Global Automotive Smart Tire Market

Global Automotive Smart Tire Market, By Application (Commercial Vehicle, Passenger Vehicle), By Product (Tires, Sensors), By Region (North America, Europe, Asia-Pacific (APAC), Latin America (LATAM), Middle-East & Africa (MEA) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: August 2021
  • Report ID: BWC2165
  • Available Format: PDF
  • Page: 190

Report Overview

The global automotive smart tire market is immensely gaining popularity in the automobile industry because of the emergence of connected and autonomous vehicles and the introduction of technology in various automobile components.

The global automotive smart tire market was worth USD 78.3 billion in 2020 and is further projected to reach USD 118.6 billion by the year 2027, growing at a CAGR of 6.2% during the forecast period. With the emergence of connected and autonomous vehicles and the use of technology in various automobile components, automotive smart tires are gaining huge popularity in the industry. A further driving factor for the global automotive smart tire market is the growing concern over safety and maintenance.

automotive smart tire market

Source: BlueWeave Consulting

Global Automotive Smart Tire Market- Overview

Automotive smart tires are tires equipped with modern sensors to track the tire pressure and alert the drivers when the automobile needs regular maintenance through smartphone devices. These technologically advanced tires are not only capable of automatically monitoring tire pressure, but they also provide a variety of conveniences such as registering abnormal temperatures, detecting small punctures, predicting hazards, and alerting drivers to potential damage. These features reduce repair and maintenance costs and provide comfortable rides.

Global Automotive Smart Tire Market Forecast and Trends

Growth Drivers

Growing Trend of Shared Vehicle and Automated Maintenance Alerts

From the perspective of the environment, sharing vehicles are benefiting urban cities as it helps in reducing carbon emissions per head. This is a primary factor that is creating immense growth opportunities for the global automotive smart tires market. This is because automatic route planning, error reporting, and servicing benefit the smart sensors fitted in the shared vehicles. These sensors self-report the issues to a cloud-based system so that preventive maintenance and repairs can be performed.

Technological Advancements in Automotive Smart Tire Technology

The automotive smart tire manufacturers are investing heavily in R&D to gain a competitive edge by advancing products and introducing innovative technologies. As smart tire technology becomes more accessible, this is expected to significantly expand the global market. For example, the Italian manufacturer Pirelli is developing smart tires and sensors capable of detecting street changes, predicting dangerous situations, and taking automatic options to prevent them. It is even possible for some technologies to predict potential damage to the automobile.

Restraints

Lack of Standard Regulations and Price Policy

Smart tires and sensors for vehicles are very expensive and difficult to deal with, which poses a restriction on the growth of the global automotive smart tire market. Even though tire pressure monitors are a mandatory feature in several countries, the adoption of automotive smart tires is still restricted among the elite. This is because of the lack of standard regulatory policies for the technology automakers, which allows them to control the price.

Impact of COVID-19 on Global Automotive Smart Tire Market

The global automotive smart tire market was tremendously hit by the COVID-19 pandemic. In the wake of the nationwide lockdowns imposed by several countries to check the spread of the virus, the automobile industry was among the most severely affected. Due to social distancing protocols and labor shortages, automobile manufacturing and production activities were completely restricted. Consequently, automakers suffered severe losses as a result of a sharp decline in sales of automotive smart tires and sensors. Also, the restrictions on imports and exports affected the distribution channels, although manufacturing activities had resumed after the lockdown restrictions were lifted.

Global Automotive Smart Tire Market - By Application

Based on applications, the global automotive smart tire market is segmented into commercial vehicles and passenger vehicles. The commercial vehicle segment held the largest market share and is likely to maintain its dominance even during the forecast period. As the shared vehicle market grows in urban areas, this segment is gaining significant traction. Ride-sharing is expected to be the future of the automobile industry, since it is flexible, convenient, reduces costs, and is environmentally friendly. Moreover, the growing adoption of smart tire sensors allows fleet owners to monitor elements like fuel consumption, carbon emission, and much more.

Global Automotive Smart Tire Market - By Product

Based on products, the global automotive smart tire market is segmented into tires and sensors. Sensors are in high demand in the market, and as a result, this segment accounts for the largest market share. Sensors connected to the tires can automate their own inspection of driving conditions such as grip on ice, aquaplaning resistance, even without manual inspection by a human. This ensures higher safety and better management and maintenance of automobiles. Due to these features, smart tire sensors are gaining significant traction and are also projected to grow at a high CAGR during the forecast period.

Global Automotive Smart Tire Market - Regional Insights

Geographically, the global automotive smart tire market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle-East & Africa. Among all the regions, Europe accounts for the largest market share because of the presence of several leading luxury automobile manufacturers like Ford, Mercedes-Benz, Porsche, Volkswagen, etc., which are increasingly adopting advanced technology like automotive smart tires into their products. Furthermore, the strong economic foothold and high disposable income of people belonging to this region also play a crucial role in fueling the growth of the automotive smart tire market.

Regional Insights

Source: BlueWeave Consulting

Competitive Landscape

The leading market players in the global automotive smart tire market are Continental AG, Bridgestone Corporation, Michelin, The Goodyear Tire & Rubber Co., Pirelli & C. S.p.A, The Yokohama Rubber Company, Limited, Hankook Tire & Technology Co., Ltd., Nokian Tyres Plc., Toyo Tire Corporation, Sumitomo Rubber Industries, Ltd., JK Tyres & Industries Ltd., Revvo Technologies, Inc., NXP Semiconductors, Schrader TPMS Solutions, Infineon Technologies AG, Titan International Inc., Maxxis International, and other prominent players.

To expand their product portfolio and gain a competitive advantage, leading auto tire manufacturers often pursue competitive strategies such as mergers, partnerships, acquisitions, collaborations, etc. Collaboration provides companies with access to a wide range of resources and expertise that helps them develop and innovate to stay competitive in the market.

Recent Developments

  • In June 2021, Bridgestone, the tire-making giant, announced their investment as well as the partnership with Kodiak Robotics, the Silicon Valley-based startup autonomous truck, to test and develop smart tire technology.
  • In June 2021, Pirelli, an Italian multinational tire manufacturer, incorporated the tire-pressure monitoring system (TPMS) into the new McLaren Arturia plug-in hybrid supercar.

Scope of the Report

Attributes

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, the United Kingdom, France, Italy, Spain, Brazil, Mexico, Japan, South Korea, China, India, United Arab Emirates, South Africa, Saudi Arabia

Product Service/Segmentation

By Application, By Product, By Region

Key Players

Continental AG, Bridgestone Corporation, Michelin, The Goodyear Tire & Rubber Co., Pirelli & C. S.p.A, The Yokohama Rubber Company, Limited, Hankook Tire & Technology Co., Ltd., Nokian Tyres Plc., Toyo Tire Corporation, Sumitomo Rubber Industries, Ltd., JK Tyres & Industries Ltd., Revvo Technologies, Inc., NXP Semiconductors, Schrader TPMS Solutions, Infineon Technologies AG, Titan International Inc., Maxxis International, and other prominent players.

 

By Application

  • Commercial Vehicle
  • Passenger Vehicle

By Product

  • Tires
  1. Connected Tires
  2. Intelligent tires
  • Sensors
  1. TPMS
  2. RFID
  3. Strain Gauge
  4. Accelerometer
  5. Others

By Region

  1. North America
  2. Europe
  3. The Asia-Pacific
  4. Latin America
  5. The Middle East & Africa

Frequently Asked Questions:

Ans: The global automotive smart tire market reached USD 78.3 billion in 2020.
Ans: The major factors driving the growth of the global automotive smart tire market are the growing trend of shared vehicles, automated maintenance alerts, and technological advancements in automotive smart tire technology.
Ans: The key players in the global automotive smart tire market are: Continental AG, Bridgestone Corporation, Michelin, The Goodyear Tire & Rubber Co., Pirelli & C. S.p.A, The Yokohama Rubber Company, Limited, Hankook Tire & Technology Co., Ltd., Nokian Tyres Plc., Toyo Tire Corporation, Sumitomo Rubber Industries, Ltd., JK Tyres & Industries Ltd., Revvo Technologies, Inc., NXP Semiconductors, Schrader TPMS Solutions, Infineon Technologies AG, Titan International Inc., Maxxis International, and other prominent players.
Ans: The commercial vehicle segment accounted for the largest share in the global automotive smart tire market.
Ans: Europe has the largest share in the global automotive smart tire market.