The Connected Tire Market was valued at USD 8,764.52 Million in 2024 and is projected to expand at a CAGR of 15.40% from 2025 to 2032. Market growth is supported by the increasing integration of IoT-enabled vehicle technologies, rising demand for predictive maintenance solutions, growing adoption of advanced driver assistance systems (ADAS), and stringent vehicle safety regulations. Expanding fleet management requirements and the rapid development of connected vehicle ecosystems are further strengthening market momentum during the forecast period.

Market Overview and Importance

The connected tire market includes tires embedded with sensors and communication technologies that monitor parameters such as pressure, temperature, tread wear, road conditions, and vehicle load in real time. These smart tires transmit data to onboard systems or cloud-based platforms for analysis.

Connected tires play a critical functional role in enhancing vehicle safety, fuel efficiency, and operational performance. By enabling predictive maintenance and real-time monitoring, they reduce the risk of tire-related failures, optimize vehicle uptime, and support compliance with safety standards. Their importance is increasing in commercial fleets and passenger vehicles where operational efficiency and cost control are priorities.

Segmentation by Key Type or Technology

The market is segmented by technology into embedded sensor-based connected tires and externally mounted tire monitoring systems, as well as by communication type such as RFID-enabled systems and advanced telematics-integrated platforms.

Traditional tire pressure monitoring systems (TPMS), which primarily measure air pressure, are gradually being supplemented by advanced connected tire solutions capable of capturing multiple performance metrics. Modern embedded sensor technologies dominate due to their ability to provide comprehensive, real-time data analytics, improved durability, and seamless integration with vehicle electronic control systems.

Component or Product-Level Analysis

Key components in the connected tire ecosystem include:

  • Sensors (pressure, temperature, load, and tread wear sensors)
  • RFID chips and communication modules
  • Data processing units and telematics systems
  • Cloud-based analytics platforms

Among these, sensor modules and telematics integration systems represent the most significant components due to their role in enabling continuous monitoring and data transmission. Advancements in miniaturized sensors, energy harvesting technologies, and durable chip integration improve reliability and extend operational life, particularly in commercial fleet applications.

Distribution or Sales Channel Analysis

Connected tires are distributed primarily through OEM (Original Equipment Manufacturer) channels, where automotive manufacturers integrate smart tire systems during vehicle assembly. OEM dominance is supported by the increasing incorporation of connected vehicle technologies in new models.

The aftermarket segment is also expanding, driven by fleet operators and logistics companies retrofitting existing vehicles with connected tire monitoring solutions to enhance maintenance efficiency and reduce downtime. Digital service platforms and fleet management providers play an increasing role in aftermarket adoption.

End-Use or Application Trends

The market is segmented by end use into passenger vehicles, commercial vehicles, and fleet management applications.

The commercial vehicle segment holds a significant share due to the operational importance of tire performance in logistics, freight, and public transportation sectors. Fleet operators prioritize predictive maintenance and fuel optimization, driving adoption. Passenger vehicle adoption is increasing as connected mobility solutions and advanced safety systems become more widespread. Emerging applications in autonomous vehicles and electric vehicles represent secondary but rapidly growing segments.

Regional Analysis

North America leads the connected tire market, supported by high adoption of connected vehicle technologies, advanced telematics infrastructure, and strong presence of automotive technology providers.

Europe also represents a significant market, driven by strict safety regulations and the rapid integration of smart mobility systems. Asia-Pacific is expected to witness substantial growth due to expanding automotive production in China, Japan, and South Korea, increasing urbanization, and rising fleet digitization. Emerging regions such as Latin America and the Middle East & Africa are gradually adopting connected mobility solutions as infrastructure improves.

Competitive Landscape

The connected tire market is moderately competitive, with global tire manufacturers and automotive technology firms investing in smart mobility solutions. Key companies include Michelin, Bridgestone Corporation, Continental AG, Goodyear Tire & Rubber Company, and Pirelli & C. S.p.A..

Competitive strategies focus on R&D investments in sensor integration, partnerships with telematics and fleet management providers, expansion of smart tire portfolios, and geographic diversification to capture emerging markets.

Future Outlook

From 2025 to 2032, the connected tire market is expected to witness robust expansion driven by increasing vehicle connectivity, digital fleet management adoption, and regulatory emphasis on road safety. Although traditional tires remain essential, the integration of smart technologies is becoming increasingly standard in modern vehicles. Advances in IoT, cloud computing, and vehicle automation will further enhance the relevance of connected tire systems. Regulatory requirements related to safety monitoring and sustainability will continue shaping innovation and demand during the forecast period.

Comprehensive market data, segmentation analysis, competitive benchmarking, and research methodology are available through the full market report or sample access from the respective research provider.