South Africa Tire Market Set for Consistent Growth: Projected to Grow at a CAGR of 4.8% by 2028 | BlueWeave
Delhi, NCR, Dec. 22, 2021 (GLOBE NEWSWIRE) -- South Africa tire market is growing at a high CAGR due to the growing automotive industry, growing demand for tire from the mining industry, rising industrialization. Additionally, the growing income, and penetration of cost-friendly Chinese tires in the country is also favoring the market’s growth…
A recent study conducted by the strategic consulting and market research firm BlueWeave Consulting revealed that the South Africa tire market was worth USD 2.2 billion in 2021. The market is projected to grow at a CAGR of 4.8% during the forecast period (2022-2028), earning revenue of around USD 3.0 billion by the end of 2028. South Africa tire market is growing owing to the growing automotive industry, increasing demand for electric vehicles, and growing industrialization in the country. Moreover, the growing penetration of Chinese and cost-effective tires is also fuelling the growth of the South Africa tire market.
The growing automotive industry in the country is driving the South Africa tire market
According to Naamsa, South Africa’s automotive business council, the automotive industry is one of the most relevant industries in the South African economy contributing around 4.9% to the country’s GDP. The manufacturing of automobiles contributes 2.8%, while the retailing of automobiles contributes 2.1%. Naamsa reported that South African exports of vehicles and automotive components topped R175.7 billion (USD 11.02 billion) in 2011, contributing 13.9% to the total exports.
Automobiles sales are growing by leaps and bounds across South Africa. Naamsa reveals that domestic new vehicle sales reached 41,588 units in November 2021, an increase of 6.6% from 39015 vehicles sold in November 2020. Furthermore, the total exports of automobiles are up by 8.09% compared to the same period in 2020 and reached 273,838 units in November 2021. The growing automotive industry and growing sales & exports of automobiles have created a growing demand for tires in the country and therefore, is driving the growth of the South Africa tire market.
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The growing demand for tires from the mining industry driving the growth of the South Africa tire industry
The mining industry of South Africa is one of the largest in the country. South Africa's Department of Mineral Resources estimates its ore reserves to be 2.5 trillion dollars. Worldwide, the country has the largest reserves of Platinum-group metals (PGMs) (88%), Manganese (80%), Chromite (72%), and Gold (13%), as well as second-largest reserves of Titanium minerals (10%), Zirconium (25%), Vanadium (32%), Vermiculite (40%) and Fluorspar (17%). PGMs, gold, iron ore, and coal account for 82% of sales and almost 38% (R282 billion – USD 17.68 billion) of exports.
With the growth of the mining industry in the country, the demand for new and efficient equipment is growing. The demand for large tires is also steadily growing in the mining industry. For instance, in 2019, one of the largest mining contractors in the world operating in one of the largest coal mines of South Africa selected Magna Tyres’ 40.00R57 Magna MA04+C Giant tires for Cat 793D rigid dump trucks. Other factors driving South Africa tire market growth include the demand for specially designed tires that can withstand severe conditions in mines with decreased heat buildup inside the tire, lower fuel consumption, higher efficiency, optimized operator comfort, and prolonged service life, all of which create a growing demand for tires from the mining sector.
South Africa Tire Market - By Vehicle Type
Based on vehicle types, the South Africa tire market is grouped into passenger cars, light commercial vehicles, medium & high commercial vehicles, off-the-road tires, and two-wheelers. Among these, the two-wheelers segment dominated the South Africa tire market in 2021 and held the largest share owing to growing sales of two-wheelers in the country and rising penetration of motorbikes among the younger generation. Additionally, the growing sales of electric motorbikes have also contributed to the dominant share of the two-wheeler segment in the South Africa tire market.
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Impact of COVID-19 on the South Africa Tire Market
With the pandemic and subsequent lockdown, the automotive, automobile, and related industries were among the hardest hit industries in 2020. The sales of vehicles dropped and demand for tires also went down during the pandemic. Due to low demand, difficulties in procuring raw materials, cash constraints, and lack of labor, tire importers had difficulty importing tires. Moreover, tire manufacturers had to shut down manufacturing plants or run on reduced capacity.
Despite the reopening of the market towards the end of 2020 and vaccination drives hinting at the market's timely recovery, the emergence of the second COVID followed by the emergence of the delta variant has slowed the pace of recovery. It is expected that the emergence of the omicron variant, first detected in South Africa, will further slow down the recovery of the tire market in the near future, despite a rise in sales and exports of automobiles.
South Africa Tire Market -Competitive Landscape
The leading players in the South Africa tire market are Bridgestone, Sumitomo, Goodyear, Continental, Michelin, Hangzhou Zhongce Rubber, Triangle, Kumho, Yokohama, Pirelli, and other prominent players. The market players compete with each-others in terms of products launches, integration of new technology, mergers & acquisitions, collaboration with other players and organizations. Furthermore, the companies operating in the South Africa tire market are looking to commercialize the technology as soon as possible to capture more market share.
Recent Developments
In September 2021, The Goodyear Tire & Rubber Company has set the goal of using 100% renewable energy in all its sites across Europe and the Midde East & Africa including South Africa. Initial phase of the plan will cover factors in France, Germany, Luxembourg, Poland, Slovenia, Turkey and the Netherlands, while the later phase of the plan will focus on the company’s facilities in South Africa and Cooper Tire plants in Serbia and the UK.
Scope of the Report
| Attributes | Details |
| Years Considered | Historical data – 2017-2020 Base Year – 2020 Forecast – 2021 – 2027 |
| Facts Covered | Revenue in USD Million |
| Market Coverage | South Africa |
| Product Service/Segmentation | ByDesign, By Vehicle Type, By End-User, By Distribution Channel, By Region |
| Key Players | Bridgestone Corporation, Sumitomo Rubber Industries, Continental Tyre SA Ltd, Yokohama Rubber Company, Goodyear South Africa Ltd, Apollo Tires, Auto and Truck Tyres Ltd., Bandag Southern Africa (Pty) Ltd., Michelin, Dunlop Tyres, and other prominent players. |
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of South Africa tire market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of South Africa tire market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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