Report Description

The market has grown significantly because of the rising global popularity of various forms of automotive racing events in the country. Popular car racing series like Formula One, NASCAR, and motorcycle races were the initial focus of competitive automotive racing because they attracted a lot of sponsorships and promotional activities. As time went by, there have been a variety of racing competitions, featuring vehicles with various engine sizes, including SUVs, dirt bikes, monster trucks, solar cars, sprint cars, and touring cars. The off-road activities have also increased in Saudi Arabia, which has led to the rise in demand of high-performance tires in the country.

Recent Developments

The high-performance vehicle in the Saudi Arabia is witnessing the rise in demand for the high-performance tires as racing events in the country are taking place like the FIA World Touring Car Racing WTCR series in Jeddah, Saudi Arabia. Companies like Goodyear Tire and Rubber Company have also participated in WTCR, and is the official partner in this. Similarly, other racing events and competitions have also led to the rise in the demand of the high-performance tires in the country. At the same time, new high-performance tires’ launch for high-speed vehicles for extra safety and comfort is also diversifying the tire portfolios of the key tire players in the country like Al-Talayi company, largest distributor of Bridgestone tires in Saudi Arabia has introduced Turanza T001, a new tire, the tire is especially designed that guarantees safe performance when driving at high speeds.

The rise in the category of devoted by sports car enthusiasts has led to the rise in the demand of high-performance tires in crossover vehicles, sport utility vehicles and passenger cars. The sales of high-performance tires is increasing as a result of rising purchases of these preferred vehicles in the country, and the increase in the sales of the high end vehicles in the passenger car segment is also leading to the rise in the demand of the high performance tires in Saudi Arabia. Customers’ preference for high performance tires is primarily influenced by the original equipment (OE) vehicle market. The benefits of these tires are being made known to consumers through expanding fitments by top automakers, which is fueling a replacement market for them in the Saudi Arabia.

Rise in the Demand for Replacement High Performance Tires

As Saudi Arabia possesses a  fleet of high-end vehicles, the rise in the racing activities is leading to the rise in the demand of OTR tires. To capitalize on the lucrative aftermarket high-performance and ultra-high-performance tire segments, vendors are investing in marketing to raise their brand awareness. Additionally, they are spending money to improve the selection of high-performance tires that are offered for online purchase and to make their products more noticeable on their websites. The key global players are investing and expanding their market reach in the Saudi Arabia, due to which the forecast years of high-performance replacement tire market is expected to generate new opportunity in the coming years. The demand of the replacement segment is also higher in racing events, like a team uses around ten to twelve tires in single event, similarly the off-road vehicle in the Saudi Arabia is also generating new demand for the replacement segment in the Saudi Arabia high performance tire market.

Increase in the Racing Activities

The increase in the racing events in Saudi Arabia and the rise in off-road activities is generating new demand for the high-performance tires, thereby driving the market growth. With the rise in disposable income in the country, the ease in the adoption of such high-performance tires has increased. As the racing events are catching up in Saudi Arabia due to rising inclination of people towards such events, it is expected to drive the market growth in the country.

Lack of in-house High Performance Tire Manufacturing Facilities

There are many key global players having presence in the Saudi Arabia high performance tire market but most of these players have either dealers, distributors or sales partner and do not have their own manufacturing in Saudi Arabia. This is leading to slow supply chain process and high price of the high-performance tires. The government is taking measures and is in talks with the tire manufacturers to set up in house manufacturing in Saudi Arabia itself. However, this may take time and this aspect can be a challenge in the rising demand of the high-performance tires in the country, during the forecast years.

Sales of high-performance tires in Saudi Arabia will continue to be driven by the increasing demand for high performance vehicles for automotive sports and the introduction of new technologies to enhance tire efficiency.

High performance tires are distinguished primarily by their higher speed ratings, larger diameters, and lower aspect ratios because they were originally designed as fitments for sports cars. However, as their appeal among regular drivers has grown, high performance tires now have a lot of qualities required to appeal to typical customers. Today, tires for passenger cars are made for high-speed driving and have a smooth ride that matches the car's design. Tire manufacturers are increasingly creating high performance tires that are hybrid, performance-centric, with extended wear qualities, and year-round drivability to get drivers to pay an extra for their performance products.