Bright & Shiny Future of Connected Tires Market: Major Growth Factors and Key Companies Involved
Published Date: 23 Jun 2023
Connected tires utilize sensors & wireless communication to provide real-time data on tire pressure, temperature, & tread wear, among other essential parameters, which helps enhance safety, fuel efficiency, and optimize vehicle performance.
The Global Connected Tires Market has witnessed significant growth in recent years and is set to register around 64.3% CAGR during 2023-28, mainly on account of the strong emphasis on vehicle & passenger safety owing to the rising cases of road accidents worldwide, coupled with the increasing penetration of MaaS (Mobility-as-a-Service), CASE (Connected, Autonomous, Shared, & Services) mobility, shared mobility services, & ride-sharing platforms.
While passenger cars continue to dominate the industry, commercial vehicles are also gaining momentum in the market. More & more fleet operators & logistics companies are opting for connected tire technologies for fleet management, predictive maintenance, fuel efficiency optimization, and overall operational cost reduction.
Automotive OEMs are focusing on providing drivers with the utmost comfort, convenience, & safety by leveraging the data collected by connected tires, such as tire pressure, temperature, & tread wear, in order to enhance vehicle dynamics, optimize traction control systems, and provide valuable information to drivers regarding tire condition & performance.
The key market players are making active efforts and investing significantly in R&D to introduce more efficient & innovative connected tire technologies in order to meet the varied end-user demands. Let’s have a look at the top companies operating in the industry and their notable work in recent years.
- Bridgestone Corporation offers its proprietary tire monitoring system called Tirematics, which provides real-time information on tire performance and enables predictive maintenance. The company recently partnered with Microsoft to develop a tire damage detection system using AI and cloud computing.
- Michelin Group: Michelin Group is known for its innovative tire technologies, and they have made significant strides in the connected tires industry. Their connected tire solution, called Michelin Track Connect, is designed for motorsports enthusiasts and provides precise data on tire pressure and temperature. The company is also focusing on developing airless tires embedded with sensors for future autonomous vehicles.
- Continental AG is a leading supplier of automotive components, including connected tire solutions. Their ContiConnect system enables fleet managers to monitor tire condition & performance in real-time and help optimize fuel efficiency & reduce maintenance costs. The company has been actively involved in R&D efforts toward integrating sensors & data analytics into their tire technologies. In addition, it partnered with NVIDIA to develop an AI-based platform for enhancing the performance of connected tires in autonomous vehicles.
- Pirelli & C. S.p.A. has embraced connected tire technology with its Pirelli Connesso system, which enables drivers to access real-time tire information through a mobile app, viz., tire pressure, temperature, & tread depth. The company has also collaborated with leading car manufacturers to develop intelligent tires tailored to specific vehicle variants. It partnered with Audi to develop the Cyber Tire system, which gathers data on tire behavior and transmits it to the vehicle's control system for enhanced performance.
- Goodyear Tire & Rubber Company is a pioneer in tire manufacturing and has been actively involved in the field of connected tire technologies. The company's intelligent tires like the Goodyear Eagle 360 Urban feature sensors that provide data on road conditions & tire wear. It has developed a predictive analytics platform that uses AI to enhance tire performance & safety. In addition, it has also created a prototype of a concept tire, reCharge, which can self-regenerate and customize its tread design as per road conditions.
- The Yokohama Rubber Co., Ltd. has been developing connected tire solutions to cater to evolving customer needs. The company's Tire Logics system collects data on tire condition & performance, which allows for proactive maintenance and improved fuel efficiency. Moreover, it has also collaborated with technology companies to enhance its connected tire offerings.
- Sumitomo Rubber Industries, Ltd. has been actively engaged in connected tire R&D. Its Sensing Core technology integrates sensors into the tire's structure to monitor temperature, pressure, & road conditions. The company collaborated with Gunma University to develop an intelligent tire system that can predict road surface conditions.
- Hankook Tire & Technology Co., Ltd. has embraced connected tire technology to enhance performance and safety. Its ‘Smart Tire Concept’ incorporates sensors that provide real-time information on tire pressure & temperature. The company has established a research JV (Joint Venture) with SK Innovation to develop next-generation connected tire solutions for electric vehicles.
With significant technological advancements and increasing adoption of autonomous vehicles, the industry is witnessing significant growth. The key companies cited above continue to invest in research and development, collaborate with partners, and leverage emerging technologies to deliver enhanced tire performance, safety, & efficiency for both traditional and autonomous vehicles.
Stringent regulations related to vehicle safety & environmental standards are being laid by several governments worldwide, particularly in Europe, and the European Union has mandated automakers to equip TPMS (Tire Pressure Monitoring System) in their new vehicles. Hence, in view of these trends, the connected tires market is poised for notable growth, which would create opportunities for tire manufacturers to expand their production capacities and bring innovations to their offerings in order to generate significant revenue in the coming years.