Nigeria Tire Market to be Led by Commercial Vehicles Through 2028

The Nigeria tire market is deriving its growth from a rise in logistics and construction sectors and the increasing demand for two-wheelers.

According to TechSci Research report, “Nigeria Tire Market – By Region, Competition, Forecast & Opportunities, 2028,” the tire market in Nigeria is expected to surge in the forecast period due to various factors. Some of the major factors which are leading to growth in the tire market in Nigeria are rising demand for two-wheelers, and investments in logistics, construction, and oil and gas sectors. These industries involve the usage of commercial vehicles, which are directly dependent upon the tire market.

In Nigeria, the demand for two-wheelers is rising due to its affordability and easy maneuverability. The prices of vehicles are surging due to heavy taxes, which is making two-wheelers a better alternative thus increasing demand for tires in the market. Apart from this, there have been increasing investments in infrastructure development and production of oil and gas resources. These sectors demand a range of commercial vehicles for their operations which again require different types of tires for vehicle mobility.

Moreover, there is another facet of tire market demand which is the replacement tire market. It is gaining pace in the market due to the increase in used cars in Nigeria. Most people in Nigeria fall under the middle- or lower-income class. Therefore, they are shifting toward owning used cars instead of new cars. Since used cars require early replacement of tires because of their faster damage rate, the demand for replacement is increasing. In addition to this, some local automotive manufacturers are also entering the market to reduce vehicle prices, which is a further expansion of the tire market.

In Nigeria, construction projects are funded by both the government and private sectors because the government does not have sufficient funds to enhance the infrastructure alone. Therefore, these projects are funded by public-private partnerships (PPPs), multilateral development banks (MDBs), bilateral creditors, and many other entities. The Senate has sanctioned US$ 22 billion in external loans for key infrastructure projects, among which housing accounts for around 11% and transportation for around 25%. These developments are increasing the demand for commercial vehicles which require additional support from other industries, such as tires, belts, and lights. Therefore, creating more scope for the tire market in the country.

The oil and gas industry in Nigeria has always remained lucrative for foreign investors. The government is offering various incentives to attract FDIs in this industry for both extraction and production. Various subsectors benefit from the developments in the oil and gas industry. One of them is the logistics industry, which is mostly involved in the transportation of fuel and other goods. The rise in the logistics sector directly creates opportunities for commercial vehicles and thus the tire market as well.

The tire market is segmented into various categories. First, they are divided based on the vehicle types: Passenger cars, light commercial vehicles, medium and heavy-duty vehicles, two-wheeler, and off-road vehicles. Every type of vehicle has different requirements for tires based on the vehicle application, such as tire design, materials, casing, sidewall, and tread patterns.

The tire market is further segmented based on the demand categories into OEMs and aftermarket (or replacement market). Tires are either installed freshly manufactured in the vehicles or are repaired by treading upon them after a considerable amount of their usage.

Moreover, tires are constructed by utilizing steel cords within the tire rubbers due to numerous specifications for different vehicles. So, based on construction type, the market is divided into radial and bias tires. Based on the tube of tires, it is divided into tube and tubeless tires. And lastly, based on region, the market is segmented into North, West, South, and East.

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Key players in the Nigeria tire market include:

• Michelin Group
• Bridgestone Corporation
• Goodyear Tire and Rubber Company
• Continental AG
• Dunlop Limited
• Maxxis International
• Pirelli & C. S.p.A
• The Yokohama Rubber Co. Ltd.
• Copper Tire & Rubber Company
• Hankook Tire & Technology Group
  
  

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“The rising demand for two-wheelers in the country is going to positively impact the tire industry. In addition, government initiatives regarding investments in construction, logistics, and oil and gas companies are going to create opportunities for the commercial vehicle market, which in turn increases the demand for tires in Nigeria. Thus, the tire market in Nigeria will see growth in the years to come,” said Mr. Karan Chechi, Research Director at TechSci Research, a research-based global management consulting firm.

Nigeria Tire Market, By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Two-Wheelers, and Off Road Vehicles), By Demand Category (OEM, Aftermarket), By Construction Type (Radial, Bias), By Tube Type (Tube, Tubeless) and By Region, Competition, Forecast & Opportunities 2028 has evaluated the future growth potential of tire market in Nigeria and provides statistics and information on market structure, size, share and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the Nigeria Tire Market.

 

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