1h Free Analyst Time
The Connected Tyre Market grew from USD 42.55 million in 2025 to USD 62.89 million in 2026. It is expected to continue growing at a CAGR of 39.99%, reaching USD 448.45 million by 2032.Speak directly to the analyst to clarify any post sales queries you may have.
Connected tyre technologies are redefining vehicle safety, efficiency and data-driven maintenance strategies across commercial and passenger mobility sectors
Connected tyre technologies are moving from pilot-stage curiosity to strategic components of vehicle safety, asset management and commercial services. Across fleets and passenger segments, embedded sensors and wireless telemetry create continuous streams of operational data that can be translated into actionable maintenance signals, route and load optimizations, and enhanced safety alerts. As a result, stakeholders across OEMs, tier suppliers, fleet operators and aftermarket service providers are re-evaluating product roadmaps, procurement criteria and service models to capture new value beyond the physical tyre.Importantly, this transition is driven by a convergence of technical, regulatory and commercial forces. Sensor miniaturization and energy-efficient connectivity reduce the trade-offs between data fidelity and cost. Simultaneously, digital service models are establishing recurring revenue pathways that extend the tyre lifecycle economic equation. For decision-makers, the imperative is twofold: invest in interoperable tech stacks that scale across vehicle platforms while building robust commercial agreements that align incentives across the value chain. In the sections that follow we examine the structural shifts, policy headwinds, segmentation-specific dynamics and regional differentiators that will determine who captures the majority of the sector’s emerging upside.
Emerging connectivity platforms, sensor miniaturization and software-driven intelligence are catalyzing rapid shifts in tyre ecosystems and value chains worldwide
The landscape for connected tyres is undergoing transformative shifts driven by technological maturation and changing commercial incentives. Sensor innovation is enabling higher resolution pressure, temperature and vibration signals without materially increasing per-unit cost, while advances in low-power radios and energy harvesting extend device lifetimes and reduce maintenance burdens. Concurrently, cloud and edge analytics are moving from descriptive dashboards to predictive and prescriptive models that surface maintenance actions and operational optimizations in near-real time.These technical advances are accompanied by new business models that emphasize services over product alone. Fleet operators increasingly demand solutions that integrate tyre telemetry with vehicle telematics and maintenance workflows, creating pressure for open data standards and interoperable platforms. At the same time, regulatory attention to tyre safety and emissions is elevating the strategic priority of connected systems, particularly in commercial segments where uptime and operational efficiency directly affect profitability. As a result, technology vendors, OEMs and service providers are forming closer alliances, experimenting with subscription offerings, and piloting integration-first approaches to accelerate adoption.
US tariff changes in 2025 are reshaping supply chain choices, sourcing strategies and cost structures for tyre connectivity components and service providers
Tariff actions in the United States during 2025 have introduced new layers of complexity for suppliers and manufacturers that depend on cross-border component flows. For companies sourcing pressure sensors, radio modules or specialized electronics from international vendors, the effective increase in input costs has triggered a reassessment of supplier portfolios and sourcing strategies. In response, some firms are accelerating qualification of alternative suppliers in lower-cost jurisdictions, while others are evaluating nearshoring or domestic manufacturing to mitigate future policy volatility.Beyond immediate input costs, tariff-related disruption influences product roadmaps and inventory strategies. Longer lead times and higher landed costs encourage firms to redesign components for availability and to prioritize modular designs that can accommodate alternative suppliers. Moreover, the tariff environment is shifting competitive dynamics by making localized value propositions-such as domestic assembly, faster warranties and region-specific service contracts-more attractive to key customers. In sum, tariffs have amplified the strategic importance of supply chain resilience, procurement agility and design-for-sourcing practices for any organization seeking stability in connected tyre delivery and aftermarket services.
Segmentation by vehicle class, connectivity type, tyre construction, price range and end-user reveals distinct adoption patterns and commercial levers
A granular look at segmentation reveals differentiated adoption trajectories and commercialization strategies that industry players must navigate. Based on vehicle type, heavy commercial vehicles exhibit the most immediate operational returns from connected tyres due to uptime exposure and high service costs, while light commercial vehicles occupy a transitional zone where efficiency gains and safety improvements drive fleet owner interest, and passenger cars exhibit more gradual adoption tied to value-added consumer features and OEM integration strategies. Based on connectivity type, pressure sensor systems deliver direct maintenance and safety signals that are straightforward to operationalize, RFID contributes to inventory and logistics workflows, and telematics integration enables richer contextual analytics when combined with vehicle and route data.Further nuance appears when considering tyre construction and pricing. Based on tyre construction, radial designs dominate many commercial and passenger applications, while bias constructions persist in specific heavy-duty or legacy fleets, influencing sensor mounting and diagnostic approaches. Based on price range, budget offerings lower entry barriers for basic telemetry, mid-range solutions balance sensor fidelity with cost, and premium systems target full lifecycle management and advanced analytics. Finally, based on end user, aftermarket channels provide rapid retrofit paths and diverse supplier competition, whereas OEM channels prioritize design integration, warranty alignment and long-term data-sharing arrangements. These segmentation axes intersect to create distinct product requirements, deployment timelines and revenue models across the connected tyre opportunity.
Regional dynamics in the Americas, EMEA and Asia-Pacific are shaping technology priorities, regulatory responses and infrastructure for connected tyres
Regional dynamics materially influence technology priorities, deployment timing and commercial models for connected tyres. In the Americas, fleet-scale use cases drive early commercial demand, with a strong focus on telematics integration, uptime optimization and total cost of ownership improvements. Regulatory drivers and safety standards vary by jurisdiction, but the overall emphasis on efficiency and fleet economics accelerates commercial pilots and service-based offerings in this region. In contrast, Europe, Middle East & Africa emphasizes regulatory compliance, environmental imperatives and cross-border serviceability, prompting suppliers to prioritize certification, interoperability and flexible service networks.Meanwhile, in Asia-Pacific, diverse market maturity leads to parallel adoption tracks: advanced urban markets pursue high-fidelity telemetry, integration with smart city infrastructure and OEM-led programs, while emerging markets favor cost-effective retrofit solutions and modular products that scale with fleet modernization. Across all regions, infrastructure readiness-cellular coverage, local data privacy regimes and maintenance ecosystems-shapes the practical pathway from pilots to scale. Consequently, vendors must design regionalized go-to-market strategies that balance global platform consistency with local compliance, partnership models and service delivery capabilities.
Original equipment manufacturers and technology providers are integrating sensors, telematics and data platforms to capture lifecycle value from tyres
Companies operating across the connected tyre value chain are adopting a variety of strategic postures to capture emerging opportunities. Original equipment manufacturers are embedding sensing and telematics capabilities earlier in the design cycle to secure data ownership and integrate tyre intelligence with vehicle control and warranty processes. Technology providers specializing in sensors and communications focus on component reliability, scale manufacturing and cost reduction, while telematics platform vendors emphasize data ingestion, normalization and analytics that can be monetized through service contracts.Partnerships and selective vertical integration are common responses to complexity: suppliers with strong sensor expertise seek alliances with telematics platforms to access distribution and analytics capabilities, whereas OEMs cultivate preferred supplier relationships to guarantee performance and service levels. In addition, several companies invest in post-sales service capabilities-data-driven maintenance, predictive alerts and integrated parts fulfillment-to convert single-unit sales into recurring revenue streams. Together, these moves illustrate an industry shifting from point-product competition to ecosystem orchestration where interoperability, data governance and customer outcomes determine long-term differentiation.
Industry leaders should prioritize interoperable platforms, build supply chain resilience and develop service-based monetization of tyre telemetry and analytics
Industry leaders can take deliberate actions to accelerate value capture while mitigating risk across the connected tyre journey. First, prioritize interoperable platforms that allow components from multiple suppliers to function within unified fleet management ecosystems; this reduces vendor lock-in and speeds integration across vehicle types. Second, strengthen supply chain resilience by qualifying multiple suppliers, considering nearshoring for critical components and designing products for modular sourcing to adapt rapidly to policy shifts. Third, monetize telemetry through layered service offerings that move beyond alerts to include predictive maintenance agreements, usage-based warranties and uptime guarantees that align incentives with fleet customers.Additionally, invest in customer-centric pilot programs that validate use cases in real operational contexts and scale only after KPIs such as downtime reduction, safety event reduction and service penetration have been demonstrated. Complement these pilots with clear data governance frameworks that address privacy, ownership and sharing arrangements to unlock cross-party analytics. Finally, cultivate partnerships across OEMs, telematics providers and aftermarket networks to accelerate distribution and to convert technical capability into measurable commercial outcomes. These steps create a pragmatic roadmap to move from experimentation to sustainable revenue models.
Research approach combines primary stakeholder interviews, technical validation and supply chain mapping with secondary review to produce verifiable insights
The research underpinning this executive summary draws on a blend of primary and secondary evidence to ensure balanced, verifiable conclusions. Primary stakeholder interviews were conducted with senior leaders across OEMs, tier suppliers, fleet operators and telematics vendors to capture strategic intent, adoption barriers and deployment experiences. Technical validation activities included lab reviews of sensor performance characteristics and field assessments of integration complexity to align product claims with practical implementation constraints.These insights were triangulated with a targeted secondary review of industry literature, regulatory filings and standards discussions to contextualize technological trends and policy dynamics. Supply chain mapping exercises were used to identify critical nodes, potential bottlenecks and sourcing risk concentrations. Throughout, data integrity was maintained by cross-referencing statements from multiple independent sources and by subjecting draft findings to expert review to refine assumptions and ensure the report’s conclusions are robust and actionable for commercial decision-makers.
Converging advances in sensing, connectivity and analytics will enable resilient, efficient and service-driven tyre ecosystems across multiple vehicle platforms
Converging innovations in sensing, connectivity and analytics are creating a strategic inflection point for tyre manufacturers, fleet operators and technology providers. Rather than treating tyres as passive consumables, market participants now have the means to transform them into active data assets that improve safety, reduce operating costs and enable new service businesses. Success will favor organizations that align product design with pragmatic deployment needs, build resilient sourcing strategies and form partnerships that translate technical capability into reliable operational outcomes.Looking ahead, the most consequential differentiators will be the ability to scale interoperable platforms, to manage data responsibly and to convert telemetry into repeatable commercial outcomes through services and warranties. Leaders who act decisively-investing in standards, piloting use cases in representative environments and creating customer-aligned monetization models-will capture disproportionate value as connected tyre solutions move from novelty to a core element of vehicle and fleet management ecosystems.
Additional Product Information:
- Purchase of this report includes 1 year online access with quarterly updates.
- This report can be updated on request. Please contact our Customer Experience team using the Ask a Question widget on our website.
Table of Contents
1. Preface
2. Research Methodology
3. Executive Summary
4. Market Overview
5. Market Insights
7. Cumulative Impact of Artificial Intelligence 2025
8. Connected Tyre Market, by Tyre Construction
9. Connected Tyre Market, by Connectivity Level
10. Connected Tyre Market, by Rim Size
11. Connected Tyre Market, by Services
12. Connected Tyre Market, by Application
13. Connected Tyre Market, by Vehicle Type
14. Connected Tyre Market, by End-Use
15. Connected Tyre Market, by Region
16. Connected Tyre Market, by Group
17. Connected Tyre Market, by Country
19. China Connected Tyre Market
20. Competitive Landscape
List of Figures
List of Tables
Companies Mentioned
The key companies profiled in this Connected Tyre market report include:- Apollo Tyres Ltd.
- Bridgestone Corporation
- CEAT Limited
- Compagnie Générale des Établissements Michelin SCA
- Continental AG
- Cooper Tire & Rubber Company
- Giti Tire Corporation
- Hankook Tire & Technology Co., Ltd.
- Huf Hülsbeck & Fürst GmbH & Co. KG
- JK Tyre & Industries Ltd.
- Kumho Tire Co., Inc.
- Linglong Tire Co., Ltd.
- Maxxis International
- MRF Limited
- Nexen Tire Corporation
- Nokian Renkaat Oyj
- Pirelli & C. S.p.A.
- Sailun Group Co., Ltd.
- Schrader Electronics, Inc.
- Sensata Technologies Holding plc
- Texas Instruments Incorporated
- The Goodyear Tire & Rubber Company
- Toyo Tire & Rubber Co., Ltd.
- Yokohama Rubber Co., Ltd.
- ZF Friedrichshafen AG
