Connected Tire Market Outlook

The global connected tire market is projected to reach a value of approximately USD 12.5 billion by 2035, growing at a compound annual growth rate (CAGR) of around 12% during the forecast period from 2025 to 2035. This impressive growth trajectory can be attributed to various factors, including the increasing adoption of smart technologies in the automotive sector, rising demand for enhanced vehicle safety and performance, and the growing trend of connected devices in transportation. Furthermore, the shift towards electric and autonomous vehicles is anticipated to further propel the demand for connected tire technology as manufacturers look to optimize performance and fuel efficiency in these advanced vehicles. Additionally, the rising awareness regarding vehicle maintenance and safety among consumers is contributing to the heightened interest in connected tire solutions.

Growth Factor of the Market

Several key growth factors are driving the connected tire market forward. Firstly, the growing emphasis on vehicle safety and performance enhancement is prompting manufacturers to integrate smart technology into tires, enabling real-time monitoring of tire conditions. Secondly, the rising trend of electric vehicles (EVs) and autonomous driving is creating a demand for advanced tire technologies that can support these innovations. Thirdly, advancements in Internet of Things (IoT) technologies are facilitating better communication between tires and vehicle systems, enhancing overall performance and user experience. Fourthly, the increasing focus on sustainability and fuel efficiency is encouraging manufacturers to develop eco-friendly tire solutions that align with global environmental goals. Lastly, the growing adoption of telematics in the automotive sector is driving the need for connected tires that provide data analytics to improve fleet management and vehicle maintenance.

Key Highlights of the Market

• Significant growth expected in the connected tire market with a projected CAGR of around 12% from 2025 to 2035.
• Increased adoption of smart technologies in vehicles, enhancing safety and performance.
• Growing demand for connected tire solutions driven by the rise of electric and autonomous vehicles.
• Advancements in IoT technology facilitating better integration between tires and vehicle systems.
• Focus on sustainability leading to the development of eco-friendly tire solutions.

By Product Type

Winter Tires:

Winter tires are specially designed to provide optimum traction and handling in cold weather conditions, including snow and ice. The increasing prevalence of harsh winter conditions, particularly in North America and Europe, has amplified the demand for these tires. With advanced technologies such as improved tread patterns and enhanced rubber compounds, winter tires offer superior grip and safety, making them essential for regions that experience severe weather. As consumers become more aware of the importance of winter tires for safety during winter months, manufacturers are increasingly integrating connected technology into these products to provide real-time performance data and alerts for tire conditions.

All-Season Tires:

All-season tires are engineered to perform adequately in a variety of weather conditions, making them a popular choice among consumers looking for versatility. These tires provide a balance between performance in dry, wet, and mild winter conditions, appealing to drivers who do not wish to invest in multiple sets of tires. The connected tire technology in all-season tires enhances their functionality by providing drivers with real-time data on tire pressure, tread wear, and performance metrics, thereby improving safety and maintenance. The growing trend of urbanization and changing consumer preferences towards practicality are expected to drive the demand for all-season tires in the coming years.

Performance Tires:

Performance tires are designed for high-speed driving and provide superior handling and cornering capabilities. The rising popularity of sports cars and performance-oriented vehicles has fueled the demand for these specialized tires. As performance enthusiasts seek tires that combine advanced technology with high-quality materials, manufacturers are integrating connected tire solutions to deliver enhanced performance analytics and maintenance insights. This innovation allows users to monitor their tire health closely and optimize driving experiences, which is essential for sports car aficionados who prioritize performance and safety.

Off-Road Tires:

Off-road tires are tailored for vehicles that frequently traverse rugged terrains, such as SUVs and trucks. The increasing interest in outdoor activities and adventure tourism is driving the demand for off-road vehicles equipped with specialized tires. Connected tire technology in off-road tires provides critical information on tire pressure and temperature, allowing drivers to make real-time adjustments based on terrain conditions. This capability is particularly beneficial for off-road enthusiasts who require reliable performance in challenging environments, thus boosting the growth of this segment in the connected tire market.

Run-Flat Tires:

Run-flat tires are designed to maintain functionality even after a puncture, allowing drivers to continue their journey without immediate tire replacement. This innovative technology is gaining traction among consumers who prioritize safety and convenience. The integration of connected technology with run-flat tires enhances their appeal by providing real-time alerts on tire status and remaining driving distance post-puncture. As safety concerns continue to rise, particularly in urban areas where flat tires can pose significant risks, the demand for run-flat tires with connected capabilities is expected to expand significantly.

By Application

Passenger Vehicles:

The connected tire market for passenger vehicles is poised for substantial growth, driven by the increasing adoption of smart technologies in the automotive sector. Consumers are more inclined towards vehicles equipped with advanced safety features, and connected tires play a crucial role in optimizing performance and enhancing safety. With features like tire pressure monitoring, tread wear alerts, and performance analytics, connected tires provide invaluable data to drivers, improving overall vehicle maintenance and safety. The rise of new automotive technologies, including autonomous driving capabilities, further fuels the demand for connected tire solutions in passenger vehicles.

Commercial Vehicles:

Commercial vehicles, including trucks and buses, are essential for logistics and transportation industries. The adoption of connected tire technology in this segment is gaining momentum as fleet operators seek to enhance safety and reduce operational costs. Connected tires provide real-time data on tire health, enabling fleet managers to optimize maintenance schedules and minimize downtime. By leveraging tire analytics, commercial vehicle owners can make informed decisions regarding tire usage and replacements, thus improving overall fleet efficiency. The focus on reducing operational costs, along with the need for enhanced safety in commercial transportation, is driving the demand for connected tires in this sector.

Off-Road Vehicles:

Off-road vehicles encompass a variety of applications, including recreational and utility vehicles. The need for connected tire technology in this segment is driven by the increasing popularity of off-road adventures and outdoor activities. Consumers are looking for tires that provide reliable performance in challenging terrains, and connected solutions allow them to monitor tire conditions in real-time. This feature is particularly valuable for off-road enthusiasts, as it enhances safety and performance during excursions. As the off-road vehicle market continues to expand, the demand for connected tire solutions that cater to this niche is expected to grow significantly.

Two-Wheelers:

Two-wheelers, including motorcycles and scooters, represent a growing segment in the connected tire market. With the rising popularity of two-wheelers in urban areas for convenience and fuel efficiency, manufacturers are increasingly integrating connected technologies into tire designs. Connected tires for two-wheelers can provide essential data on tire pressure and performance, allowing riders to maintain optimal conditions and enhance safety. As urbanization continues and more consumers turn to two-wheelers for transportation, the demand for connected tire solutions in this segment is anticipated to rise.

Electric Vehicles:

The electric vehicle (EV) market is experiencing rapid growth, driven by technological advancements and increasing environmental awareness. Connected tire solutions are becoming increasingly relevant in the EV segment as manufacturers aim to optimize performance and energy efficiency. By providing real-time data on tire conditions, connected tires can help EV drivers maximize their vehicle's range and performance. Furthermore, as consumer expectations for safety and technology continue to evolve, the demand for connected tires tailored for electric vehicles is set to increase significantly, presenting a lucrative opportunity for manufacturers in this market.

By Distribution Channel

OEMs:

The Original Equipment Manufacturers (OEMs) segment represents a significant share of the connected tire market, as manufacturers incorporate advanced tire technologies into new vehicle models. With the growing demand for connected solutions, OEM partnerships with tire manufacturers are becoming essential for providing integrated tire technology in vehicles. This collaboration allows OEMs to enhance their vehicle offerings with advanced safety features and performance analytics, appealing to tech-savvy consumers. As more automakers recognize the importance of connected technology in meeting consumer demands, the OEM channel is expected to grow significantly.

Aftermarket:

The aftermarket segment provides a vital avenue for connected tire sales, as consumers seek to upgrade their existing vehicles with the latest technologies. The rising awareness of tire safety and performance is encouraging consumers to invest in connected tire solutions, even after purchasing their vehicles. Tire retailers and service centers are increasingly offering connected tire technologies, allowing consumers to benefit from real-time monitoring and enhanced performance. As consumers prioritize vehicle maintenance and safety, the aftermarket channel is poised for growth as it caters to the evolving preferences of vehicle owners.

Online Retailers:

Online retailers have become a significant distribution channel for connected tires, reflecting the changing buying behavior of consumers. The convenience and accessibility of e-commerce platforms allow customers to browse, compare, and purchase tires with ease. As consumers increasingly seek online solutions for their automotive needs, the connected tire market is benefiting from this shift. Online retailers often provide extensive product information, customer reviews, and competitive pricing, making them an attractive option for consumers looking for connected tires. This trend is expected to propel growth in the online distribution channel, particularly as more consumers embrace digital shopping.

Tire Specialty Stores:

Tire specialty stores play a crucial role in the connected tire market by offering consumers expert advice and a wide range of tire options. These stores are increasingly integrating connected tire technologies into their product offerings to cater to the growing demand for safety and performance. Knowledgeable staff can assist customers in selecting the best connected tire solutions for their vehicles, enhancing the overall customer experience. As consumers seek personalized service and expert recommendations, tire specialty stores are expected to remain a key distribution channel in the connected tire market.

Hypermarkets/Supermarkets:

Hypermarkets and supermarkets have emerged as a convenient distribution channel for connected tires, providing consumers with one-stop shopping options. These large retail locations often feature dedicated automotive sections, allowing customers to purchase tires alongside other automotive products. As the popularity of connected tire solutions grows, hypermarkets and supermarkets are expanding their offerings to include these advanced technologies. The competitive pricing and convenience of shopping at hypermarkets are driving consumer interest, making this channel a valuable contributor to the overall connected tire market.

By Ingredient Type

Rubber:

Rubber is a fundamental ingredient in tire manufacturing, providing the necessary flexibility and durability for optimal performance. The growing demand for high-performance tires has led to advancements in rubber compounds, enhancing grip and wear resistance. As connected tire technology evolves, manufacturers are exploring innovative rubber formulations that can improve performance metrics and provide better feedback to drivers. The focus on sustainability is also pushing manufacturers to develop eco-friendly rubber compounds, which are likely to shape the future of the connected tire market.

Steel:

Steel is another crucial ingredient in tire manufacturing, particularly in the production of reinforcement layers that provide structural integrity and strength. The use of steel belts in tires enhances their performance and longevity, making them essential for high-performance applications. As connected tire technology gains traction, manufacturers are exploring ways to integrate smart sensors within steel-reinforced tires. This integration enables real-time monitoring of tire conditions, ensuring optimal performance and safety. The demand for high-quality steel in tire production is expected to rise, particularly in the context of connected tire advancements.

Fabric:

Fabric materials are used in tire construction to enhance flexibility and reduce weight, contributing to improved fuel efficiency. The increasing focus on lightweight tire designs is fostering innovations in fabric technologies. As manufacturers develop connected tire solutions, integrating smart fabrics that can monitor tire conditions and performance metrics is becoming a significant trend. This innovation not only enhances safety but also provides valuable data for maintenance and performance optimization. The demand for advanced fabric technologies in tire manufacturing is expected to grow in response to the evolving requirements of connected tires.

Carbon Black:

Carbon black is a critical component in tire production, providing reinforcement and enhancing the durability of rubber compounds. The use of high-quality carbon black improves tire performance and longevity, making it an essential ingredient in the connected tire market. As manufacturers seek to develop tires that can withstand diverse driving conditions, advancements in carbon black technology are emerging. The integration of connected solutions in tires allows for better performance tracking and maintenance insights, further emphasizing the importance of carbon black in the manufacturing process. The demand for innovative carbon black solutions is anticipated to increase, driven by the growing focus on performance-oriented connected tires.

Chemicals:

Chemicals play a vital role in tire manufacturing, influencing properties such as elasticity, heat resistance, and overall performance. The development of specialized chemical formulations is driving advancements in connected tire technology, enabling manufacturers to optimize tire performance and longevity. Innovations in chemical technology allow for better integration of smart sensors within tires, facilitating real-time monitoring of tire conditions. As the demand for high-performance and connected tires continues to rise, the role of chemical innovations in tire manufacturing is expected to become increasingly significant.

By Region

The North American connected tire market has shown robust growth, driven by the increasing demand for advanced automotive technologies and the rising awareness of vehicle safety. The integration of connected tire solutions in both passenger and commercial vehicles is gaining popularity, with manufacturers focusing on enhancing performance and safety features. As of 2023, the North American market accounts for approximately 30% of the global connected tire market, with a projected CAGR of around 11% from 2025 to 2035. The focus on electric vehicles and autonomous driving technologies is expected to further boost demand for connected tires in the region.

In Europe, the connected tire market is expected to witness significant growth, fueled by stringent regulations regarding vehicle safety and the increasing adoption of smart technologies in automobiles. The European market is projected to represent approximately 35% of the global connected tire market by 2035. With the growing emphasis on sustainable transportation and the rise of electric vehicles, the demand for connected tire solutions is anticipated to rise sharply. Manufacturers in Europe are increasingly collaborating with technology companies to develop innovative connected tire technologies, which will contribute to the overall market expansion. As the market evolves, the focus on enhancing vehicle performance and safety through connected solutions will remain a key driver of growth.

Opportunities

The connected tire market is poised to capitalize on numerous opportunities in the coming years. One of the most significant opportunities lies in the growth of electric vehicles (EVs). As the shift towards EVs continues, manufacturers are increasingly focusing on optimizing tire performance for electric drivetrains, which require specific characteristics to maximize range and efficiency. The integration of connected tire technology with EVs presents a unique opportunity for manufacturers to enhance performance metrics, improve safety, and provide valuable data analytics to consumers. Furthermore, the expansion of charging infrastructure and government incentives for EV purchases create a favorable environment for connected tire solutions tailored to electric vehicles, further driving growth in this segment.

Another promising opportunity within the connected tire market is the rise of autonomous vehicles. As self-driving technology advances, the demand for connected solutions that can monitor tire performance in real-time will increase significantly. Manufacturers can leverage this opportunity to develop advanced tire technologies that seamlessly integrate with autonomous systems, allowing for optimized performance and maintenance. The collaboration between tire manufacturers, automotive companies, and technology providers will be essential in developing connected tire solutions that meet the evolving needs of the autonomous vehicle market. As the market moves towards automation, the potential for growth in connected tire technology will become increasingly pronounced.

Threats

Despite the promising outlook for the connected tire market, several threats could impact its growth trajectory. One of the primary threats is the increasing competition among manufacturers, leading to pricing pressures that may impact profitability. As more companies enter the market with innovative connected tire solutions, the competition for market share intensifies, potentially resulting in lower prices and reduced profit margins. Additionally, the rapid technological advancements in the automotive industry may pose challenges for manufacturers to keep pace with evolving consumer preferences and expectations. Companies must invest significantly in research and development to remain competitive, which can strain financial resources and impact overall growth.

Another significant threat to the connected tire market is the potential for cybersecurity risks associated with connected technologies. As tires become more integrated with vehicle systems and connected to the internet, they may become vulnerable to cyberattacks that could compromise tire performance and safety. Manufacturers must prioritize cybersecurity measures to protect their products and ensure the safety of consumers. The potential for data breaches and unauthorized access to vehicle systems could undermine consumer trust in connected tire technologies, which may hinder market growth and adoption in the long term.

Competitor Outlook

• Continental AG
• Bridgestone Corporation
• Michelin
• Goodyear Tire & Rubber Company
• Pirelli & C. S.p.A.
• Dunlop Tires
• Hankook Tire & Technology Co., Ltd.
• Yokohama Rubber Co., Ltd.
• Sumitomo Rubber Industries, Ltd.
• Cooper Tire & Rubber Company
• Toyo Tire Corporation
• Giti Tire Group
• Apollo Tyres Ltd.
• Nokian Tyres
• Kaltrac

The competitive landscape of the connected tire market is marked by the presence of several key players, each striving to innovate and differentiate their product offerings. Major tire manufacturers are increasingly focusing on research and development to enhance the functionality of connected tires, integrating advanced technologies such as sensors and IoT connectivity. This trend is shaping the competitive dynamics of the market as companies seek to leverage smart technology to meet evolving consumer demands for safety and performance. Additionally, strategic partnerships between tire manufacturers and technology providers are becoming more common, allowing for the development of comprehensive connected tire solutions that cater to the needs of consumers and fleet operators alike.

Continental AG is a leading player in the connected tire market, known for its commitment to innovation and advanced tire technology. The company has invested heavily in integrating IoT solutions into its tire products, enhancing performance monitoring and safety features. Bridgestone Corporation is another major competitor that has been actively focusing on connected tire solutions, leveraging its extensive research and development capabilities to create smart tires that provide real-time data and performance analytics. Michelin is also making strides in the connected tire space, emphasizing sustainability and performance through its innovative tire technologies.

Goodyear Tire & Rubber Company stands out for its holistic approach to connected tires, offering solutions that not only monitor tire conditions but also provide valuable insights for fleet management and maintenance optimization. The company's emphasis on data analytics and predictive maintenance positions it as a prominent player in the connected tire market. In addition to these major players, there are numerous smaller, innovative companies emerging in the connected tire landscape, driving competition and fostering advancements in this technology sector. As the market continues to evolve, collaboration and innovation will remain key drivers of success for all participants in the connected tire market.