Fluctuations in oil prices across the global is one of the major factors increasing the government focus in Azerbaijan on diversifying its investment budget and attracting foreign direct investment (FDI) in non-oil sectors such as agriculture, infrastructure, transportation & tourism, industrial and alternate renewable energy sectors. Increasing government focus on non-oil sectors is propelling growth in the construction and infrastructure sectors in the country, thereby driving demand for OTR and commercial vehicles, which is expected to translate into higher demand for OTR and commercial vehicle tire market in the country during 2015-2020.
According to the TechSci Research report "Azerbaijan Tyre Market Forecast & Opportunities, 2020", the country's tire market is projected to grow at a CAGR of over 5% during 2015-2020. In 2014, the passenger car segment dominated Azerbaijan's tire market, followed by the medium and heavy commercial vehicle segment. The Azerbaijan tire market is solely dependent on replacement demand, due to absence of any OEM manufacturing facility in the country. Furthermore, due to lack of rubber production in the country, there are no tire production facilities in Azerbaijan, and consequently, the majority of the overall demand for tires in the country is addressed through imports.
"Increasing diversification into non-oil sectors and rising number of infrastructural projects in the country such as development of the Khazar Island is anticipated to boost demand for OTR and medium and heavy commercial vehicles in the coming years. Robust growth in the country's tourism sector is also anticipated to pump growth in demand for LCVs in the country for public transportation, thereby driving growth in Azerbaijantyre market through 2020," says Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm.
"Azerbaijan Tyre Market Forecast & Opportunities, 2020" has evaluated the future growth potential of the Azerbaijan tire market and provides statistics and information on market structure and trends. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation. Besides, the report also identifies and analyzes emerging trends along with essential drivers, challenges and opportunities available in the Azerbaijan tire market.