UAE Tyre Market to Grow at 11% CAGR Until 2019 Says TechSci Research Market Study
Growing per capita income and increasing government’s focus on economic diversification towards non-oil sectors to drive tyre sales in the UAE
According to the recently published TechSci Research report, “Forecast & Opportunities, 2019“, tyre market in the UAE is projected to grow at 11% CAGR during 2014-19. Growth in the market can be attributed to a number of factors including rising passenger car sales, growing per capita disposable income, and considerable improvements in the country’s road infrastructure. Other factors such as crude oil prices and favorable import and export competence, coupled with growing foreign investments are also driving the market towards growth.
Considering the rise in use of oil across the globe, government of UAE has been looking forward towards economic diversification in non-oil sector. As a result, the country witnessed significant development in real estate, logistics and infrastructure sector. All these factors have led to considerable advancements in mining and construction industries, and hence buoyed the demand for construction vehicles and mining equipment, which have led to increase in tyre sales.
The report also highlights that changing skyline of major emirates, and advancements in UAE’s demographics and macro-economic indicators have been ensuring significant growth in tyre sales in the country. Passenger car fleet in the country has been growing at a tremendous pace, thereby creating huge demand for tyres within OEM as well as replacement segment. However, despite ever growing demand, the country largely lacks in tyre production and is dependent on imports from other countries. Bridgestone, Michelin, Goodyear, Pirelli and Continental are among the dominant tyre companies operating in the UAE and account for significant majority share in tyre sales by volume as well as value terms.
“Globally, tyre manufacturers are striving to develop a zero-collision driving environment. In terms of road safety, TPMS and anti-collision braking system have become an integral part of the UAE automotive market. Moreover, UAE government’s liberal taxation policies and investment support systems are encouraging foreign investors towards the country. All these factors are cohesively augmenting the tyre market in the UAE.” Said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
“Forecast & Opportunities, 2019” has evaluated the future growth potential of the UAE tyre market and provides statistics and information on market structure, market trends, market size, etc. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the UAE tyre industry.