Updated Jan 18, 2023 15:30

Market for Truck and Bus Tyre in Saudi Arabia

Market Overview
For the fourth year in a row, the Saudi truck and bus tyre market recorded growth in sales value, which increased by % to $ in . Overall, consumption posted temperate growth. Over the period under review, the market hit record highs in and is expected to retain growth in the near future.

In value terms, truck and bus tyre production rose slightly to $ in estimated in export price. Over the period under review, production showed a buoyant expansion. The growth pace was the most rapid in 2017 with an increase of %. Truck and bus tyre production peaked at $ in ; however, from to , production stood at a somewhat lower figure.

In , approx. units of tyres for buses or lorries were consumed in Saudi Arabia; therefore, remained relatively stable against the year before. In general, consumption posted a pronounced expansion. As a result, consumption reached the peak volume of units. From 2018 to , the growth of the consumption remained at a somewhat lower figure.

The value of the truck and bus tyre market in Saudi Arabia soared to $ in , surging by % against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption saw tangible growth. Truck and bus tyre consumption peaked in and is likely to continue growth in the immediate term.

Market Forecast
Driven by increasing demand for tyres for buses or lorries in Saudi Arabia, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to retain its current trend pattern, expanding with an anticipated CAGR of +% for the period from to , which is projected to bring the market volume to units by the end of .

In value terms, the market is forecast to increase with an anticipated CAGR of +% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .

Market Structure
Affected by an intensive growth in domestic production, which will gradually displace imported products from the market, the share of imports decreased from % in 2007 to % in . Saudi Arabia domestic supply is expected to continue its growth.

Trade Balance
Saudi Arabia remains a net exporter of truck and bus tyre; in physical and value terms, exports consistently exceeded imports from 2007 to . In , there was a significant trade surplus of units, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.