PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1756403
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1756403
The Connected Tire Market was valued at US$ 4.90 million in 2024 and expanded at a CAGR of 68.02% from 2025 to 2032.
A Connected Tire refers to a tire that is fitted with sensors designed to monitor its status and relay information to a vehicle's system, facilitating real-time observation and evaluation of multiple tire parameters. This information encompasses tire pressure, temperature, tread wear, and additional metrics, which can be leveraged to improve performance, anticipate maintenance requirements, and elevate the overall driving experience. Connected tires employ sensors integrated within the tire, typically located on the inner lining, to collect data. These tires are utilized across various applications, such as autonomous driving, fleet management, and shared mobility.
Connected Tire Market- Market Dynamics
The rising adoption of connected vehicles is anticipated to drive the market growth.
As automotive manufacturers and fleet managers increasingly focus on vehicle connectivity and smart mobility solutions, the demand for connected tires is anticipated to rise considerably, solidifying their importance as a crucial element within the connected vehicle ecosystem. In 2020, connected vehicles accounted for more than 90% of all new car sales in the United States, with projections from SAP indicating that 5G vehicles will constitute over a quarter of global connected car sales by 2025. Furthermore, advancements in IoT and AI technologies may present opportunities for market expansion, while concerns regarding data privacy and security could hinder this growth.
Connected Tire Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 68.02% over the forecast period (2025-2032)
Based on Component segmentation, the Accelerometer was the leading Component in 2024
Based on Rim Size segmentation, 12 to 17 inches was the leading Rim Size in 2024
Based on Vehicle Type segmentation, Passenger Cars were the leading Vehicle Type in 2024
Based on region, the Asia Pacific was the leading revenue generator in 2024
The Global Connected Tire Market is segmented based on Product Type, Propulsion, Component, Rim Size, Vehicle Type, Sales Channel, and Region.
The market is categorized into two segments based on product type: Hardware and Software. The term Connected Tire denotes an innovative tire system that incorporates both hardware and software elements, facilitating real-time monitoring, data analysis, and communication among the tire, the vehicle, and external systems. These solutions play a crucial role in advancing smart mobility, fleet management, and autonomous driving technologies. The hardware components integrated into or associated with connected tires generally consist of TPMS, accelerometers, gyroscopes, RFID chips, Bluetooth/5G modules, and battery or energy harvesting units. On the software side, it oversees the collection, processing, and utilization of data through Tire Management Software Platforms, predictive analytics algorithms, telematics integration, and AI & machine learning models.
The market is categorized into two segments based on propulsion: Internal Combustion Engine (ICE) and Electric Vehicles (EVs). The integration of Connected Tire technology with both ICE and EVs improves safety, efficiency, and vehicle intelligence. Although both types of vehicles gain advantages, their priorities and value propositions vary due to distinct mechanical and operational characteristics. The range of EVs is particularly affected by rolling resistance, and Connected Tires assist in maintaining optimal pressure and minimizing drag. Furthermore, EVs provide immediate torque, which can lead to increased tire wear; Connected Tires are capable of monitoring load distribution to help mitigate this issue. Additionally, as EVs frequently feature sophisticated infotainment systems, Connected Tires can seamlessly integrate with the vehicle's ecosystem for real-time diagnostics.
The market is categorized into four segments based on components: TPMS, Accelerometer Sensors, Strain Gauge Sensors, and RFID Chips. Accelerometer Sensors lead in market growth. They are essential in connected tire systems due to their vital role in monitoring and improving tire and vehicle performance. These sensors facilitate real-time traction assessment, which is particularly beneficial in wet, icy, or uneven conditions. They are crucial for Advanced Driver-Assistance Systems (ADAS) and the navigation of autonomous vehicles, where accurate information on tire-road interaction is necessary. Their leading position stems from the increasing demand for real-time vehicle dynamics, safety enhancement, and predictive maintenance, particularly within electric, autonomous, and commercial vehicle sectors.
The market is categorized into three segments based on rim size: 12 to 17 inches, 18 to 22 inches, and over 22 inches. The 12 to 17-inch segment is the primary driver of market growth, largely due to its extensive application in passenger vehicles such as sedans, hatchbacks, and compact SUVs. A significant number of passenger vehicles, including economy, mid-size, and compact cars, utilize tires within the 12 to 17 inch range. There is a robust aftermarket demand for sensor-equipped tires in this size category. Fleet operators and individual consumers are increasingly retrofitting their vehicles with connected tires to achieve cost savings and enhance safety.
The market is segmented into two categories according to Vehicle Type: Passenger Cars and Commercial Vehicles. Passenger Cars are at the forefront of market growth, propelled by swift technological advancements, increasing consumer demand for safety, and the enhanced incorporation of intelligent features in vehicles. Modern consumers anticipate sophisticated safety systems such as Tire Pressure Monitoring Systems (TPMS), traction and stability feedback, and predictive maintenance notifications.
The market is classified into two segments according to the Sales Channel: OEM and Aftermarket. The Connected Tire Market is divided into OEM (Original Equipment Manufacturer) and Aftermarket, each contributing significantly yet uniquely to growth. OEMs are at the forefront, offering integrated, long-term solutions that are incorporated into the design and structure of new vehicles. Meanwhile, the aftermarket is experiencing swift expansion with cost-effective, modular solutions that are perfect for retrofitting current vehicles and commercial fleets.
Connected Tire Market- Geographical Insights
The Asia-Pacific region is at the forefront of market growth, driven by the rise of autonomous and electric vehicles as well as a strong focus on vehicle safety. The expansion of the automotive manufacturing sector, increasing urbanization, and heightened consumer awareness in this area further facilitate the rapid implementation of connected tire technologies. The growing acceptance of these innovative vehicle technologies is boosting the demand for smart tires capable of real-time tire health monitoring, thereby improving safety and performance. According to the International Energy Agency, China saw 8.1 million new electric car registrations in 2023, marking a 35% increase compared to 2022. Meanwhile, North America maintains a substantial market share due to its early adoption of connected vehicle technologies and its advanced automotive infrastructure.
The Connected Tire market is witnessing heightened competition, as established tire manufacturers and emerging technology-driven companies compete for market leadership. This rivalry encompasses original equipment manufacturer (OEM) collaborations, aftermarket offerings, and software development, resulting in a complex competitive environment. Key areas of competition include advancements in sensor technology, cloud analytics, and vehicle telematics integration, with industry participants aiming to meet the demand from both new vehicle manufacturing and retrofitting existing fleets.
On April 4, 2025, Continental will concentrate its Commercial Specialty Tires division on tires for Material Handling, Earthmoving, and Port Operations, while phasing out its Agricultural Tires segment by the conclusion of 2025.
Bridgestone Americas (Bridgestone) has officially declared a minority investment in Tyrata, Inc. (Tyrata), a company specializing in tire sensor technology and data management. Tyrata employs an automated and economical drive-over system to assess tire tread, gathering data on tire wear and delivering actionable analytics through a cloud-based platform.