Technological advancements in the automotive industry have brought sensors into tires to enable drivers to procure real-time information on the tire condition and enhance the vehicle's overall safety. Smart Tires are more like a new tire-related service model that brings greater efficiency for vehicle owners than conventional tires, and they are gaining traction across different regions worldwide.
The Global Smart Tires Market is expected to grow at a considerable CAGR during the forecast period, i.e., 2022-27. With constant advancements in technologies and a growing inclination toward automation, the automotive sector is nowhere behind and is undergoing significant developments in vehicles & their components like tires. As a result, smart tires are gaining increasing popularity and penetrating the global market.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|South America:Brazil, Others|
|Europe: China, Germany, France, Italy, U.K., Spain, Others|
|Asia-Pacific: China, Japan, South Korea, India, Australia, Others|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Others|
|Key Companies Profiled||
Bridgestone, Continental, Goodyear, Michelin, Pirelli, Yokohama
|Unit Denominations||USD Million/Billion|
These tires aid in reducing heat build-up, monitoring vehicle safety & driving hours, & tread-wear, among others, and these are the prominent reasons behind their escalating demand worldwide. In addition, governments of different countries are actively investing in developing advanced technologies for tires to avail their commercialization in connected vehicles and ensure greater safety.
Integrating sensors into tires for gathering real-time information about the vehicle and monitoring different aspects like tire pressure, load capacity, tread wear, & deformation in order to enhance vehicle safety are other prominent aspects driving the global market.
Furthermore, the increasing utilization of technologies like Artificial Intelligence (AI) in tires is encouraging the leading tire manufacturers to invest in several research & development activities to build a new material for tires to reduce the heat build-up, which projects lucrative growth prospects for the global market through 2027.
Impact of Covid-19 on the Global Smart Tires Market
The advent of Covid-19 in 2020 had a catastrophic effect on the automotive & tire industry worldwide, which introduced several unprecedented challenges for the leading players in the Global Smart Tire Market.
Since governments of different countries imposed stringent movement restrictions, lockdowns, & suspended all kinds of business operations, tire manufacturers worldwide witnessed raw material supply chain disruptions, delivery delays, & price fluctuations, coupled with a temporary halt on R&D activities associated with smart tires. It, in turn, resulted in massive financial losses for them and a severe decline in the market growth amidst the crisis.
However, with the gradual decline in Covid-19 cases, restrictions were uplifted & business operations go recommenced, which enabled tire manufacturers to resume their business operations & research projects and facilitated the global market to attain its usual growth pace.
Based on Technology:
Amongst both, Non-Pneumatic Tires acquired the largest share in the Global Smart Tire Market in previous years, and the same trend is likely during 2022-27. It attributes principally to their capabilities of not losing air and eliminating the possibility of flat tires, thereby offering greater cost-effectiveness than conventional tires.
These tires bring greater driving efficiency on uneven surfaces and allow heavy vehicles to carry the massive load for transportation across different locations. As a result, they are witnessing a rapidly surging demand for monitoring vehicle activity throughout the journey and thus fueling the overall market growth for smart tires.
Based on the Vehicle Type:
Here, passenger cars are expecting the largest market share over the forecast years on account of the growing disposable income of people and their mounting inclination toward private vehicle ownership. As the number of these cars is rising at a significant rate worldwide, the demand for high quality, durable, and advanced tires is also surging to enhance the overall vehicle safety & keep track of tire condition.
Besides, growing consumer awareness about the availability of an extensive range of smart tires with different designs & features is also playing a crucial role in accelerating their deployment in passenger cars and augmenting the overall market growth. Furthermore, as passenger cars are becoming more of a necessity than a luxury, their mounting sales are generating growth opportunities for the leading tire manufacturers to increase their production & distribution capacities to cater to the rising consumer requirements and drive the global market through 2027.
Geographically, the Global Smart Tire Market expands across:
Amongst all regions globally, Asia-Pacific is anticipated to dominate the Smart Tires Market with the largest share during 2022-27. It attributes primarily to its rapidly expanding automotive sector and exponentially growing population & its burgeoning interest in private ownership of vehicles. It, in turn, is leading to increasing demand for sensor systems in tires to attain better performance without compromising safety.
Besides, a swift escalation in the sales of luxury vehicles, various government initiatives for encouraging the adoption of Electric Vehicles (EVs), and rising public concerns over vehicle safety are other prominent factors propelling the demand for smart tires & stimulating the regional market growth.
On the other hand, North America is expecting the fastest market growth through 2027, owing to several regional countries being the early adopters of advanced technologies across different industries, including the automotive & tire sectors. Such aspects have led to a rapid acceleration in the deployment of smart tires in several vehicles by prominent manufacturers.
In addition, the active participation of the leading market players through rigorous R&D activities to enhance the capabilities of smart tires and spread awareness about their extensive availability & numerous benefits for asset tracking & fleet management are also driving the market across North America.
Major Growth Restraint for the Global Smart Tires Market
As fast as technologies are advancing & showcasing the benefits of smart tires, the lack of technological standards, supportive policies, and proper commercialization might affect their deployment & restrain the growth of the Global Smart Tires Market during 2022-27.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Smart Tires Market is expected to register a considerable CAGR during 2022-27.
A. Growing concerns over vehicle safety are anticipated to play a prominent role in surging the demand for smart tires worldwide and generating growth opportunities for the leading players in the Global Smart Tire Market to increase their production, distribution, & scalability in order to meet the burgeoning consumer demand worldwide. On the other hand, the lack of standardization of tires might restrain the growth of the global market globally in the years to come.
A. Growing adoption of EVs and increasing customer preference toward deploying smart tires in latest vehicles to enhance the overall safety is the key trend in the Global Smart Tires Market.
A. Passenger cars are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Smart Tires Market over the forecast years.