Allied Market Research

Pakistan Rubber Tyre and Tube Market is Expected to Reach $2.77 Billion by 2025


quote The two-wheeler vehicle type segment dominated the market, in terms of revenue in 2017. In addition, based on design type, the bias type segment is expected to lead throughout the forecast period. At present, tyre by component type is the highest revenue contributor. quote

Pranav Padalkar
Research Analysts, Automotive and Transportation at Allied Market Research

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According to a recent report published by Allied Market Research, titled, " Pakistan Rubber Tyre and Tube Market by Channel, Component, Design, and Vehicle Type: Opportunity Analysis and Industry Forecast, 2018–2025," Pakistan rubber tyre and tube market size was valued at $ 762.7 million in 2017, and is projected to reach $ 2.77  billion by 2025, registering a CAGR of 17.4% from 2018 to 2025. The radial type by design segment was the highest revenue contributor in 2017, accounting for $595.8 million, and is estimated to reach $2.11 billion by 2025, registering a CAGR of 17.1% during the forecast period.

At present, by vehicle type segment, commercial vehicle dominates the pakistan rubber tyre and tube market, followed by two wheeler, three wheeler, OTR/TBR, agriculture tractor, and passenger car, whereas two wheeler vehicle type segment is expected to grow at a significant rate during the forecast period.

The automotive environment is changing at a rapid pace due to globalization. Increase in automotive tyre production in Pakistan due to use of latest technologies in tyre production in this region is a key factor that drives the demand for rubber tyres. The rise in production of tyres is anticipated to influence prominent players to invest and expand the business through different segments such as electric and internal combustion engine. In addition, increase in use of nitrogen inflated tyres in Pakistan and the rise in demand for tubeless tyres are expected to boost the growth of the Pakistan rubber tyre and tube market. 

Pakistan rubber tyre and tube market trends are decided on the basis of forecast from 2018 to 2025. In recent years, consumers have shifted their interest toward technologically advanced tyre and increase in lifespan of the vehicle in turn increases the overall use of rubber tyres in vehicles, thereby boosting the Pakistan Rubber Tyre and Tube Market growth. 

Volatility in the prices of raw material and rise in service related to retreading process of tyres are the major factors that restrain the Pakistan rubber tyre and tube market growth. Furthermore, improvements in economy that result in favorable conditions for the manufacturing sector and anticipated rise in automotive sector create an opportunity for the expansion of the rubber tyre market in Pakistan. Pakistan rubber tyre and tube market forecasted on the basis of year on year growth from 2018 to 2025 by considering the driving and restraining factors.

The pakistan rubber tyre and tube market analysis totally depends on the components and design used while manufacturing the rubber tyre type used. Moreover, automobile manufacturers are inclining toward electric and alternative fuel vehicles due to implementation of vehicle emission regulations. The rise in production of commercial and passenger cars along with the new advanced technology fuels the growth of the Pakistan rubber tyre and tube market. For instance, Bridgestone came up with new innovative tyres “Ecopia EP500 ologic”. These tyre are based on "Ologic technology" which uses synergies of large diameter in conjunction with smaller width. Furthermore, this solution improves fuel efficiency by reducing rolling resistance and environmental impacts. In addition, the Continental started offering different categorized tyre as their product such as winter, all seasoned and summer to boost the sales of tyre in the Pakistan market.

Furthermore, the improving economy results in favorable condition for tyre manufacturers in Pakistan. For instance, Pakistan manufactures 4-stroke CNG auto rickshaws to meet the demand for a cheaper transportation. This factor has significantly increased the use of local automobile accessories including rubber tyres. To increase safety concerns, governments focus on introduction of stringent tyre performance regulation including fuel saving and wet grip-related braking distance reduction. Thus, creates ample growth opportunities for the tyre manufacturing companies to launch tyres that can address the government regulations. Therefore, with increase in technological advancements, vendors are coming up with high efficient tyres that enhance the overall fuel efficiency of vehicles. Kumho tyres launched pneumatic tyres “Ecsta PA31” that can offer high performance in the vehicles such as sport, sedans, and coupes. Pakistan rubber tyre and tube market share is rising due to increasing production of all type vehicles in this region.

Moreover, the production of vehicles has raised in recent year due to the consumers preference to the features such as advance driving assistance system (ADAS), and others that are technologically advanced as against traditional vehicles. In addition, there is a rise in number of electric vehicles in Pakistan due to favorable government policies. This creates a demand for the production of different variant of electric vehicle. For instance, there is an increase of 15-18% from 2014 to 2017 in the overall production of vehicles in Pakistan. The implementation of advanced technologies in production helps boost Pakistan rubber tyre industry. All such factors are creating awareness in Pakistan. Also, the easy availability, affordability and company expansions in this region are important factors that create a huge demand for Pakistan rubber tyre and tube market.

Rise in pollution levels in the country leads to surge in demand for ecofriendly products. More importantly, various government initiatives are leading to increase in introduction of relatively less polluting products. This factor is estimated to surge the demand for green recyclable tyre in near future. The growth in demand for passenger and commercial vehicles in Pakistan is changing the automotive accessories such as tyres, tubes, rim, and valves Technological advancement in automobile industry is anticipated to cause more demand for techno-savvy products, which fosters the growth of the rubber tyre market in the country.

There is change in the world automotive environment is changing due to globalization. This results in a rapid rise in the demand for vehicles across all segments in all the countries. In addition, increase in level of radialization, and growth in production and sales of two-wheeler vehicles are the major factors that drive the growth of the tyre segment in this region. 

Key Findings of the Pakistan Rubber Tyre and Tube Market:

  • In 2017, based on channel, aftermarket generated the highest revenue.
  • In 2017, by vehicle type, the commercial vehicles type was the highest revenue contributor.
  • In 2017, by design, the radial segment was the highest revenue contributor.

The key players analyzed in this report include General Tyre and Rubber Co. Ltd., Servis Tyre, the Goodyear Tyre & Rubber Company, Bridgestone group, Pirelli Tyre S.p.A, Michelin, Ghauri Tyre & Tube Ltd., Continental Corporation, Sumitomo Rubber Industries Ltd., and Yokohama Rubber Co., Ltd. And also some local tyre manufacturers such as panther tyres limited, Crown Tyres limited , CECO tyres, HAQ tyres & rubber industries and others.

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quote Pakistan Rubber Tyre and Tube Market by Channel (OEM and Aftermarket), Component (Tyre, and Tubes), Design (Radial and Bias), and Vehicle Type (Passenger Car, Commercial Vehicles, Two Wheeler, Three Wheeler, Agriculture Tractor, and OTR/TBR)): Opportunity Analysis and Industry Forecast, 2018–2025 quote

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