Market Definition
Connected tires, also known as smart tires, are a significant technological advancement in the automotive industry that incorporates various sensors & wireless connectivity features and monitor parameters such as tire pressure, temperature, tread wear, & road conditions. These tires are designed to gather real-time data about their condition, performance, & surroundings and transmit it to the vehicle's onboard computer system or external devices.
Market Insights & Analysis: Global Connected Tires Market (2023-28)
The Global Connected Tires Market is projected to grow at a CAGR of around 64.3% during the forecast period, i.e., 2023-28. The growth of the market would be propelled mainly by the mounting focus on vehicle safety, the burgeoning adoption of CASE (Connected, Autonomous, Shared & Services) mobility, increasing cases of road accidents, and the globally growing emphasis on fuel efficiency & environmental sustainability.
Besides, advancements in the IoT (Internet of Things) & connectivity technologies, the introduction of various regulations & safety standards by governments of various countries, and increasing collaborations between tire manufacturers, automotive OEMs, & technology providers are also projected to drive the market in the future. Rapid advancements in technologies have transformed the entire automobile industry. The growing use of MaaS (Mobility-as-a-Service) and CASE clearly indicates the increasing integration of advanced functionalities & features into new vehicles and, consequently, significantly improved functional & operational performance of vehicles & related parts.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2018-21 |
| Base Year: 2022 | |
| Forecast Period: 2023-28 | |
| CAGR (2023-2028) | 64.3% |
| Regions Covered | North America: US, Canada, Mexico |
| Europe: Germany, The UK, France, Spain, Italy, Rest of Europe | |
| Asia-Pacific: China, India, Japan, South Korea, Australia, Rest of Asia-Pacific | |
| South America: Brazil, Argentina, Rest of South America | |
| Middle East & Africa: UAE, Saudi Arabia, South Africa, Rest of MEA | |
| Key Companies Profiled | Bridgestone Tires, Michelin Tires, Goodyear Tire and Rubber Company, Continental AG, Pirelli, Sumitomo Tires, Hankook Tires, Nokian Tyres, Yokohama Tires, Toyo Tires, Zhongce Rubber, Kumho Tire, Trelleborg AB, MRF Tyres, JK Tyres and Others |
| Unit Denominations | USD Million/Billion |
Connected tires provide an innovative & connected car experience, along with enhanced convenience & performance. More & more consumers are showing increasing interest in vehicles equipped with advanced technologies, including connected tire solutions. The leading tire manufacturers are heavily investing in the R&D of connected mobility solutions and introducing new products with intelligent functions to cater to the varied consumer demands.
The emergence of IoT, 5G, & connectivity technologies has paved the way for the integration of connected tires. With the rising availability of robust communication networks, improved sensors, and data analytics capabilities, connected tire technologies are becoming increasingly feasible & cost-effective. Furthermore, the mounting penetration of shared mobility services & ride-sharing platforms, coupled with the ever-increasing sales of premium & luxury vehicles equipped with connected tire technologies, are other crucial aspects projected to spur growth in the Global Connected Tires Market over the coming years.
Global Connected Tires Market Key Driver:
Ever-Increasing Emphasis on Vehicle Safety & Performance - Connected tires offer various benefits that improve safety, enhance vehicle performance, and provide real-time monitoring of tire pressure, temperature, & tread wear, which allows drivers to receive alerts & warnings regarding potential tire-related issues. It, in turn, reduces the risk of accidents caused by underinflated or worn-out tires. They further help maintain optimal tire pressure, maximize fuel efficiency, & enhance overall vehicle performance. Hence, with the rising cases of road accidents worldwide, there's a growing emphasis on vehicle & passenger safety, which is driving the Global Connected Tires Market.
Global Connected Tires Market Growth Restraint:
Higher Costs of Connected Tire Technologies and Data Privacy Concerns - The implementation cost of connected tire technologies, which include sensors, communication modules, & software integration, is a significant barrier to their adoption for some consumers & automakers. Moreover, since these advanced tire technologies involve the collection, transmission, & storage of vehicle & tire-related data, data privacy & security concerns can impact consumer trust and, in turn, restrain the adoption of technology. Hence, the significantly high costs of connected tires and consumer concerns over data security & privacy are the major barriers to the growth of the Global Connected Tires Market.
Global Connected Tires Market (2023-28): Segmentation Analysis
Global Connected Tires Market report by MarkNtel Advisors includes segmentation analysis based on Type of Vehicle, Rim Size, & Demand Type. This breakdown allows businesses to identify specific market segments and tailor their marketing and product strategies accordingly, maximizing their chances of success in the market.
Based on Type of Vehicle:
Of both, passenger vehicles constitute a larger portion of both the automotive industry and the Global Connected Tires Market. It owes to the increasing integration of connected tire technologies in passenger vehicles on account of benefits like real-time tire monitoring, improved safety, enhanced performance, and ADAS (Advanced Driver Assistance System). Connected tires provide real-time monitoring of tire pressure, temperature, & tread wear, which helps ensure optimal tire performance and reduces the risk of tire-related accidents. Drivers receive alerts & warnings for tire issues, enabling them to take timely action.
In addition, connected tires offer convenience features that enhance the overall driving experience of users, as they can access data like tire pressure and condition through vehicle dashboards or mobile apps, which eliminates the need for manual tire pressure checks and simplifies maintenance tasks. Moreover, connected tires facilitate predictive maintenance in passenger vehicles.
By monitoring tire health & performance, these tires can detect potential issues beforehand. As both drivers & service centers can receive notifications regarding tire wear, tread depth, or tire condition, it enables proactive maintenance and minimizes the risks of unexpected breakdowns. Consequently, it extends tire lifespan, optimizes maintenance schedules, and reduces overall maintenance costs. These factors collectively contribute to the mounting demand for connected tires in passenger vehicles.
On the other hand, commercial vehicles are gaining significant momentum in the market, which owes to the rising interest of fleet operators & logistics companies in connected tires for fleet management, predictive maintenance, fuel efficiency optimization, and overall operational cost reduction. Connected tires integrated with telematics systems in commercial vehicles provide valuable data insights, which enables fleet managers to monitor tire performance, track vehicle & tire data, and make informed decisions for maintenance, efficiency, & fleet management. As a result, it helps reduce downtime, improve vehicle uptime, and enhance overall fleet efficiency.
Moreover, by optimizing tire pressure & tread wear, connected tires in commercial vehicles improve fuel efficiency and minimize the frequency of tire replacements. This proactive maintenance and early detection of tire issues reduce the risk of expensive tire failures or breakdowns, which leads to cost savings and a higher ROI for fleet operators. Hence, these aspects indicate the growing adoption of connected tires in commercial vehicles worldwide, which is fueling the overall growth of the market.
Based on Demand Type:
Here, OEMs (Original Equipment Manufacturers) play a notable role in driving the adoption of connected tire technologies. More & more OEMs are forming strategic partnerships with tire manufacturers & technology providers to incorporate connected tire solutions into their new models. By integrating IoT-powered sensors, communication modules, & software systems into the vehicle's design, OEMs are enabling real-time tire monitoring, data collection, & connectivity features.
The mounting focus of automotive OEMs on providing drivers with the utmost comfort, convenience, & safety is driving the connected tires industry. OEMs leverage the data collected by connected tires, such as tire pressure, temperature, & tread wear, which helps them enhance vehicle dynamics, optimize traction control systems, and provide valuable insights to drivers regarding tire condition & performance.
By integrating these smart tire technologies into vehicles, OEMs are providing drivers with tire maintenance alerts, tire wear predictions, and personalized tire recommendations based on individual driving habits & road conditions. Their this involvement & commitment to integrating connected tire technologies into their vehicles to enhance the ownership experience of drivers and build customer loyalty are thus fueling the growth of the Connected Tires Market.
Global Connected Tires Market Regional Projection
Geographically, the Global Connected Tires Market expands across:
Of all regions globally, North America & Europe have been witnessing significant growth in the Connected Tires Market. Both regions are at the forefront of adopting advanced automotive technologies, have a mature automotive industry, a strong technological infrastructure, and a high level of consumer awareness of the benefits of connected vehicles & smart tire technologies.
In Europe, many tire manufacturers, automotive OEMs, and technology firms are actively involved in the development & implementation of connected tire solutions, and their expertise, along with massive R&D investments, bode well for the growth of the connected tires industry. Additionally, Europe has stringent regulations related to vehicle safety & environmental standards, where the European Union has mandated the use of TPMS (Tire Pressure Monitoring System) in new vehicles.
The presence of such regulations also creates a favorable environment for the adoption of connected tire technologies. Moreover, connected tire technologies are well-suited for EVs as they help optimize battery range, improve energy efficiency, and provide real-time monitoring of tire conditions. Hence, the rapidly expanding EV industry in Europe is another prominent aspect contributing to the increasing demand for connected tire solutions and, in turn, fueling the regional market growth.
On the other hand, North America, particularly the US, is another strong market for connected tires as the country has a strong presence of technology companies, a thriving start-up ecosystem focused on automotive innovations, and places a high emphasis on vehicle safety. Connected tire technologies provide real-time monitoring & alerts for tire-related issues, which contribute to improved safety on roads by reducing accidents and enhancing driver safety.
In addition, the robust automotive sector in North America, where several major OEMs & tire manufacturers are headquartered, is another crucial aspect that creates a high demand for connected tires in the region. Furthermore, the surging demand for connected vehicles equipped with features like infotainment systems, ADAS (Advanced Driver Assistance System), & other connected services is also spurring growth in the North America Connected Tires Market.
Global Connected Tires Market Recent Developments
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Frequently Asked Questions
A. The Connected Tires Market is projected to grow at a CAGR of around 64.3% during 2023-28.
A. The ever-increasing focus on vehicle safety owing to the rising cases of road accidents worldwide is the prime aspect projected to drive the Connected Tires Market further in the coming years.
A. Bridgestone Tires, Michelin Tires, Goodyear Tire and Rubber Company, Continental AG, Pirelli, Sumitomo Tires, Hankook Tires, Nokian Tyres, Yokohama Tires, Toyo Tires, Zhongce Rubber, Kumho Tire, Trelleborg AB, MRF Tyres, and JK Tyres are the key players operating in the Connected Tires Market.
A. The high cost of connected tires and consumer concerns over data security & privacy are the major growth restraints for the Connected Tires Market.
A. OEMs would provide remunerative opportunities for the leading players in the Connected Tires Market during the forecast period.
A. Globally, North America & Europe would continue generating lucrative prospects for the Connected Tires Market in the years ahead.
Global Connected Tires Market Research Report (2023-2028) - Table of Contents
