Connected Tyre Market by Vehicle Type, Connectivity Type, Tyre Construction, Price Range, End User

List of Tables

The Connected Tyre Market is projected to grow by USD 448.45 million at a CAGR of 39.81% by 2032.

KEY MARKET STATISTICS
Base Year [2024]	USD 30.70 million
Estimated Year [2025]	USD 42.95 million
Forecast Year [2032]	USD 448.45 million
CAGR (%)	39.81%

Concise strategic framing of why connected tyres are now integral to vehicle intelligence, fleet efficiency, and safety-focused product strategies

This executive summary introduces the strategic and technological contours shaping the connected tyre landscape, offering decision-makers a compact but rigorous synthesis of current dynamics. The introduction frames connected tyres as a convergence point for automotive electrification, advanced driver assistance systems, fleet telematics, and sustainability-driven materials innovation. It highlights the accelerating integration of sensing systems and wireless communications that transform a commodity component into an intelligent data node.

Readers will find a focused narrative that positions connected tyres within the vehicle systems architecture and the broader mobility ecosystem. The introduction clarifies how connected tyre capabilities are evolving from simple pressure monitoring to multi-modal sensing and telematics integration that enable predictive maintenance, enhanced safety, and operational efficiency for both OEMs and fleet operators. It also outlines regulatory and standards activity that influences sensor design, data handling, and interoperability.

Finally, the introduction sets expectations for subsequent sections by underscoring the cross-cutting implications for supply chain strategy, product segmentation, and regional deployment. It prepares strategic leaders to consider not just the technical specifications of connected tyre solutions but also commercial models, channel dynamics, and partnership structures needed to capture the full value of tyre-derived data.

How technological maturation, electrification trends, and shifting commercial models are driving a rapid transformation in connected tyre strategies and partnerships

The landscape for connected tyres is undergoing transformative shifts driven by technological maturation and evolving mobility demands, and these shifts are redefining supplier and OEM priorities. First, the maturation of low-power wide-area connectivity and vehicle telematics platforms has enabled tyre systems to be tightly integrated into fleet management and vehicle health architectures, moving sensing beyond isolated alerts toward continuous performance insight.

In parallel, advances in sensor miniaturization and materials science are permitting the integration of robust pressure and temperature sensing into tyre constructions without compromising durability. This technical progress coincides with rising adoption of advanced driver assistance systems and electrified powertrains, which together raise the operational and safety requirements for tyres and increase the value of embedded sensing. Consequently, product development teams are prioritizing modular sensor platforms and software-defined features that can be updated post-deployment.

Moreover, commercial models are shifting from standalone hardware sales toward outcome-oriented offerings that bundle sensors, connectivity, and analytics services. Regulatory focus on vehicle safety and environmental performance is also nudging industry participants to invest in interoperable systems and standardized data formats. Taken together, these shifts are prompting manufacturers and suppliers to form cross-disciplinary partnerships, rework supply chains for higher-value integration, and accelerate proof-of-concept pilots with fleets and OEMs to validate both technical viability and commercial models.

Assessing the strategic supply chain shifts and procurement resilience needed as tariff pressures reshape sourcing choices, regional production, and supplier partnerships

The imposition of tariffs and trade policy adjustments has created a complex operating environment for suppliers and OEMs that depend on globalised tyre supply chains, and recent tariff actions underscore the need for strategic sourcing resilience. Tariff-related cost pressures have prompted some manufacturers to reassess manufacturing footprints, prioritize localised assembly, and accelerate supplier diversification to mitigate exposure to any single trade regime. As a result, procurement teams are increasingly evaluating the total landed cost of components, logistics flexibility, and lead-time variability rather than focusing solely on unit price.

In addition to altering supplier selection criteria, tariff dynamics influence product development roadmaps because localized production decisions affect the availability of advanced sensor modules and the ability to iterate quickly. Firms that can localize assembly or partner with regional electronics manufacturers find they can maintain shorter feedback loops and quicker field updates. Conversely, organizations that face higher cross-border costs may defer upgrades or shift towards more standardized sensor designs to preserve margin.

Regulatory uncertainty also amplifies the importance of contractual flexibility. Companies are adopting more dynamic procurement contracts with passthrough clauses, flexible order volumes, and multi-sourcing provisions. In strategic terms, the cumulative effect of tariffs is to accelerate nearshoring conversations, strengthen regional partnerships, and heighten the strategic value of suppliers that offer integrated solutions with local support capabilities. For leaders, this means reassessing supplier risk, strengthening supplier development programs, and embedding tariff-sensitivity scenarios into product commercialization plans.

Strategic segmentation insights illustrating how vehicle type, connectivity choices, construction formats, pricing tiers, and end-user needs determine product and channel strategies

A granular view of segmentation highlights where product design, channel strategies, and commercial models must align to capture differentiated value across vehicle applications. When considering vehicle type, product requirements diverge materially between heavy commercial vehicles, light commercial vehicles, and passenger cars; heavy commercial vehicles prioritize durability, load-adaptive sensing, and integration with fleet telematics, while passenger cars emphasize comfort, safety integration with ADAS systems, and compact sensor footprints. Light commercial vehicles often sit between these priorities and demand a balance of ruggedness and cost-effective telematics compatibility.

Connectivity type determines integration complexity and value capture, with pressure sensor systems providing core safety and maintenance data, RFID enabling streamlined identification and inventory workflows, and telematics integration delivering continuous operational intelligence and predictive maintenance capabilities. Depending on tyre construction, choices between bias and radial designs impact how sensors are embedded, the expected mechanical stresses on electronics, and the repairability of assemblies. Price range also stratifies product positioning: budget tiers prioritize reliability and straightforward sensor functions, mid-range offerings blend enhanced diagnostics and regional serviceability, and premium products bundle advanced sensing, analytics access, and longer warranty constructs.

End user orientation shapes go-to-market and support models: aftermarket channels require broad compatibility and retrofit-friendly designs to address heterogeneous vehicle fleets, whereas OEM engagements prioritize integration simplicity, certification alignment, and long-term engineering partnerships. Synthesizing these segmentation dimensions highlights the need for modular platforms that can be configured across vehicle types, connectivity options, construction formats, pricing tiers, and distinct end-user expectations without compromising manufacturing efficiency or serviceability.

Regional deployment pathways for connected tyres showing how fleet priorities, regulatory regimes, and OEM activity shape adoption across the Americas, EMEA, and Asia-Pacific

Regional dynamics shape adoption pathways and strategic priorities for connected tyre programs, and appreciating these differences is critical for global planning. In the Americas, adoption is driven by large fleet operators seeking operational efficiency and safety improvements; this region emphasizes telematics integration, fleet management partnerships, and solutions that reduce downtime across long-haul and regional transport operations. Regulatory focus on vehicle safety and emissions also supports demand for solutions that enable preventive maintenance and operational optimization.

Europe, Middle East & Africa presents a heterogeneous set of opportunities and constraints, where stringent safety and environmental regulations in some European markets drive rapid adoption of advanced sensing and data standards, while emerging markets within the region prioritize cost-effective, rugged solutions and compatibility with legacy vehicle parc. This diversity necessitates flexible commercial models and product lines that can be adapted to regulatory regimes and infrastructure maturity levels. In contrast, Asia-Pacific features a mix of highly advanced OEM innovation hubs and high-volume aftermarket demand; leading OEMs in several Asia-Pacific markets are integrating tyre sensing into broader vehicle-software strategies, while aftermarket channels across urbanized areas pursue retrofit offerings to service growing ride-hailing and logistics fleets.

Taken together, these regional patterns suggest that successful market entry requires localized go-to-market strategies, regionally tailored product specifications, and partnerships with telematics and fleet management providers that have deep market knowledge. Companies that align product roadmaps with regional regulatory trajectories and channel dynamics will be better positioned to secure preferred supplier relationships.

Competitive dynamics and supplier archetypes that determine integration success, from incumbent tyre makers to sensor innovators and telematics platform providers

Competitive dynamics in the connected tyre space reflect a mix of traditional tyre manufacturers, electronics suppliers, telematics providers, and innovative sensor startups, each bringing distinct capabilities and expectations for integration. Established tyre manufacturers leverage deep materials expertise, distribution networks, and OEM relationships to integrate sensing technologies into production tyres and to advance warranty and service programs that increase lifetime value. Electronics suppliers and sensor specialists provide the miniaturized hardware, ruggedized packaging, and sensor calibration expertise necessary to meet automotive durability and performance standards.

Telematics and software companies contribute cloud platforms, analytics stacks, and APIs that translate raw tyre data into actionable insights for fleet managers and OEM systems. Meanwhile, startups often accelerate innovation cycles by experimenting with non-traditional sensing modalities, novel power harvesting techniques, or lightweight connectivity approaches that reduce installation complexity. Collaboration across these archetypes is common; tiered partnerships and strategic alliances enable incumbent manufacturers to incorporate state-of-the-art sensing and analytics without diluting core manufacturing capabilities.

For commercial decision-makers, the key implication is that supplier selection must balance hardware performance, software interoperability, after-sales support, and roadmap alignment. Suppliers that offer integrated packages with proven reliability, standards-compliant interfaces, and regional support infrastructure will increasingly command preference in OEM and fleet procurement processes. As integration complexity grows, firms that can demonstrate successful pilot deployments and clear total-cost-of-ownership advantages will strengthen their competitive position.

Actionable strategic priorities and operational steps for manufacturers and suppliers to scale connected tyre solutions while managing risk and accelerating adoption

Industry leaders must translate technological potential into executable commercial strategies that capture value from connected tyre data and functionality. First, invest in modular sensor platforms that enable a single hardware architecture to be adapted across heavy commercial, light commercial, and passenger vehicle applications; this reduces development overhead while allowing targeted feature differentiation. Second, prioritize strategic partnerships with telematics providers and fleet management firms to ensure seamless data integration and to accelerate adoption through bundled offerings.

Third, build regional production and support capabilities to mitigate tariff exposure and to shorten service cycles, thereby improving responsiveness to OEM and fleet customer needs. Fourth, develop differentiated commercial models that include subscription analytics, outcome-based service agreements, and retrofit kits for aftermarket channels; these models create recurring revenue streams and strengthen customer retention. Fifth, embed data governance, cybersecurity, and regulatory compliance into product architectures from the outset to manage liability and to facilitate OEM certification processes.

Finally, adopt rigorous pilot frameworks that measure operational KPIs and customer value in real-world deployments, and use these pilots to iterate product features and commercial terms. Leaders should also invest in supplier development programs to ensure the consistency of sensor components and to secure preferential access to critical electronic components. By executing on these recommendations, organizations can move from prototype validation to scalable deployment while protecting margin and accelerating customer adoption.

Methodological rigor combining primary interviews, technical validation, and scenario analysis to produce actionable insights on connected tyre integration and commercialization

The research approach underpinning this executive summary combined qualitative and quantitative inquiry to develop a comprehensive view of technological, commercial, and regional dynamics. Primary research included structured interviews with engineering leaders, procurement heads, fleet operators, and telematics integrators to surface practical requirements, integration pain points, and commercial preferences. Secondary research encompassed technical literature, regulatory guidance, and publicly available product specifications to validate sensor capabilities, interface standards, and durability expectations.

Cross-validation occurred through scenario analysis and comparative supplier profiling that considered product architectures, service models, and support footprints. The methodology emphasized triangulation: insights from technical interviews were compared with telematics system documentation and OEM integration guidelines to ensure coherence. Throughout the process, emphasis was placed on real-world constraints such as installation complexity, repairability, and environmental durability to ground technical potential in operational reality.

Finally, the research captured evolving procurement practices and contractual constructs influenced by tariff dynamics and regional production considerations. This methodological framework ensured that the narrative reflects both the engineering feasibility of connected tyre solutions and the commercial pathways required to convert capability into adoption across diverse vehicle types and regional markets.

Synthesis of strategic imperatives showing how integrated product, supply chain, and commercial strategies convert connected tyre capabilities into sustained value

The concluding synthesis underscores that connected tyres are becoming a strategic inflection point for vehicle safety, fleet productivity, and aftermarket service innovation. Convergence of sensor miniaturization, telematics integration, and outcome-oriented commercial models has elevated tyres from a passive component to an active contributor to vehicle intelligence. For OEMs, this means integrating tyre data into vehicle health and ADAS workflows; for fleets, it means leveraging continuous diagnostics to reduce downtime and control operating costs; and for aftermarket providers, it creates avenues for premium retrofit and subscription services.

However, realizing this potential requires deliberate alignment of product design, supply chain resilience, and channel strategies. Tariff pressures and regional regulatory regimes are accelerating plans for localized production and diversified supplier relationships, while segmentation realities call for modular platforms that can be configured for heavy commercial, light commercial, and passenger car applications with appropriate connectivity, construction, and price positioning. Ultimately, organizations that combine strong engineering execution with flexible commercial models and regional operational capabilities will be best positioned to capture long-term value from tyre-derived data.

In closing, the connected tyre opportunity rewards integrated thinking: combining sensor prowess, robust data platforms, and pragmatic go-to-market plans will enable players to unlock safety gains, operational efficiencies, and new revenue streams across OEM and aftermarket channels.

Product Code: MRR-CF6C60CF959B

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Integration of predictive maintenance algorithms using real-time tyre pressure and temperature data for improved safety and cost reduction across commercial fleets
5.2. Adoption of energy-harvesting sensors in tyre treads to power continuous telematics monitoring systems without external batteries
5.3. Sustainability-driven development of eco-friendly connected tyre compounds integrated with data analytics for lifecycle optimization
5.4. Implementation of 5G-enabled vehicle connectivity to facilitate high-frequency tyre health monitoring and rapid data exchange for autonomous fleets
5.5. Emergence of blockchain-based supply chain tracking for connected tyres to ensure authenticity and traceability of sensor-enabled components
5.6. Utilization of digital twin models of tyres to simulate wear patterns and performance under varying real-world driving conditions for predictive analytics
5.7. Regulatory focus on cybersecurity standards for connected tyre systems to protect vehicular networks against sensor spoofing and data breaches

6. Cumulative Impact of United States Tariffs 2025

7. Cumulative Impact of Artificial Intelligence 2025

8. Connected Tyre Market, by Vehicle Type

8.1. Heavy Commercial Vehicle
8.2. Light Commercial Vehicle
8.3. Passenger Car

9. Connected Tyre Market, by Connectivity Type

9.1. Pressure Sensor Systems
9.2. RFID
9.3. Telematics Integration

10. Connected Tyre Market, by Tyre Construction

10.1. Bias
10.2. Radial

11. Connected Tyre Market, by Price Range

11.1. Budget
11.2. Mid Range
11.3. Premium

12. Connected Tyre Market, by End User

12.1. Aftermarket
12.2. OEM

13. Connected Tyre Market, by Region

13.1. Americas
- 13.1.1. North America
- 13.1.2. Latin America
13.2. Europe, Middle East & Africa
- 13.2.1. Europe
- 13.2.2. Middle East
- 13.2.3. Africa
13.3. Asia-Pacific

14. Connected Tyre Market, by Group

14.1. ASEAN
14.2. GCC
14.3. European Union
14.4. BRICS
14.5. G7
14.6. NATO

15. Connected Tyre Market, by Country

15.1. United States
15.2. Canada
15.3. Mexico
15.4. Brazil
15.5. United Kingdom
15.6. Germany
15.7. France
15.8. Russia
15.9. Italy
15.10. Spain
15.11. China
15.12. India
15.13. Japan
15.14. Australia
15.15. South Korea

16. Competitive Landscape

16.1. Market Share Analysis, 2024
16.2. FPNV Positioning Matrix, 2024
16.3. Competitive Analysis
- 16.3.1. Continental AG
- 16.3.2. Compagnie Generale des Etablissements Michelin SCA
- 16.3.3. The Goodyear Tire & Rubber Company
- 16.3.4. Bridgestone Corporation
- 16.3.5. Pirelli & C. S.p.A.
- 16.3.6. Hankook Tire & Technology Co., Ltd.
- 16.3.7. Yokohama Rubber Co., Ltd.
- 16.3.8. Nokian Renkaat Oyj
- 16.3.9. Sensata Technologies Holding plc
- 16.3.10. Texas Instruments Incorporated