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Global Connected Tire Market to Reach US$187.3 Million by 2030

The global market for Connected Tire estimated at US$20.6 Million in the year 2024, is expected to reach US$187.3 Million by 2030, growing at a CAGR of 44.5% over the analysis period 2024-2030. 12 - 17 Inches, one of the segments analyzed in the report, is expected to record a 49.5% CAGR and reach US$124.8 Million by the end of the analysis period. Growth in the 18 - 22 Inches segment is estimated at 40.0% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.6 Million While China is Forecast to Grow at 54.9% CAGR

The Connected Tire market in the U.S. is estimated at US$5.6 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$47.7 Million by the year 2030 trailing a CAGR of 54.9% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 36.8% and 42.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 39.4% CAGR.

Global Connected Tire Market - Key Trends & Drivers Summarized

How Are Connected Tires Transforming Vehicle Performance and Safety?

The automotive industry is undergoing a digital transformation, with connectivity playing a crucial role in enhancing vehicle performance, safety, and efficiency. Connected tires, equipped with advanced sensors and real-time data analytics, are emerging as a vital component of modern intelligent transportation systems. These tires provide continuous monitoring of key parameters such as tire pressure, temperature, tread depth, and road conditions, enabling real-time adjustments and predictive maintenance. The integration of connected tire technology helps prevent tire-related accidents, reduce fuel consumption, and extend the lifespan of tires by providing precise performance insights. Fleet operators and individual drivers are increasingly adopting these smart tires to improve vehicle efficiency and safety. As regulatory bodies impose stricter safety and environmental standards, automakers and tire manufacturers are accelerating the adoption of connected tire technology to comply with evolving regulations. The growing emphasis on proactive maintenance and predictive analytics is further strengthening the market for connected tires across both commercial and passenger vehicle segments.

Why Is IoT and AI Integration Essential for Connected Tire Systems?

The rise of the Internet of Things (IoT) and artificial intelligence (AI) is playing a pivotal role in the evolution of connected tires. IoT-enabled sensors embedded within tires continuously collect and transmit real-time data to cloud-based platforms, allowing vehicle manufacturers, fleet managers, and individual drivers to monitor tire health remotely. AI-driven analytics process this data to detect irregularities, predict tire wear, and provide actionable insights that optimize vehicle performance and enhance road safety. One of the most significant applications of AI in connected tires is predictive maintenance. By analyzing historical and real-time data, AI algorithms can forecast potential tire failures before they occur, reducing the risk of blowouts and improving overall vehicle reliability. Additionally, the integration of connected tires with autonomous vehicle systems is gaining traction, as self-driving cars require real-time insights into tire performance to optimize driving decisions. As AI-powered smart mobility solutions become more sophisticated, the demand for connected tire systems is expected to rise, further fueling market growth.

Which Industries Are Driving the Adoption of Connected Tires?

The commercial transportation and logistics industry is a major adopter of connected tire technology, as fleet operators seek to improve efficiency, reduce downtime, and lower operational costs. Fleet managers use connected tire systems to track tire health across multiple vehicles, ensuring optimal tire pressure and tread depth for fuel efficiency and safety. This capability is particularly beneficial for long-haul trucking, where tire failures can lead to costly delays and safety hazards. The passenger vehicle segment is also experiencing increasing adoption of connected tires, driven by the growing consumer demand for smart and connected car features. Automakers are integrating connected tire technology into advanced driver assistance systems (ADAS), enhancing vehicle safety and fuel efficiency. Additionally, the rise of electric vehicles (EVs) is further driving market demand, as connected tires help optimize battery efficiency by reducing rolling resistance and providing real-time traction insights. As industries continue to embrace digital transformation, the connected tire market is expected to expand across various transportation sectors.

What Are the Key Drivers Behind the Market’s Expansion?

The growth in the connected tire market is driven by several factors, including advancements in IoT-enabled sensors, increasing demand for predictive maintenance, and the rising adoption of smart mobility solutions. Automakers and fleet operators are investing in connected tire systems to enhance vehicle safety, reduce maintenance costs, and improve fuel efficiency. The expansion of autonomous and electric vehicle technologies is further fueling demand, as connected tires play a crucial role in optimizing vehicle performance and energy consumption. Regulatory initiatives promoting vehicle safety and environmental sustainability are also accelerating market growth. Governments worldwide are implementing stringent tire safety and efficiency regulations, encouraging the adoption of connected tire technology. Additionally, the rapid development of 5G and cloud computing infrastructure is facilitating real-time data transmission and analytics, improving the effectiveness of connected tire solutions. As automotive connectivity continues to evolve, the market for connected tires is poised for significant growth, shaping the future of intelligent transportation and vehicle safety.

SCOPE OF STUDY:

The report analyzes the Connected Tire market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:

Rim Size (12 - 17 Inches, 18 - 22 Inches, More Than 22 Inches); Component Type (TPMS, Accelerometer, Sensors, Strain Gauge Sensors, RFID Chips); End-Use (Passenger Cars End-Use, Commercial Vehicle End-Use)

Geographic Regions/Countries:

World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

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Instead of following the general norm of querying LLMs and Industry-specific SLMs, we built repositories of content curated from domain experts worldwide including video transcripts, blogs, search engines research, and massive amounts of enterprise, product/service, and market data.

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs on geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by increasing the Cost of Goods Sold (COGS), reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

TABLE OF CONTENTS

I. METHODOLOGY

II. EXECUTIVE SUMMARY

III. MARKET ANALYSIS

IV. COMPETITION

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