Global Smart Tire Market Outlook
Revenue, 2024
$1.5B
Forecast, 2034
$14.9B
CAGR, 2024 - 2034
25.7%
The Smart Tire industry revenue is expected to be around $1.9 billion in 2025 and expected to showcase growth with 25.7% CAGR between 2025 and 2034. Based on the growth rate mentioned earlier its clear that the Smart Tire market is set to make progress in the years ahead. The markets strength and the importance of Smart Tires are firmly based on ongoing improvements in automotive technology and the increasing desire for safety and top notch performance among consumers. Aspects like fuel efficiency longer tire durability and precise real time data are boosting the reputation of Smart Tires as a key feature, in contemporary vehicles making them more commercially attractive. Additionally the continuous evolution of technology and the incorporation of IoT (IOT ), in the automotive sector are playing crucial roles in shaping this prediction.
Smart Tires or Intelligent Tires are designed with sensors that keep track of important factors related to tire performance such as internal pressure levels, tread depth conditions, temperature variations and signs of wear and tear. These specialized tires are commonly used in cars, luxury vehicles and commercial trucks with their applications expanding to areas, like motorsports and military operations as well.
Market Key Insights
- The Smart Tire market is projected to grow from $1.5 billion in 2024 to $14.9 billion in 2034. This represents a CAGR of 25.7%, reflecting rising demand across Vehicle Monitoring Systems, Fleet Management and Advanced Driver Assistance Systems.
- The market leaders Michelin and Bridgestone and Continental drive the competitive dynamics of this sector.
- U.S. and Germany are the top markets within the Smart Tire market and are expected to observe the growth CAGR of 24.7% to 36.0% between 2024 and 2030.
- Emerging markets including Mexico, Turkey and Argentina are expected to observe highest growth with CAGR ranging between 19.3% to 26.7%.
- The Smart Tire market will experience $2.0 billion in additional growth through 2030 because of the transition to IoT technology in smart tires.
- The Smart Tire market is set to add $13.4 billion between 2024 and 2034, with industry players targeting Fleet Management & Ride Sharing Services End Use projected to gain a larger market share.
- With The advent of autonomous vehicles, and Government regulations mandating tpms implementation, Smart Tire market to expand 885% between 2024 and 2034.
Opportunities in the Smart Tire
In today's evolving tech industry incorporating cutting edge technologies like AI and IoT into Smart Tire can open up new possibilities for market growth. Smart tires equipped with AI powered sensors that provide feedback on tire pressure tread wear and overall tire condition would be highly attractive, to contemporary customers who value safety and ease of use.
Growth Opportunities in North America and Europe
North America Outlook
North America is a leading force in the Smart Tire sector due to its use of cutting edge technologies and a population that embraces tech innovations readily. The continuous drive for innovation in vehicle technology by major automotive companies has created a significant market for Smart Tires in this region. Moreover the increasing use of telematics and fleet analytics in transportation and logistics plays a role, in advancing the application of Smart Tires. However there is still competition in the market with big players like Michelin and Bridgestone taking the lead. The main driving force in the region is the increasing need, for vehicle safety and better fuel efficiency a challenge that Smart Tires can meet.
Europe Outlook
In Europe's market scenario where Smart Tires thrive and capture consumer attention easily due to the innovative automotive trends in countries like Germany and the UK and France showing increasing interest in the technology too; there is a diverse competitive landscape with top players such as Continental AG and Pirelli leading the way with advanced Smart Tire solutions that are ahead of the game in this regions market space. The push for Smart Tire adoption is further fueled by regulations enforcing tire pressure monitoring systems in vehicles across Europe which significantly drives demand for these cutting edge products while ensuring compliance with standards is a key focus, for companies operating within this market segment. Furthermore the growing awareness among consumers regarding fuel efficiency and the importance of proactive vehicle upkeep presents appealing prospects, for companies producing Smart Tires.
Market Dynamics and Supply Chain
01
Driver: The Advent of Autonomous Vehicles, and Innovation in IoT and AI Technologies
The increasing presence of self driving cars has also significantly boosted the market for tires with smart technology features such as integrated sensors essential for providing precise real time data on road conditions and tire functionality necessary, for the safe operation of autonomous vehicles and advancing the growth of the smart tire industry. The growth of innovation in the realm of IOT and AI has also fueled the expansion of the tire industry. By incorporating these technologies manufacturers of tires are also able to offer predictive maintenance and real time monitoring, which brings safety and cost advantages. Therefore the increasing significance of AI technologies, in the transportation industry is also propelling the adoption of smart tires.
Laws requiring Tire Pressure Monitoring Systems in cars have also greatly boosted the advancement of tire technology. Many countries now make it mandatory to use TPMSs for safety and fuel economy. This has also led to a demand for smart tires, with these features built in.
Laws requiring Tire Pressure Monitoring Systems in cars have also greatly boosted the advancement of tire technology. Many countries now make it mandatory to use TPMSs for safety and fuel economy. This has also led to a demand for smart tires, with these features built in.
02
Restraint: High Implementation Costs
The potential of Smart Tire technology is huge with useful applications; however one of the main challenges is the high costs involved in implementing it in the market sector. For consumers considering these tire solutions it means making a substantial initial investment upfront which can be quite daunting for some individuals or businesses alike especially in regions with developing economies where the high prices may exceed the financial capabilities of potential buyers resulting in limited demand, for smart tires. The high cost of these upgrades for vehicles could definitely slow down market expansion because affordability is a key factor for consumers all, around the globe.
03
Opportunity: Expanding into Untapped Market Segments and Strategic Collaborations for Market Expansion
Manufacturers of tires have a great opportunity to create specialized products for new market areas that are yet to be explored fully. For instance the recreational vehicle industry could be ripe for innovation by incorporating Smart Tire technologies. Given the increasing popularity of RV travel and the growing need, for safety improvements developing Smart Tires with monitoring capabilities tailored for these vehicles might spur substantial market expansion.
Collaborations between manufacturers of Smart Tires and automotive companies have the potential to open up markets and expand customer outreach significantly. There is an opportunity in partnering with electric car manufacturers, in this rapidly growing sector to offer Smart Tires equipped with energy saving capabilities—a move that could greatly enhance the companys market standing and financial performance.
Collaborations between manufacturers of Smart Tires and automotive companies have the potential to open up markets and expand customer outreach significantly. There is an opportunity in partnering with electric car manufacturers, in this rapidly growing sector to offer Smart Tires equipped with energy saving capabilities—a move that could greatly enhance the companys market standing and financial performance.
04
Challenge: Technological Complexity and Maintenance Challenges
In the realm of Smart Tireindustry'sissues lie in the intricate technology and maintenance hurdles it brings along with it. The integration of technologies, in their design and functioning means that addressing and upkeeping these tires calls for specialized expertise and capabilities that often require professional assistance. Moreover; In some areas lacking the infrastructure required to service and fix Smart Tires can impede market expansion.
Supply Chain Landscape
1
Raw Material Suppliers
Continental AG
Bridgestone Corporation
2
Component & System Manufacturing
Michelin
Yokohama Rubber Co
3
Assembly & Integration
Goodyear Tire & Rubber Company
Pirelli & C. S.p.A
4
Distribution & Retail
Belle Tire
Discount Tire
1
Raw Material Suppliers
Continental AG
Bridgestone Corporation
2
Component & System Manufacturing
Michelin
Yokohama Rubber Co
3
Assembly & Integration
Goodyear Tire & Rubber Company
Pirelli & C. S.p.A
4
Distribution & Retail
Belle Tire
Discount Tire
*The illustration highlights the key stakeholders within the supply chain ecosystem.
Applications of Smart Tire in Vehicle Monitoring Systems, Fleet Management & Advanced Driver Assistance Systems
Vehicle Monitoring Systems
Smart Tires play a role in the automotive industry by being an integral part of Vehicle Monitoring Systems that monitor tire pressure and temperature using sensors within the tires themselves. The real time data provided by these systems enhances safety measures by enabling measures to avoid tire issues before they occur. Big players in the sector such as Goodyear and Michelin have been at the forefront of incorporating Smart Tires into contemporary vehicles thanks to their expertise and market dominance, in technological innovations.
Fleet Management
Smart tires are becoming more common in fleet management settings because of their ability to gather data that boosts efficiency and reduces the risks linked to tire issues. Corporations such, as Bridgestone and Continental have seized this opportunity by providing a variety of tire options tailored for fleet operations requirements.
Advanced Driver Assistance Systems
Smart tires have also entered the world of Advanced Driver Assistance Systems . In this context they play a role by transferring tire sensor data to these systems to enhance vehicle control safety and efficiency. Both consumers and manufacturers reap the rewards of the improved safety measures and fuel efficiency brought about by tires in this setting. Companies such as Pirelli and Yokohama are leading the way in incorporating tire technologies into ADAS making a substantial impact, on market expansion.
Recent Developments
December 2024
Goodyear introduced its Smart Tire technology that comes with built in sensors to alert drivers about the condition of their tires, in real time. This innovation has been well received by consumers. has helped Goodyear secure a large portion of the market share.
October 2024
Michelins innovative Smart Tire with state of the art tread wear technology has garnered feedback from customers and sparked significant changes, in consumer choices.
September 2024
announced by Bridgestone is a collaboration, with Tesla to integrate cutting edge Smart Tire innovations into the next generation of electric vehicles. This groundbreaking partnership is set to transform the sector as we know it.
Over the few years progress in various industries has driven the growth and popularity of Smart Tire technologies. These modern tires with integrated sensors are changing the sector by offering instant information about tire pressure, temperature and other important details, for safety and upkeep.
Impact of Industry Transitions on the Smart Tire Market
As a core segment of the A&T Technologies industry,
the Smart Tire market develops in line with broader industry shifts.
Over recent years, transitions such as Adoption of IoT in Smart Tires and EcoFriendly Smart Tires have redefined priorities
across the A&T Technologies sector,
influencing how the Smart Tire market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Adoption of IoT in Smart Tires
With the rise of technology in vehicles comes a surge in innovative components like Smart Tires. These high tech tires leverage IOT technology to monitor pressure temperature and tread wear in time This enables drivers to receive valuable information, for improving safety and fuel efficiency. With the help of technology manufacturers of smart tires can now collect valuable data to improve the design of more robust and efficient products, for upcoming uses. This shift is not only just transforming the tire industry. Also benefiting the automotive manufacturing sector by advocating for enhanced safety measures and infrastructure development. This industry transition is expected to add $2 billion in the industry revenue between 2024 and 2030.
02
EcoFriendly Smart Tires
In line with the drive, towards eco friendly practices and solutions the tire sector has reaffirmed its dedication to environmental preservation. The manufacturing of tires leaves a substantial carbon footprint, a fact that the industry aims to address through the introduction of environmentally friendly intelligent tires.