Connected Tire Market Size & Share 2022 to 2032
Market Size by Rim Size (12, 17 Inches, 18, 22 Inches, More Than 22 Inches), by Component (TPMS, Accelerometer Sensors, Strain Gauge Sensors, RFID Chips), by Vehicle Type (Passenger Cars, Commercial Vehicle), by Propulsion (ICE, Electric), by Sales Channel.
Report ID: GMI6131
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Published Date: June 2023
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Report Format: PDF
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Authors:
Suraj Gujar, Ankita Chavan
Connected Tire Market Size
Connected Tire Market size was valued at USD 8.7 million in 2022 and is anticipated to grow at a CAGR of over 45% between 2023 and 2032. The integration of tire sensors and systems with the expansive IoT ecosystem is making connected tires a part of the larger network of connected devices, enabling seamless data exchange, real-time monitoring, and enhanced functionality. This integration opens opportunities for predictive maintenance, advanced analytics, and vehicle-to-vehicle communication. With increasing environmental concerns, the connected tire industry is implementing sustainability initiatives. By reducing tire wear through real-time monitoring, optimizing tire pressure for fuel efficiency, and enabling predictive maintenance to extend tire lifespan, connected tires can contribute to the industry’s sustainability efforts. These benefits make connected tires appealing to eco-conscious consumers and fleet operators.
Connected Tire Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
Connected tires refer to tires that are equipped with sensors and integrated with technologies to collect & transmit data about their performance, condition, and environment. These sensors measure parameters such as temperature, tire pressure, tread wear, and also road conditions. Once the data is collected, it is transmitted to a central system commonly via wireless communication for analysis and various other purposes.
The initial cost of using connected tire technology can be high. This cost includes the cost of sensors, electronic connections, and integration with vehicle systems. This high cost can limit adoption, especially from a business perspective.
COVID-19 Impact
The COVID-19 pandemic had significant impacts on the global connected tire market. The pandemic disrupted global supply chains, leading to delayed manufacturing and distribution of connected tire components, thereby impacting market growth. The pandemic-induced economic downturn also affected consumer spending and automotive sales, thus negatively impacting the adoption of advanced technologies such as connected tires.
Connected Tire Market Trends
Increasing complexities of aeroderivative engines along with the growing focus on engine performance & efficiency are driving market growth. As aeroderivative engines are advanced with complex systems & components, sensors play a significant role in monitoring engine parameters such as temperature, pressure, vibration, speed, fuel flow, and exhaust emissions. The need for these sensors will continue to grow with the increasing complexity of aeroderivative engines to measure and monitor various parameters. Engine optimization & efficiency maximization are the top priorities among industries that use aeroderivative systems such as power generation, oil & gas, and offshore propulsion. Sensors provide real-time monitoring of key engine parameters, allowing dealers to improve engine performance, identify potential problems, and take necessary corrective actions. The demand for sensors arises from the need to improve engine performance, reduce fuel consumption, and improve overall performance. Sensors provide real-time monitoring of key engine parameters, allowing dealers to identify potential problems, improve engine performance, and take necessary corrective actions, thereby boosting market growth.
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.
Connected Tire Market Share
Some of the major players operating in the connected tire market are
These players focus on strategic partnerships, new product launches, and commercialization efforts for market expansion. Furthermore, they are also heavily investing in research to introduce innovative services and garner maximum revenue in the market.
Connected Tire Industry News
The connected tire market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
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By Rim Size
By Component
By Vehicle Type
By Propulsion
By Sales Channel
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
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