Connected Tires Market Forecasts to 2032 - Global Analysis By Vehicle Type, Rim Size, Component, Propulsion Type, Sales Channel, Application and By Geography

According to Stratistics MRC, the Global Connected Tires Market is accounted for $10.5 million in 2025 and is expected to reach $321.5 million by 2032 growing at a CAGR of 62.3% during the forecast period. Connected tires refer to next-generation smart tire systems embedded with sensors and connectivity features that enable real-time monitoring of critical parameters such as tire pressure, temperature, wear, and load. These systems transmit data to vehicle ECUs or cloud platforms, supporting predictive maintenance, improved vehicle performance, and enhanced safety. Widely adopted in fleet operations and emerging autonomous mobility ecosystems, connected tires are pivotal in enabling data-driven decision-making and operational efficiency.

According to Goodyear and TNO, their "SightLine" smart tire technology can sense rain and ice and trigger automatic emergency braking (AEB) earlier-enhancing safety by adapting to low-friction surfaces at speeds up to ~50 mph.

Market Dynamics:

Driver:

Growing demand for vehicle safety

Road accidents continue to rise globally, and consumers and fleet operators are increasingly aware of the critical role tire health plays in vehicle performance and safety. Connected tires provide real-time monitoring of tire pressure, temperature, and tread depth, enabling early detection of potential issues and reducing accident risks. This real-time data empowers drivers and fleet managers to make informed decisions, thereby improving overall road safety and operational efficiency. The integration of advanced sensors and IoT technologies further strengthens safety features, making connected tires an essential component for modern vehicles.

Restraint:

Lack of universal directives and standardization

The lack of consistent regulatory frameworks and technical standards creates compatibility issues and increases complexity for manufacturers and users alike. This fragmentation can hinder the seamless integration of connected tire technologies with different vehicle platforms and telematics systems. Additionally, it complicates the development of interoperable solutions, potentially slowing market adoption and increasing costs for both OEMs and aftermarket providers.

Opportunity:

Emergence of "Tire-as-a-Service" business models

The rise of "Tire-as-a-Service" (TaaS) business models presents a major opportunity for the connected tires market. These subscription-based services allow fleet operators and consumers to access advanced tire monitoring and management features without the need for large upfront investments. TaaS models encourage wider adoption by lowering entry barriers and providing value-added services such as predictive maintenance, real-time analytics, and fleet optimization. Such offerings not only improve customer engagement but also create recurring revenue streams for tire manufacturers and service providers, fostering long-term business growth.

Threat:

Data security and privacy concerns

Data security and privacy concerns pose a significant threat to the connected tires market. As connected tires collect and transmit sensitive information about vehicle performance, location, and driver behavior, the risk of data breaches and unauthorized access increases. Consumers and fleet operators may hesitate to adopt these technologies if they are not confident in the security measures protecting their data. Moreover, regulatory scrutiny around data handling and the potential for cyberattacks targeting connected vehicle systems could further impede market growth and erode consumer trust.

Covid-19 Impact:

The COVID-19 pandemic had a notable impact on the connected tires market, primarily disrupting supply chains and leading to temporary halts in vehicle production. Major automakers paused manufacturing, resulting in delays in the rollout of new vehicle models equipped with advanced tire technologies. However, the crisis also accelerated digital transformation efforts, with increased focus on fleet management and safety solutions. As economies recover, demand for connected and smart tire technologies is expected to rebound, supported by ongoing trends toward vehicle safety and fleet efficiency.

The passenger vehicles segment is expected to be the largest during the forecast period

The passenger vehicles segment is expected to account for the largest market share during the forecast period. This dominance is driven by the rising sales of premium and luxury vehicles equipped with advanced safety and connectivity features. Furthermore, increasing consumer awareness about the importance of tire health and the growing penetration of shared mobility services are contributing to higher adoption rates in this segment. Manufacturers are also prioritizing passenger vehicles for the introduction of new connected tire technologies, ensuring sustained market leadership.

The electric vehicles (EV) segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the electric vehicles (EV) segment is predicted to witness the highest growth rate. This rapid growth is fueled by the global shift toward sustainable mobility and the increasing adoption of electric vehicles, which rely heavily on advanced sensor and connectivity technologies. Connected tires play a crucial role in optimizing EV performance, battery efficiency, and safety. Additionally, regulatory incentives and the expanding EV charging infrastructure are accelerating the demand for smart tire solutions tailored to electric mobility needs.

Region with largest share:

During the forecast period, the Europe region is expected to hold the largest market share, attributed to the region's strong automotive industry, technological advancements, and the presence of major tire manufacturers such as Michelin, Continental, and Pirelli. Furthermore, stringent vehicle safety regulations and the rapid adoption of connected and autonomous vehicles are driving demand for smart tire solutions. The European market's robust infrastructure and consumer preference for advanced vehicle technologies further reinforce its dominant position.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR, propelled by surging vehicle sales in emerging economies such as China, India, and Japan, as well as the expansion of shared mobility and ride-hailing services. Additionally, increasing demand for effective fleet management and predictive maintenance in the logistics sector is boosting market adoption. Government initiatives promoting vehicle safety and emission reductions, coupled with investments from international tire manufacturers, are further accelerating regional market expansion.

Key players in the market

Some of the key players in Connected Tires Market include Bridgestone Corporation, Continental AG, Michelin, Goodyear Tire & Rubber Company, Pirelli & C. S.p.A., Nokian Tyres plc, Hankook Tire & Technology Co., Ltd., Sumitomo Rubber Industries, Ltd., Nexen Tire Corporation, Yokohama Rubber Co., Ltd., Toyo Tire Corporation, Trelleborg AB, BFGoodrich Tires, Kumho Tire Co., Inc., MRF Limited, ZF Friedrichshafen AG, Giti Tire Corporation, and NIRA Dynamics AB.

Key Developments:

In February 2025, Nokian Tyres is to lead the FUTUREPROOF research, development and innovation program to confront the key challenges of future mobility through solutions related to for example the digitalization of tires and traffic, sustainable product lifecycle and advanced manufacturing technologies. The five-year-long program's mission is futureproofing resilient European on- and off-road mobility by crosslinking industries to join the common cause. The program is funded with EUR 20 million by Business Finland, Finland's official organization for innovation funding and trade, investment and travel promotion.

In September 2024, Pirelli and Bosch have signed a joint development agreement. To create new driving solutions and functionalities, starting with the in-tyre sensors and software that Pirelli has developed through 25 years of research work. For drivers, this translates into new levels of safety, comfort, and sustainability - as well as ideal driving dynamics in all conditions.

In January 2024, The Goodyear Tire & Rubber Company, a global leader in connected mobility, and ZF, a global leader in vehicle systems and industrial technology, announced successful integration of tire intelligence technologies with vehicle motion control software. The collaboration delivers Goodyear SightLine, a suite of tire intelligence technologies, into the ZF cubiX(R)** ecosystem, a scalable vehicle motion control software that coordinates all dimensions of vehicle dynamics.

Vehicle Types Covered:

• Passenger Vehicles
• Commercial Vehicles

Rim Sizes:

• 12-17 Inches
• 18-22 Inches
• More Than 22 Inches

Components Covered:

• Tire Pressure Monitoring System (TPMS)
• Accelerometer Sensors
• Strain Gauge Sensors
• RFID Chips
• Other Components

Propulsion Types Covered:

• Internal Combustion Engine (ICE)
• Electric Vehicles (EV)

Sales Channels Covered:

• Original Equipment Manufacturer (OEM)
• Aftermarket

Applications Covered:

• Fleet Management
• Predictive Maintenance
• Safety and Security
• Other Applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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