According to the recently published TechSci Research report, "UAE Tyre Market Forecast & Opportunities, 2019," the tire market in the UAE is projected to grow at 11% CAGR during 2014-19. Growth in the market can be attributed to a number of factors including rising passenger car sales, growing per capita disposable income and considerable improvements in the country's road infrastructure. Other factors such as crude oil prices and favorable import and export competence, coupled with growing foreign investments are also driving the market towards growth.
Considering the rise in use of oil across the globe, the government of UAE has been looking forward towards economic diversification in the non-oil sector. As a result, the country witnessed significant development in the real estate, logistics and infrastructure sectors. All these factors have led to considerable advancements in mining and construction industries, and hence buoyed the demand for construction vehicles and mining equipment, which have led to increase in tire sales.
The report also highlights that the changing skyline of major emirates, and advancements in UAE's demographics and macro-economic indicators have been ensuring significant growth in tire sales in the country. Passenger car fleets in the country has been growing at a tremendous pace, thereby creating huge demand for tires within OEM as well as replacement segments. However, despite ever-growing demand, the country largely lacks in tire production and is dependent on imports from other countries. Bridgestone, Michelin, Goodyear, Pirelli and Continental are among the dominant tire companies operating in the UAE and account for a significant majority share in tire sales by volume as well as value terms.
"Globally, tire manufacturers are striving to develop a zero-collision driving environment. In terms of road safety, TPMS and anti-collision braking system[s] have become an integral part of the UAE automotive market. Moreover, UAE government's liberal taxation policies and investment support systems are encouraging foreign investors towards the country. All these factors are cohesively augmenting the tire market in the UAE," says Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.
"UAE Tyre Market Forecast & Opportunities, 2019" has evaluated the future growth potential of the UAE tire market and provides statistics and information on market structure, market trends, market size, etc. The report is intended to provide cutting-edge market intelligence and help decision makers to take sound investment evaluation. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities in the UAE tire industry.