Indonesia Commercial Vehicle Tire Market, By Region, By Competition, Opportunities & Forecast, 2020-2030F

The Indonesia Commercial Vehicle Tire Market was valued at USD 4.20 Billion in 2024, and is expected to reach USD 5.27 Billion by 2030, rising at a CAGR of 3.86%. The Indonesia commercial vehicle tire market is experiencing significant growth due to the expanding transportation and logistics sectors. As Indonesia’s economy continues to develop, the demand for both freight and passenger transport services is increasing. A surge in infrastructure projects, such as road construction and urbanization, is further contributing to the need for more commercial vehicles. As more vehicles hit the roads, tire replacement and new tire demand also rise, making the tire market essential to supporting the growing commercial fleet. The development of e-commerce and increased delivery services is another key driver, as companies look to expand their fleets for efficient supply chain management.

The tire market is also seeing innovation through trends like the adoption of advanced technologies in tire manufacturing. The rise of smart tires, which can monitor pressure, temperature, and tread wear, is transforming the way tires are used and maintained. This innovation allows businesses to reduce maintenance costs and enhance vehicle performance, making them an attractive option for fleet operators. Moreover, sustainability is becoming a more significant focus, with a growing shift toward eco-friendly tires that are made from sustainable materials and contribute to reduced fuel consumption. These technological and environmental trends are opening up new opportunities for tire manufacturers to meet the demands of both commercial vehicle owners and regulators focused on green initiatives.

However, challenges remain that could affect the market's growth. The volatility of raw material prices, such as rubber and oil, can cause fluctuations in tire production costs, putting pressure on manufacturers. Furthermore, there is intense competition in the tire industry, which often results in price wars and reduced profit margins. Rising fuel prices and fluctuating demand for commercial vehicles in certain sectors also contribute to market uncertainty. Despite these challenges, the Indonesia commercial vehicle tire market is poised for steady growth, driven by the continuous expansion of transportation needs, technological advancements, and sustainability efforts. These factors are expected to fuel the market’s development in the coming years.

Market Drivers

Growth in E-commerce and Logistics

The rapid expansion of e-commerce in Indonesia has created a surge in demand for delivery and logistics services. Commercial vehicles, especially light commercial vehicles (LCVs), are crucial for last-mile delivery, which is growing rapidly as businesses strive to meet the increasing consumer demand for fast shipping. The expansion of warehouses and distribution centers across the country has led to a greater need for commercial vehicles to facilitate efficient delivery services, thereby driving the tire market. For instance, In January 2024, the International Trade Association reported that Indonesia led the ASEAN countries in e-commerce business revenue, generating USD 51.9 billion, equivalent to approximately IDR 778.8 trillion, in 2022. The total e-commerce revenue across ASEAN for the same year amounted to USD 99.5 billion, indicating that Indonesia's e-commerce sector accounted for 52% of the overall revenue.

Key Market Challenges

Volatility of Raw Material Prices

The commercial vehicle tire market in Indonesia faces significant challenges related to the volatility of raw material prices. Key materials like rubber and oil often experience price fluctuations, which affect production costs for tire manufacturers. This volatility can result in price hikes for tires, impacting both businesses and consumers, as well as creating uncertainties in the market.

Key Market Trends

Increased Demand for Affordable Tire Solutions

As Indonesia’s economy continues to grow, small and medium-sized enterprises (SMEs) are increasing their presence in various industries. These businesses often rely on commercial vehicles for transportation and logistics. In response to this growing demand, there is a noticeable shift toward affordable and cost-effective tire solutions in the market. Manufacturers are producing tires that provide a balance between price, quality, and performance to cater to businesses with tighter budgets, creating a strong market for budget-friendly tires.

Key Market Players

• 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

Report Scope:

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

Indonesia Commercial Vehicle Tire Market, By Vehicle Type:

• Light Commercial Vehicle
• Medium Commercial Vehicle
• Heavy Commercial Vehicle

Indonesia Commercial Vehicle Tire Market, By Application:

• Construction
• Mining
• Agriculture
• Transport
• Others

Indonesia Commercial Vehicle Tire Market, By Demand Category:

• OEM
• Replacement

Indonesia Commercial Vehicle Tire Market, By Region:

• Java
• Sumatra
• Sulawesi
• Kalimantan
• Rest of Indonesia

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Indonesia Commercial Vehicle Tire Market.

Available Customizations:

With the given market data, the publisher 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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