The global smart tire market is valued at US$ 95 billion in 2023 and is projected to reach US$ 200 billion by 2033-end, advancing at a noteworthy CAGR of 7.8% over the decade.
Country–wise insights:-
“Increasing Adoption of Autonomous Vehicles in the Country”
The smart tire market in China is projected to expand at a CAGR of 6% during the forecast period. China, as the world’s largest automobile market and a major automotive manufacturer, holds a significant position in the global automotive industry. It is poised for substantial growth, driven by factors such as the increasing adoption of autonomous vehicles and a thriving domestic market.
The robust electronics manufacturing sector in the country has witnessed remarkable growth, presenting opportunities for smart tire manufacturers to collaborate with top companies in the smart tire market. Such partnerships can facilitate the development of cost-efficient smart tire solutions. Additionally, the country’s rapidly increasing adoption of autonomous vehicles, particularly in shared mobility services, is expected to further boost the automotive industry. 24×7 operational capabilities and lower labor costs associated with self-driving vehicles make them particularly attractive for shared mobility services. Consequently, the rise in demand for autonomous vehicles is anticipated to boost the development of smart tires across the country.
Also, Germany boasts a strong automotive industry with a focus on innovation and technology. The smart tire market in Germany is experiencing growth and holds significant potential. As a leading automotive market, Germany is at the forefront of adopting advanced technologies and key innovations in the smart tire market.
German tire manufacturers are actively investing in research and development as it plays a vital role in ensuring optimal tire conditions and reducing accidents caused by tire-related issues.
“Real-time Monitoring, Optimized Fuel Efficiency, and Enhanced Vehicle Connectivity Offered by Intelligent Tires”
Sales of intelligent tires are anticipated to rise at a steady CAGR of 4% during the forecast period. These innovative tires incorporate advanced sensors, connectivity features, and data analytics capabilities to provide real-time monitoring and enhance overall performance. Maintaining optimal tire pressure and tread wear enhances fuel efficiency and reduces carbon emissions. Additionally, the data analytics capabilities of intelligent tires enable drivers to optimize driving patterns and maintenance schedules, further enhancing efficiency and reducing environmental impact.
Can Demand for Smart Tires Be Affected in Any Way?
“Limited Retrofitting Options and Data Privacy & Security Concerns”
Retrofitting existing vehicles with smart tire technology can be challenging and costly. Smart tire technologies often involve additional components such as sensors, microchips, and connectivity features, which can increase the overall cost of tires. The higher cost can deter some consumers from adopting smart tires, particularly in price-sensitive markets. Smart tires collect and transmit data about tire conditions and vehicle performance. This raises concerns about data privacy and security. Ensuring secure data transmission and addressing potential vulnerabilities is crucial to building trust among consumers and maintaining their confidence in smart tire technologies.
“Interoperability Challenges Due to Lack of Standardization and Limited Awareness of Benefits of Smart Tire Technologies”
Lack of standardization in smart tire technologies poses challenges to interoperability and compatibility between different tire brands and vehicle systems. Harmonizing industry standards and ensuring compatibility across different manufacturers is essential for widespread adoption and seamless integration. The effective functioning of smart tire technologies depends on robust communication infrastructure. Areas with limited or inadequate network coverage may face challenges in utilizing the full potential of smart tire features, especially in remote or rural locations.
Competitive Landscape
The global smart tire industry is fairly fragmented, with few large- and medium-sized market participants accounting for the vast bulk of revenue. Major businesses are using a variety of strategies, including mergers and acquisitions, strategic partnerships and contracts, and the development, testing, and introduction of more efficient and high-performance smart tires.
- Goodyear Tire & Rubber Company completed the acquisition of Cooper Tire & Rubber Company in June 2021. The merger brings together two top tire firms with complementary product portfolios, services, and capabilities, resulting in increased global tire industry leadership. The companies are set to work together to focus on consumers, cutting-edge technology, and high-quality products and solutions.
- Pirelli & C. S.p.A. introduced its first high-load index tire in July 2021, which is a new form of tire particularly catering to electric or hybrid cars and SUBs and meant to sustain larger vehicles while also supporting 20% more weight than regular types of tires.
