Report Description

The Saudi Arabia OTR Tire Market is growing because of developments in infrastructure and construction sector in the country, growth is also being fueled by the creation of smart cities in the country and the implementation of initiatives such as the National Industrial Development and Logistics Program (NIDLP) is expected to support the Saudi Vision 2028. All the infrastructural developments in the country is expected to drive the OTR tire market in Saudi Arabia.

Recent Developments

The growth in the OTR tire industry in Saudi Arabia is because of the rise in the developments in the infrastructure projects. The country is also attracting investments from the foreign investors and the government policies to switch from oil-based economy is also attracting investments in this area and this is leading to the rise in the utilization of the commercial vehicles and in the replacement rate of the tires, especially the OTR tires. Development projects such as Riyadh metro, Makkah Public Transport Program, Al Widyan, Jabal Omar, Diriyah Gate Project, SEDRA Community Home, Al Faisaliah Economic City etc.

As the commercial vehicle utilization will increase in the coming years, the replacement rate will increase. Saudi Arabia tire market is import driven as the country does not manufacture tire and the ease in the trade regulations will also help tire companies to easily import tires to Saudi Arabia. One of the most significant market trends is the rising acceptance of tire retreading, particularly in OTR tires. OTR tire market in Saudi Arabia accounts for the highest share of overall retread tire market in the country. Another significant trend in the market is an increased emphasis on technological advancement. High-tech tires for automobiles are becoming a growing area of focus for tire manufacturers in Saudi Arabia. Several tire manufacturers are developing their technologically advanced new tire offerings to meet changing customer demand for better ride comfort, safety, higher fuel efficiency, and durability.

A further trend in the market is a shift toward online tire sales. Consumers benefit from an increase in e-commerce and online sales because it gives them more options for products to buy. Customers can compare different tire brands, as well as the costs, quality, and specifications of related goods. Overall, the ease in the trade regulations and increase in the infrastructural projects is expected to drive the growth of the Saudi Arabia OTR Tire Market.

Increasing Infrastructural Investments

The automobile industry in Saudi Arabia is expanding at an impressive rate, with demand rising across the board for all types of vehicles. The utilization of vehicles has increased because of the nation's ongoing infrastructure projects, and this has all contributed to an increase in tire demand there. Due to the growing number of infrastructure and construction projects underway in the nation, demand for tires has also increased. The growth dynamics are being favored by the country's rising automobile sales, and in the years ahead, the market is anticipated to create new growth opportunities for Saudi Arabia's tire sector. Major infrastructure that will boost the demand of the OTR tire in the country are Riyadh Metro and will cost around USD 23 billion. Diriyah Gate Project includes 18,500 units and cost an estimated USD 20 billion in investment, similarly Al Faisaliah Economic City will cover 2,450 square kilometers and is valued at USD 10 billion, and there are many other projects and investments undergoing, and  all these factors are expected to lead to the increase in demand of the OTR tires in Saudi Arabia during the forecast period.

Rise in Off-Road Activities

For thrill-seekers from all over the world, Saudi Arabia offers a diverse and pro-adventure landscape. Adventure travel in Saudi Arabia includes many activities like taking part in Red Sea scuba diving to see the marine and many desert off road activities like desert adventure and Dune buggy riding is increasing the demand of the OTR tires in the country and the growth of the tourism sector in the country is also influencing the OTR tire demand in the Saudi Arabia.

Strict Regulatory Policies

During the projection period, the Saudi Arabia OTR tire market's growth is anticipated to be constrained by strict regulatory policies regarding used tires. Used tire sales and imports are forbidden by the Saudi Ministry of Commerce. This is done to lessen the number of traffic accidents that are occurring more frequently in the area because of the use of subpar tires. The ministry has also prohibited the sale of overhauled tires for use in vehicles other than those for which they were originally designed. The market for used tires in the area is anticipated to suffer as a result. Additionally, the Saudi Arabia Standard Organization (SASO) stipulates that imports of auto aftermarket parts must be accompanied by a certificate of conformity. At the Saudi port of entry, shipments that arrive without a certificate of conformity are rejected. Additionally, it is essential for the marketing and labelling of any product brought into Saudi Arabia. All these regulations will act as a hurdle in the projected growth of the Saudi Arabia OTR Tire Market.

The high cost of tires, particularly in the commercial vehicle segment, is expected to limit the growth of the Saudi Arabia OTR tire market over the forecast period. Tires for commercial vehicles such as trucks, trailers, lorries, and others are extremely expensive. Although these tires are roughly used, the initial investment is more. Overall, the increase in the utilization of the OTR tires because of the rise in the construction and other related activities is expected to drive Saudi Arabia OTR tire market during the forecast period.