Report

Middle East tyre market is anticipated to grow at a CAGR of 7.4% between 2023 and 2030. The market was estimated to be worth USD 14.06 billion in 2022 and is expected to reach USD 25.39 billion by 2030. The tyre market in the Middle East is a diverse and rapidly evolving landscape influenced by economic, climatic, and infrastructural factors. It spans across countries with varying levels of development and cultural nuances and is shaped by unique challenges and promising opportunities. The region experiences extreme climatic conditions, ranging from burning desert heat to coastal humidity, which demand specialized tyres designed to withstand these challenging environments. Off-road and all-terrain tyres are particularly sought after, catering to the region's preference for SUVs, 4x4 vehicles, and luxury cars.
Middle East's rapidly expanding urban centers and infrastructure projects contribute to the growth of the commercial vehicle segment. Construction, logistics, and transportation industries drive the demand for heavy-duty and commercial tyres. The region's status as a major business hub and tourist destination fuels the need for reliable and safe tyres, reflecting consumers' preferences for quality and comfort. For example, developed in Israel, Galileo CupWheel is a hybrid system that combines the traction and flotation advantages of rubber tracks with the roadability, efficiency, and compatibility advantages of tyres. The innovative tyre is expected to have a significant impact in the farming community and is designed to provide a better and longer-lasting ride while reducing compaction and boosting traction.
Increased Use of Rim Size of Upto 20 Inches Tyres
In Middle East tyre market, there is an increased preference for larger rim sizes, especially up to 20 inches. The shift reflects changing consumer tastes and a growing demand for aesthetics and performances. Larger rims contribute to more stylish and visual looks and offer increased handling capabilities, especially in luxury and premium vehicles that are popular in the region. The trend aligns with the broader automotive industry's emphasis on personalization and customization as consumers seek the overall visual appearance of the vehicle. Moving towards the larger rim size of up to 20 inches underscores the dynamics and evolution of the middle east tyre market. For example, from June 15th, 2022, drivers of city cars, sedans, and SUVs in Middle East have the option to equip their internal combustion, hybrid, or electric vehicles with the recently launched next generation MICHELIN Primacy range of tyres. The new category of tyres offers a compelling blend of high performance, fuel efficiency, and sustainable mobility. Available in selected few countries in 46 SKUs, ranging from 15 to 20 inches are suitable for all vehicle types.
Growing Demand for Next Generation Tyres
There is burgeoning demand for the next generation tyres in Middle East, driven by the consumers expectation towards technological advancements. The call for innovation in tyre manufacturing is evident as consumers seek innovative solutions that boost performance, safety, and sustainability. Tyres are basically incorporated with advanced materials, intelligent sensor technologies, and eco-friendly components, aligning with the region's growing emphasis on sustainable practices. The shift towards modern tyre technology reflects the dynamic market landscape, prioritizing reliability and durability, and the integration of smart features and environment consciousness of their vehicles.
For example, in April 2021, Michelin introduced a new smartphone app and an advanced range of next-generation tyres in the Middle East, aiming to enhance on-track performance and data availability for drivers. The regional launch includes the MICHELIN Pilot Sport Cup 2 tyres, which are designed to provide high performance and data-driven insights. Paired with the new range of tyres, the MICHELIN Track Connect app serves as an onboard coach via sensors fitted to the tyres, offering real-time data and performance analysis.
Expansion of All Season Tyres
All Season tyres are witnessing a notable increase in Middle East. Traditionally dominated by summer tyres due to the region's hot and dry climate, the demand for all season tyres has surged as drivers seek year-round versatility. These tyres are specially designed to perform optimally in various weather conditions, including the mild winter, providing a practical solution for regions with less extreme seasonal change. The increasing demand for all season tyres is undergoing a growing awareness among consumers about the benefits of a single tyre that can offer reliable performance across diverse weather conditions, offering a balanced and adaptable choices for drivers in Middle East.
For example, in October 2022, Al Masaood Tyres, Batteries and Accessories Division (TBA), part of Al Masaood Group, introduced the leading Thai tyre brand, Trazano, in the UAE market. The initiative aims to provide safe and cost-effective tyres to customers, offering quality, safety, and value for money. The RP08, SU320, and SA37 tyre models will be available. SU320, all season tyre offering high mileage capacity and high-density sipping to improve traction, especially on wet or slippery highways.
Impact of COVID-19
The impact of COVID-19 on Middle East tyre market has been significant, with the outbreak leading to reduced production, supply chain disruptions, and economic challenges. However, the market for passenger and commercial tyres in Middle East has shown resilience and is expected to see a positive recovery over the next five years. The aftermarket has been more resilient than the automotive industry, and the sale of passenger vehicle tyres is predicted to rise, driving the growth of the market. The outbreak had a detrimental impact on the OTR (off-the-road) tyre market, with construction coming to a halt in the initial half of 2020. While the outbreak negatively impacted the region's automotive and aftermarket industries, the market is gradually getting back on track and is expected to regain its usual pace in the forecast years.
Key Players Landscape and Outlook
Major players such as Bridgestone and Michelin maintain their dominance by utilizing their vast reach and technical advancements. Other players such as Continental and Goodyear Tire and Rubber Company are becoming more well-known due to their product innovations and strategic growth. The market forecast is defined by an increasing emphasis on electric and driverless cars, innovative tire technology, and a focus on sustainable practices. Major companies are expected to undertake extensive research and development due to the growing need for environmentally friendly and fuel-efficient tyres. It will ensure a competitive environment that can adjust to changing customer preferences and industry trends in Middle East.
For instance, Pirelli has announced a partnership with UAE Team Emirates, a top UCI category cycling team, for 2022 and 2023. The team, featuring high-profile riders like Slovenian Tadej Pogacar, will use Pirelli tyres, choosing between the P ZERO RACE TLR or clincher tyres and the lightweight P ZERO TUB SL tubulars. The recently formed UAE Team ADQ women's team will ride on Pirelli tyres. The partnership combines two Italian sports giants, Colnago, and Pirelli, with Colnago choosing Pirelli for the team and its bikes. The collaboration aims to help Pirelli design high-performing products for professional and amateur riders, using rider feedback as a central aspect of the partnership.
For instance, Continental, the premium German tyre, and automotive technology company, has extended its partnership with Emirates for Universal Tyres (EUT) as the sole distributor for Continental in UAE until December 31, 2023. The agreement underscores Continental's growing commitment to the region and will mark the partnership's 15th year.
For instance, in February 2023, the Waste Recycling and Treatment Department in the Public Services Affairs Sector of the Ministry of Municipality in Qatar announced the complete disposal of the State of Qatar's stock of damaged tyres, marking a significant achievement in the region's waste recycling, safe treatment, and disposal efforts. The accomplishment is in line with the Ministry's strategy to achieve sustainable development goals and Qatar National Vision 2030.