Connected Tire Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Connected Tire Market Data

Connected Tire Market Analysis

The connected tire market achieved revenue of USD 3,963.2 million in 2023, and it is expected to grow at a rate of 67.4% during 2024–2030, reaching USD 145,357.4 million by 2030.

The increasing use of connected cars, autonomous/automated driving, shared, and electric (CASE) mobility raises the demand for connected tires. This market is also growing due to the quick adoption of this technology by major tire companies, such as Bridgestone Corporation and Michelin. The use of this technology increases the safety of users. Tires and rubber manufacturers are continuously investing in R&D to produce innovative solutions for connected tires and meet customers’ demands for high-performance vehicles.

In addition, the increasing speed of the internet benefits this market because it provides a high data transfer rate and a more-reliable connection. Due to this, there is better transmission of data to centralized systems for examination, enabling the immediate detection of any faults and sending of warnings to vehicle users or fleet managers.

Further, environmental concerns grow, the players are taking steps to ensure environmental protection. This includes reducing energy consumption, using less harmful material in the tires, and utilizing technologies that can reduce vehicles’ fuel consumption. The increasing involvement of IoT in this space increases the strength of communication between tires and centralized systems.

Connected Tire Market Trends & Drivers

Smart and Connected Vehicles Are Key Trend

• Connected tires provide real-time information about their operational conditions to a central control room via the internet, which helps to reduce fuel use and reduces the force that opposes motion.
• This technology uses sensors to provide remote monitoring and maintenance assistance. These sensors, which are integrated into the tires themselves, collect real-time information about various parameters, including temperature, tire pressure, and road conditions. Based on this, the embedded software optimized driving to ensure the tires can be used for as long as possible, this lowering maintenance expenses.
• Connected cars provide access to various services such as music, news updates, radio and WhatsApp notifications which help to improve the user experience.

Increasing Demand for Safety in Vehicles Is Main Driver

• As the number of accidents is increasing every year, the demand for safety features is risings. This technology provides real-time information about the speed of the vehicle, tire pressure, temperature, and other operational parameters, allowing users to take action to stop problems from happening, rather than responding to them.
• The continuous advancements in technology help make vehicles safer. With the enhancement in IoT and 5G services, connected tires are able to send real-time data to the owner without any delay or interruption. This enables the monitoring of the vehicle in real-time, which alerts drivers of a potential issue.
• Many market players are focusing on R&D to increase the quality of the materials, tire design, and sensor performance, in order to improve tire lifespan and safety.
• By using this technology in vehicles, tire pressure and temperature can be continuously monitored. By using historical and present data, tire functioning, issues, and malfunctions can be predicted. This prompts people to get the issue fixed before a glitch or accident actually occurs.
• To increase vehicles and people’s safety, companies have started installing IoT sensors in connected tires. These instruments provide real-time feedback on various parameters, such as the speed of the vehicle, tire pressure, temperature, and road conditions. 

Risk of Data Theft and High Manufacturing Costs Are Main Challenges

• The manufacturing cost of a connected tire is high due to the installation of various components. This is because there are additional costs for the hardware used for collecting and transmitting data. Moreover, the telecommunications services needed to make these tires work need to be paid for. This increases the overall cost of the vehicle, which decreases the growth potential of this market.
• The chances of technical issues in this technology are more due to its complexity, which affects its consistency and functionality. Therefore, regular maintenance of these components is important to find any possible issues and failures, which increases the total cost of the product over its life.
• Additionally, people are reluctant to use this technology due to concerns over data security, as hackers can try to take data for their profit. Once hackers get into the automobile database via the connected tire, they can even steal important personal details.

Connected Tire Industry Outlook

Sensor Insights

• Accelerometer sensors are the fastest-growing category, with an expected CAGR of 67.8% during 2024–2030. This is mainly because they are used to monitor performance parameters, such as tire shape changes, vibrations, and shock, while driving over rough surfaces.
• The information produced by these sensors is directly sent to the connected vehicle network and used to improve tire construction and boost vehicle safety, performance, and fuel consumption. These sensors can detect and analyze road roughness, holes, and breaks, allowing people to regulate their driving performance and increase vehicle safety.

Below are the types of sensors that were studied in this report

• TPMS (Largest Category)
• Accelerometer Sensors (Fastest-Growing Category)
• Strain Gauge Sensors
• RFID chips
• Others

Vehicle Type Analysis

• Passenger cars are the larger category, and they held a market share of around 70% in 2023. This is mainly due to the wide use of personal transportation and development in automotive technology.
• Connected tires provide many advantages to passenger cars, including improved fuel mileage and lower emissions, by improving tire pressure.
• As the demand for electric vehicles is increasing, the need for safety features is rising as well. This technology offers real-time data on speed, tire force, and temperature, which makes it possible to take helpful action to prevent accidents and conform to the preset performance parameters.

Below are the types of vehicles that were studied in this report

• Passenger Cars (Larger and Faster-Growing Category)
• Commercial Vehicles

Rim Size Insights

• 12–17 inches is expected to be the fastest-growing category, at a CAGR of 67.6%, during 2024–2030.
• As the demand for connected cars increases, an advanced tire control system is necessary. 17" tires are used on many types of automobiles, such as coupes, sedans, SUVs, and even pickup trucks. The majority of the Americans—about 85%—use all-season tires, which are frequently offered in the width of 17 inches. These variants, known for their flexibility and high performance, now come with advanced safety features and tire control systems to ensure best performance and security.

Below are the types of rim sizes that were studied in this report

• 12–17 Inches (Largest Category)
• 18–22 Inches (Fastest-Growing Category)
• More than 22 Inches

Sales Channel Analysis

• Original Equipment Manufacturer (OEM) are the larger category, and they held a market share of around 65% in 2023. This is because OEMs have large distribution networks and collaborations with automotive dealerships worldwide due to which they are able to distribute their products all over the world efficiently and able to reach a large number of consumers.
• Aftermarket is the fastest-growing category, at a CAGR of 67.9%, during 2024–2030. This is due to the increasing demand for aftermarket connected tire market solutions because consumers want to upgrade their vehicles with the latest technology.

Below are the Sales Channels that were studied in this report

• OEM (Larger Category)
• Aftermarket (Faster-Growing Category)

Offering Insights

• Software is the faster-growing category due to the growing demand for real-time control tire performance, amidst the increasing focus on road safety.
• To increase vehicle safety, many types of software are needed for sending processing, and analyzing information.
• Hardware is the larger category, holding a market share of around 75% in 2023.

Below are the offerings that were studied in this report:

• Hardware (Larger Category)
• Software (Faster-Growing Category)

Europe is Largest and Fastest Growing Region

• Geographically, Europe held the largest market share in the connected tire market in 2023. This is due to the high vehicle ownership.
• Europe is the fastest-growing market, with a predicted CAGR of 68.2% during 2024–2030. The is mainly due to the increasing demand for advanced safety features in vehicles.
• In Europe, governments implementing rules to reduce carbon emissions and address environmental challenges due to which the demand of electric vehicles (EVs) is increasing and connected tire technology play a vital role in EVs like by providing real-time monitoring of tire pressure and temperature which enhance the driving range and also help to optimizing driving efficiency. This increasing adoption of EVs increase the demand for connected tire solutions.

The regions and countries analyzed in this report include:

• North America
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe (Largest and Fastest-Growing Regional Market)
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC)
  • China (Largest and Fastest-Growing Country Market)
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Largest Country Market)
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Market Nature - Consolidated

• Bridgestone Corporation, Pirelli & C. S.p.A., and Continental AG are focusing on creating tires with more safety features and better performance.
• To satisfy consumers’ needs, companies are also providing a wide range of options.

Connected Tire Comanies News

• Continental AG showcased its Conti Connect 2.0 digital tire management system in March 2023. This system helps save fuel consumption and reduce the emission of harmful gases in the environment.
• At Consumer Electronics Show 2023, Bridgestone Corporation displayed Webfleet fleet management solution and demonstrated the value of data in achieving carbon-neutral transportation.
• Hyundai Motor Group and Michelin collaborated in June 2022 to create next-generation tires for high-end electric vehicles. The main aim of this partnership is to maximize the EV tire performance, reduce rolling resistance, and create a clean environment. 
• USD 121.63 million was invested by Pirelli at its Silao, Mexico, factory in October 2022, to augment is presence in the Americas.
• To detect real-time road conditions, Bridgestone Corporation developed a tire sensing technology in February 2022. This technology uses sensors and AI to provide information about temperature, humidity, and smoothness of driving, to increase overall vehicle safety and performance.