Nigeria Tire Market By Size, Share, and Forecast 2028

Summary

Report Description

Forecast Period	2024-2028
Market Size (2022)	USD 0.42 Billion
CAGR (2023-2028)	4.03%
Fastest Growing Segment	OTR
Largest Market	North Central

Nigeria tire market is expected to be driven by several factors, such as growing demand for two-wheelers, and infrastructural projects in construction, logistics, oil, and gas sectors led by both the government and private players, during the forecast period.

Nigeria Tire Market Scope

The term “tire” refers to a ring-shaped component of a vehicle that surrounds the wheel rim to transfer weight from the axle through the wheel to the ground and provides traction on the surface over which the wheel moves. Tires are extensively used in the automotive industry. The tire market is classified based on various categories, vehicle type, demand category market, construction type, tube type, and region.

Based on vehicle type, tires are divided among passenger cars, light commercial vehicles, medium & Heavy commercial vehicles, two-wheelers, and off road vehicles (OTR). Tires are manufactured in two categories, based on which, they are segmented into radials and biases. Tires can be rebuilt or repaired from the old tire by treading onto it. This divides the market into two parts i.e., either original equipment manufacturers (OEM) or aftermarket (replacement). Further, the tire market is also divided if the tire is tubeless or contains a tube in it.

Nigeria Tire Market Overview

The Nigeria tire market is experiencing growth in the last few years due to several key factors driving the market growth, such as a rise in two-wheelers demand, and government initiatives regarding construction and logistics sectors in the country. Also, Nigeria has an abundant source of oil and gas and it has been attracting investments from several countries. This creates opportunities for truck supply and oil shipments, which directly influences the tire market.

Moreover, the increase in the import of passenger cars in the country is driving the replacement tire market. However, imported cars are quite expensive, due to which, people are shifting toward used cars which nonetheless also helps the tire market.

Nigeria Tire Market Drivers

The demand for tires in Nigeria is driven by the demand for two-wheelers in the country. The two-wheeler market in Nigeria captures a significant automotive market. Despite the ban on two-wheelers in some of the major cities in the country due to various crimes that are related to their usage, demand for the two-wheelers is still increasing. Their growing demand is also attributed to their high fuel efficiency and easy maneuverability. Over the past few years, the import of motorcycles has been significantly driven by rising urbanization, increasing youth population, and increasing business activities. The import of two-wheelers has also led to an increase in logistics services at a smaller scale in several cities in Nigeria.

The tire market is also linked with the construction sector due to its involvement with commercial vehicles. The construction projects in Nigeria are financed by the government, public-private partnerships (PPPs), multilateral development banks, and several other entities. The Nigerian government has recently taken an external loan to develop the infrastructure of the country. This has developed the demand in subsectors associated, such as construction equipment and building materials. The demand for dump trucks, dredgers, excavators, and other such vehicles, is rising significantly, fueling the demand for tires in commercial vehicles and off-road vehicles.

Nigeria has abundant sources of oil and gas reserves, and the government is now taking steps to attract investors to exploit the resources for extraction and production. This offers opportunities for the supply and services sectors as well. Within the oil sector, downstream sectors are benefiting the tire industry since downstream subsectors mostly involve the logistics companies, which are involved in the transportation of fuel and service stations. This is increasing the demand for medium and heavy commercial vehicles in the oil sector, which is further dependent upon the tire industry.

Nigeria Tire Market Trends

The demand for replacement tires is rising in Nigeria due to several reasons. Nigeria mostly consists of middle-class and lower-class income people. The price of automobiles is increasing continuously in Nigeria due to high import duties and taxes. The higher price of vehicles is shifting people’s preferences to own a used vehicle instead of a new vehicle. The used vehicle’s tire damages at a faster rate than a newer one, therefore, requiring early tire replacements. Moreover, the road infrastructure of Nigeria consists of mostly rough terrains which drastically decreases the life of a tire.

There is an increase in new local manufacturers and assemblers in the country due to higher vehicle prices. The government has taken some initiatives to boost local manufacturing to decrease vehicle prices in the country. In 2021, the National Automotive Design and Development Council (NADDC) in collaboration with Stallion Group unveiled the locally manufactured electric car in Nigeria. All these developments are dependent on auxiliary industries, such as tires, belts, and lights. Therefore, improvement in the automotive industry in Nigeria is directly leading to growth in the tire market.

Nigeria Tire Market Challenges

Poor infrastructure is one of the major challenges for the tire market in Nigeria. There are very few vehicle assembly plants operational as compared to the number of licensed plants. And among those who are operational, they are operating and producing at very low capacity due to forex challenges, infrastructure, electricity deficiency, and capacity gaps. This has led to several automakers shifting their plants to nearby countries and exporting from there. The disruption in this whole manufacturing chain is dampening the tire industries in Nigeria.

Inconsistency in government policies and corruption in the whole system has always been the challenge for tire companies operating in Nigeria. Manufacturing tires in Nigeria is quite difficult to carry out given the poor infrastructure and resources for it. The automotive market already depends heavily on importation. Many times, the Nigerian government has slashed duty on tire import thereby increasing the influx of tires into the country. This has resulted in the shutdown of local manufacturing plants due to cost competitiveness as they were already struggling with a poor support system.

Nigeria Tire Market Opportunities

Despite several hurdles in Nigeria toward manufacturing and running a business, the country presents itself with some untapped opportunities for the tire market. The two-wheeler market has been increasing continuously, owing to their versatility on the poor road infra in the country. They have been in demand even though they are banned in some of the major cities.

Many companies have recognized an active market in Nigeria that requires some specific conditions, such as tire pressure monitoring indicator which will help in preventing deflation and puncture over rough terrains. Therefore, there is also space for development and innovation in the country’s tire market. Apart from this, there is also an increasing market for used vehicles, which is creating opportunities for replacement tires in the country.

Moreover, the logistics and supply chain sectors are among the fastest-growing sectors in the country. This is due to the government's investments in the infrastructural development of railways, airways, manufacturing, and exports, and a rise in e-commerce activities is also observed in the last few years. Extraction and production from the oil and gas sector are also rising in the country, which further creates opportunities for logistics and supply chains. All these developments are creating demand for commercial vehicles which depends upon the tire industry. Therefore, there is a huge demand for tires that are used in commercial vehicles.

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Market Segmentation

The Nigeria tire market is segmented based on vehicle type, demand category, tire construction type, and region. Based on vehicle type the market is further fragmented into passenger cars, light commercial vehicles, medium & heavy commercial vehicles, two-wheelers, three-wheelers and off road vehicles (OTR). Based on the demand category, the market is segmented into OEM and aftermarket. Based on tire construction type, the market is divided into radial and bias. And lastly, the market is divided into North Central, North East, North West, South East, and South West based on regions.

Company Profiles

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, and Hankook Tire & Technology Group, are among the major players in the Nigeria tire market.

Attribute	Details
Base Year	2022
Historical Years	2018 – 2021
Estimated Year	2023
Forecast Period	2024 – 2028
Quantitative Units	Revenue in USD Billion, Volume in Million Units and CAGR for 2018-2021 and 2023E-2028F
Report Coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends
Segments Covered	Vehicle Type Demand Category Tire Construction Type Region
Region Scope	North Central, North East, North West, South East, and South West
Key Companies Profiled	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
Customization Scope	10% free report customization with purchase. Addition or alteration to country, regional & segment scope.
Pricing and Purchase Options	Avail of customized purchase options to meet your exact research needs. Explore purchase options
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/pdf format on special request)

Report Scope:

In this report, the Nigeria tire market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

Nigeria Tire Market, By Vehicle Type:

Passenger Cars
Light Commercial Vehicles
Medium & Heavy Commercial Vehicles
Two-Wheelers
There-Wheelers
Off Road Vehicles

Nigeria Tire Market, By Demand Category:

OEM
Aftermarket

Nigeria Tire Market, By Tire Construction:

Radial
Bias

· Nigeria Tire Market, By Region Type:

o North Central

o North East

o North West

o South East

o South West

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Nigeria tire market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

Nigeria Tire Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]

Table of content

1. Introduction

1.1. Product Overview

1.2. Key Highlights of the Report

1.3. Market Coverage

1.4. Market Segments Covered

1.5. Research Tenure Considered

2. Research Methodology

2.1. Objective of the Study

2.2. Baseline Methodology

2.3. Key Industry Partners

2.4. Major Association and Secondary Sources

2.5. Forecasting Methodology

2.6. Data Triangulation & Validation

2.7. Assumptions and Limitations

3. Executive Summary

3.1. Market Overview

3.2. Market Forecast

3.3. Key Regions

3.4. Key Segments

4. Impact of COVID-19 on Nigeria Tire Market

5. Voice of Customer Analysis

5.1. Factors Influencing Purchase Decision

5.2. Brand Awareness

5.3. Challenges & Unmet Needs

6. Nigeria Tire Market Outlook

6.1. Market Size & Forecast

6.1.1. By Value

6.1.2. By Volume

6.2. Market Share & Forecast

6.2.1. By Vehicle Type Market Share Analysis (Passenger Cars, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles, Two-Wheelers, Three-Wheelers, Off Road Vehicles (OTR))

6.2.2. By Demand Category Market Share Analysis (OEM, Aftermarket)

6.2.3. By Tire Construction Type Market Share Analysis (Radial, Bias)

6.2.4. By Regional Market Share Analysis

6.2.4.1. North Central Region Market Share Analysis

6.2.4.2. North East Region Market Share Analysis

6.2.4.3. North West Region Market Share Analysis

6.2.4.4. South East Region Market Share Analysis

6.2.4.5. South West Region Market Share Analysis

6.2.5. By Company Market Share Analysis (Top 5 Companies, Others - By Value, 2022)

6.3. Nigeria Tire Market Mapping & Opportunity Assessment

6.3.1. By Vehicle Type Market Mapping & Opportunity Assessment

6.3.2. By Demand Category Market Mapping & Opportunity Assessment

6.3.3. By Tire Construction Type Market Mapping & Opportunity Assessment

6.3.4. By Regional Market Mapping & Opportunity Assessment

7. Nigeria Passenger Car Tire Market Outlook

7.1. Market Size & Forecast

7.1.1. By Value

7.1.2. By Volume

7.2. Market Share & Forecast

7.2.1. By Demand Category Market Share Analysis

7.2.2. By Tire Construction Type Market Share Analysis

7.3. Pricing Analysis

8. Nigeria Light Commercial Vehicles Tire Market Outlook

8.1. Market Size & Forecast

8.1.1. By Value

8.1.2. By Volume

8.2. Market Share & Forecast

8.2.1. By Demand Category Market Share Analysis

8.2.2. By Tire Construction Type Market Share Analysis

8.3. Pricing Analysis

9. Nigeria Medium & Heavy Commercial Vehicles Tire Market Outlook

9.1. Market Size & Forecast

9.1.1. By Value

9.1.2. By Volume

9.2. Market Share & Forecast

9.2.1. By Demand Category Market Share Analysis

9.2.2. By Tire Construction Type Market Share Analysis

9.3. Pricing Analysis

10. Nigeria Two-Wheelers Tire Market Outlook

10.1. Market Size & Forecast

10.1.1. By Value

10.1.2. By Volume

10.2. Market Share & Forecast

10.2.1. By Demand Category Market Share Analysis

10.2.2. By Tire Construction Type Market Share Analysis

10.3. Pricing Analysis

11. Nigeria Three-Wheelers Tire Market Outlook

11.1. Market Size & Forecast

11.1.1. By Value

11.1.2. By Volume

11.2. Market Share & Forecast

11.2.1. By Demand Category Market Share Analysis

11.2.2. By Tire Construction Type Market Share Analysis

11.3. Pricing Analysis

12. Nigeria Off The Road Vehicles Tire Market Outlook

12.1. Market Size & Forecast

12.1.1. By Value

12.1.2. By Volume

12.2. Market Share & Forecast

12.2.1. By Demand Category Market Share Analysis

12.2.2. By Tire Construction Type Market Share Analysis

12.3. Pricing Analysis

13. Market Dynamics

13.1. Market Drivers

13.2. Market Challenges

14. Market Trends and Developments

15. SWOT Analysis

15.1. Strength

15.2. Weakness

15.3. Opportunities

15.4. Threats

16. Porter’s Five Forces Model

16.1. Competitive Rivalry

16.2. Bargaining Power of Buyers

16.3. Bargaining Power of Suppliers

16.4. Threat of New Entrants

16.5. Threat of Substitutes

17. Policy & Regulatory Landscape

18. Nigeria Economic Profile

19. Competitive Landscape

19.1.1. Michelin Group

19.1.1.1. Company Details

19.1.1.2. Key Product Offered

19.1.1.3. Recent Developments

19.1.1.4. Key Management Personnel

19.1.2. Bridgestone Corporation

19.1.2.1. Company Details

19.1.2.2. Key Product Offered

19.1.2.3. Recent Developments

19.1.2.4. Key Management Personnel

19.1.3. Goodyear Tire and Rubber Company

19.1.3.1. Company Details

19.1.3.2. Key Product Offered

19.1.3.3. Recent Developments

19.1.3.4. Key Management Personnel

19.1.4. Continental AG

19.1.4.1. Company Details

19.1.4.2. Key Product Offered

19.1.4.3. Recent Developments

19.1.4.4. Key Management Personnel

19.1.5. Dunlop Ltd.

19.1.5.1. Company Details

19.1.5.2. Key Product Offered

19.1.5.3. Recent Developments

19.1.5.4. Key Management Personnel

19.1.6. Maxxis International

19.1.6.1. Company Details

19.1.6.2. Key Product Offered

19.1.6.3. Recent Developments

19.1.6.4. Key Management Personnel

19.1.7. Pirelli & C. S.p.A.

19.1.7.1. Company Details

19.1.7.2. Key Product Offered

19.1.7.3. Recent Developments

19.1.7.4. Key Management Personnel

19.1.8. The Yokohama Rubber Co., Ltd.

19.1.8.1. Company Details

19.1.8.2. Key Product Offered

19.1.8.3. Recent Developments

19.1.8.4. Key Management Personnel

19.1.9. Cooper Tire & Rubber Company

19.1.9.1. Company Details

19.1.9.2. Key Product Offered

19.1.9.3. Recent Developments

19.1.9.4. Key Management Personnel

19.1.10. Hankook Tire & Technology Group

19.1.10.1. Company Details

19.1.10.2. Key Product Offered

19.1.10.3. Recent Developments

19.1.10.4. Key Management Personnel

20. Strategic Recommendations

20.1. Key Focus Areas

20.1.1. Target Regions

20.1.2. Target Tire Construction Type

20.1.3. Target Vehicle Type

21. About Us & Disclaimer

Figures and Tables

Frequently asked questions

Who are the key players in the Nigeria tire market?

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, and Hankook Tire & Technology Group are the key market players in the Nigeria tire market.

Which are the key factors driving the Nigeria tire market?

The key factors driving the Nigeria tire market are the increasing demand for two-wheelers and investments in the construction, logistics, and oil and gas sectors, which involves the usage of commercial vehicles that are further dependent upon the tire market in the country.

What are the major trends in the Nigeria tire market?

The demand for second-hand vehicles is increasing due to the rising prices of brand-new ones. This is directly resulting in the increasing demand for replacement tires. Moreover, local manufacturers and assemblers of vehicles are also increasing to stabilize vehicle prices. These industries depend upon the tire industry as well, hence, leading the growth of tires in the country.

What are the key challenges faced by tire market players in Nigeria?

The key challenges faced by tire market players in Nigeria are the poor state of infrastructure, corruption, bribery, difficulty in finding competent staff, and changing government regulations.

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Business Consultant

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Press Release

Nigeria Tire Market to be Led by Commercial Vehicles Through 2028

Aug, 2023

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

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