Connected Tire Market Growth Opportunities and Market Forecast 2025-2033: A Strategic Analysis

Connected Tire Market Report

Key Insights

The size of the Connected Tire Market  was valued at USD 8.7 million in 2023 and is projected to reach USD 117.25 million by 2032, with an expected CAGR of 45% during the forecast period. The connected tire market involves the development of tires equipped with sensors and communication technologies that allow for real-time monitoring and data sharing between the tire, vehicle, and external systems. These smart tires provide crucial data such as tire pressure, temperature, wear, and road conditions, which can be accessed by drivers, fleet managers, and maintenance teams. The market is driven by factors such as growing safety concerns, the rise of electric and autonomous vehicles, and a need for better vehicle performance. Innovations in this space include the integration of advanced sensors, cloud-based data platforms, and the application of Artificial Intelligence (AI) to predict tire maintenance needs. Research is focused on improving sensor durability and accuracy, expanding connectivity features, and better integrating with other vehicle systems like advanced driver assistance systems (ADAS). However, the market faces challenges such as the high cost of sensor technology, the complexity of ensuring compatibility with different vehicle models and tire brands, and data security risks. Additionally, limited infrastructure and the need for global standardization slow adoption. Despite these challenges, the connected tire market is expected to grow as the demand for enhanced safety and performance in vehicles rises.

Connected Tire Market Concentration & Characteristics

The Connected Tire Market exhibits moderate concentration, with leading players such as Continental AG, Michelin, and Bridgestone Corporation holding significant market shares. Innovation remains a key characteristic, fueled by technological breakthroughs and the need to enhance tire performance and safety. Government regulations mandating tire monitoring systems act as a major growth driver. The market is influenced by the presence of product substitutes, like traditional tires, and the concentration of end-users in the automotive industry. Strategic mergers and acquisitions are a common trend as companies strive to consolidate their positions and broaden their product portfolios.

Connected Tire Market Trends

The Connected Tire Market is witnessing several key trends:

• Increasing Adoption of TPMS (Tire Pressure Monitoring Systems): TPMS is becoming increasingly common as governments mandate their use to enhance safety and prevent accidents.
• Integration with Advanced Driver-Assistance Systems (ADAS): Connected tires are being integrated with ADAS to provide real-time tire data, improving vehicle stability and control.
• Growing Demand for Electric Vehicles (EVs): The rise of EVs is driving the demand for connected tires specifically designed for electric vehicles, optimizing performance and range.
• Customer-Centric Innovations: Manufacturers are focusing on customer convenience by developing connected tires with features such as remote tire pressure monitoring and predictive maintenance alerts.

Key Region or Country & Segment to Dominate the Market

North America and Europe are the dominant regions in the Connected Tire Market, driven by advanced vehicle technologies and stringent safety regulations. China is emerging as a major growth market due to its large automotive sector and increasing demand for connected technologies.

In terms of segments, the Passenger Car Vehicle Type segment is expected to dominate the market, followed by the Commercial Vehicle segment. TPMS is the leading component segment due to its regulatory mandates and safety benefits.

Driving Forces: What's Propelling the Connected Tire Market

• Enhanced Safety and Accident Prevention
• Reduced Fuel Consumption and Emissions
• Improved Vehicle Performance and Handling
• Technological Advancements and Data Analytics
• Government Regulations and Safety Mandates

Challenges and Restraints in Connected Tire Market

• High Cost and Complexity of Connected Tires
• Cybersecurity Concerns and Data Privacy Issues
• Regulatory Compliance Challenges
• Dependence on Advanced Vehicle Technologies
• Limited Availability and Consumer Awareness

Emerging Trends in Connected Tire Market

• Predictive Maintenance and Tire Health Monitoring
• Integration with Autonomous Driving Systems
• Tire-to-Cloud Communication and Data Analytics
• Expanding Role of Artificial Intelligence (AI)
• Sustainability and Energy-Efficient Tires

Market Segmentation: Connected Tire

Rim Size:

• 12 - 17 Inches
• 18 - 22 Inches
• More Than 22 Inches

Component:

• TPMS
• Accelerometer Sensors
• Strain Gauge Sensors
• RFID Chips

Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Propulsion:

• ICE
• Electric

Sales Channel:

• Aftermarket
• OEM

Connected Tire Industry News

April 2022: Nexteer Automotive and Tactile Mobility collaborate to introduce a software solution that enhances vehicle health management, safety, and performance by integrating with the vehicle's steering system and detecting changes in road surfaces and tire conditions.

Leading Players in the Connected Tire Market

• Continental AG
• Michelin
• Bridgestone Corporation
• The Goodyear Tire & Rubber Company
• Pirelli & C. S.p.A.
• Nokian Tyres plc
• Sumitomo Rubber Industries Ltd.