Smart Tire Market - By Offering (Pneumatic, Non-Pneumatic), By Vehicle (Passenger, Commercial), By Technology (Tire Pressure Monitoring, Temperature Monitoring, Tire Tread Monitoring, Load Monitoring), By Sales Channel & Forecast, 2024 – 2032

Smart Tire Market Size

Smart Tire Market was valued at USD 91.5 billion in 2023 and is estimated to register a CAGR of over 8% between 2024 and 2032. Enhancement in vehicle safety and growing accident rates across the globe are the primary growth drivers for the adoption of smart tires. Drivers can lower the risk of accidents resulting from underinflated or worn-out tires by maintaining ideal tire conditions with the assistance of real-time monitoring of temperature, tread wear, and tire pressure. By providing information for sophisticated traction control and stability systems, smart tires can also enhance vehicle handling and fuel economy. According to the US Department of Transportation and the National Highway Traffic Safety Administration (NHTSA)’s report, 42,915 persons died in motor vehicle traffic crashes last in 2021, up 10.5% from the 38,824 fatalities in 2020.
 

The use of smart tire technology is being fueled by more stringent regulations regarding emissions and vehicle safety. Tire pressure monitoring systems (TPMS) are required in automobiles by law in numerous jurisdictions to save fuel and increase traffic safety. Smart tires fulfill changing regulatory requirements by offering more complete data and functionality as compared to TPMS. These guidelines concentrate on building cars that withstand collisions and shield passengers from harm. Vehicles must meet crashworthiness requirements set by regulatory authorities, such as the European Commission in Europe and the NHTSA in the United States, to be licensed for sale.  
 

A wide range of car models are required to be compatible with smart tire systems. Technical issues include ensuring seamless integration with cloud-based analytics solutions, telematics platforms, and vehicle onboard systems. Differences in hardware interfaces, software platforms, or communication protocols can cause compatibility problems that impede interoperability and restrict the scalability of smart tire technology. Moreover, to provide tire data to telematics platforms, cloud-based analytics tools, and vehicle onboard systems, smart tire systems use wireless communication protocols. Communication protocols that are incompatible with current automotive communication networks or standards can lead to compatibility issues.
 

Smart Tire Market Trends

New developments in sensor technology have resulted in sensors for smart tire systems that are more precise, dependable, and reasonably priced. The capabilities of smart tire systems are increased by new sensor technologies that allow for exact measurement of tire pressure, temperature, tread wear, and other performance indicators. These technologies include MEMS (Micro-Electro-Mechanical Systems) sensors, capacitive sensors, and optical sensors.
 

For instance, in September 2023, Infineon Technologies AG introduced the XENSIV SP49 tire pressure monitoring sensor. The new feature in the product enables it to provide intelligent tire functions with integrated hardware support. Moreover, the sensor is also compatible with on-tire auto-position sensing. The embedded interval timer in the SP49 devices produces a wake-up, and the devices are appropriate for low-power stand-alone remote pressure sensing applications.  
 

Smart Tire Market Analysis

Based on the vehicle, the market is divided into passenger and commercial vehicles.  The passenger vehicles segment is expected to hold over 60% of the revenue share by 2032. The integration of connected vehicle technologies is driving the passenger vehicle segment growth. Smart tire systems facilitate seamless integration and tire data access through wireless communication with telematics platforms, smartphone apps, and onboard vehicle systems. Through this interface, drivers may improve their entire driving experience by remotely monitoring tire conditions, receiving maintenance notifications, and accessing personalized suggestions for tire pressure settings or replacements.
 

Based on sales channel, the market is categorized into OEM and aftermarket. In 2023, the OEM segment accounted for around 66%. Smart tire systems facilitate seamless integration and tire data access through wireless communication with telematics platforms, smartphone apps, and onboard vehicle systems. Through this interface, drivers may improve their entire driving experience by remotely monitoring tire conditions, receiving maintenance notifications, and accessing personalized suggestions for tire pressure settings or replacements. Moreover, to comply with legal obligations and address environmental concerns, OEMs are under pressure to increase fuel efficiency and lower emissions in their cars. By maximizing tire pressure and lowering rolling resistance, which reduces fuel consumption and emissions, smart tires help improve fuel efficiency. Manufacturers therefore pursue sustainability targets and cater to environmentally conscious consumers by implementing smart tire technology.
 

North America hold around 26% in 2023 is expected to grow at a high rate till 2032. Connected vehicle solutions and advanced automotive technology are in high demand in the North American market. The region is becoming increasingly aware of the advantages of smart tire technology, including increased convenience, safety, and fuel efficiency. Consequently, the sector is experiencing development and investment due to the increasing demand for automobiles that are outfitted with smart tire systems. Additionally, the growing adoption of electric vehicles and autonomous vehicles in the U.S. is driving demand for advanced tire technologies, including smart tires. EVs and AVs require specialized tire solutions to meet their unique performance and safety requirements, driving innovation in the smart tire industry.
 

Smart Tire Market Share

Bridgestone and Continental AG occupy a significant position in the market with over 11% market share. Bridgestone has made significant investments in smart tire technology. The company provides real-time tire pressure and temperature monitoring using its in-house developed tire monitoring system, known as "Bridgestone Connect".
 

Continental AG provides tire information systems (TIS), tire condition monitoring systems (TCMS), and tire pressure monitoring systems (TPMS) among other smart tire solutions. To improve the functionality and performance of its smart tire systems, Continental is also investing in modern sensor technology and communication solutions.
 

Smart Tire Market Companies

Major players operating in the market are:

• Bridgestone Corporation
• Continental AG
• Hankook Tire & Technology Group
• Michelin Group
• NIRA Dynamics AB
• Nokian Tyres plc
• Pirelli & C. S.p.A.
• Sumitomo Rubber Industries, Ltd.
• The Goodyear Tire & Rubber Company
• Toyo Tire Corporation
   

Smart Tire Industry News

• In January 2024, Goodyear partnered with TDK for advanced next-generation tire solutions. By integrating TDK's software, sensors, and electrical component experience with Goodyear's tire development, intelligent solutions, and industry knowledge, the companies are planning to launch an effective tire sensing system with a collaborative approach.
   
• In July 2023, Continental AG announced the integration of their Conti urban tire line with new generation sensors. In August 2023, the Conti Urban HA3, Conti UrbanScandinavia HA3+, and Conti UrbanScandinavia HD3 smart tires were launched in the market. As a result, Continental became the first manufacturer of a whole line of sensor-equipped tires, enabling it to further advance fleet digitization.
   

The smart tire market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and Shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Offering

• Pneumatic
• Non-pneumatic

Market, By Vehicle

• Passenger vehicles
• Commercial vehicles

Market, By Technology

• Tire pressure monitoring
• Temperature monitoring
• Tire tread monitoring
• Load monitoring
• Others

Market, By Sales Channel

• OEM
• Aftermarket

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA