncertainties led to decreased demand for tires in both consumer and industrial sectors. Automotive sales declined, affecting tire purchases. Supply chain interruptions hindered tire production and distribution. While essential services sustained demand, overall market growth was hindered. E-commerce gained importance as consumers turned to online shopping. Government stimulus and gradual economic reopening aided recovery. The pandemic accelerated trends like digitalization and e-commerce adoption. Long-term impacts include shifts in consumer preferences, supply chain resilience awareness, and industry adaptability lessons. The tire market’s trajectory depends on sustained economic recovery, consumer confidence, and the automotive industry’s revival.
Competitive Landscape
The Bangladesh tire market is fragmented, with numerous players serving the market. The key players dominating the Bangladesh tire market include Apex Footwear Limited, Rahimafrooz, BRB Cable Industries Limited, Khan Tyre and Rubber Industries Limited, RANGPUR FOUNDRY LTD, Jamuna Tyres, M R Trading, MRF Tyre Distributor, Triangle Tyre Bangladesh Limited, and National Tyre and Rubber Industries Ltd. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisition to expand their customer reach and gain a competitive edge in the overall market.
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