Global Automotive Smart Tire Market Grows Steadily at a CAGR of 6.4%

Introduction

Automotive tires are the latest focus since they provide real-time data on pressure, temperature, tread wear and depth, road conditions, and load sensing to add to the complexity of vehicle management systems. The electronic control unit (ECU) of the car is able to better regulate the vehicle's stability and stability ABS thanks to the installation of sensors that monitor tire health and transmit information about temperature, pressure, and tread depth to the ECU.

Market Dynamics

Rising Adoption of 5G Technology in Smart Tires Drives the Global Global Market

The automotive industry is experiencing a tremendous proliferation of IoT technologies. 5G connection technology is anticipated to enable robust data transmission between the tire and the car. The 5G technology is also superior to the widespread Bluetooth technology used in wireless tire pressure monitoring devices since it provides a wider frequency range and a superior communication channel. Due to its capacity to support effective vehicle-to-vehicle communication, incorporating 5G technology into tires can also encourage the integration of smart tires in passenger vehicles. For instance, Pirelli is a pioneer in developing 5G-enabled connected tires known as Cyber Tire, which are utilized in applications such as truck fleet management. The 5G infrastructure's ultra-wideband frequency and very low latency, as well as its ability to communicate with vehicle-to-everything (V2X) towers, enables the vehicle to communicate the risks of aquaplaning to approaching vehicles and gives the company an advantage when collaborating with automotive OEMs.

Rising Demand for Autonomous Vehicles and Highly Automated Driving Creates Tremendous Opportunities

The emergence of autonomous and networked vehicles is anticipated to cause a paradigm shift in the automotive and related industries. Tires are the principal way a vehicle applies force during essential operations such as steering, acceleration, and braking. In addition, tires provide crucial information about the vehicle, the tire, and the road. Active and intelligent tires encompass the cutting-edge technology being developed for autonomous vehicles. Active tires respond to many conditions, including vehicle, environmental, and tire-specific elements. These tires can affect the interior conditions of the vehicle by either resolving the problem or alerting the driver to it.

Several motorists are accustomed to evaluating tire and road conditions based on the ride's steering and handling, known as haptic feedback. Autonomous vehicles would not require haptic input because these car parts are absent, and the driver is not necessary to operate the vehicle. To drive safely in such conditions, the intelligent tire's aerodynamics, durability, and rolling resistance must be enhanced. Smart tires, which can sense the condition of the tire and the surrounding environment, can receive the necessary data from the autonomous vehicle systems that operate and monitor the vehicle for optimal performance.

Regional Analysis

China dominated the global automotive smart tire market and is anticipated to register a CAGR of 6.4% during the forecast period. China, the world's largest car market and a significant auto manufacturer, is pivotal in the global automotive industry. In addition, the country is forecast to have a high rate of autonomous car adoption, which will boost the expansion of the Chinese automotive sector. In addition, the connected vehicle industry in the country is anticipated to experience growth due to the expanding domestic market, rising industrial investments, and expanding government initiatives. These scenarios and developments are expected to produce advantageous market conditions for the nation's smart tire makers. The country is a manufacturing center for electronics, and the electronics component business has grown dramatically. This has created chances for makers of smart tires to form agreements with these companies and provide a cost-effective option for developing smart tires.

Asia-Pacific and Japan is the second-largest region. It is estimated to exhibit a CAGR of 9.2% during the forecast period. The development of the autonomous vehicle industry has been aided by the region's expanding research and development efforts and broad adoption of driving assistance system technology. The already developed nations, as well as the region's emerging economies, such as India, Singapore, and Malaysia, are building infrastructure for the expansion of connected, autonomous, and electric vehicles, which is anticipated to present a wealth of growth opportunities for smart tire manufacturers seeking to establish a foothold in the region.

Key Highlights 

• The global automotive smart tire market was worth USD 86.72 billion in 2022. It is anticipated to reach an expected value of USD 150.63 billion by 2031 at a CAGR of 6.4% during the forecast period (2023-2031).
• By application, the global automotive smart tire market is bifurcated into passenger vehicles and commercial vehicles. The passenger vehicle segment accounted for the largest market share and is estimated to exhibit a CAGR of 4.8% during the forecast period.
• By mode of sales, the global automotive smart tire market is bifurcated into OEM and aftermarket.The OEM segment accounted for the largest market share and is estimated to exhibit a CAGR of 7.3% during the forecast period.
• By sensor type, the global automotive smart tire market is bifurcated into TPMS, RFID chip, accelerometer sensor, strain gauge sensor, and others. The TPMS segment accounted for the largest market share and is estimated to exhibit a CAGR of 4.9% during the forecast period.
• By product, the global automotive smart tire market has been segmented into Intelligent Tires and connected tires. The intelligent tire segment accounted for the largest market share and is estimated to exhibit a CAGR of 4.1% during the forecast period.
• China is the most significant global automotive smart tire market shareholder and is anticipated to register a CAGR of 6.4% during the forecast period.

Competitive Players

Competitive Players

The global automotive smart tire market major companies are Infineon Technologies AG, Schrader TPMS Solutions, NXP Semiconductors, Revvo Technologies, Inc, JK Tyres & Industries Ltd., Sumitomo Rubber Industries, Ltd., Toyo Tire Corporation, Nokian Tyres Plc, Hankook Tire & Technology Co., Ltd., The Yokohama Rubber Company, Limited, Pirelli & C. S.p.A The Goodyear Tire & Rubber Co. and Bridgestone Corporation.

Recent Developments

Market News

• In March 2023, NFC-based sensing controllers with energy-harvesting capabilities are essential to creating passive smart devices that can function with high accuracy, efficiency, and design simplicity in various IoT applications. With the introduction of the NGC1081, Infineon Technologies AG broadened its line of NFC tag-side controllers.
• In March 2023, Through a strategic supplier agreement, Siemens will supply automation and drive technology to several international Continental tire factories. The tire maker aims to optimize its production capabilities by implementing several smart technologies.

Segmentation

Global Automotive Smart Tire Market: Segmentation

By Applications

• Passenger Vehicle
• Commercial Vehicle

By Mode of Sales 

• OEM 
• Aftermarket 

By Product 

• Intelligent Tire (TPMS)
• Connected Tire

By Sensor Type

• TPMS
• RFID Chip
• Accelerometer Sensor
• Strain Gauge Sensor
• Others

By Regions

• North America
• South America
• Europe
• The U.K.
• The Middle East and Africa
• China
• Asia-Pacific and Japan