Automotive Smart Tire Market Size, Share & Trends Analysis Report 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global automotive smart tire market size 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).

The complexity of vehicle management systems is the latest area of concentration for automotive tires, which provide real-time data on pressure and temperature, tread wears and depth, road conditions, and load detection, among other actors. The incorporation of sensors makes it possible to monitor tire health and transfer data about temperature, pressure, and tread depth to the vehicle's electronic control unit (ECU), which interacts with the inboard computers of the vehicle to improve stability and stability ABS adjustments. To ensure optimal efficiency, the embedded sensors and conductive rubber layer in the tire help measure different tire functioning criteria and the amount of moisture (snow, ice, or rain) on the road.

The rise of connected vehicles and autonomous driving has accelerated the evolution of technology present in all manner of auto parts. The tires have become the latest focus for automotive OEMs, as they have to advance themselves compared to the new gadgetry now available on both autonomous and conventional vehicles. An inevitable evolution is smart tires with sensors embedded in the tire's inner liner, providing users with more data than today's tire pressure monitoring system (TPMS) can offer. These sensors can signal when to change a tire and report details about rough and dangerous tire conditions.

Highlights

• Passenger vehicles dominate the application segment
• OEM dominates the mode of sales segment
• Intelligent tire dominates the product segment
• China is the most significant shareholder in the global market

Market Dynamics

Global automotive smart tire market drivers

Rising adoption of 5g technology in smart tires

The automotive industry is witnessing an immense spread of IoT technologies. The 5G communication technology is expected to enable robust communication for data transmission between the tire and the vehicle. The 5G technology is also superior to the prevalent Bluetooth technology used in wireless tire pressure monitoring systems, as it offers a wider frequency band and a better communication channel. Incorporating 5G technology in tires can also promote the integration of smart tires in passenger vehicles due to its ability to facilitate efficient vehicle-to-vehicle communication. For instance, Pirelli is the pioneer in developing the 5G-enabled connected tires called ‘Cyber Tire,’ used in applications such as truck fleet management.

The 5G infrastructure enables the vehicle to communicate the risks of aquaplaning with approaching vehicles due to its ultra-wideband frequency and very low latency, as well as its ability to communicate with vehicle-to-everything (V2X), towers positions it as a viable technology and gives an upper hand to the company to collaborate with automotive OEMs. The advanced tire design by Pirelli has created a competitive environment in the global automotive smart tire market, thereby compelling other key players, such as Continental, Michelin, Bridgestone, and Goodyear, to develop and commercialize their own connected and smart tire solutions and add to the market growth.

Advancements in fleet management solutions through smart tires

Several tire manufacturers have started integrating sensors on the inside of the tire and within the material to monitor pneumatic pressure, along with supporting tire management decisions and actions. Smart tires enable drivers and fleet managers to monitor their fleets through digital monitoring solutions. These solutions facilitate the fleet operator with performance visibility from inside a truck on a mobile application or a dashboard portal located thousands of miles away. Furthermore, data analytics and intelligent reporting are becoming the future of tire management as they serve the need for helping fleets reduce tire-related costs, increase uptime and optimize maintenance operations through a combination of data intelligence and service capabilities.

The aid given to fleet managers in preventing expensive and time-consuming tire failures by using a display mounted on the self-contained fuel station that sends and receives data from vehicle tires in the distribution fleet can be ascribed to the increase in demand for smart tires. This approach is primarily preferred when compared with a valve-mounted tire pressure monitoring system due to the reliability issues associated with its sensors. Additionally, Continental is working on its Conti C.A.R.E. tire technology system, which stands for connected, autonomous, reliable, and electrified. It is a network of wheel and tire technology that enables the management of tire performance characteristics. Conti C.A.R.E. is a flexible system solution that provides tire management solutions for modern robot-taxi fleets, for instance, boosting performance and helping optimize costs. Smart tires now enable fleet operators to take a more proactive stance for tire management.

Global automotive smart tire market restraint

Dearth of standardization and commercialization of smart tires

The existing smart tire prototypes have been quite atypical, with design elements that are particularly special to serve various functions for an advanced vehicle tire but are currently incompatible with being employed in a regular car. For instance, the incorporation of Goodyear's spherical Eagle 360 tire requires the use of vehicles that have been properly constructed. However, installing sensors in tires can lead to significant concerns such as issues with stiffness, the inefficiency of the sensor in unfavorable tire settings, effectively managing energy during wireless transmission of obtained data, and meeting the power needs for all electronic components.

Furthermore, most businesses use numerous simulation techniques to evaluate the benefits of smart tires for control systems. However, realizing these advantages in the real world still poses many challenges, considering that most smart tires use a single-point sensing solution transmitting data at lower frequencies. Moreover, the current tire pressure monitoring chips available in the production vehicles face trouble supporting the complex signal processing algorithms essential for extracting signal features from tire-mounted sensors. Hence, an application-specific integrated chip (ASIC) would be required. Companies need to figure out a way for mass production for such temperature and pressure sensor-enabled tires, as currently, the prices of such tires are much higher than conventional tires.

Global automotive smart tire market opportunities

Rising demand for autonomous vehicles and highly automated driving

The paradigm of the automotive and related sectors is predicted to shift with the arrival of autonomous and networked vehicles. Tires are a vehicle's primary means of applying forces during critical functions like steering, accelerating, and braking. Furthermore, the tires offer vital information about the car, the tire, and the road. Active and smart tires are two broad categories that encompass the cutting-edge tire technology explored for driverless vehicles. Regarding various circumstances, including vehicular, environmental, and tire-specific factors, the active tires react. These tires can alter the conditions inside the car by fixing the issue or alerting the driver to it. Many drivers are used to judging tires and road conditions based on the ride steering and handling, known as haptic feedback.

Haptic input would not be essential in autonomous vehicles because these car parts are not there, and the driver is not necessary to operate the vehicle. In order to drive safely in such circumstances, the smart tire's aerodynamics, durability, and rolling resistance must be improved. Smart tires, which can sense the tire's condition and the environment around the operating vehicle, can get the necessary data from the autonomous vehicles that operate and monitor the car for optimum performance. Tire-related information must be incorporated into the automated vehicle system to prevent unsafe and ineffective independent vehicle operation caused by a discrepancy between the vehicle performance parameters and the state of the tires. The long-term process of the system is optimized by the real-time monitoring of the current state of the vehicle's tire, which includes pressure, tread depth, tread temperature, contact patch area and size, tire load, tire mileage, overall health, and age.

Regional Analysis

China dominates the global market

Based on region, the global automotive smart tire market is bifurcated into North America, Europe, China, Asia-Pacific and Japan, the Middle East and Africa, the U.K., and South America.

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. China, the largest market and a substantial manufacturer of automobiles globally, holds a key position in the global automotive industry. Moreover, the country is anticipated to witness a high adoption rate of autonomous vehicles, which is expected to accelerate the growth of the Chinese automotive industry. Furthermore, the connected car industry in the country is expected to witness positive growth owing to the growing domestic market, rising industrial investments, and increasing government initiatives. All these scenarios and developments are expected to create favorable market conditions for smart tire manufacturers in the country.

Additionally, the country is a hub of electronic manufacturers, and the electronics component industry in the country has expanded exponentially over the years. This has opened opportunities for smart tire manufacturers to enter into partnerships with these companies and offer a cost-efficient solution to develop smart tires. The country is anticipated to witness a surge in the adoption rate of autonomous vehicles used in shared mobility services due to their 24/7 operational abilities and lower labor costs. The rise in demand for self-driving vehicles is expected to positively impact the growth of the smart tires market in the country.

Asia-Pacific and Japan are estimated to exhibit a CAGR of 9.2% during the forecast period. The region's growing research and development efforts and the widespread use of driving assistance system technologies have benefited the development of the autonomous vehicle sector. The already developed nations, as well as the region's emerging economies, including India, Singapore, and Malaysia, are building infrastructure for the expansion of connected, autonomous, and electric vehicles, which is expected to present a wealth of growth opportunities for companies making smart tires who want to establish a stronghold in the area.

Europe is the third largest region. Europe comprises regional markets of Germany, the U.K., France, and Spain. Europe has many manufacturing and research and development hubs for various automotive. The region also serves as home to most of the major players in the tire industry, such as Michelin, Continental Tires, Nokian Tires, and Pirelli. European countries have recently been regulated for using tire pressure monitoring systems (TPMS) sensors in both passenger and commercial vehicles, accelerating the growth and adoption of smart tires in the region.

Segmental Analysis

The global automotive smart tire market is bifurcated by application, mode of sales, sensor type, product, and region. 

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. The deployment of smart tires in passenger vehicles can revolutionize tire maintenance and safety as it can be used to reduce the number of accidents by robustly managing the issues of underinflated tires or tire bursts. These tires can also help prevent accidents by informing and alerting drivers about road and weather conditions. These temperature and pressure sensor-enabled tires equipped with sensors allow the consumers to view information regarding the tire's health on their dashboard or applications downloaded on their phones.

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. Key factors driving the OEM market are its benefits, such as ease of operation, robustness, and less expensive than other channels. In addition, customer satisfaction can be retained as the quality and longevity of the products are offered through product warranty and support services.

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. There is a considerable push from various governments and regulatory bodies toward developing and installing tire sensors such as temperature and pressure sensors in vehicles owing to the impending need for better automotive tire management and monitoring systems, along with the growing emphasis on road safety. Embedding such tire sensors helps to enhance the capability of vehicle tires to detect road conditions, improve the diagnostics system for a tire, and promote energy-saving.

Furthermore, the growing trend for advanced technologies and sensors being used in a vehicle, along with the increasing need for vehicle safety, has led to the demand for temperature and pressure sensor-enabled tires. Technological advancements in vehicle tires have played an essential role in the market's growth. Several automotive OEMs have started to provide tires with inbuilt sensors in their high-end vehicles. Some key companies manufacturing TPMS sensor systems are Schrader TPMS Solutions, Infineon Technologies AG, and NXP Semiconductors.

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. Temperature and pressure sensor-enabled tires are integrated with advanced pressure and temperature sensors that provide the temperature and pressure of the tire. The temperature sensor measures the coldness and heat energy the tire generates. The growing trend for advanced technologies and sensors used in vehicles and the increasing need for vehicle safety has led to the demand for temperature and pressure sensor-enabled tires. Technological advancements in vehicle tires have played an essential role in the market's growth.

Recent Developments

• 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.
• March 2023- Through a strategic supplier agreement, Siemens will supply automation and drive technology to several international Continental tire factories. By implementing several smart technologies, the tire maker aims to optimize its production capabilities.