According to a new report that has been published by the renowned market research and consulting company, TechSci Research, the tire market in the UAE grew at a robust pace that exceeded 10 per cent in the period from 2010 to 2014.
Titled ‘UAE Tire Market Forecast and Opportunities, 2020’, the report states that the steady growth in the UAE tire market is due to many factors including significant improvements to the road infrastructure in the country in the past few years, steady rise in the sale of passenger cars and increase in per capita disposable income. Another factor that has contributed to the growth of the tire market is the impressive growth in construction activities including the establishment of new residential and office buildings, commercial complexes and malls, and plenty of hotels and tourist attractions.
This steady growth in the car parc has led to a massive demand for tires, especially when it comes to the replacement segment. Another factor that is responsible for the high sales in the replacement tire segment is the extreme climatic conditions in the country causing motorists to replace their tires on a frequent basis. One notable fact, though, is that there is hardly any production of tires in the UAE and the country is almost completely dependent on import of tires from other countries.
The most well known brands in the UAE tire market are Pirelli, Goodyear, Continental, Bridgestone, Yokohama, and Michelin according to the report.
Commenting on the findings of the study, Karan Chechi, research director with TechSci Research said that the UAE government’s liberal taxation policies and investment support systems have encouraged foreign investors to invest in the country. This has led to a positive impact on the country’s automotive market in general and consequently the tire industry as well, over the last five years.
He also said that growing automobile sales and the short tire replacement period is expected to lead to an increase in the demand for tires and the market is anticipated to grow through 2020.
“The report has evaluated the future growth potential of UAE tire market and provides statistics and information on market structure and trends of UAE tire market. It is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation,” added Chechi.
“Besides, the report also identifies and analyses emerging trends along with essential drivers, challenges and opportunities available in UAE tire market,” he concluded.
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