The global automotive smart tire market is expected to exhibit a robust 18.5% CAGR over the forecast period from 2018 to 2023, according to the latest research report published by Market Research Future (MRFR). The increasing demand for smart technology in automotive applications in order to provide information about various factors related to vehicle safety and driving comfort is likely to be the major driver for the global automotive smart tire market over the forecast period.

Automotive smart tires are tires that incorporate sensors to provide data about various attributes such as the road surface, the grip level of the tires, the heat generated in the tires at any given moment, and other performance attributes. The growing demand from the automotive smart tire market is mainly driven by the growing ease of integrating IoT and other connectivity tech into automotive design, enabling data monitoring in areas of the vehicle that have thus far remained inaccessible. Tire performance is one of the most important parts of ensuring automotive performance and safety. However, the absence of connectivity solutions meant that tire performance could only be judged manually. The inherent inaccuracy in manual testing and the convenience of smart tire technology is likely to drive the automotive smart tire market over the forecast period.

A number of vehicles, especially premium sports cars and SUVs, now have electronic systems that allow the driver to change the vehicle’s grip and performance patterns to suit different surfaces. This is likely to remain a major driver for the global automotive smart tire market over the forecast period, as the use of smart tires makes the whole process much easier and more convenient. Rather than the driver having to change the settings, which can result in hampered performance due to manual error, smart tires can make these decisions on their own, allowing the driver to focus on driving the vehicle regardless of the driving surface. The growing demand for monitoring tire pressure, temperature, and grip is also likely to be a major driver for the global automotive smart tire market over the forecast period, as this allows easy prevention of tire blowouts and the resultant consequences.

The growing demand for fleet vehicles is also likely to be a major driver for the global automotive smart tire market over the forecast period, as smart tires allow easy monitoring of the tires of all fleet vehicles from one point.

Competitive Analysis:

Leading players in the global automotive smart tire market include Pirelli, Sumitomo Rubber Industries Ltd., Bridgestone Corporation, Continental AG, Nexen Tire Corporation, Michelin Group, and Goodyear. Leading players in the tech sector, including IoT tech leaders, are also likely to enter the automotive smart tire market in increasing numbers over the forecast period due to the strong growth prospects for the market.

In March 2019, Revvo, a California-based developer of IoT-based smart tire sensors, announced a USD 4 million series A funding. Startups could play a key role in the global automotive smart tire market over the forecast period, as the various niches of the technology can be explored by large players and small startups alike. The strong scope for profitable acquisitions by larger players is likely to increase the prospects for startups in the automotive smart tire market over the forecast period.

Segmentation:

The global automotive smart tire market is segmented on the basis of technology, vehicle type, sales channel, and region.

On the basis of technology, the global automotive smart tire market is segmented into pneumatic tires and non-pneumatic tires.

On the basis of vehicle type, the market has been segmented into passenger cars, commercial vehicles, battery electric vehicles, hybrid electric vehicles, and plug-in hybrid vehicles.

On the basis of sales channel, the market is segmented into original equipment manufacturers (OEM) and aftermarket sales.

Regional Analysis:

Europe is likely to account for a leading share in the global automotive smart tire market over the forecast period due to the presence of several leading tech developers in the region and the growing demand for a refined driving experience among the region’s consumers.

North America is also likely to play a leading role in the global automotive smart tire market over the forecast period due to the increasing demand for smart monitoring of fleet vehicles.

Meanwhile, the growing production volume of the automotive industry in Asia Pacific could also result in significant growth of the automotive smart tire market in the region over the forecast period.