Bahrain's Tyre Market Generates $1.1 Billion in Revenue in 2023

TDT | Manama

The Daily Tribune - www.newsofbahrain.com   

Report by H Naser

The Bahraini tyre market is experiencing a period of robust growth, driven by a confluence of economic and infrastructural developments, according to a recent report by the UK-based Industry Today platform.

The market, which generated an estimated $1.1 billion in revenue in 2023, is projected to maintain a steady upward trajectory, with a compound annual growth rate (CAGR) of 5.43% between 2024 and 2030.

This burgeoning sector reflects the Kingdom's ambitious economic vision, Bahrain Vision 2030, which has spurred significant economic and infrastructural advancements.

Economic Pillars of Growth

The report identifies Bahrain's rapid economic development, fueled by Vision 2030, as a key driver of the tyre market's expansion. This vision has invigorated commercial activity in the Kingdom, leading to an increased demand for commercial vehicles. This trend is further amplified by a notable rise in per capita income, empowering citizens to increase their spending on automobiles, including luxury and electric vehicles, directly contributing to the burgeoning tyre market.

Infrastructure's Pivotal Role

The report highlights the pivotal role of large-scale infrastructure projects in driving the tyre market's growth.

Among these projects, the $3.5 billion King Hamad Causeway and the $2 billion Bahrain Metro stand out as significant contributors. Additionally, housing and resort projects valued at approximately $2.2 billion, coupled with the development of five coastal cities, are fostering a surge in demand for heavy-duty vehicles and trucks, leading to a corresponding increase in the demand for robust tyres capable of handling the heavy loads associated with these projects.

Potential Challenges

Despite the positive outlook, the report acknowledges certain challenges that could potentially impact the Bahraini tyre market. The Kingdom's heavy reliance on tyre imports poses a significant challenge, potentially creating pressure on supply chains and necessitating compliance with evolving regulatory requirements.

Future Projections

Given the prevailing economic and infrastructural trends, coupled with supportive government policies that bolster the market's resilience in the face of potential challenges, the report forecasts sustained growth for the Bahraini tyre market through 2030. This positive outlook is bolstered by the Kingdom's commitment to economic diversification and infrastructure development, creating a fertile ground for continued expansion in the tyre sector.