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The Connected Tyre Market grew from USD 30.70 million in 2024 to USD 42.95 million in 2025. It is expected to continue growing at a CAGR of 38.83%, reaching USD 219.90 million by 2030. Speak directly to the analyst to clarify any post sales queries you may have.
Revolutionizing Mobility through Intelligent Tyre Connectivity
Connected tyre technology is reshaping the automotive ecosystem, delivering unprecedented levels of safety, performance, and operational efficiency. By embedding sensors and communication modules directly into the tyre structure, manufacturers and fleet operators gain real-time visibility into pressure, temperature, traction, and wear patterns. This paradigm shift not only enhances road safety and extends tyre life, but also drives cost savings through proactive maintenance and fuel efficiency improvements. As vehicles become more connected and autonomous driving inches closer to mainstream adoption, the connected tyre emerges as a foundational element in the larger Internet of Things (IoT) architecture for mobility.This report provides decision-makers with an authoritative overview of the connected tyre market’s current state, industry drivers, and competitive landscape. It explores how digital transformation is converging with automotive engineering to deliver new value propositions for stakeholders across the value chain-from OEMs and tyre manufacturers to logistics providers and after-sales service networks. By understanding the nuances of sensor integration, data analytics, and connectivity standards, industry leaders can forge strategic partnerships and invest in technologies that future-proof their portfolios.
Digitalization and Sustainability Redefining Tyre Innovation
The connected tyre landscape is undergoing transformative shifts driven by advances in sensor miniaturization, wireless connectivity, and data analytics. Miniature pressure and temperature sensors are now rugged enough to withstand extreme operational conditions, enabling seamless integration without compromising tyre integrity. Meanwhile, the proliferation of 5G networks and dedicated short-range communications (DSRC) is reducing latency, ensuring that critical safety alerts and performance data reach vehicle control units and cloud platforms in near-real time.Environmental sustainability is another key catalyst. As regulatory bodies tighten emission targets, connected tyres play a pivotal role in optimizing fuel consumption through precise pressure management. At the same time, growing demand for electric vehicles has spurred development of low-rolling-resistance compounds and intelligent monitoring systems that extend EV range and battery life. Additionally, partnerships between tyre manufacturers and telematics providers are accelerating, creating integrated solutions that combine tyre health data with fleet telematics for holistic asset management. These converging trends are redefining value chains and setting new benchmarks for performance and safety in mobility.
Navigating New Tariff-Driven Supply-Chain Realities
In 2025, a new wave of United States tariffs targeting steel, aluminium, and selected automotive components has added a layer of complexity to global supply chains. These measures, which impose additional duties on imported raw materials and finished goods, have prompted tyre manufacturers to reassess sourcing strategies and manufacturing footprints. Companies with vertically integrated steel capacities have gained a competitive edge, as they can shield themselves from tariff-induced cost inflation and maintain more stable pricing for connected tyre systems.Beyond direct cost impacts, the tariffs have accelerated regionalization of production, driving investment in domestic facilities and encouraging localized assembly of sensor modules. While this shift mitigates exposure to trade disputes, it also raises initial capital requirements and lengthens lead times for technology roll-out. Moreover, suppliers in non-tariffed regions, particularly in Asia and Eastern Europe, are targeting North American demand by offering competitively priced tyre sensor systems and data platforms. Collectively, these dynamics underscore the importance of agile supply-chain design and strategic sourcing partnerships to manage risk and capitalize on emerging regional opportunities.
Segment-Specific Trends Shaping Market Adoption
A nuanced view of the market emerges when examining performance across vehicle categories, connectivity modalities, construction types, price tiers, and end-user preferences. In heavy commercial applications, connected tyre solutions are prized for their fleet-wide monitoring capabilities that minimize downtime and optimize maintenance cycles. Among light commercial vehicles, the focus shifts toward modular sensor kits that can be retrofitted to existing tyre inventories, balancing cost and functionality. Passenger cars, meanwhile, are increasingly equipped with integrated tyre monitoring systems as original equipment, reflecting rising consumer demand for safety and convenience.Connectivity options themselves present distinct value propositions. Pressure sensor systems remain the cornerstone for real-time inflation tracking, while RFID tags facilitate seamless inventory management throughout distribution networks. Telematics integration, however, unlocks the full potential of predictive analytics by feeding tyre performance data into centralized fleet management platforms. In terms of tyre construction, radial tyres dominate due to superior ride comfort and lower rolling resistance, but bias tyres retain a foothold in certain off-road and agricultural segments where sidewall rigidity is critical.
Pricing strategies further shape market dynamics. Budget offerings typically include basic pressure monitoring with manual alert thresholds, making them accessible for cost-sensitive fleets. Mid-range systems layer in automated alerts and rudimentary data analytics, appealing to small and mid-sized operators seeking operational visibility. Premium solutions combine multi-sensor arrays with advanced diagnostic algorithms and over-the-air firmware updates, targeting large fleets and vehicle manufacturers that demand high reliability and comprehensive data insights. Finally, the contrast between the aftermarket and OEM channels underscores diverging go-to-market approaches: aftermarket players prioritize plug-and-play adaptability across tyre brands, whereas OEM partnerships focus on seamless integration with vehicle control systems from day one.
Regional Adoption Patterns and Manufacturing Hubs
Regional market dynamics reveal distinct growth drivers and adoption patterns across the Americas, Europe, Middle East & Africa, and Asia-Pacific. In the Americas, strong investments in fleet modernization and stringent regulatory pressure for fleet emissions have cultivated a high propensity for connected tyre systems. North American fleets leverage integrated telematics to meet compliance requirements and gain a competitive edge through improved uptime and safety metrics.Across Europe, Middle East & Africa, regulatory frameworks mandating tyre pressure monitoring systems have accelerated baseline adoption, particularly in Western Europe. Central and Eastern European countries, benefiting from lower manufacturing costs, are emerging as hubs for sensor assembly and supply-chain diversification. Meanwhile, the Middle East is witnessing pilot projects in logistics corridors that aim to demonstrate operational efficiencies in long-haul freight.
The Asia-Pacific region stands out for its manufacturing scale and rapid EV uptake. China’s domestic tyre and telecom industries are collaborating on indigenous connectivity standards, while Japan and South Korea focus on high-precision sensor technologies. Southeast Asian markets are adopting retrofit solutions to extend the life of ageing tyre fleets. Across the board, Asia-Pacific’s combination of production capacity and growing automotive demand makes it both a manufacturing powerhouse and a fertile ground for new applications of connected tyre technology.
Collaborations and Business Models Defining Competition
The competitive landscape features a blend of established tyre manufacturers, sensor specialists, and telematics providers. Leading tyre makers have either developed in-house connectivity platforms or formed strategic alliances to integrate third-party sensors and analytics. Specialists in sensor fabrication and RF communication modules continue to innovate on miniaturization and energy efficiency, while telematics vendors enrich their offerings with tyre-centric data streams.Collaborations between tyre OEMs and software firms are also on the rise, as both parties seek to deliver end-to-end solutions encompassing hardware, cloud analytics, and mobile dashboards. Several companies have launched subscription-based models that bundle sensor hardware with analytics services, reducing upfront costs for fleet operators and creating recurring revenue streams. Market entrants from adjacent industries-such as industrial IoT and logistics management-are also staking their claims, bringing data-integration expertise and customer networks that can accelerate connected tyre adoption.
Strategic Blueprints for Market Leadership
Industry leaders should develop a clear roadmap for integrating connected tyre solutions into their product portfolios and service offerings. Establishing partnerships with telematics and data-analytics providers will be essential to deliver compelling, data-driven value propositions. Companies should also evaluate modular sensor architectures that allow for rapid customization and scale across diverse vehicle platforms. Investing in over-the-air update capabilities can differentiate premium offerings and extend product lifecycles by enabling continuous feature enhancements.On the manufacturing front, optimizing supply chains through regional production hubs or strategic alliances can mitigate tariff risks and reduce lead times. Leaders must also prioritize sustainability by incorporating eco-friendly materials and designing for recyclability. In the aftermarket, service networks should be trained and certified to install and maintain connected tyre systems, ensuring consistent quality and fostering customer trust. Finally, piloting usage-based pricing and performance-based contracts can unlock new revenue models while aligning incentives around uptime, safety, and efficiency.
Robust Methodology Underpinning Reliable Insights
This analysis draws on a rigorous blend of primary and secondary research methodologies. Primary inputs include in-depth interviews with industry executives, sensor technology experts, fleet managers, and regulatory authorities across key regions. Secondary research incorporates published white papers, regulatory filings, corporate financial reports, and trade association data. All findings were triangulated through data validation techniques to ensure consistency and accuracy.Market structuring and segmentation were guided by standardized frameworks, taking into account vehicle type, connectivity modality, tyre construction, price tier, and distribution channel. Regional breakdowns align with global automotive production centers and demand hotspots. Competitive benchmarking evaluates companies across criteria such as patent portfolios, partnership networks, product breadth, and go-to-market models. Our methodology ensures that the insights presented here are robust, actionable, and free from methodological bias.
Synthesizing Insights for Future-Ready Strategies
In conclusion, the connected tyre market stands at a pivotal juncture where digital innovation, regulatory mandates, and evolving mobility trends converge. Advances in sensor technology, combined with the roll-out of next-generation connectivity infrastructure, are unlocking new dimensions of tyre intelligence. Meanwhile, tariff-driven supply-chain realignment and shifting regional dynamics are reshaping competitive strategies.By embracing targeted segmentation insights, forging strategic partnerships, and deploying agile supply-chain models, industry players can capture the vast potential inherent in this market. Companies that excel will balance technological differentiation with operational excellence, delivering solutions that enhance safety, efficiency, and environmental sustainability concurrently. The path forward demands both visionary leadership and meticulous execution, but the rewards for early movers and fast followers alike will be substantial as the automotive industry accelerates toward a more connected, data-driven future.
Market Segmentation & Coverage
This research report categorizes to forecast the revenues and analyze trends in each of the following sub-segmentations:- Vehicle Type
- Heavy Commercial Vehicle
- Light Commercial Vehicle
- Passenger Car
- Connectivity Type
- Pressure Sensor Systems
- RFID
- Telematics Integration
- Tyre Construction
- Bias
- Radial
- Price Range
- Budget
- Mid Range
- Premium
- End User
- Aftermarket
- OEM
- Americas
- United States
- California
- Texas
- New York
- Florida
- Illinois
- Pennsylvania
- Ohio
- Canada
- Mexico
- Brazil
- Argentina
- United States
- Europe, Middle East & Africa
- United Kingdom
- Germany
- France
- Russia
- Italy
- Spain
- United Arab Emirates
- Saudi Arabia
- South Africa
- Denmark
- Netherlands
- Qatar
- Finland
- Sweden
- Nigeria
- Egypt
- Turkey
- Israel
- Norway
- Poland
- Switzerland
- Asia-Pacific
- China
- India
- Japan
- Australia
- South Korea
- Indonesia
- Thailand
- Philippines
- Malaysia
- Singapore
- Vietnam
- Taiwan
- Continental AG
- Compagnie Générale des Établissements Michelin SCA
- The Goodyear Tire & Rubber Company
- Bridgestone Corporation
- Pirelli & C. S.p.A.
- Hankook Tire & Technology Co., Ltd.
- Yokohama Rubber Co., Ltd.
- Nokian Renkaat Oyj
- Sensata Technologies Holding plc
- Texas Instruments Incorporated
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Table of Contents
1. Preface
2. Research Methodology
4. Market Overview
6. Market Insights
8. Connected Tyre Market, by Vehicle Type
9. Connected Tyre Market, by Connectivity Type
10. Connected Tyre Market, by Tyre Construction
11. Connected Tyre Market, by Price Range
12. Connected Tyre Market, by End User
13. Americas Connected Tyre Market
14. Europe, Middle East & Africa Connected Tyre Market
15. Asia-Pacific Connected Tyre Market
16. Competitive Landscape
18. ResearchStatistics
19. ResearchContacts
20. ResearchArticles
21. Appendix
List of Figures
List of Tables
Companies Mentioned
The companies profiled in this Connected Tyre market report include:- Continental AG
- Compagnie Générale des Établissements Michelin SCA
- The Goodyear Tire & Rubber Company
- Bridgestone Corporation
- Pirelli & C. S.p.A.
- Hankook Tire & Technology Co., Ltd.
- Yokohama Rubber Co., Ltd.
- Nokian Renkaat Oyj
- Sensata Technologies Holding plc
- Texas Instruments Incorporated
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 184 |
| Published | May 2025 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 42.95 Million |
| Forecasted Market Value ( USD | $ 219.9 Million |
| Compound Annual Growth Rate | 38.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 11 |
