The tyre market in the UAE grew at a compound annual growth rate (CAGR) of more than 10 per cent during 2010 to 2014, according to a new report by TechSci Research, a global market research and consulting company.

The report is titled ‘UAE Tyre Market Forecast and Opportunities, 2020’.

The growth in the market can be attributed to a number of factors including rising passenger car sales, growing per capita disposable income and considerable improvements in the country’s road infrastructure over the last few years, said the report.

The country has also been witnessing robust increase in construction activities in form of new hotels, commercial complexes, and high rise residential as well as office buildings. All these factors are creating significant demand impetus in the country’s tyre market, it added.

Passenger car fleet in the country has been growing at a robust pace, thereby creating huge demand for tyres from the replacement segment. However, despite ever growing demand, the country largely lacks in tyre production and is dependent on tyre imports from other countries, stated the report.

Additionally, as the country experiences extreme climatic conditions throughout the year, vehicle owners need to replace their tyres frequently, which augments tyre demand in the country’s replacement tyre market.

Bridgestone, Michelin, Yokohama, Goodyear, Pirelli and Continental are among the dominant tyre companies operating in the UAE, said the report.

Karan Chechi, research director with TechSci Research, a research based global management consulting firm, said: “UAE government’s liberal taxation policies and investment support systems are encouraging foreign investors towards the country, and this has had a positive impact on the country’s automotive market, including the tyre industry, over the last five years.”

“Moreover, with increasing automobile sales and shortening tyre replacement period, the demand for tyres is anticipated to grow through 2020,” he said.

“The report has evaluated the future growth potential of UAE tyre market and provides statistics and information on market structure and trends of UAE tyre market. It is intended to provide cutting-edge market intelligence and help decision makers take sound investment evaluation,” added Chechi.

“Besides, the report also identifies and analyses emerging trends along with essential drivers, challenges and opportunities available in UAE tyre market,” he concluded. – TradeArabia News Service