Updated Oct 2, 2022 06:09

Aircraft Tyre Market in Saudi Arabia

Market Overview
The Saudi aircraft tyre market surged to $ in , picking up 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, however, posted notable growth. Aircraft tyre consumption peaked in and is expected to retain growth in the near future.

In value terms, aircraft tyre production shrank to $ in estimated in export price. In general, production, however, continues to indicate prominent growth. The most prominent rate of growth was recorded in 2011 when the production volume increased by % against the previous year. Over the period under review, production hit record highs at $ in , and then shrank slightly in the following year.


Consumption
In , consumption of tyres for aircraft decreased by -% to units, falling for the second consecutive year after four years of growth. Overall, consumption continues to indicate a noticeable reduction. Over the period under review, consumption hit record highs at units in 2007; however, from 2008 to , consumption stood at a somewhat lower figure.

The size of the aircraft tyre market in Saudi Arabia fell to $ in , approximately equating 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). In general, consumption, however, posted a noticeable expansion. Aircraft tyre consumption peaked at $ in , and then dropped modestly in the following year.


Market Forecast
Depressed by shrinking demand for aircraft tyre in Saudi Arabia, the market is expected to continue its downward consumption trend over the next eight-year period. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to units by the end of .

In value terms, the market is forecast to contract 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. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Saudi Arabia remains a net exporter of aircraft 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.