Connected Tire Market | Contrive Datum Insights

The global Connected Tire Market size was valued at USD 0.75 million in 2021. The market is projected to grow from USD 1.18 million in 2022 to USD 45.60 million by 2030, exhibiting a CAGR of 68.5% during the forecast period.

Connected Tire Market Overview:

The global COVID-19 pandemic has had effects that have never been seen before. For example, demand for connected tyres is lower than expected in all regions compared to levels before the pandemic. Based on our research, the global market was 18.0% smaller in 2020 than it was in 2019.

Tires that are "connected" come with a number of sensors that help track the tire's condition and send the data to the vehicle in real time. There are a number of Internet of Things (IoT) devices and sensor-based systems in the tyres, such as a pressure monitoring system, temperature control systems, an advanced assistance system, and others. It sends the information it has gathered, such as tyre pressure, road condition, tread depth, acceleration, and tyre temperature, to the computer. This helps the computer predict the tyres' working conditions, maintenance needs, and deviation alerts, as well as adjust the suspension, emergency brakes, traction control, and other things. One of the main things that will drive future developments in this technology is the rise of new technologies in the auto industry.

The market is growing because of things like the rise in demand for road safety and the rise in demand for passenger cars with advanced safety features. Another key growth factor is the increasing use of connected features in vehicles, as well as the development and commercialization of self-driving cars. The demand for technology will also be driven by the growing need of fleet operators for better tyre management to cut down on the costs of replacing tyres and keeping them in good shape. Government support for the development and use of smart vehicles in both developed and developing countries will also give the market a chance to grow in a profitable way.

But this is a new technology that is still in its early stages. So, the high initial cost of the technology and consumers' lack of knowledge are likely to slow the growth of the Connected Tire Market over the next few years. Also, the growth of the market is likely to be slowed by the lack of infrastructure in several developing countries around the world. Even so, big players like Michelin, Bridgestone, Goodyear, and Pirelli are putting more effort into developing and selling smart tyres, which will help the market grow from 2022 to 2029. For example, in June 2021, Goodyear Tire & Rubber Company showed off a technology called SightLine for smart tyres. This technology will tell the vehicle how the tyres are doing and what the road is like. By the end of 2021, OEMs and fleet operators will be able to use the system.

Market Dynamics:

Latest Trends:

As the Internet of Things (IoT) makes it easier for things to connect, tyre companies are moving toward different telematics solutions for mobility, data sharing, and vehicles that can talk to each other. Michelin, Bridgestone, Continental, and Goodyear, which are all leaders in the tyre industry, are testing IoT-connected sensors to give vehicle fleet owners longer tyre life, better gas mileage, and more safety. Goodyear Tire & Rubber Company, for example, came out with the Eagle 350 Urban, which is a spherical concept tyre. With the help of the Internet of Things (IoT) and Li-Fi, a light-based mobile wireless technology, the data will be sent from one car to another and from one car to the infrastructure.

Leading technology companies like Microsoft are also investing in and focusing on the integration of different Internet of Things (IoT) systems and sensors to make vehicles safer as a whole. For example, in April 2018, the American multinational technology company Microsoft put USD 5 billion into Internet of Things (IoT) programmes for the next 4 years, or until the end of 2022. The new platform lets vehicle owners track how well their tyres are working in real time so they can improve operational efficiency, save money, and make more money. With the help of Microsoft's investment, Tyre Express, a startup that is a leader in lifecycle management for fleet operators, made and released a "IoT-based Tire Performance Management Solution" that is powered by Microsoft's Azure IoT Hub. Over the next few years, similar trends will change how the market looks.

Driving Factors:

The rise of self-driving, connected, and smart cars has sped up the development of technology used in all parts of cars. With the help of advanced vehicle parts, like connected tyres, manufacturers can make connected vehicles work better by getting feedback from these parts in real time. These do things like collect, analyse, and store data, which helps with making decisions.

Rapid economic growth means that transportation infrastructure and smart city projects will be built well. Many countries, like Mexico, Canada, and the U.S., are building digital infrastructure so that cars and infrastructure can talk to each other. This will help collect important information, reduce traffic, and make roads safer. Smart cities are becoming more popular, which is expected to speed up the use of autonomous vehicles and make smart tyres more popular. It gives real-time information about pressure and temperature, road conditions, load detection, tread wear and depth, and other parameters that help self-driving cars be more stable and accurate. So, the widespread use of connected cars and self-driving cars is expected to give the market good growth opportunities from 2022 to 2029.

The growth of the market is expected to be driven by the increasing use of advanced technologies in vehicles, such as tyre pressure monitoring systems, temperature control systems, and others that help keep vehicles from breaking down. The growth of the market is also expected to be helped by the fact that more and more sensors are being put into car tyres. These sensors give drivers real-time data analysis. Leading tyre companies are also investing in new technology like B-Tag Systems, which monitor and transfer tyre pressure and temperature and let the driver know when a tyre needs to be fixed to avoid operational downtime. Also, the increasing use of AI and machine learning in vehicle tyres, such as in rim management and tread detection systems, makes it easier to track how well tyres are doing. So, the global market is likely to be driven by the fact that cars are getting more and more high-tech features.

Leading tyre companies are working with companies that make technology for connected vehicles to put connected features in cars. For example, in March 2021, Goodyear Tire & Rubber Company teamed up with Voyomotive, a company that makes technology for connected cars, to work on tyre monitoring solutions that would make vehicles work better. These solutions are made to collect data about how well the tyres work, analyse it, and send it to the vehicle.

Smart wheels help commercial vehicle manufacturers manage and keep track of their fleets of vehicles because they give real-time information about the condition of both the tyre and the vehicle. This is made possible by digital monitoring technologies. As the number of commercial vehicles has grown over time, fleet managers have been able to keep track of more metrics, such as fuel use and carbon emissions. This has led to a greater need for advanced tyres that can show the condition of the tyres in real time. Digital monitoring makes it easier for companies that make commercial vehicles to manage and keep track of their fleets. As the industry becomes more aware of the trend of making next-generation vehicles, it is likely that traditional tyres will be replaced by connected tyres with IoT sensors.

Restraining Factors:

The cost of all the parts and sensor assembly in these tyres adds a lot to the total cost of making a vehicle. Also, there are extra costs for hardware systems, connectivity solutions, and telecommunications services that need to be in the vehicle for this type of tyre to work. This could slow the growth of the market. Also, these very technologically advanced tyres have a lot of problems and issues, like malfunctions and breakdowns, that need to be fixed regularly. Also, there is a big chance that hackers could get into system data and use car functions without permission, which could slow down the use of smart tyres and slow down the growth of the market.

The main goal of a connected tyre is to share information about the tyre with the vehicle and with infrastructure outside the vehicle. People need constant access to the internet even when they are travelling. Customers want their cars to be able to do things similar to what their computers or phones can do. Interrupted connectivity could be a problem for the smart tyre market, since it doesn't offer constant internet service. This is mostly because service providers' networks aren't always the same and vary from region to region. So, it's likely that the market won't grow as fast as it could if people can't connect to the internet without interruptions.

Segmentation Analysis:

By Vehicle Type Analysis:

Based on the type of vehicle, the market share for connected tyres is split into two groups: passenger cars and commercial vehicles.

In 2021, passenger cars had the biggest share of the market, and this is likely to stay the case over the next few years. This is mostly because of things like the rise in road accidents around the world, which has led to a greater need for road safety.

Also, the growth of the segment has been helped by the increase in sales of passenger cars around the world. For example, the International Organization of Motor Vehicle Manufacturers (OICA) reports that 54 million passenger cars and 24 million commercial vehicles were sold around the world in 2020. Globally, the sales of passenger vehicles are mostly driven by people's ability to spend more money, the availability of services to help them buy cars, and rising living standards.

From 2022 to 2029, the commercial vehicles market is expected to grow the most. The segment is likely to grow because of things like rising demand for tyre monitoring systems and rising demand for predictive maintenance from commercial vehicle fleet operators. Also, the rise of truck platooning and its growing popularity are likely to create more opportunities for segmental growth.

By Rim Size Analysis:

Depending on the size of the wheel's rim, the market share is split into three groups: 12"–17", 18"–21", and more than 22".

During the projected period, the 18"-21" segment is expected to grow a lot. The growth of the segment is mostly due to the rise in sales of cars with wheels that are 18" to 21" in diameter. Also, the growth of this segment is helped by the growing demand for luxury cars with high-tech features. These wheels are often used on luxury cars.

From 2022 to 2029, the more than 22" segment is expected to grow at the second-fastest rate. Using bigger wheels on cars to improve handling, traction, stopping, and other things is likely to boost growth in this segment. Also, the industry is expected to grow because more and more connected technologies are being made and used in cars.

Regional Insights:

In 2021, Europe had the biggest share of the market, and this is expected to stay the case over the next few years. The market is expected to grow because of the strong presence of major players like Michelin, Continental AG, and Pirelli & C.S.p.A., as well as technological advances in the area. Also, the fast spread of connected and self-driving vehicles in the region is expected to speed up market growth in the future.

From 2022 to 2029, Asia and the Pacific is likely to have the highest CAGR. The Asia-Pacific market is expected to grow because more passenger cars are being sold in countries like China, Japan, South Korea, and others that are still developing. Moreover, increasing demand for effective fleet management and predictive maintenance in Asia Pacific’s well-established logistics and ride-hailing industry are anticipated to drive the growth of the market in Asia Pacific. Furthermore, growing sales of vehicles in Asian countries, such as China, India, and Japan, also fuel the growth of the market in the region.

North America is the second-largest region in the market. The main thing that is making the region grow is the rapid development and commercialization of both connected and self-driving cars. The growth of the market in North America will also be helped by the fact that there are a lot of big names in automotive technology and that infrastructure is getting better.

The Rest of the World is expected to register a considerable CAGR from 2022 to 2029. Increasing adoption of technologically advanced vehicles in the regions coupled with expanding investment in related infrastructures in Latin America and the Middle East is likely to fuel the market growth in the coming years.

Scope Analysis

Recent Development:

• January 2020: Bridgestone Launches New Connected Tire Concept In January 2020, Bridgestone Corporation launched a new connected smart tire stuffed with sensors. They alert on tire pressure, analyze and regulate tire pressure and tire life, and are used in commercial vehicles. Bridgestone's new connected tires should provide ADAS with more information to better avoid crashes.
• December 2019: Pirelli & C.S.p.A. New smart tire connected to the internet December 2019 Pirelli & C. S.p.A. has developed a new smart tire connected to the internet. These tires provide information on road conditions and warn the driver about tread depth, tire pressure, tire temperature and multi-axis acceleration.

Market Segmentation

By Vehicle Type:

• Passenger Cars
• Commercial Vehicles
• Others

By Rim Size:

• 12" – 17"
• 18" – 21"
• More than 22"
• Other

By Companies:

• Michelin (France)
• Pirelli & C. S.p.A. (Italy)
• Goodyear Tire & Rubber Company (U.S.)
• Continental AG (Germany)
• Bridgestone Corporation (Japan)
• Nokian Tyres plc (Finland)
• Trelleborg AB (Sweden)
• Sumitomo Rubber Industries, Ltd (Japan)
• JK Tyres (India)
• Toyo Tires (Japan)
• Others