Bangladesh Tire Market By Vehicle Type (Passenger Cars, Commercial Vehicles, Two-Wheelers), By Tire Construction Type (Radial, Bias), By Demand Category (OEM, Replacement), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Bangladesh Tire market was valued at USD 60.65 Million in 2024 and is expected to reach USD 109.03 Million by 2030 with a CAGR of 10.27% during the forecast period. The tire market in Bangladesh is experiencing significant growth due to several driving factors. One of the key drivers is the expanding automotive industry. With rising disposable incomes and a growing middle class, demand for personal vehicles and commercial transport is on the rise. For instance, in 2023, Bangladesh surpassed both India and Pakistan in per capita GDP, marking a significant economic milestone. With a per capita income of $2,621, Bangladesh outpaced India ($2,612) and Pakistan ($1,471). This growth reflects the country’s resilience despite global challenges, including the pandemic's economic impact. Since 2016, Bangladesh has consistently outperformed Pakistan, and in 2020, it overtook India. The nation's steady progress in per capita income highlights its success in moving from low to middle-income status over the past two decades. This increase in vehicle ownership leads to greater demand for tires. Furthermore, rapid urbanization and infrastructure development have paved the way for enhanced road networks, which directly boost the tire market. As roads improve, the need for durable and high-performance tires becomes more critical. The increasing reliance on public transportation also creates demand for replacement and maintenance tires.

Emerging trends in the tire market reflect a shift toward more sustainable and advanced tire technologies. Consumers are increasingly aware of environmental concerns, prompting demand for eco-friendly tires that are made from sustainable materials and provide better fuel efficiency. The growing popularity of high-performance tires, designed for enhanced safety and longevity, is also a noticeable trend. These tires offer superior handling, durability, and fuel economy, making them ideal for the expanding automobile sector. Additionally, the increasing adoption of digital technologies in tire manufacturing, such as smart tires with built-in sensors for monitoring tire pressure, temperature, and wear, has gained traction in the market. These innovations help in enhancing the overall driving experience and reducing maintenance costs.

Despite the positive growth, there are several challenges that the Bangladesh tire market faces. One major challenge is the price sensitivity of consumers. The majority of the population still looks for affordable tire options, which limits the penetration of premium tire products in the market. Another significant challenge is the dependence on imports for high-quality tires, which exposes the market to fluctuations in global pricing and availability. Moreover, the lack of proper tire disposal and recycling mechanisms poses environmental concerns, adding pressure on regulatory bodies to implement stronger waste management policies. Additionally, the market remains fragmented, with numerous small and medium-sized tire manufacturers, creating stiff competition and driving price wars.

Market Drivers

Growing Vehicle Ownership

The increase in vehicle ownership in emerging markets is one of the most significant drivers in the tire market. As economic development continues, more people can afford vehicles, leading to a substantial increase in the number of cars on the road. This trend is not limited to personal vehicles but also extends to the growing number of commercial vehicles needed for goods transportation and service sectors. In particular, the expanding middle class in urban centers is a key contributor to this growth. This rise in vehicle ownership drives demand for both replacement and new tires as consumers need high-quality products to ensure safety and reliability. Vehicle manufacturers are also increasingly focusing on producing vehicles that can handle various road conditions, which encourages the demand for specialized tires, like all-terrain and off-road options. This increased demand for vehicles directly fuels the tire market, supporting the growth of tire manufacturers and related industries. For instance, in 2022, Bangladesh registered a record high in vehicle ownership, with over 578,000 vehicles registered, reflecting a significant surge in demand. This increase was primarily driven by rising disposable incomes and urbanization, which have fueled the growth of personal and commercial vehicles. In 2023, Bangladesh registered a total of 360,861 motor vehicles, a decrease from 578,151 units in 2022. The number of motorcycles remains dominant, with 310,418 units registered. Other vehicle categories include auto-rickshaws (9,257), buses (2,280), and trucks (2,292). Dhaka led in motor vehicle registrations, with 125,851 vehicles, followed by significant numbers in regions like Chattogram and Khulna. The decrease in total vehicle registrations highlights potential market fluctuations, but the motorcycle sector continues to drive the overall growth in vehicle registration.

Improved Road Infrastructure

Infrastructure development, particularly road quality, plays a critical role in the tire market. In regions where road conditions are poor, the demand for more durable, high-performance tires increases as consumers and businesses seek products that can withstand rough terrain. Roadway improvements, such as smoother, well-maintained roads, create a demand for tires that offer longer life spans and better fuel efficiency. This trend is evident in many developing countries, where governments are investing heavily in road networks to improve connectivity and ease transportation. These better roads also encourage a rise in vehicle use, further driving demand for tires. The growing trend of electrification in infrastructure, such as the development of electric vehicle charging stations and roads built for electric vehicle performance, is also pushing the need for specialized tires. As roadways evolve, tire manufacturers are forced to keep up by innovating new technologies that ensure both performance and durability for vehicles across different terrains.

Rising Commercial Transport

The expanding commercial transport sector is a major driver in the tire market. The logistics industry is evolving rapidly due to global trade expansion, with more goods being transported across regions. This has created a higher demand for commercial vehicles such as trucks, buses, and vans, all of which require specialized tires that can handle the demands of heavy loads and constant use. With the rise of e-commerce, more goods need to be delivered over longer distances, placing a greater need on efficient, durable tires. These vehicles must endure high mileage, making tire longevity a key consideration. The demand for commercial tires also grows as vehicle fleets expand, and the replacement cycle for tires in these vehicles is shorter due to frequent use. The global growth of the transport and logistics industry further emphasizes the tire market's importance, as these sectors contribute significantly to the overall demand for tires. Manufacturers are focusing on producing tires that are cost-effective yet durable enough to cope with the high demands of commercial transport, thus boosting their market share.

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Key Market Challenges

Price Sensitivity

Price sensitivity is one of the main challenges faced by tire manufacturers, especially in price-sensitive markets. Consumers often prioritize cost over quality, opting for cheaper tires that may compromise on durability, performance, and safety. The abundance of low-cost tire options, often from less-established manufacturers, makes it difficult for premium tire brands to gain market share in certain segments. This price-driven behavior can also influence tire manufacturers' ability to innovate, as they may need to focus on reducing production costs rather than investing in new technologies. In competitive markets, manufacturers are forced to adopt aggressive pricing strategies to remain relevant, which can negatively impact profit margins. Furthermore, price sensitivity affects both the consumer and commercial vehicle markets, as businesses involved in logistics and transportation may look for cost-effective tire options to minimize operating expenses, which places pressure on manufacturers to balance quality with affordability.

Supply Chain Disruptions

The tire industry is vulnerable to supply chain disruptions, which can impact the timely availability of raw materials, manufacturing processes, and distribution channels. The tire manufacturing process relies heavily on raw materials like natural rubber, synthetic rubber, and steel, which are often sourced from different parts of the world. Any disruption in the supply of these materials, such as from natural disasters, political instability, or global crises, can lead to significant delays in production and higher material costs. The reliance on global supply chains also exposes manufacturers to fluctuations in pricing due to changes in the availability of resources. These disruptions can lead to shortages in the tire market, affecting both consumers and businesses. As a result, manufacturers are focusing on improving their supply chain resilience through diversification of suppliers and investing in localized production facilities to mitigate these risks.

Environmental Concerns

Environmental issues surrounding tire disposal and recycling pose significant challenges to the tire market. Used tires, when not properly disposed of, can create environmental hazards such as landfill overflow and contamination of ecosystems. The lack of efficient recycling systems and infrastructure for used tires is a concern for both manufacturers and regulators. While some manufacturers have developed tire recycling programs, these solutions remain limited in scope. The challenge of managing tire waste has led to increasing pressure on governments to introduce stricter regulations and standards for tire disposal and recycling. As consumers and environmental organizations become more vocal about sustainability, tire manufacturers must find ways to reduce their environmental footprint. This includes using sustainable materials in tire production, improving the lifespan of tires to reduce waste, and developing innovative recycling methods. These challenges require tire manufacturers to balance consumer demand for affordable products with the growing need for environmentally responsible practices.

Key Market Trends

Sustainability and Eco-Friendly Tires

As environmental concerns continue to rise, tire manufacturers are increasingly focusing on sustainability. Eco-friendly tires made from renewable or recycled materials are becoming more popular among environmentally conscious consumers. Manufacturers are exploring the use of bio-based rubbers, which can reduce the environmental footprint of tire production. In addition, some companies are working on developing tires that are 100% recyclable, which could help alleviate the growing issue of tire waste. These green tires not only help reduce the carbon footprint of the transportation sector but also contribute to a circular economy by minimizing resource extraction and waste. Consumers are willing to pay a premium for tires that support sustainability, and this has led to an increased demand for eco-friendly tire options. The trend towards sustainability is pushing tire manufacturers to innovate and explore new materials, technologies, and practices that minimize their environmental impact while maintaining tire performance and safety.

Performance-Oriented Tires

Performance-oriented tires are in high demand, particularly in markets with a strong presence of sports cars and high-performance vehicles. Consumers are increasingly looking for tires that enhance vehicle handling, provide better braking performance, and offer greater stability at high speeds. Manufacturers are responding to this demand by developing tires specifically designed for performance vehicles, which require superior traction, reduced rolling resistance, and better responsiveness. These tires often feature specialized tread patterns and rubber compounds that are optimized for performance, ensuring that vehicles achieve maximum potential in terms of speed, safety, and efficiency. Performance tires also offer benefits such as improved fuel economy, especially in high-performance vehicles that typically consume more fuel. As the market for performance vehicles grows, so does the demand for performance-oriented tires that complement the advanced technology of these vehicles.

Retread Tires

Retread tires are gaining popularity, particularly in the commercial vehicle sector. Retreading involves replacing the worn-out tread on a used tire, extending its life and reducing the need for new tires. This cost-effective solution is appealing to businesses with large vehicle fleets, as retreaded tires offer a lower-cost alternative without sacrificing safety or performance. The retread process also helps reduce tire waste, making it a more environmentally friendly option compared to purchasing new tires. As businesses face increasing pressure to reduce operational costs, the demand for retreaded tires is expected to grow. Moreover, advancements in retreading technologies are improving the quality of retreaded tires, making them more durable and reliable. This trend is also supported by the increasing focus on sustainability in the transportation sector, as retreading helps minimize the environmental impact of tire production and disposal.

Segmental Insights

Tire Construction Type Insights

In 2024, the radial tire construction type was dominated the tire market in Bangladesh. Radial tires have become the preferred choice for both passenger vehicles and commercial vehicles due to their superior performance and durability. The radial design, where the tire’s cords are laid radially from the center, offers several advantages, including improved fuel efficiency, better handling, and enhanced ride comfort. This construction type allows for lower rolling resistance, which leads to reduced fuel consumption and longer tread life, making them particularly attractive to consumers and businesses seeking cost-effective and sustainable options.

The demand for radial tires has been on the rise as they are better suited to the evolving road infrastructure in Bangladesh. With the continuous improvement of road conditions and the increasing number of vehicles on the road, radial tires provide the necessary performance for modern vehicles. Their ability to handle higher speeds, offer better cornering stability, and provide enhanced safety features has made them a preferred choice for both new vehicle owners and those looking to replace tires. The durability and longevity of radial tires also contribute to their growing popularity, especially in urban areas where tire replacement is more frequent due to the higher number of vehicles in use.

In the commercial sector, radial tires are gaining significant traction in the trucking and logistics industries. Their ability to carry heavier loads while providing better traction on both highways and urban roads makes them an essential component of commercial vehicle fleets. As the logistics sector continues to grow, there is a stronger push for radial tires that can support long-distance hauling and provide better fuel efficiency, reducing the operational costs of commercial fleets. Furthermore, the increased consumer awareness of tire safety, fuel economy, and the long-term benefits of radial tires is driving their dominance in the market. As a result, the radial tire segment is expected to hold the largest market share in 2024, outpacing bias tires in terms of both volume and value.

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Region Insights

In 2024, Dhaka dominated the tire market in Bangladesh. As the capital and largest city, Dhaka served as the epicenter of the country’s economic activities, significantly influencing the tire market. With a population of over 20 million people, the city accounted for a substantial share of the national vehicle fleet, both personal and commercial. This large population base resulted in increased demand for vehicles, which drove the need for tires for new cars, replacements, and commercial vehicles, all of which contributed to the market’s growth.

Dhaka’s rapid urbanization played a crucial role in its market dominance. The city’s infrastructure development, including road expansions and improvements, created an environment that supported both passenger and commercial vehicles. As the road conditions improved, there was an increased need for high-quality, durable tires that could handle diverse driving conditions, from smooth highways to congested urban roads. The demand for replacement tires was also substantial as vehicles experienced more wear and tear due to heavy traffic and regular use.

The growth of the commercial sector in Dhaka was another major contributor. With the expansion of the logistics, transportation, and e-commerce industries, Dhaka saw a rise in the number of commercial vehicles, including trucks and delivery vans. This surge in commercial transport created a greater need for tires that could handle heavy loads, long distances, and high operational hours. The increase in cargo movement and transport-related activities significantly boosted the demand for durable and efficient tires.

In addition to the commercial sector, the growing middle class in Dhaka contributed to a rise in personal vehicles. The increase in disposable incomes and access to financing options made it more affordable for people to purchase cars, further increasing the demand for passenger vehicle tires. This rising affluence and vehicle ownership in Dhaka resulted in higher tire sales, both for new vehicles and replacements.

With its growing population, expanding economy, and improving infrastructure, Dhaka remained the dominant region in Bangladesh for the tire market in 2024. The demand across both the passenger and commercial vehicle sectors, coupled with the city’s central role in trade and commerce, ensured its position as the leader in tire consumption.

Recent Developments

• In 2024, Meghna Innova Rubber Company Ltd, a subsidiary of Meghna Group, has launched the production of bus and truck tires in Tangail with a Tk1,300 crore investment. The company aims to meet most of Bangladesh's demand for 15-inch to 20-inch bias tires within six months, reducing reliance on imports. 80% of the investment went into machinery, creating 300 jobs, with plans to increase total investment to Tk2,100 crore and add 100 more jobs by next year.
• In 2024, Tyre makers in Bangladesh are increasing production to fill the gap left by the closure of Gazi Tyres' factory, which previously met a large portion of the country's demand. Major manufacturers like Meghna Group, Rupsha Tyres, and others are ramping up capacity, with Meghna planning to meet 70-80% of the demand for small tyres. The tire industry in Bangladesh is focusing on increasing production to meet rising demand for two and three-wheeler tires, while also addressing a significant supply shortage due to Gazi Tyres' absence.
• In November 2024, Bangladesh and Pakistan achieved a significant trade milestone by establishing a direct maritime connection between their ports. A cargo ship from Karachi, Pakistan, arrived at the port of Chattogram, Bangladesh, marking the first-ever direct shipping link between the two nations. This development is expected to streamline trade operations, reduce transportation costs, and enhance bilateral economic relations. The direct route is anticipated to facilitate the movement of goods such as textiles, agricultural products, and raw materials, benefiting industries in both countries.
• In 2024, Omega Seiki Mobility is set to establish an electric vehicle (EV) manufacturing plant in Bangladesh with an investment of 100 crore, marking its first international project. The plant, located near Dhaka, will focus on manufacturing two-wheelers, three-wheelers, and electric bicycles, with plans to eventually localize production in Bangladesh. The project will also support exports, taking advantage of Bangladesh's zero-tax policy for exports to 39 countries. The company aims to contribute to the growing EV market in Bangladesh, with technology transfer from India and a future vision for full localization.

Key Market Players

• Apollo Tyres Limited
• Bridgestone Corporation
• CEAT Limited
• Continental AG
• JK Tyre & Industries Limited 
• Michelin
• MRF Limited  
• The Goodyear Tire & Rubber Company
• Zhongce Rubber Group Co., Ltd.
• Yokohama Rubber Company Limited

Report Scope:

In this report, the Bangladesh Tire Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         Bangladesh Tire Market, By Vehicle Type:

o   Passenger Cars

o   Commercial Vehicles

o   Two-Wheelers

·         Bangladesh Tire Market, By Tire Construction Type:

o   Radial

o   Bias

·         Bangladesh Tire Market, By Demand Category:

o   OEM

o   Replacement

·         Bangladesh Tire Market, By Region:

o   Barishal

o   Chattogram

o   Dhaka

o   Khulna

o   Rajshahi

o   Rangpur

o   Mymensingh

o   Sylhet

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Bangladesh Tire Market.

Available Customizations:

Bangladesh Tire Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

Detailed analysis and profiling of additional market players (up to five).

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