Connected Tire Market Analysis

Connected Tire Market Analysis

Based on component, the connected tire market is segmented into TPMS, accelerometer sensors, strain gauge sensors, and RFID chips. The accelerometer sensors segment held a share of around 25% in 2022 and is expected to grow at a lucrative pace through 2032. Accelerometer sensors play a crucial role in monitoring tire performance including tire rotation, alignment, and balance. The growing demand for real-time monitoring and optimization of tire performance is also driving the accelerometer sensors segment growth. Accelerometer sensors are used in the Tire Pressure Monitoring System (TPMS) to control tire pressure. These sensors continuously monitor the speed & motion of the tire and upon the detection of the desired difference in tire pressure, the data is sent to the driver for timely inflation or adjustments to maintain good tire pressure. Tire pressure not only improves safety but also fuel efficiency and tire performance.
 

Based on rim size, the connected tire market is segmented into 12 - 17 inches, 18 - 22 inches, and more than 22 inches. The 12 – 17-inch segment held dominant market revenue of over USD 4.5 million in 2022 is expected to grow at a lucrative pace till 2032. The 12 – 17-inch rim size tire is commonly used in passenger cars, such as sedans, hatchbacks, and compact SUVs, which constitute a substantial portion of the automotive market. The increasing production and sales of passenger cars are driving the demand for tires in this segment. The 12 - 17-inch rim size tire offers versatility and is compatible with several vehicle types, especially compact and mid-sized vehicles. This segment covers a broad spectrum of vehicle models and brands, providing ample opportunities for tire manufacturers and connected tire solution providers. The automotive industry, driven by environmental concerns and government regulations, emphasizes fuel efficiency. Tires in the 12 – 17-inch rim size range can be optimized for improved fuel efficiency, reducing rolling resistance and enhancing the overall vehicle performance.
 

Based on vehicle type, the connected tire market is segmented into passenger cars and commercial. The passenger car segment held dominant market share of over 65% in 2022 and is expected to reach market share of over 70% by 2032. With passenger cars being sold and owned yearly across the globe, passenger cars form a substantial part of the automotive market. As the number of passenger cars on the road continues to grow, the demand for advanced technologies such as connected tires will also witness growth. This car segment is being increasingly equipped with advanced vehicle systems and connectivity features. Connected tires can seamlessly integrate with these systems for comprehensive vehicle monitoring and control experience. The integration with the vehicle's onboard system also enables features such as driver assistance, tire performance optimization, and customized vehicle settings based on tire conditions.
 

Asia Pacific is the dominant region in the global connected tire market with a share of over 35% in 2022. Asia Pacific led by China, Japan, and South Korea is a major hub for automotive manufacturing. The increasing vehicle production will also impact the adoption of connected tire technology, thereby boosting market growth opportunities. Consumers in APAC are increasingly using technology including connected cars. This trend will also increase the need for connected tire solutions. Governments in the region are implementing regulations and safety initiatives to improve road safety. Connected tires, with their ability to monitor tire conditions and enhance safety, align with these initiatives. Moreover, Asia Pacific is witnessing a shift toward sustainable mobility solutions where connected tires contribute to fuel efficiency and lower emissions, making them attractive in the region's sustainable mobility landscape.