Connected Tire Market Size, Share, and Growth Analysis, By Offering (Hardware, Software), By Propulsion (Electric, ICE), By Rim Size, By Sales Channel, By Component, By Vehicle Type, By Region - Industry Forecast 2025-2032

Connected Tire Market size was valued at USD 9.6 million in 2023 and is poised to grow from USD 14.23 million in 2024 to USD 331.06 million by 2032, growing at a CAGR of 48.2% during the forecast period (2025-2032).

The global connected tire market is witnessing significant growth, fueled by innovation from automakers and tech firms in the automotive sector. These advanced tires, integrated with sensors and communication technology, enhance the driving experience by delivering real-time data on tire health, performance, and safety. Such capabilities empower drivers with better vehicle control, enhanced safety measures, and streamlined maintenance procedures. Furthermore, the rising emphasis on sustainability is spurring the adoption of connected tires, which promote improved fuel efficiency and reduce carbon emissions. As consumer interest in smart, connected vehicles continues to rise, the connected tire market is set for robust expansion in the coming years.

Top-down and bottom-up approaches were used to estimate and validate the size of the Connected Tire market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Connected Tire Market Segments Analysis

Global Connected Tire Market is segmented by Offering, Propulsion, Rim Size, Sales Channel, Component, Vehicle Type and region. Based on Offering, the market is segmented into Hardware and Software. Based on Propulsion, the market is segmented into Electric, ICE and Others. Based on Rim Size, the market is segmented into 12-17 Inches, 18-22 Inches and More Than 22 Inches. Based on Sales Channel, the market is segmented into OEM and Aftermarket. Based on Component, the market is segmented into TPMS,Accelerometer sensors, Strain gauge sensors, RFID chips and Other sensors. Based on Vehicle Type, the market is segmented into Passenger Cars and Commercial Vehicles. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Connected Tire Market

A significant catalyst for the growth of the connected tire market is the heightened focus on safety and efficiency within the automotive sector. Connected tires offer real-time insights into tire health, facilitating timely maintenance and minimizing the likelihood of accidents stemming from tire malfunctions. Furthermore, these innovative tires enhance fuel efficiency and lower emissions, resonating with the increasing environmental awareness of consumers and regulatory agencies alike. This alignment with safety concerns and eco-friendly initiatives not only addresses consumer demand but also drives the industry's shift towards smarter, more sustainable transportation solutions.

Restraints in the Connected Tire Market

One of the primary obstacles hindering the proliferation of connected tires is the substantial initial investment required for these innovative technologies. The costs associated with integrating sensors and communication systems into tires can be considerable, often discouraging consumers and fleet operators from adopting connected tire solutions. Although the long-term advantages, such as enhanced safety and improved operational efficiency, are significant, the high upfront expenses present a formidable challenge that limits broader acceptance and implementation in the market. As a result, affordability concerns continue to impede the widespread adoption of connected tire technologies.

Market Trends of the Connected Tire Market

The Connected Tire market is witnessing a significant trend driven by the rise of autonomous vehicles, necessitating sophisticated sensor-based tire monitoring systems that facilitate seamless communication with the vehicle's control systems. This increasing emphasis on autonomy creates a robust demand for connected tires, as they enhance safety through real-time tire condition monitoring while simultaneously optimizing the overall performance of self-driving cars. As the automotive industry shifts towards more autonomous transportation solutions, connected tire technologies are becoming integral, driving innovations that support enhanced vehicle safety and efficiency, thereby shaping the future landscape of the automotive market.