Saudi Arabia Tire Market To Reach 25.6 Million Units By 2033, Driven By Steady 1.21% CAGR Growth

(MENAFN- IMARC Group) Saudi Arabia Tire Market Overview

Market Size in 2024 : 22.9 Million Units

Market Size in 2033: 25.6 Million Units

Market Growth Rate 2025-2033: 1.21%

According to IMARC Group's latest research publication,“ Saudi Arabia Tire Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033“ , The Saudi Arabia tire market size reached 22.9 Million Units in 2024. Looking forward, IMARC Group expects the market to reach 25.6 Million Units by 2033, exhibiting a growth rate (CAGR) of 1.21% during 2025-2033.

Growth Factors in the Saudi Arabia Tire Industry

• Booming Automotive Sector

The rapid growth of Saudi Arabia's automotive sector is a major driver for the tire industry. With over 7 million vehicles on the road, the demand for tires is soaring, especially for passenger cars, which account for 60% of tire sales. Vision 2030's push for economic diversification has led to increased vehicle ownership, supported by affordable financing plans from companies like Al Rajhi Bank, offering low-interest car loans. Urbanization in cities like Riyadh and Jeddah further fuels this trend, as more families opt for personal vehicles, boosting tire demand for both OEM and replacement markets.

• Infrastructure Development and Vision 2030

Saudi Arabia's massive infrastructure projects, like NEOM and the Red Sea Project, are driving tire demand, particularly for commercial vehicles. The National Industrial Development and Logistics Program supports these initiatives, increasing the need for trucks and trailers, which require frequent tire replacements due to heavy usage. For instance, construction activities in NEOM alone demand thousands of heavy-duty tires monthly. Government investments in smart cities and road networks, valued at billions, ensure a steady need for durable tires, as companies like Michelin expand local supply chains to meet this growing demand.

• Rising Disposable Income and Premium Tire Demand

Higher disposable incomes are pushing Saudi consumers toward premium and high-performance tires. With per capita income rising, 45% of tire buyers now prefer brands like Bridgestone and Pirelli for their durability and safety features. The 2018 decision to allow women to drive has expanded the consumer base, increasing tire sales for passenger cars. Dealerships report a 20% uptick in premium tire purchases, driven by demand for luxury vehicles like SUVs, which require specialized tires. This shift toward quality over affordability is fueling market growth.

Key Trends in the Saudi Arabia Tire Market

• Shift Toward Eco-Friendly Tires

Sustainability is shaping the tire market, with a growing demand for eco-friendly tires that reduce fuel consumption and environmental impact. Hankook Tires, for example, introduced its iON Race Tires, using sustainable materials that cut carbon emissions by 15%. Government initiatives like the Saudi Green Initiative encourage manufacturers to adopt greener practices. A survey shows 55% of Saudi consumers prioritize fuel-efficient tires, especially for passenger cars. Companies like Michelin are investing in low-rolling-resistance tires, aligning with global sustainability trends and boosting their market share.

• Growth in Online Tire Retailing

E-commerce is transforming how tires are sold in Saudi Arabia, with platforms like Noon and Amazon.sa reporting a 30% increase in tire sales. With 95% of Saudis online, digital marketing campaigns by brands like Yokohama, featuring influencer partnerships, drive consumer engagement. Online platforms offer convenience, competitive pricing, and customer reviews, appealing to younger buyers. For instance, Goodyear's online store saw a 25% sales boost after introducing home delivery options. This trend is expanding market reach, especially in urban areas, and encouraging brands to enhance their digital presence.

• Demand for High-Performance and Specialty Tires

The rise in off-road activities and racing events, like the Dakar Rally, is boosting demand for high-performance and specialty tires. Toyo Tires' Open Country MT/R tires won the 2023 Dakar Rally's production car category, showcasing their appeal. About 35% of tire sales in Saudi Arabia now come from specialty tires designed for extreme weather or off-road conditions. The growing popularity of Formula E in Diriyah has also spurred interest in performance tires, with brands like Pirelli supplying advanced compounds for racing, catering to enthusiasts and professionals alike.

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Saudi Arabia Tire Industry Segmentation:

The report has segmented the market into the following categories:

Breakup by Type:

• Radial
• Bias

Breakup by End-Use:

• OEM
• Replacement

Breakup by Vehicle Type:

• Passenger Cars
• Light Commercial Vehicles
• Medium and Heavy Commercial Vehicles
• Two Wheelers
• Off-The-Road (OTR)

Breakup by Size:

• Passenger Cars
• Market Breakup by Rim Size
• Market Breakup by Tire Size
• Light Commercial Vehicles
• Market Breakup by Rim Size
• Market Breakup by Tire Size
• Medium and Heavy Commercial Vehicles
• Market Breakup by Rim Size
• Market Breakup by Tire Size
• Two Wheelers
• Market Breakup by Rim Size
• Market Breakup by Tire Size
• Off-The-Road (OTR)
• Market Breakup by Rim Size
• Market Breakup by Tire Size

Breakup by Distribution Channel:

• Offline
• Online

Breakup by Region:

• ​Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the market has also been examined with some of the key players being Michelin Group, Bridgestone Corporation, Continental AG, Goodyear Tire and Rubber Company, Sumitomo Corporation, Pirelli & C. S.p.A, Yokohama Rubber Company, Hankook Tire and Technology, Toyo Tire Corporation and Kumho Tire.

• Michelin Group
• Bridgestone Corporation
• Continental AG
• Goodyear Tire and Rubber Company
• Sumitomo Corporation
• Pirelli & C. S.p.A
• Yokohama Rubber Company
• Hankook Tire and Technology
• Toyo Tire Corporation and Kumho Tire.

Future Outlook

The Saudi Arabia tire market is poised for sustained growth, driven by ongoing economic diversification, technological advancements, and evolving consumer preferences. Vision 2030's focus on infrastructure and smart city projects, such as NEOM, will continue to increase demand for commercial and OTR tires, while the rise in electric vehicle (EV) adoption will spur innovation in specialized tires for EVs. Partnerships, like the 2023 joint venture between Pirelli and the Public Investment Fund (PIF) to establish a tire factory, signal a shift toward local production, reducing import reliance. However, challenges such as economic volatility tied to oil prices and stringent environmental regulations may require strategic adaptations. With a focus on sustainability and digitalization, the market is set to thrive, offering opportunities for both global and regional players to innovate and capture growing demand.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

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