Automotive Smart Tire Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market size of the global smart tire market for automobiles is expected to reach $ 169.7 billion by 2032, growing at a CAGR of 8.3% from 2018 to 2032. This growth rate reflects a strong demand for new tire technology that can improve vehicle performance, safety and efficiency. A key driving force is the development of IoT, AI and sensors. These technologies can monitor the tire in real time, improve the safety of the vehicle and reduce the cost of maintenance, which is a major concern for consumers and manufacturers. Among the major players in the smart tire market for automobiles, Michelin, Bridgestone and Goodyear are actively investing in research and development to improve their product offerings. Strategic initiatives such as the launch of new smart tires and the establishment of new technology companies are also driving the market. Michelin's collaboration with various technology companies to integrate advanced sensors into tire design is a good example of the industry's commitment to innovation. The future of smart tires is closely linked to the development of the connected car and the development of AI.

Regional Market Size

Regional Deep Dive

The global market for smart tires is growing significantly across various regions, driven by technological advancements, increasing consumer demand for safety and efficiency, and a growing emphasis on sustainability. In North America, the presence of leading tire and technology companies is encouraging innovation and collaboration. Europe is experiencing an increase in the regulatory framework to enhance vehicle safety and the environment. Asia-Pacific is a rapidly adopting region for smart tires, with the booming automobile industry and the rise in disposable income. The Middle East and Africa are gradually adopting smart tires, influenced by the development of the transportation network and the transition to modern vehicle technology. Latin America is an emerging market, which is beginning to recognize the benefits of smart tires to improve vehicle performance and safety.

Europe

• The European Union has implemented regulations mandating the use of advanced tire monitoring systems, which is driving the adoption of smart tire technologies across member states.
• Leading automotive manufacturers such as BMW and Volkswagen are collaborating with tech firms to integrate smart tire solutions into their vehicles, aiming to enhance safety and fuel efficiency.

Asia Pacific

• China's automotive market is rapidly integrating smart tire technologies, with companies like Huawei partnering with tire manufacturers to develop IoT-enabled tire solutions.
• The rise of electric vehicles in countries like Japan and South Korea is creating a demand for smart tires that can optimize energy consumption and improve overall vehicle performance.

Latin America

• Brazil is seeing an increase in the adoption of smart tire technologies, driven by a growing awareness of vehicle safety and performance among consumers.
• Local automotive manufacturers are beginning to collaborate with technology firms to develop smart tire solutions tailored to the unique driving conditions in the region.

North America

• The U.S. Department of Transportation has initiated programs to promote the adoption of smart tire technologies, focusing on improving road safety and reducing accidents.
• Companies like Michelin and Goodyear are investing heavily in R&D for smart tire innovations, including sensors that monitor tire pressure and temperature in real-time, enhancing vehicle safety and performance.

Middle East And Africa

• The UAE is investing in smart city initiatives that include the integration of smart tire technologies to enhance transportation safety and efficiency.
• Local companies are beginning to explore partnerships with international firms to bring advanced tire technologies to the region, driven by a growing automotive market.

Did You Know?

“Did you know that smart tires can potentially reduce fuel consumption by up to 10% by optimizing tire pressure and performance?” — Tire Industry Association

Segmental Market Size

The smart tire market for cars is experiencing a significant increase in growth, driven by the development of new sensors and the growing demand for increased vehicle safety and performance. There are also several regulatory and policy drivers in the industry, such as the need for real-time tire monitoring to prevent accidents and improve fuel economy. Furthermore, the emergence of electric vehicles is driving the development of smart tires, as tire manufacturers are looking to optimize their performance for EVs. The smart tire market is currently at the pilot stage, with Michelin and Bridgestone leading the way through their collaborations and trials in North America and Europe. The two main applications are for fleet management, where smart tires provide data for predictive maintenance and performance optimization, and for consumer vehicles, where real-time monitoring increases safety features. The growing trend of sustainability and government regulations are accelerating the market. In addition, the Internet of Things and artificial intelligence will also shape the evolution of smart tires, enabling them to provide more accurate predictions of tire wear and the benefits of the driver.

Future Outlook

The Automotive Smart Tires Market is expected to grow at a significant CAGR from 2023 to 2032, from $80.48 billion to $169.91 billion, with a high CAGR of 8.3 percent. The market is mainly driven by the increasing demand for automobiles to improve safety, performance, and efficiency, and the increasing use of IoT and AI in automobile applications. By 2032, smart tires are expected to account for about one-fourth of the total tire market, driven by increasing consumer awareness and regulatory requirements. The main technological developments, such as real-time monitoring systems, self-inflating tires, and improved materials that enhance performance and stability, are expected to drive market growth. The integration of smart tires with the development of self-driving cars will also create new opportunities, and smart tires can provide a large amount of data on road conditions and vehicle performance. The market will also be influenced by the development of the circular economy and the sustainable development of tire manufacturers. The smart tire market will play an important role in the development of the automobile industry.