The Kuwait tyre market is forecast to grow at a compound annual growth rate (CAGR) of over 11 per cent during 2016 – 2021, according to a report by TechSci Research, a global market research and consulting company.

The report, titled “Kuwait Tire Market Forecast and Opportunities, 2021”, said that in June 2015, the government announced its Five-Year Plan worth $116 billion, for filling infrastructure gaps and boosting construction, real estate and transportation sectors in the country.

The development of all the sectors is projected to fuel demand for tyres, especially from commercial and off-the-road (OTR) segments, in the country during 2016 – 2021, it said.

Additionally, rising per capita income of consumers and growing demand for luxury cars in the country is fuelling demand for passenger car tyres in Kuwait, it added.

Vehicle sales in Kuwait grew at a CAGR of around 5.8 per cent during 2011 - 2015, with unit sales increasing from 0.11 million units in 2011 to 0.14 million units in 2015, said the report.

This resulted in expansion of automotive fleet size from 1.48 million units in 2011 to 1.95 million units in 2015.

Growing fleet size boosted demand for tyres from the replacement segment during the same period and the trend is anticipated to continue in the coming years as well. Moreover, passenger car tyre segment dominated Kuwait tyre market in 2015, followed by light commercial vehicle tyre segment, it said.

Moreover, due to the largest fleet size, passenger cars segment would continue its dominance in Kuwait tyre market during the forecast period. Nevertheless, on the back of growing construction and logistics industries, medium and heavy commercial vehicle tyre segment is expected to demonstrate robust growth over the next five years.

Karan Chechi, research director with TechSci Research, said: “Various major infrastructure developments, implementation of government's initiatives such as the Kuwait 2035 Mission Plan, and rising investments in healthcare, education facilities and housing is projected to fuel demand for vehicles, and consequently, tyres in the country over the next five years.”

“Additionally, increasing consumer inclination towards enhancing vehicle safety and adopting new tyre technologies, such as Seal Inside technology and Black/White Walled tyres, is expected to positively influence the country's tyre market in the coming years,” he added.

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

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