Press Release

Indonesia Commercial Vehicle Tire Market to Grow with a CAGR of 3.86% Through 2029

The growth of Indonesia's commercial vehicle tire market is driven by the expansion of e-commerce, increased infrastructure development, and rising demand for efficient transportation solutions. These factors are fueling the need for both new and replacement tires across various vehicle segments. These are the factors driving the market in the forecast period 2025-2029.

According to TechSci Research report, “Indonesia Commercial Vehicle Tire Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029F” " the Indonesia Commercial Vehicle Tire market was valued at USD 4.20 Billion in 2023 and is expected to reach USD 5.27 Billion by 2029 with a CAGR of 3.86% during the forecast period. The Indonesia commercial vehicle tire market is poised for growth, driven by factors such as urbanization, infrastructure development, and tire innovations. However, the market faces challenges like raw material price volatility, competition, and regulatory pressures. The industry must adapt to these challenges while continuing to provide durable, efficient tire solutions for the growing transportation sector. The availability of natural rubber in abundance and Indonesia's increasing consumption and export potential further position the market for future growth in the forecast period 2025-2029.

 

Browse over XX market data Figures spread through XX Pages and an in-depth TOC on the "Indonesia Commercial Vehicle Tire Market"

 

Indonesia is one of the largest producers of natural rubber in the world, and its abundant supply plays a crucial role in the commercial vehicle tire market. The country's favorable climate for rubber cultivation and vast rubber plantations enable it to produce large quantities of natural rubber, which is a key raw material for tire manufacturing. This availability of local natural rubber reduces dependency on imports, allowing Indonesian manufacturers to lower production costs and increase their competitiveness in both domestic and international markets.

In recent years, Indonesia has seen a significant rise in commercial vehicle tire exports, driven largely by its cost-effective production capabilities and the abundant availability of natural rubber. The country’s strong domestic rubber supply allows tire manufacturers to produce high-quality tires at lower costs compared to other regions. This cost advantage has made Indonesian-made commercial vehicle tires highly competitive in global markets, particularly in Asia, the Middle East, and Africa, where demand for durable and affordable tires is growing. The increase in tire exports reflects Indonesia’s growing position as a low-cost manufacturer, supported by its access to ample natural rubber, which is a key raw material in tire production. This rising export capacity not only strengthens Indonesia's role in the global tire industry but also boosts the local economy by generating revenue from international trade while ensuring a steady supply of tires for global markets.

Simultaneously, Indonesia’s own consumption of commercial vehicle tires is increasing, driven by the country's expanding transportation sector. As urbanization accelerates and the logistics and e-commerce industries expand, there is greater demand for commercial vehicles, which directly boosts the need for tires. The rising demand for tires in Indonesia is also linked to the country’s increasing fleet size, as businesses invest in more vehicles to support economic growth. This combination of abundant natural rubber supply, rising exports, and growing domestic consumption positions Indonesia as a strong player in the commercial vehicle tire market, enabling it to meet both local and international demand while maintaining cost efficiency.

The Indonesia Commercial Vehicle Tire Market is segmented into Vehicle Type, Application, Demand Category, and Region.

The Indonesia commercial vehicle tire market is segmented by application into construction, mining, agriculture, transport, and other applications. Each of these sectors has distinct tire requirements based on the nature of the operations and the conditions in which the vehicles operate.

 

The construction industry demands tires that are durable and capable of withstanding rough terrains, heavy loads, and prolonged use. Tires used in this sector need to handle the constant movement of construction vehicles like cranes, bulldozers, and trucks, which navigate challenging environments such as uneven surfaces and dirt roads. The mining sector shares similar requirements, as vehicles in this field are used in harsh conditions such as rocky surfaces and deep pits. Tires for mining vehicles must be designed to endure extreme stress, offering high puncture resistance, superior load-bearing capabilities, and long-lasting durability to minimize downtime and maintenance costs.

Agriculture also represents a significant application area, with tires designed to withstand mud, wet fields, and variable road conditions. Tires for agricultural vehicles like tractors, harvesters, and trucks must offer high traction, load capacity, and resistance to wear, ensuring the machinery operates effectively across different weather conditions. Transport, which covers logistics, freight, and passenger vehicles, requires tires that offer good fuel efficiency, reliability, and comfort, particularly for long-distance travel on highways and city roads. The tires must be engineered to support heavy loads while maintaining low rolling resistance for better fuel economy.

The "other applications" category encompasses a variety of sectors that require specialized tire solutions. These can include tires for vehicles used in military, emergency, and industrial services, each having unique requirements tailored to their operational demands. The diverse range of applications reflects the broad scope of the commercial vehicle tire market in Indonesia, with each sector influencing the development and design of tires.

The fastest growing segment of the Indonesia commercial vehicle tire market is Kalimantan, driven by the region's booming mining and agricultural sectors. As Kalimantan is rich in natural resources, such as coal and palm oil, there is a growing need for heavy-duty vehicles to support these industries. The demand for durable tires capable of withstanding rough terrains and heavy loads is increasing as mining and agricultural operations expand. Additionally, the growth of infrastructure development projects in Kalimantan has led to a higher need for construction vehicles, further boosting tire demand. This surge in industrial activity, combined with Kalimantan's relatively underdeveloped infrastructure, makes it a key region for tire market expansion.

Major market players operating in the Indonesia Commercial Vehicle Tire market are:

  • PT Gajah Tunggal Tbk
  • PT Bridgestone Tire Indonesia
  • PT Sumi Rubber Indonesia
  • Hankook Tire & Technology
  • Pirelli Tyre S.p.A
  • Goodyear Tire and Rubber Company
  • PT Continental Tyres Indonesia
  • YHI Indonesia, PT.
  • Toyo Tires Indonesia
  • PT Michelin Indonesia

Download Sample Report

Customers can also request for 10% free customization on this report.

"As Indonesia’s transportation and logistics industries keep growing, we’re seeing a bigger need for strong, reliable commercial vehicle tires. With more people shopping online, more infrastructure being built, and industries like mining and agriculture expanding, there’s a real demand for tires that can handle tough conditions. Both new tires and replacements are needed to keep everything moving smoothly. With tire technology improving, it’s exciting to see how the market will continue to grow and evolve," said Mr. Karan Chechi, Research Director of TechSci Research, a research-based global management consulting firm.

The report titled “Indonesia Commercial Vehicle Tire Market –Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Light Commercial Vehicle, Medium Commercial Vehicle, Heavy Commercial Vehicle), By Application (Construction, Mining, Agriculture, Transport, and Other Applications), By Demand Category (OEM, Replacement), By Region, By Competition, 2019- 2029F”, evaluates the future growth potential of Indonesia Commercial Vehicle Tire market and provides statistics & information on market size, structure, and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Indonesia Commercial Vehicle Tire market.

 

Contact Us-

TechSci Research LLC                                                                                              

420 Lexington Avenue, Suite 300,

New York, United States- 10170

M: +13322586602

Email: [email protected]

Website: www.techsciresearch.com

Relevant Reports

Indonesia Commercial Vehicle Tire Market –Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (Light Commercial Vehicle, Medium Commercial Vehicle, Heavy Commercial Vehicle), By Application (Construction, Mining, Agriculture, Transport, and Other Applications), By Demand Category (OEM, Replacement), By Region, By Competition, 2019-2029F

Automotive | Nov, 2024

The growth of Indonesia's commercial vehicle tire market is driven by increasing demand for transportation, rising infrastructure development, and the expansion of e-commerce. These factors are expected to drive the market in the forecast period 2025-2029.

Relevant News