Connected Tires Market: Global Industry Analysis and Forecast (2023 -2029)

The Connected Tires Market size is valued at US$ 19.34 Billion and is forecasted to grow at a CAGR of 58.5% from 2023 to 2029, reaching nearly US$ 486.03 Billion

The connected tires market refers to the incorporation of advanced technologies and connectivity features into automotive tires. These smart tires utilize sensors, microchips, and wireless communication capabilities to gather and transmit real-time data on tire pressure, temperature, tread wear, and overall tire health. The global connected tires market was valued at USD 19.34 billion in 2022 and is projected to reach USD 486.03 billion by 2028, with a CAGR of 58.5%.
Connected Tires Market Snapshot
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The market is driven by the increasing adoption of connected and autonomous vehicles, growing awareness about tire safety and performance optimization, advancements in tire sensor technologies and wireless connectivity, and a focus on predictive maintenance and real-time monitoring in fleet management. The market is segmented based on vehicle type, connectivity technology, application, and end-user. North America currently holds the largest market share, but the Asia Pacific region is expected to witness significant growth. The market is highly competitive, with key players investing in R&D, collaborations, and partnerships. The future outlook of the connected tires market is promising, with advancements in technology, increasing demand for intelligent vehicles, and evolving regulations driving its growth.

Report includes market analysis, forecasts, industry segmentation and competitive analysis of top Connected Tires manufacturers. The Report also emphasises on sustainability, innovation and consumer preferences, offering global outlook with trends, drivers, challenges and opportunities. It will help industry stakeholders (manufacturers, distributors, retailers, investors) make informed decisions and capitalise on Connected Tires market opportunities.
Connected Tires Market Dynamics
Market Drivers:

Increasing Adoption of Connected and Autonomous Vehicles: The rising demand for connected and autonomous vehicles is a significant driver for the connected tires market. As vehicles become more intelligent and reliant on data-driven systems, the need for real-time tire monitoring and optimization grows. For instance, Tesla's Autopilot system incorporates tire pressure monitoring and alerts to ensure optimal safety and performance.
Emphasis on Tire Safety and Performance Optimization: Tire safety and performance are critical factors for vehicle owners, fleet operators, and regulatory bodies. Connected tires enable real-time monitoring of parameters such as tire pressure, tread wear, and temperature. This helps prevent accidents caused by underinflated tires, optimizes fuel efficiency, and extends tire lifespan. As a result, there is increasing awareness and emphasis on tire safety and performance optimization, driving market growth.
Advancements in Tire Sensor Technologies and Wireless Connectivity: Technological advancements have led to the development of more sophisticated tire sensors and improved wireless connectivity options. For example, companies like Michelin have introduced advanced tire sensors that can monitor multiple tire parameters simultaneously. Additionally, the evolution of wireless communication technologies like 5G enables seamless data transmission between tires and connected devices.

Market Restraints:

High Implementation Costs: The integration of advanced technologies into tires comes with associated costs, including sensor installation, connectivity modules, and data analytics infrastructure. These costs can be a barrier, especially for budget-conscious consumers or fleet operators with large vehicle fleets. However, as technology matures and economies of scale are realized, the cost of connected tires is expected to decrease, alleviating this restraint over time.
Lack of Industry Standards and Interoperability: The absence of standardized protocols and interoperability among different tire manufacturers and vehicle systems poses a challenge to the connected tires market. For seamless integration and data exchange, industry-wide standards need to be established. Initiatives such as the Global Platform for Sustainable Natural Rubber are working towards developing global standards for tire traceability and sustainability, promoting collaboration among stakeholders.

Market Opportunities:

Predictive Maintenance and Remote Diagnostics: Connected tires provide an opportunity for predictive maintenance and remote diagnostics, enabling proactive identification of tire issues and timely maintenance. This can result in cost savings, improved vehicle uptime, and enhanced operational efficiency for fleet operators. For example, Bridgestone's Tirematics solution offers real-time tire data, predictive maintenance insights, and remote diagnostics capabilities.

Fleet Management and Optimization: Connected tires offer extensive benefits for fleet management, such as remote monitoring of tire conditions, automated maintenance scheduling, and efficient tire replacements. This can help fleet operators reduce downtime, optimize tire performance, and enhance overall operational efficiency. Government initiatives promoting electric and connected fleets, such as the European Green Deal's focus on sustainable mobility, present opportunities for connected tire solutions.

Market Challenges:

Data Security and Privacy Concerns: The connectivity of tires introduces potential cybersecurity risks, including unauthorized access to sensitive vehicle and tire data. Manufacturers and technology providers need to prioritize robust data security measures to ensure the privacy and integrity of the information transmitted between tires and connected systems. Recent data breaches in the automotive sector highlight the need for stringent cybersecurity practices.
Integration Complexity and Retrofitting Challenges: Retrofitting existing vehicles with connected tire technologies can be challenging, particularly for older vehicle models or those without built-in connectivity features. Integration complexities may arise due to differences in vehicle architectures, tire sizes, or compatibility issues. Manufacturers and service providers need to develop seamless integration solutions to address these challenges.
Connected Tires Market Segmentation:
Based on Sales Channel, The Connecting Tires Market is segmented into original equipment manufacturers (OEMs) and the aftermarket. OEMs hold a significant market share as tire manufacturers establish direct partnerships with automobile manufacturers to supply tires for new vehicles. As automotive manufacturers strive to deliver vehicles with superior performance and safety, they rely on OEMs to provide high-quality tires that meet their specifications. On the other hand, the aftermarket segment is also experiencing substantial growth. This growth can be attributed to tire replacements and upgrades, as vehicle owners seek to enhance the performance or aesthetics of their vehicles. The aftermarket segment presents opportunities for tire retailers and service providers to cater to the growing demand for tire replacements and customization. While both segments play crucial roles in the Connecting Tires Market, the aftermarket segment is widely used and has the potential to further expand in the future. As the global vehicle parc continues to grow, the need for tire replacements and upgrades is expected to rise, driving the aftermarket segment's growth prospects.

Based on Rim Size, The Connecting Tires Market is segmented into 13-15 inches, 16-18 inches, 19-21 inches, and above 21 inches. The market is witnessing a growing demand for larger rim sizes, primarily driven by the increasing preference for sporty and luxury vehicles among consumers. Sporty and high-performance vehicles often feature larger rims to enhance their aesthetics and improve handling capabilities. Additionally, the trend of vehicle customization has contributed to the demand for larger rim sizes as owners seek to personalize their vehicles and create a unique look. Among the different rim sizes, the 16-18 inches segment is widely used and has the potential to grow in the future. This size range strikes a balance between sportiness and practicality, appealing to a broad range of vehicle owners. Furthermore, with the ongoing rise in the production and popularity of sporty and premium vehicles, the demand for 16-18-inch rims is expected to continue growing, making it a key segment in the Connecting Tires Market.

Based on Vehicle Type, The Connecting Tires Market is segmented into passenger cars, commercial vehicles, off-road vehicles, and two-wheelers. Among these segments, passenger cars hold the largest market share due to the high volume of passenger car sales globally. The increasing urbanization, rising disposable income, and changing lifestyles have led to a surge in the demand for personal transportation, driving the growth of passenger car tires.

However, commercial vehicles, including trucks and buses, are experiencing steady growth in the market. This growth can be attributed to the expansion of logistics and transportation activities globally, driven by e-commerce, trade, and industrial development. Commercial vehicles require robust and durable tires to withstand heavy loads and long-distance travel, creating a substantial demand for commercial vehicle tires. While passenger cars currently dominate the market, the commercial vehicle segment has the potential to grow significantly in the future. With the continuous growth of e-commerce and global trade, the demand for commercial vehicles is expected to rise, driving the need for high-quality tires to support the transportation industry's requirements.

Based on Propulsion Type, The connected tires market is segmented into electric vehicles and internal combustion engine vehicles. Electric vehicles are expected to be the fastest-growing segment, owing to the increasing demand for connected tires in electric vehicles to monitor tire pressure and temperature, and to provide real-time data to the vehicle's onboard computer.
Connected Tires Regional Analysis:
The connected tires market exhibits regional variations influenced by factors such as government initiatives, infrastructure development, technological advancements, and consumer preferences. Currently, North America holds the highest market share due to several factors. The region's strong automotive industry, early adoption of connected and autonomous vehicles, and robust technological infrastructure contribute to its dominance. Moreover, government initiatives in North America, such as the United States Department of Transportation's Smart City Challenge and investments in smart infrastructure, support the growth of the connected tires market. Additionally, the presence of key market players and their focus on research and development activities further strengthens North America's market position.
Looking ahead, the Asia Pacific region is expected to lead the connected tires market in the near future.

The region's increasing urbanization, expanding automotive sector, and rising disposable income contribute to market growth. Government initiatives promoting smart cities and intelligent transportation systems in countries like China and India are driving the demand for connected vehicles and, consequently, connected tires. For instance, the Chinese government's "Made in China 2025" initiative aims to enhance the country's manufacturing capabilities, including in the automotive sector, fostering the adoption of connected technologies. Additionally, the rapid development of infrastructure, including 5G networks, provides a conducive environment for the proliferation of connected tire solutions in the Asia Pacific region.
Connected Tires Market Scope: Inquire Before Buying



Global Connected Tires Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 19.34 Bn.


Forecast Period 2023 to 2029 CAGR:
58.5%
Market Size in 2029:
US $ 486.03 Bn.


 Segments Covered:
by Sales Channel
OEM
Aftermarket


by Rim Size
13-15 inches
16-18 inches
19-21 inches
Above 21 inches


by Vehicle Type
Passenger cars
Commercial vehicles
Off-road vehicles
Two-wheelers


by Propulsion type
Electric vehicles
Internal combustion engine vehicles



Connected Tires Market, by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, Turkey, Russia and Rest of Europe)
Asia Pacific (China, India, Japan, South Korea, Australia, ASEAN and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina, Columbia and Rest of South America)
Connected Tires Key Players
The following Connected Tires Companies are the key players in the market and are selected based on criteria for further evaluation. The strategies followed by the companies to sustain and grow in the market are discussed in detail in the report

1. Bridgestone Corporation
2. Michelin
3. Continental AG
4. Pirelli & C. S.p.A
5. Goodyear Tire and Rubber Company
6. Sumitomo Rubber Industries, Ltd.
7. Hankook Tire & Technology Co., Ltd.
8. Yokohama Rubber Co., Ltd.
9. Giti Tire Corporation
10. Kumho Tire Co., Inc.
11. Toyo Tire Corporation
12. Nokian Tyres plc
13. Cooper Tire & Rubber Company
14. Apollo Tyres Ltd.
15. MRF Limited
16. Nexen Tire Corporation
17. CEAT Limited
18. Maxxis International
19. Falken Tire Corporation
20. BKT (Balkrishna Industries Limited)
21. Triangle Group Co., Ltd.
22. GT Radial (Giti Tire Global Trading Pte. Ltd.)
23. Double Coin Holdings Ltd.
24. Linglong Tire Co., Ltd.
25. Alliance Tire Group (ATG)
FAQs
1. How big is the Connected Tires Market?
Ans: Connected Tires Market was valued at USD 19.34 billion in 2022.

2. What is the growth rate of the Connected Tires Market?
Ans: The CAGR of the Connected Tires Market is 58.5%.

3. What are the segments of the Connected Tires Market?
Ans: There are primarily 5 segments – Sales channels, Rim size, Vehicle type, Propulsion type and Geography for the Connected Tires Market

4. Which region has the highest market share in the Connected Tires Market sector?
Ans: North America has the highest market share in the Connected Tires Market sector.

5. Is it profitable to invest in the Connected Tires Market?
Ans: There is a fair growth rate in this market and there are various factors to be analyzed like the driving forces and opportunities of the market which have been discussed extensively in Maximize’s full report. That would help in understanding the profitability of the market.