Connected Tires Market

[225 Pages Report] The global Connected Tires Market is projected to grow from USD 4 million in 2023 to USD 54 million by 2028, registering a CAGR of 67.1%. New technological trends are shaping the market. One of the most notable is the emergence of 5G connectivity, which promises faster data transfer speeds and more reliable connections. This technology could enable real-time monitoring of tire data, even at high speeds, and allow for more advanced analytics and predictive maintenance. The Internet of Things (IoT) is increasingly integrated into connected tires systems, allowing seamless communication between tires and other devices, such as vehicles, smartphones, and cloud-based analytics platforms. These developments will likely drive innovations in the connected tires market and make them more valuable for consumers and businesses.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Connected Tires Market Dynamics:

Driver: Increase demand for vehicle safety

One of the primary drivers of the connected tires market is the increasing demand for vehicle safety. There is a growing awareness of the importance of tire health, performance, and safety due to the increasing number of road accidents every year. Connected tires provide real-time data on tire pressure, temperature, tread depth, and other metrics, allowing drivers and fleet operators to identify potential issues before they become dangerous. Advancements in technology play a key role in the growth of the market. With the emergence of the Internet of Things (IoT) and 5G connectivity, connected tires can communicate wirelessly with other devices, such as vehicles, smartphones, and cloud-based analytics platforms, allowing for real-time monitoring and advanced analytics. Tire manufacturers are investing in R&D to create new materials, designs, and sensors to enhance tire performance and safety.

Restraint: High cost of connected tire technology

Connected tires systems require various sensors and communication technologies, which can add significant costs to the overall vehicle price. As a result, many consumers may hesitate to invest in these systems, particularly in markets with high price sensitivity. Fleet operators may be concerned about the return on investment of connected tire systems, particularly if they operate in industries with low margins. Another significant restraint on the connected tires market is data privacy and cybersecurity concerns. As connected tire systems transmit sensitive data about vehicle performance, location, and driver behavior, legitimate concerns exist about how this data is collected, stored, and used. Consumers may hesitate to adopt connected tire systems if they are not confident that their data is being handled securely and ethically. Additionally, fleet operators may be concerned about the potential for cyberattacks that could compromise the safety of their vehicles and drivers.

Opportunity: Increased Acceptance of Connected Mobility

The widespread acceptance of connected mobility represents a tremendous opportunity for the connected tires market. As the concept of smart vehicles gains traction, there is a growing demand for tires that can seamlessly integrate with the Internet of Things (IoT). Connected tires offer a range of benefits, including real-time monitoring of tire performance, accurate pressure and temperature readings, and predictive maintenance insights. These features not only enhance safety but also optimize fuel efficiency and extend tire lifespan. With the increasing focus on intelligent transportation systems, the market is poised for significant growth, driven by the need for advanced tire technologies in the era of connected mobility.

Challenge: Lack of Standardization

The lack of standardization poses a significant challenge for the connected tires market. With various tire manufacturers and automotive companies developing their own proprietary technologies, interoperability and compatibility issues arise. The absence of standardized protocols and communication systems hampers the seamless integration of connected tires across different vehicles and platforms. This lack of standardization also affects data sharing and interoperability among various stakeholders, limiting the potential for collaboration and innovation. To overcome this challenge, industry players, regulatory bodies, and technology organizations need to work together to establish common standards and protocols that ensure interoperability, compatibility, and data security, fostering the widespread adoption and growth of connected tires in the market.

Connected Tires Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of Tires and OEMs. These companies have been operating in tires for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Bridgestone (Japan), Michelin (France), Goodyear (US), Continental AG (Germany), and Pirelli (Italy).

Based on Vehicle Type, Passenger Cars is expected to have significant market share during forecast period

Passenger cars (PCs) are designed primarily for the transportation of passengers. They are widely used for personal transportation, and their demand is expected to increase due to urbanization, rising disposable incomes, and changing lifestyles. Passenger cars are one of the key segments, accounting for a significant share of the market. The increasing adoption of advanced safety features, the growing popularity of electric vehicles, and the rise of connected car technologies drive the demand for connected tires in passenger cars. Connected tires in passenger cars offer a range of benefits, such as improved safety, enhanced fuel efficiency, and reduced emissions. For instance, connected tire sensors can provide real-time information on tire pressure and temperature, allowing drivers to take corrective action to prevent accidents and ensure optimal performance.

Connected tires can help reduce fuel consumption and emissions by optimizing tire pressure and rolling resistance. This can significantly impact the environment, as passenger cars are a major contributor to air pollution and greenhouse gas emissions. The use of advanced sensors and materials and the integration of artificial intelligence and machine learning drive innovation in the connected tires market for passenger cars. The increasing use of cloud-based platforms and mobile applications for remote monitoring and maintenance brings opportunities for market players.

Accelerometer Sensor is fast growing segment during the forecast period

Accelerometer sensors are becoming increasingly important in the connected tire market. These sensors are used to measure tire performance metrics such as tire deformation, vibration, and shock. The data generated by these sensors can be used to optimize tire design and improve vehicle safety, performance, and fuel efficiency. The system can detect and analyze data such as road roughness, potholes, and cracks, allowing drivers to adjust their driving behavior and improve vehicle safety. As the demand for connected tires with advanced sensing capabilities continues to grow, the market for accelerometers is expected to experience significant growth in the coming year.

12-17 Inches Segment to witness significant growth rate during the forecast period

The market for the 12–17 inches segment is expected to be driven by the increasing demand for advanced safety features in vehicles, including tire monitoring systems. The growth of electric vehicles is also expected to fuel demand for connected tires, as they require more precise and efficient monitoring systems. The trend of connected cars is a significant driver of growth, creating a need for real-time vehicle data analysis and monitoring. For instance, Continental's CARE system uses sensors to monitor tire pressure, temperature, and other critical parameters in real time, providing drivers with immediate alerts and recommendations for maintenance. ContiConnect is a tire monitoring system that can contribute to the optimization of tire performance. This system utilizes sensors embedded in the wheels of vehicles to monitor the pressure and temperature of every tire remotely. The data collected is analyzed and interpreted for the entire fleet, allowing for the prevention of tire-related breakdowns and increasing vehicle uptime. Real-time status updates and alerts generated by the rise in system productivity reduce maintenance requirements and save costs for fleet owners.

AI fleet management systems are expected to improve decision making by taking better routes to avoid traffic, predicting hazards more accurately, and effectively diagnosing and resolving maintenance issues. Increased efficiency provided by these systems can lead to reduced emissions and more fuel-efficient driving, enhancing the sustainability of entire fleets. Data-driven optimization can help prevent accidents by detecting slow leaks and underinflated tires, particularly in shared vehicles with multiple users who may not regularly check tire pressure.

Asia Pacific to be the largest market by volume during the forecast period

Asia Pacific is estimated to account for the largest market share by 2028, followed by North America and Europe. China is the leading country in the region, with a large number of vehicle sales and a growing demand for connected tires. Countries like China, India, and Japan are expected to drive growth in this region. They are home to some of the world's leading tire manufacturers, such as Bridgestone, Michelin, and Goodyear. In addition, increasing government initiatives to promote the adoption of connected mobility solutions are also expected to contribute to the growth of this market in the region. The Asia Pacific region is witnessing a significant increase in the production of electric vehicles, which is further expected to boost the demand for connected tires with features such as tire pressure monitoring systems and real-time data analysis capabilities. As people in the region become more aware of the benefits of new technologies, including increased safety and performance, they are becoming more willing to adopt these innovations. Economic growth and rapid urbanization have also increased the number of vehicles on the road, creating a prospective market for connected tires.

Key Market Players

The connected tires market is dominated by major tire manufacturers, including Bridgestone (Japan), Michelin (France), Goodyear (US), Continental AG (Germany), and Pirelli (Italy). They develop tires and provide tire related services for different vehicle type. They have initiated partnerships to develop their Connected tires technology and provide products and services to their respective customers for the market.

Want to explore hidden markets that can drive new revenue in Connected Tires Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the Connected Tires market based on Offering, Propulsion, Rim Size, Sales Channel, Vehicle Type, Component and Region

Based on Offering:

• Hardware
• Software

Based on Propulsion:

• Electric
• ICE

Based on Rim Size:

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

Based on Sales Channel:

• OEM
• Aftermarket

Based on Component:

• TPMS
• Accelerometer sensors
• Strain gauge sensors
• RFID chips
• Other sensors

Based on Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Based on the Region:

• Asia Pacific (APAC)
  • China
  • India
  • South Korea
  • Japan
  • Thailand
  • Rest of ASIA Pacific
• North America (NA)
  • US
  • Canada
  • Mexico
• Europe (EU)
  • France
  • Germany
  • Spain
  • UK
  • Turkey
  • Russia
  • Italy
  • Rest of Europe
• Rest of the World (RoW)
  • South Africa
  • Brazil
  • Other Countries

Recent Developments

• In March 2023, Continental AG showcased its digital tire management system, Conti Connect 2.0. The system enables fleet managers to monitor tire condition continuously, saving fuel and reducing CO2 emissions. This monitoring feature helps prevent early tire replacements and unscheduled downtime, resulting in better operational efficiency for fleets.
• In December 2022, Bridgestone showcased its vision for sustainable mobility at CES 2023. The company displayed a range of innovative technologies that aim to reduce carbon emissions, improve fuel efficiency and enhance safety on the road.
• In June 2022, Hyundai Motor Group and Michelin have partnered to develop next-generation tires for premium electric vehicles (EVs). The collaboration aims to address the challenges of optimizing tire performance for EVs, such as reducing rolling resistance to maximize range and improving noise and vibration characteristics. The partnership explored the use of sustainable materials for tire production. The two companies plan to conduct joint R&D and test the new tires on Hyundai Motor Group's EVs. The ultimate goal is to foster clean mobility and contribute to the transition to a low-carbon society.
• In October 2022, Pirelli invested USD 121.63 million in its plant in Silao, Mexico. The investment is part of its strategic plan to strengthen its industrial presence in the Americas and improve its competitiveness in the global tire market. The investment is used to expand and modernize the Silao plant, which produces high-performance tires for cars and light trucks. The plant is equipped with new production technologies, such as automated warehouses and robots, to increase efficiency and reduce costs. The expansion will also create new job opportunities for the local community. Pirelli's investment in the Silao plant is expected to enhance its production capacity, improve product quality, and support sustainable growth.
• In February  2022, Bridgestone Corporation has developed tire-sensing technology to detect real-time road conditions. Using advanced sensors and AI, it provides drivers with information about temperature, wetness, and slipperiness. The technology results from Bridgestone's investment of approximately USD 223 million and will be commercialized in 2024, enhancing tire safety and performance.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst