Automotive Intelligent Tires Market Size, Share, Growth Analysis 2032
Automotive Intelligent Tires Market Size and Forecast (2025 - 2032), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles), By Technology (Tire Pressure Monitoring System, Temperature Monitoring System, Strain Monitoring System), By Sales Channel (OEM, Aftermarket), By End-Use (Individual, Fleet), By Application (Safety, Fuel Efficiency, Performance Monitoring), and Geography.
Market Overview:
The Automotive Intelligent Tires Market is expected to reach a high CAGR of 36.6% over the Forecast Period 2025-2032. The market value is estimated to reach USD XX billion in 2024 and USD YY billion in 2032. Asia-Pacific is expected to lead the market throughout the projection period. Key metrics include increased car production, rising demand for sophisticated safety features, and increased use of IoT in automotive applications.
The market for automotive intelligent tires is expanding rapidly, owing to a growing emphasis on vehicle safety, fuel efficiency, and performance enhancement. The integration of sensors and communication technology in tires is transforming the automobile industry, allowing for real-time monitoring and data analysis to improve vehicle management and maintenance.
Market Dynamics:
Market Trend: Smart tires with integrated sensors and AI capabilities gain traction in the automotive sector.
The automotive intelligent tire industry is seeing a substantial increase in the integration of modern sensors and artificial intelligence (AI) capabilities. These smart tires include embedded sensors that continuously monitor tire pressure, temperature, tread wear, and driving conditions. The obtained data is subsequently evaluated by AI algorithms, which provide real-time insights and predictive maintenance recommendations.
The growing desire for greater safety features, improved fuel efficiency, and optimised vehicle performance is driving this trend. Automotive manufacturers are working with tire firms to create intelligent tire systems that can connect with vehicle control systems, allowing for proactive modifications and improved overall vehicle management. As autonomous and connected car technologies improve, so will the use of these smart tires, generating new prospects for market growth and innovation in the automotive sector.
Market Driver: Stringent safety regulations and growing emphasis on fuel efficiency propel market growth.
Stringent safety rules enforced by governments throughout the world, as well as the increased emphasis on fuel efficiency in the vehicle sector, are driving the automotive intelligent tire market.
According to the National Highway Traffic Safety Administration (NHTSA), tire-related incidents cause roughly 11,000 accidents each year in the United States alone. To solve this issue, many countries have required the installation of tire pressure monitoring systems (TPMS) in new automobiles. For example, the European Union has made TPMS required for all new passenger vehicles from 2014. Furthermore, the emphasis on lowering carbon emissions and increasing fuel efficiency has resulted in greater adoption of intelligent tire technologies. Studies have shown that correctly inflated tires can increase fuel efficiency by up to 3%, resulting in significant cost savings for fleet operators. As a result, major automakers are progressively putting intelligent tire systems into their vehicles to comply with laws while also meeting consumer desires for safer, more efficient automobiles. This legislative push, combined with the potential for increased vehicle performance, is projected to fuel market growth in the coming years.
Market Restraint: High initial costs and complexity in integration pose challenges to market adoption.
The high initial costs of intelligent tire technologies, along with the complexity of integrating these systems into existing vehicle layouts, pose substantial barriers to wider market acceptance. Intelligent tires require complex sensors, communication modules, and data processing capabilities, which can increase overall vehicle production costs.
For example, the average cost of a Tire Pressure Monitoring System (TPMS) varies from $50 to $100 per tire, which can add significantly to the vehicle's cost. This cost issue has a particularly strong impact on adoption rates in emerging nations and among price-sensitive consumers. Furthermore, the integration of intelligent tire systems with other vehicle control modules necessitates advanced software and hardware interfaces, complicating vehicle design and production procedures. These factors may restrict market growth, particularly in the mass-market car categories, until economies of scale and technical advancements assist to cut costs and simplify integration issues.
Segment Overview:
The Tire Pressure Monitoring System (TPMS) segment is expected to dominate the Automotive Intelligent Tires Market during the forecast period.
The Tire Pressure Monitoring System (TPMS) category has emerged as the dominant technology in the automotive intelligent tires market, owing to regulatory requirements and its vital role in improving vehicle safety and efficiency. TPMS technology continuously monitors tire pressure and informs drivers of potential problems, thereby reducing accidents caused by underinflated or overinflated tires. According to the National Highway Traffic Safety Administration (NHTSA), TPMS-equipped vehicles are 55.6% less likely to have significantly underinflated tires. This considerable safety enhancement has resulted in widespread deployment across multiple vehicle types.
In recent years, developments in TPMS technology have strengthened its market position. For example, in 2021, Continental AG debuted its Intelligent Tire System, which integrates TPMS with additional sensors to monitor temperature, tread depth, and tire load. This technology provides a full view of tire health, allowing for predictive maintenance and improved vehicle performance. Similarly, Bridgestone Corporation debuted its Bridgestone Connect smart tire solution in 2022, which employs advanced algorithms to analyse TPMS data and provide fleet managers with actionable insights, thereby enhancing operating efficiency and lowering maintenance costs.
Intelligent TPMS technologies have grown in popularity, particularly in the commercial vehicle category. Fleet operators are rapidly recognising the benefits of real-time tire monitoring for lowering fuel usage and reducing vehicle downtime. According to an American Trucking Associations (ATA) study, appropriate tire inflation can increase fuel efficiency by up to 3%, saving large fleets a significant amount of money. This has resulted in agreements between tire producers and telemetry companies to create integrated fleet management systems. For example, in 2023, Goodyear Tire & Rubber Company cooperated with ZF Group to develop an intelligent tire management system specifically built for commercial vehicles, which fuelled the growth of the TPMS segment in the automotive intelligent tires market.
Regional Outlook:
Asia-Pacific is expected to dominate the Automotive Intelligent Tires Market during the forecast period.
The Asia-Pacific region is expected to maintain its dominance in the automotive intelligent tires market, owing to fast industrialisation, increased vehicle manufacturing, and rising consumer awareness of vehicle safety and efficiency. China, Japan, and South Korea are leaders in automobile technology adoption, with substantial government support for intelligent transportation networks. The region's big population and expanding disposable incomes are driving up demand for modern vehicles equipped with smart tire technologies.
For example, in 2023, Chinese tire producer Linglong Tire announced a strategic agreement with Huawei Technologies to develop 5G-enabled intelligent tires, with the goal of revolutionising vehicle-to-everything (V2X) connectivity. This collaboration demonstrates the region's commitment to incorporating cutting-edge technologies into automotive applications.
According to the International Organisation of Motor Vehicle Manufacturers (OICA), China alone would produce over 26 million vehicles in 2022, accounting for approximately 30% of total global vehicle production. This huge production scale provides a solid foundation for the widespread implementation of intelligent tire technology.
In terms of country-specific advances, India has emerged as a fast-growing market for automotive intelligent tires. The Indian government's proposal for mandated TPMS in all new vehicles beginning in 2024 is likely to drive significant market growth. Major players such as Apollo Tyres and JK Tyre & Industries have increased their R&D efforts to create localised intelligent tire solutions adapted to Indian road conditions and vehicle types.
Competitive Intelligence:
The automotive intelligent tire industry is characterised by fierce rivalry and rapid technological innovation. Key players are focussing on R&D to innovate and acquire a competitive advantage. Continental AG, Bridgestone Corporation, and Michelin hold considerable market shares thanks to their strong brand presence and technological capabilities. These leaders are making significant investments in IoT and AI technology to improve their intelligent tire offerings.
Mergers and acquisitions have been an important technique for market expansion. For example, in 2020, ZF Friedrichshafen AG purchased WABCO Holdings Inc., which strengthened its position in commercial vehicle technology and intelligent tire systems. Product announcements have also been frequent, with Goodyear launching its AndGo fleet servicing platform in 2021, which includes intelligent tire management for business fleets.
Financial performance varies across players, with the biggest corporations showing a consistent increase. Continental AG, for example, recorded €33.8 billion in sales in 2022, with its Tires business accounting for a major portion of total revenue. Market leaders are also forging strategic alliances with automobile OEMs to maintain their position in the supply chain.
Looking ahead, the industry is projected to see greater competition from new entrants, notably technology businesses offering innovative solutions in the intelligent tire arena. The emphasis on sustainability and the migration to electric vehicles are expected to define future tactics, with companies developing clever tire solutions expressly for EVs to capitalise on this rising market.
Analyst Opinion:
The market for automotive intelligent tires is about to undergo a tremendous shift, with the potential to revolutionise vehicle safety, efficiency, and overall performance. As we move forward to 2024 and beyond, the integration of new sensor technologies, artificial intelligence, and real-time data analytics in tires will become increasingly important for both individual consumers and fleet owners.
One unique trend that is gaining traction is the development of self-healing tire technologies. These new tires have specific compounds that can automatically seal minor punctures, potentially reducing the number of tire-related incidents and enhancing overall road safety. This technology, when combined with the predictive maintenance capabilities provided by intelligent tire systems, has the potential to greatly increase tire life and reduce vehicle downtime.
Another important aspect is the developing convergence of intelligent tires with self-driving technologies. As vehicles become more autonomous, tires' role in supplying key real-time data regarding road conditions and vehicle dynamics will become increasingly important. We foresee more collaboration among tire manufacturers, automotive OEMs, and technology companies to build integrated solutions that improve the performance of self-driving vehicles.
The transition to electric vehicles (EVs) is also expected to spur innovation in the intelligent tire sector. EVs have specific needs for load distribution, torque management, and energy economy. Intelligent tires made exclusively for EVs and capable of reacting to these unique qualities are likely to be in great demand in the future years.
Finally, the concept of "tires as a-Service" is gaining traction in the industry. This approach, in which tire manufacturers provide entire tire management services rather than simply selling products, has the potential to revolutionise the industry's business dynamics, particularly in the commercial vehicle segment.
As these trends materialise, we anticipate that the automotive intelligent tire industry will grow rapidly, with companies that successfully traverse these technology shifts and changing consumer demands emerging as market leaders.
Major Players:
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Continental AG
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Bridgestone Corporation
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Michelin
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The Goodyear Tire & Rubber Company
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Pirelli & C. S.p.A.
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Sumitomo Rubber Industries, Ltd.
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Yokohama Rubber Company
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Hankook Tire & Technology Co., Ltd.
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Nokian Tyres plc
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Toyo Tire Corporation
Key Developments:
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Continental AG released its next-generation intelligent tire system for commercial vehicles in March 2024, with greater predictive maintenance capabilities.
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Bridgestone Corporation and a top automotive AI firm formed a strategic agreement in January 2024 to develop advanced tire health prediction systems.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope and Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking—Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies List by Country) (Premium)
5. COMPANY PROFILES
5.1. Continental AG
5.2. Bridgestone Corporation
5.3. Michelin
5.4. The Goodyear Tire & Rubber Company
5.5. Pirelli & C. S.p.A.
5.6. Sumitomo Rubber Industries, Ltd.
5.7. Yokohama Rubber Company
5.8. Hankook Tire & Technology Co., Ltd.
5.9. Nokian Tyres plc
5.10. Toyo Tire Corporation (*LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Smart tires with integrated sensors and AI capabilities gain traction in the automotive sector
6.1.2. Self-healing tire technologies emerge as a game-changing innovation
6.1.3. Growing synergy between intelligent tires and autonomous driving technologies
6.2. Market Drivers
6.2.1. Stringent safety regulations and growing emphasis on fuel efficiency propel market growth.
6.2.2. Increasing adoption of electric vehicles drives demand for specialised intelligent tires.
6.2.3. Rising focus on predictive maintenance and fleet management solutions
6.3. Market Restraints
6.3.1. High initial costs and complexity in integration pose challenges to market adoption.
6.3.2. Concerns over data privacy and cybersecurity in connected tire systems
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY VEHICLE TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
7.1. Passenger Cars
7.1.1. Compact Cars
7.1.2. Mid-Size Cars
7.1.3. Luxury Cars
7.1.4. SUVs
7.2. Light Commercial Vehicles
7.2.1. Vans
7.2.2. Pickup Trucks
7.3. Heavy Commercial Vehicles
7.3.1. Trucks
7.3.2. Buses
8. BY TECHNOLOGY (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH)--2025-2032)
8.1. Tire Pressure Monitoring System
8.1.1. Direct TPMS
8.1.2. Indirect TPMS
8.2. Temperature Monitoring System
8.3. Strain Monitoring System
9. BY SALES CHANNEL (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
9.1. OEM
9.2. Aftermarket
9.2.1. Online Retail
9.2.2. Offline Retail
10. BY END-USE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
10.1. Individual
10.2. Fleet
10.2.1. Logistics and Transportation
10.2.2. Ride-sharing Services
10.2.3. Corporate Fleets
11. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
11.1. Safety
11.2. Fuel Efficiency
11.3. Performance Monitoring
12. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2025-2032)
12.1. North America
12.1.1. United States
12.1.2. Canada
12.1.3. Mexico
12.2. South America
12.2.1. Brazil
12.2.2. Argentina
12.2.3. Rest of South America
12.3. Europe
12.3.1. Germany
12.3.2. United Kingdom
12.3.3. France
12.3.4. Italy
12.3.5. Spain
12.3.6. Russia
12.3.7. Rest of Europe
12.4. Asia-Pacific
12.4.1. China
12.4.2. Japan
12.4.3. India
12.4.4. Australia
12.4.5. South Korea
12.4.6. Rest of Asia-Pacific
12.5. Middle-East
12.5.1. UAE
12.5.2. Saudi Arabia
12.5.3. Turkey
12.5.4. Rest of Middle East
12.6. Africa
12.6.1. South Africa
12.6.2. Egypt
12.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (2025-2032)
By Vehicle Type:
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Passenger cars
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Light Commercial Vehicles
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Heavy Commercial Vehicles
By Technology:
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Tire Pressure Monitoring System
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Temperature Monitoring System
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Strain Monitoring System
By Sales Channel:
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OEM
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Aftermarket
By End-Use:
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Individual
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Fleet
By Application:
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Safety
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Fuel Efficiency
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Performance Monitoring
By Region:
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North America
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Europe
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Asia-Pacific
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Latin America
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Middle East & Africa
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