Why Indonesia is a must-do market for tyre & rubber business now?
The global tyre market is primarily driven by the significant growth in the automotive sector. According to IMARC – the market analysts, 2019 is worth 3.2 billion units and will experience an increase of about 3.9 billion units by 2024. The market is expected to reach a volume of 4.0 billion units by 2025, growing at a CAGR of 3.7%.
The Indonesian tire market is divided into categories including passenger vehicles, buses, trucks, off-road mining equipment, and two-wheeled vehicles. The two-wheeled vehicle segment currently dominates in revenue and is expected to experience substantial growth throughout the forecast period.
Based on 6Wresearch, Indonesian tire market size is projected to grow at a CAGR of 9.8% during 2019 – 2025. The two-wheeler segment occupies the largest share of the market, and this pattern is expected to remain throughout the forecast period. Then, following by three-wheeler tire such as passenger car tires, OTR tires, and the other commercial vehicles.
According to MarkNtel Advisors, Indonesian two-wheeler tire market was valued at around USD 43.94 billion in 2023 and is estimated to grow at a CAGR of about 6.55% during the forecast period 2024 – 2030.