Connected Tire Market Size & Share, By Rim Size (12 - 17 Inches, 18 - 22 Inches, More Than 22 Inches), Component (TPMS, Accelerometer Sensors, Strain Gauge Sensors, RFID Chips), Vehicle Type (Passenger Cars, Commercial Vehicle), Propulsion (ICE, Electric), Sales Channel - Growth Trends, Regional Insights (U.S., Japan, South Korea, UK, Germany), Competitive Positioning, Global Forecast Report 2025-2034

Market Outlook:

Connected Tire Market size is projected to grow from USD 17.17 Million in 2024 to USD 77.48 Billion by 2034, with a CAGR surpassing 43.7% throughout the forecast period (2025-2034). The industry revenue for 2025 is anticipated to be USD 24.12 million.

• Base Year Value (2024): USD 17.17 Million
• CAGR (2025-2034): 43.7%
• Forecast Year Value (2034): USD 77.48 Billion
• Historical Data Period: 2021-2024
• Largest Region: North America
• Forecast Period: 2025-2034

Market Dynamics:

Growth Drivers & Opportunities

The Connected Tire Market is experiencing robust growth driven by advancements in technology and increasing consumer demand for enhanced vehicle safety and performance. One of the primary growth drivers is the rising adoption of smart technologies across the automotive sector. These smart tires, equipped with sensors and communication capabilities, provide real-time data on tire pressure, temperature, and wear. This not only enhances safety but also allows for proactive maintenance, reducing the likelihood of unexpected tire failures.

Furthermore, the growing emphasis on sustainability and fuel efficiency is opening up new opportunities for connected tires. Consumers and manufacturers alike are increasingly recognizing the role that tire performance plays in fuel consumption. Smart tires can contribute to better fuel efficiency by maintaining optimal pressure, which aligns with the global push for environmental sustainability and reduced carbon emissions. Additionally, government regulations aimed at improving road safety and environmental standards are likely to further propel market growth.

The demand for integrated vehicle systems is another significant driver. As vehicles become more interconnected, the need for components that can communicate seamlessly with other systems becomes critical. Connected tires can interact with vehicle stability control systems, providing data that enhances overall vehicle performance and safety. This integration is expected to be a key focus area for many automotive manufacturers, creating additional opportunities for the connected tire market.

Report Scope

Report Coverage	Details
Segments Covered	Rim Size, Component, Vehicle Type, Propulsion, Sales Channel
Regions Covered	• North America (United States, Canada, Mexico) • Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe) • Asia Pacific (China, Japan, South Korea, Singapore, India, Australia, Rest of APAC) • Latin America (Argentina, Brazil, Rest of South America) • Middle East & Africa (GCC, South Africa, Rest of MEA)
Company Profiled	Bridgestone Corporation,Continental AG,Cooper Tire & Rubber Company,Hankook Tire & Technology,JK TYRE & INDUSTRIES LTD,Kumho Tire,Maxxis,MICHELIN,Nokian Tyres plc.,Pirelli & C. S.p.A.,Smart Tire Company,Sumitomo Rubber Industries Ltd.,The Goodyear Tire& Rubber Company,Toyo Tire Corporation

Industry Restraints:

Despite the promising outlook for the Connected Tire Market, several restraints could hinder its growth. One major concern is the high cost associated with the development and implementation of smart tire technologies. Advanced sensors, wireless communication systems, and the necessary software for data analysis can lead to increased production costs. This may make connected tires less accessible for budget-conscious consumers and small manufacturers who may opt for traditional tires instead.

Additionally, the technology-related challenges surrounding data privacy and security pose significant risks. As connected tires collect and transmit data, concerns about potential hacking and misuse of sensitive information emerge. The industry must address these concerns to build consumer trust and encourage widespread adoption of connected tire technologies.

Moreover, the replacement tire market can be characterized by consumer inertia, as many drivers are reluctant to change their habits or invest in new technologies unless directly influenced by compelling benefits. This resistance can slow the growth of connected tires if consumers fail to see the immediate practical advantages over conventional tires. Addressing these behavioral barriers through education and marketing will be crucial to overcoming this restraint.

Regional Forecast:

North America

The Connected Tire Market in North America is primarily driven by the technological advancements in the automotive sector and the growing emphasis on vehicle safety and performance. The United States is expected to maintain a dominant position due to its large automotive industry and strong consumer demand for connected vehicle technologies. Innovations in artificial intelligence and data analytics are propelling the adoption of connected tires, offering real-time monitoring and maintenance alerts. Canada is also showing promising trends as it embraces smart technologies in transportation, but it may lag behind the U.S. in market size. Overall, North America is set to witness significant growth as the infrastructure for connected technologies becomes more robust.

Asia Pacific

In the Asia Pacific region, countries like China, Japan, and South Korea are leading the charge in the Connected Tire Market owing to their substantial automotive manufacturing bases and increasing investments in smart mobility solutions. China, in particular, presents a tremendous opportunity for growth, driven by the massive demand for smart vehicles and the government's support for technological innovations. Japan and South Korea are also experiencing escalating investments in tire connectivity which enhance driving safety and convenience. The region's rapid urbanization and increasing vehicle ownership rates contribute to a burgeoning market, making Asia Pacific one of the fastest-growing regions for connected tire technology.

Europe

Europe remains a significant player in the Connected Tire Market, characterized by stringent regulations on vehicle emissions and safety which compel automakers to adopt advanced technologies. Countries like Germany, the UK, and France are at the forefront, driven by their commitment to sustainability and innovation in the automotive sector. Germany, known for its engineering prowess, is likely to showcase the largest market size due to its established automotive industry and focus on luxury vehicles equipped with connected technologies. The UK's focus on automotive innovation also presents opportunities, while France is gradually enhancing its market presence through increased research and development initiatives. The collaborative efforts between automotive manufacturers and tech firms in Europe further foster growth in connected tire solutions, positioning the region as a key market player.

Segmentation Analysis:

In terms of segmentation, the global Connected Tire market is analyzed on the basis of Rim Size, Component, Vehicle Type, Propulsion, Sales Channel.

Rim Size

The rim size segment of the Connected Tire Market is a crucial factor influencing consumer preferences and market dynamics. Larger rim sizes are gaining traction as they are often associated with high-performance vehicles, providing enhanced handling and aesthetics. The trend toward larger wheels is particularly notable in the sports car and premium vehicle segments. Conversely, smaller rim sizes are prevalent in economy vehicles, appealing to consumers focused on affordability and fuel efficiency. The growth of electric and hybrid vehicles, which generally incorporate advanced technologies in their design, is expected to further boost demand for various rim sizes, especially those that accommodate innovative tire technologies.

Component

Within the components segment, there are two primary categories: sensors and software. Sensors have become the backbone of connected tire technology, allowing for real-time data on tire pressure, temperature, and overall health. The increasing emphasis on vehicle safety and efficiency has elevated the importance of these sensors. Software development, on the other hand, supports data analysis and communication between tires and vehicle systems. As vehicle manufacturers adopt more sophisticated connected technologies, the demand for advanced software solutions is set to increase. The integration of artificial intelligence in software components is anticipated to lead to even faster growth in the segment, optimizing tire performance and maintenance.

Vehicle Type

The vehicle type segment showcases a diverse range of applications, with passenger cars, commercial vehicles, and two-wheelers leading the market. Passenger cars represent the largest share, driven by consumer interest in innovative tire technologies that enhance safety and performance. Commercial vehicles, including trucks and buses, are also increasing their adoption of connected tires, as fleet management systems value the real-time monitoring capabilities that improve operational efficiency. The two-wheeler market, while smaller, is witnessing rising interest due to safety concerns and the growing popularity of smart vehicle technology. Each category within this segment has unique growth drivers, contributing to a dynamic marketplace.

Propulsion

The propulsion segment reflects the transition in the automotive sector towards electrification. Traditional internal combustion engine vehicles still dominate, but electric and hybrid vehicles are rapidly gaining prominence. As manufacturers design connected tires specifically for electric and hybrid models, the demand for these advanced tires is expected to rise sharply. The environmental benefits and operational efficiency offered by electric vehicles align with consumer preferences for sustainability, further driving growth in this segment. Connected tire technologies tailored for propulsion systems are likely to enhance the driving experience, fuel efficiency, and overall vehicle performance.

Sales Channel

In analyzing the sales channel segment, the market is segmented into OEM and aftermarket channels. OEM channels are characterized by direct partnerships between tire manufacturers and vehicle manufacturers, ensuring that connected tires are integrated into new vehicles. This segment is poised to grow as more automakers embrace connected technologies within their fleet. The aftermarket channel, however, is where significant growth opportunities lie. Consumers are increasingly seeking to retrofit connected tires in their existing vehicles for better performance and safety features. The rise of online retail platforms has also streamlined access to connected tires, allowing for rapid expansion in this segment, particularly as awareness and demand for tire health monitoring grow among consumers.

Competitive Landscape:

The Connected Tire Market is characterized by rapid technological advancements and increasing adoption of smart mobility solutions. As the demand for enhanced safety, performance, and real-time monitoring grows, manufacturers are leveraging IoT and sensor technologies to develop intelligent tires. Key players in the market are focusing on strategic partnerships, innovative product offerings, and expansion into emerging markets to gain competitive advantages. The market is witnessing a mix of automotive manufacturers and tire companies refining their products to integrate connectivity features, thus intensifying competition. Additionally, the rise of electric and autonomous vehicles is propelling the demand for connected tire solutions, further shaping the competitive landscape.

Top Market Players

Michelin

Bridgestone

Goodyear

Continental

Pirelli

Hankook

Dunlop

Trelleborg

Sumitomo Rubber Industries

Yokohama Rubber Company