The UAE tyre market is expected to enjoy a compound annual growth rate (CAGR) of 11% between 2014 and 2019, according to the results of a TechSci Research study.
The paper, ‘UAE Tyre Market Forecast & Opportunities, 2019’, cites a combination of inadequate rail network connectivity within the Arab peninsula and a rapidly expanding middle class as major drivers behind this growth.
The report also contends that advancements within the sectors of mining and construction have heightened demand for commercial and off-the-road (OTR) vehicle tyres in Emirates such as Abu Dhabi, Sharjah, and Dubai.
“Globally, tyre manufacturers are striving to develop a zero-collision driving environment,” said Karan Chechi, research director at TechSci Research.
“In terms of road safety, tyre-pressure monitoring systems (TPMS) and anti-collision braking systems have become an integral part of the UAE automotive market. Moreover, the UAE government’s liberal taxation policies and investment support systems are encouraging foreign investors to invest into the country. All of these factors are cohesively augmenting the tyre market in the UAE,” he explained.
The report’s authors point out that the UAE automotive market is perceived as a market for “profit consolidation”, given the low yields from the European automotive sector. The study also cites favourable government regulations, logistics infrastructure, and real estate growth as factors that are bolstering the UAE tyre market.
The paper also reveals that Bridgestone, Michelin, Goodyear, Pirelli, and Continental are amongst the dominant tyre manufacturers in the UAE, accounting for a substantial share of the country’s overall market. The TechSci Research team says that producers such as these are continuing to grow their businesses due to well-established supply chain networks and exclusive distribution agreements.
