Report Overview
A spurring demand for off-the-road (OTR) vehicles driven by a number of mega infrastructure development programs, rapid industrialization & urbanization and thriving mining & construction sectors, and the growing adoption of technological advancements in tire manufacturing are expected drive the Saudi Arabia OTR Tire Market during the forecast period between 2024 and 2030.

Saudi Arabia OTR Tire Market - Industry Trends & Forecast Report, 2030

Saudi Arabia OTR Tire Market size by value was estimated at USD 234.97 million in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia OTR Tire Market size is expected to expand at a CAGR of 6.53% reaching a value of USD 461.09 million by 2030. The Saudi Arabia OTR (Off-the-Road) Tire Market is driven by the country's expansive infrastructure projects and the booming construction industry. The Saudi Vision 2030 initiative, which aims to diversify the economy away from oil dependency, has led to substantial investments in large infrastructure development programs, including the construction of new cities, roads, and transportation networks. These large-scale projects necessitate the use of heavy machinery, which in turn drives the demand for OTR tires. Additionally, the growing mining sector, bolstered by the Kingdom's efforts to exploit its mineral resources, further fuels the need for durable and high-performance OTR tires that can withstand harsh operating conditions.

By volume, the Saudi Arabia OTR Tire Market size was estimated at 1.21 million units in 2023. During the forecast period between 2024 and 2030, the Saudi Arabia OTR Tire Market size is projected to grow at a CAGR of 6.10% reaching a volume of 1.89 million units by 2030. Another critical factor contributing to the growth of the Saudi Arabia OTR Tire Market is the rapid expansion of the industrial sector. The government's focus on industrial diversification and manufacturing growth has led to an increased use of equipment that requires OTR tires, such as forklifts, cranes, and other heavy-duty vehicles. Moreover, technological advancements in tire manufacturing have resulted in the production of more efficient and longer-lasting OTR tires, which are appealing to businesses looking to reduce operational costs. These advancements, coupled with an expanding retail and distribution network for OTR tires, have made these products more accessible, thus supporting market growth.

OTR (Off-The-Road) Tires - Overview

OTR (Off-The-Road) tires are specialized tires designed for heavy-duty vehicles operating in challenging terrains, such as mining, construction, and forestry. These tires are built to withstand harsh conditions, providing durability, stability, and enhanced traction. They come in various types, including radial and bias, each suited for specific applications. Key manufacturers in the OTR tire industry include Bridgestone, Michelin, and Goodyear. The OTR tires' robust construction features thick treads and reinforced sidewalls, ensuring longevity and performance in demanding environments. OTR tires are crucial for maintaining operational efficiency and safety in industries reliant on heavy machinery.

Saudi Arabia OTR Tire Market

Growth Drivers

Increasing Foreign Investments

The Saudi Arabia OTR (Off-the-Road) Tire Market is experiencing robust growth, fueled by a surge in foreign investments. These investments are primarily directed toward the Kingdom's ambitious infrastructure projects and expanding mining sector, both key consumers of OTR tires. The influx of capital from global enterprises enhances technological advancements and also boosts production capacities in the country. Additionally, the government's pro-business policies and economic diversification initiatives under Vision 2030 are attracting significant foreign direct investment, further propelling the demand for high-performance OTR tires in various industrial applications.

Challenges

Stringent Regulations on Sales and Import of Used Tires

Saudi Arabia has implemented stringent regulations on the sales and import of used tires, significantly impacting the Off-The-Road (OTR) Tire Market. The new rules aim to enhance road safety, reduce environmental hazards, and ensure higher quality standards. These regulations are expected to drive demand for new OTR tires, as stricter controls limit the availability of used alternatives. Industry players anticipate an uptick in sales of premium tires, boosting market growth and promoting safer operational practices across various sectors, including construction and mining.

Impact of Escalating Geopolitical Tensions on Saudi Arabia OTR Tire Market

Escalating geopolitical tensions can significantly impact the Saudi Arabia OTR (Off-the-Road) Tire Market. Heightened instability may disrupt supply chains, leading to increased costs and delays in tire imports, affecting both availability and pricing. Additionally, geopolitical unrest can hinder foreign investments and economic growth, impacting the construction and mining sectors, major consumers of OTR tires. For instance, tensions in the Middle East have historically affected oil prices, influencing the region's economy and investment climate. Moreover, geopolitical instability may deter international manufacturers from expanding operations or establishing partnerships in Saudi Arabia, limiting market competitiveness and technological advancements. Therefore, the Saudi OTR tire market may face challenges in meeting demand and sustaining growth amidst geopolitical uncertainties.

Saudi Arabia OTR Tire Market

Segmental Coverage

Saudi Arabia OTR Tire Market - By Tire Type

Based on tire type, Saudi Arabia OTR Tire Market is divided into Radial and Bias segments. The radial tire type holds a higher market share in the Saudi Arabia OTR Tire Market. Radial tires offer enhanced performance and durability compared to Bias tires, making them the preferred choice in various applications such as mining, construction, and agriculture. The segment's dominance reflects the market's inclination towards advanced tire technology, driven by factors like increasing industrialization, infrastructure development, and demand for efficient vehicles. However, bias tires still hold significance in specific niche markets due to their suitability for certain operating conditions, contributing to the diversity in the Saudi Arabia OTR Tire Market.

Saudi Arabia OTR Tire Market - By Vehicle Type

Based on vehicle type, Saudi Arabia OTR Tire Market is divided into Earthmoving & Construction Equipment, Agricultural Vehicle, and Material Handling Vehicle segments. The earthmoving & construction equipment segment is the largest vehicle type in the Saudi Arabia OTR Tire Market. The segment encompasses heavy machinery used in construction, mining, and other industrial applications, which often require robust tires for rugged terrain. Following closely are the agricultural vehicle and material handling vehicle segments, each catering to specific industries with their unique tire requirements. However, the earthmoving & construction equipment segment tends to dominate due to the significant infrastructure development projects and industrial activities in Saudi Arabia, driving the demand for durable and high-performance OTR tires in this category.

Saudi Arabia OTR Tire Market - By Demand Category

Based on demand category, Saudi Arabia OTR Tire Market is divided into OEM and Aftermarket segments. The OEM segment encompasses tires supplied directly by manufacturers for initial equipment installation on vehicles during assembly. Conversely, the aftermarket segment involves tires sold separately for replacement or upgrade purposes after the vehicle has been purchased and is in use. Within this market, the aftermarket segment typically holds a larger share, reflecting the ongoing demand for tire replacements and upgrades beyond the initial vehicle purchase.

Saudi Arabia OTR Tire Market - By Application

Based on application, Saudi Arabia OTR Tire Market is divided into Construction & Mining, Agriculture, and Industrial segments.

Competitive Landscape

Major players in the Saudi Arabia OTR Tire Market include Michelin Group, Bridgestone Corporation, Hankook Tire Co., Ltd, Pirelli, Goodyear Tire & Rubber Company, Continental AG, MRF Limited, Apollo Tyres Limited, Yokohama Rubber Company. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

By Tire Type
Radial
Bias

By Vehicle Type
Earthmoving & Construction Equipment
Agricultural Vehicle
Material Handling Vehicle

By Demand Category
OEM
Aftermarket

By Application
Construction & Mining
Agriculture
Industrial