Connected Tires - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The connected tires market size is expected to grow from USD 11.61 million in 2025 to USD 17.66 million in 2026, and is forecast to reach USD 144.03 million by 2031, at a 52.15% CAGR over 2026-2031. This report is Segmented by Component (TPMS and More), Connectivity Technology (Bluetooth and More), Rim Size (12-17 Inches and More), Propulsion Type (ICE and More), Vehicle Type (Passenger Cars and More), Sales Channel (OEM and Aftermarket), and Geography. The Market Forecasts are Provided in Terms of Value (USD) and Volume (Units).

Global Connected Tires Market Trends and Insights

EV-Driven Demand for Load-Bearing Smart Tires

Battery electric vehicles add 20-30% weight compared with comparable ICE platforms, increasing tire stress and asymmetric wear. Embedded strain gauges and tri-axial accelerometers now stream deformation data every 5 milliseconds to vehicle ECUs, letting software adjust torque and damping before wear accelerates. Pirelli’s Cyber Tire cut emergency stopping distances by 10 feet at 70 mph in road tests and will debut on Aston Martin’s 2027 lineup. As premium EVs scale globally, tire telemetry emerges as a frontline differentiator for extending range and curbing warranty costs.

Fleet Focus on Predictive Maintenance & Uptime

Fleets operating Class 7-8 vehicles face significant fines for each tire violation, and a single roadside failure leads to a noticeable increase in their insurance premiums. Michelin's Smart Predictive Tire, unveiled in March 2026, demonstrated a substantial reduction in on-road incidents and improved fuel efficiency during pilot tests on U.S. interstates. Continental's ContiConnect, now monitoring a large number of connected tires, offers a relatively short payback period. This has encouraged long-haul carriers to shift from reactive tire replacements to AI-scheduled rotations, significantly reducing their downtime.

High Sensor-Package Cost & Harsh-Duty Reliability

Costing within a moderate range, multifunction TPMS modules increase the price of a mid-tier tire by a small percentage, which dissuades cost-sensitive OEMs. In extreme climates with significant temperature fluctuations, battery lives diminish, leading to a notable failure rate in older sensors. TDK and Goodyear have developed a piezoelectric energy-harvesting prototype to reduce reliance on batteries, but its commercial success is contingent on achieving highly competitive price points.

Other drivers and restraints analyzed in the detailed report include:

• Regulatory Mandates for TPMS Adoption
• OEM Shift to Mileage-Based “Tire-as-a-Service”
• Fragmented Connectivity Standards & Interfaces

Segment Analysis

RFID chips are on track for a 52.17% CAGR during the forecast period (2026-2031), the fastest in the component mix, as the EU Digital Product Passport mandates serialized tire tracking by 2028. Michelin and Beontag have embedded more than 50 million Gen4 UHF TireTags, with a target of 100 million by year-end 2026. TPMS still commands 63.37% of 2025 revenue, yet battery replacement cycles and unit-cost pressures tilt future gains toward passive, maintenance-free RFID. The connected tires market size for RFID is expected to outpace TPMS revenues in the latter half of the forecast window, reflecting OEM preference for dual-purpose identification and telemetry. Accelerometer and strain-gauge packages remain premium EV features but will proliferate once system-on-chip designs lower ASPs. As integrated ICs merge pressure, temperature, and motion in 4 mm footprints, the component boundary blurs, anchoring RFID for identity and TPMS modules for live data streams.

Sensor convergence is shrinking SKU counts; Infineon’s SP490-01-11 embeds a Cortex-M0+, a MEMS pressure die, a z-axis accelerometer, and a 315-MHz transmitter, promising 10-year battery life under cryptographic load. NXP’s NTM88Kxx5S ups dual-axis tolerance to ±550 g, suiting waste-haulers and tractors that generate high-g spikes. At the same time, graphene-based strain gauges tested at 800% stretch open pathways for ultra-flexible casings, though commercialization remains post-2030. Component winners will fuse multifunction silicon with passive RFID, a model that addresses regulatory and fleet asset-tracking requirements in a single tire.

Cellular 4G/5G will post a 52.21% CAGR as fleets demand OTA firmware updates, geofenced alerts, and cloud analytics, all of which are unsupported by Bluetooth’s 10-meter ceiling. Although Bluetooth led 38.71% 2025 revenue, its foothold is mostly smartphone-paired passenger TPMS. Pirelli’s Bari pilot streams friction data over 5G to traffic-control centers 1.5 miles away, validating wide-area V2X alerts. Academic head-to-heads show LoRa achieves 98% packet delivery on low-bandwidth pressure pings but chokes on accelerometer video streams, which 5G handles elegantly. Wi-Fi remains workshop-bound, while DSRC recedes in North America, where C-V2X garners spectrum re-allocations.

Hybrid chips now ship with multi-mode radios. Infineon’s SP490 integrates RF 315-MHz and Bluetooth LE; Quectel’s AG35 4G Cat 4 module nests a TPMS API that OEMs can unlock via firmware. As subscriber price curves drop below USD 1 per month for pooled SIMs, the connected tires market converges on cellular for fleets and on Bluetooth for cost-constrained private cars. Legacy 315-MHz solutions will linger as ultra-low-power fallbacks but face de facto obsolescence once 5G RedCap modules hit sub-USD 4 pricing.

Complete Report Scope:

• By Component
  • TPMS
  • Accelerometer Sensors
  • Strain-Gauge Sensors
  • RFID Chips
• By Connectivity Technology
  • Bluetooth
  • Cellular (4G/5G)
  • Wi-Fi
  • V2X
• By Rim Size
  • 12-17 Inches
  • 18-22 Inches
  • Above 22 Inches
• By Propulsion Type
  • Internal Combustion Engine
  • Battery Electric Vehicle (BEV)
  • Plug-in Hybrid EV (PHEV)
  • Hybrid EV (HEV)
  • Fuel Cell EV (FCEV)
• By Vehicle Type
  • Passenger Cars
  • Light Commercial Vehicles (LCVs)
  • Heavy Commercial Vehicles (HCVs)
  • Buses & Coaches
• By Sales Channel
  • OEM
  • Aftermarket
• By Geography
  • North America
    • United States
    • Canada
    • Rest of North America
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • United Kingdom
    • Germany
    • Spain
    • Italy
    • France
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • India
    • China
    • Japan
    • South Korea
    • Rest of Asia-Pacific
  • Middle East and Africa
    • United Arab Emirates
    • Saudi Arabia
    • Turkey
    • Egypt
    • South Africa
    • Rest of Middle East and Africa

Geography Analysis

Asia-Pacific led with 38.81% revenue in 2025, propelled by China’s nationwide TPMS mandate and the world’s highest EV production rates. Bridgestone and Yokohama embed RFID tags at the factory to comply with future circular-economy rules. At the same time, Nexen pilots mileage-based contracts that cut South Korean fleet tire budgets by up to 18%. India’s regulatory lag confines adoption to premium SUVs and high-utilization logistics trucks; nonetheless, policy drafts signal a forthcoming direct-sensor requirement that could unlock latent demand by 2028. Connectivity fragmentation and data-localization laws in China spawn region-specific firmware but do not slow net sensor volumes.

South America is the fastest climber, forecast for 52.33% CAGR to 2031. Continental has equipped several thousand connected tires on numerous vehicles in Brazil and established multiple ContiConnect truck hubs, positioning Brazil as one of its largest markets for smart tires. Michelin is set to launch its SmartLoad AI in São Paulo in the near future, introducing digital-twin lifespan forecasts to lane-kilometer billing, a move that resonates with haulers contending with the region's tropical heat. In Argentina, with its mining-centric focus, a single remote blowout can halt operations for extended periods, driving the swift adoption of sensors despite the nation's economic fluctuations.

While North America and Europe boast nearly universal adoption of TPMS, the focus is shifting towards advanced features like tread-depth monitoring, V2X communication, and over-the-air security. The EU Data Act, set to take effect in the coming years, grants drivers the right to export raw sensor data, paving the way for third-party analytics ventures. In the United States, fleets are increasingly adopting tire-as-a-service models offered by major manufacturers, with documented short-term paybacks prompting financial decision-makers to retrofit heavy-duty vehicles. The Middle East and Africa, while trailing in volume, utilize sensors to address challenges posed by extreme temperatures, where blowouts pose significant safety risks. Regional differences reflect the interplay among regulation, fleet maturity, and cellular coverage economics.

List of Companies Covered in this Report:

• Bridgestone
• Michelin
• Continental
• Goodyear
• Pirelli
• Hankook
• Yokohama
• Sumitomo Rubber (SRI)
• Sensata Technologies
• Schrader Electronics
• NXP Semiconductors
• DENSO
• Huf Hülsbeck & Fürst
• Aptiv
• Infineon
• NIRA Dynamics
• Revvo Technologies
• The SMART Tire Company
• BANF
• Alligator Ventilfabrik

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support