July 20, 2024

Accelerated Adoption of Connected Cars to Drive Growth in the Global Intelligent Tire Market

The global Intelligent Tire Market is estimated to be valued at US$ 87.16 Mn in 2023 and is expected to exhibit a CAGR of 8.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Intelligent tires integrate sensors, electronics and communication technologies to provide real-time information about tire performance and condition. They allow monitoring of tire pressure, temperature as well as tire wear and tread depth. This makes driving safer and more efficient. The data collected enhances the engineering and design of future tires. Adoption of these tires is increasing with growing popularity of connected cars.

Market key trends:
One of the major trends in the intelligent tire market is the shift towards development of sensor-enabled tires that use technologies like wireless networking and low-power consumption sensors to monitor multiple tire parameters. These connected tires offer benefits like preventing road accidents caused due to under-inflation or tread wear, optimizing fuel efficiency and reducing carbon footprint. They work with smartphone apps as well as in-vehicle display units to provide alerts and feedback to drivers. This futuristic and innovative technology is gaining traction among automakers.
Porter’s Analysis
Threat of new entrants: Low capital requirement and lack of need for huge manufacturing facilities make the threat of new entrants moderate in the intelligent tire market.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and price sensitivity for tires.
Bargaining power of suppliers: Presence of many raw material suppliers and lack of switching costs gives suppliers moderate bargaining power.
Threat of new substitutes: Substitutes like alloy wheels are available but offer limited threat due to high costs.
Competitive rivalry: Intense competition exists among key players to gain major market share.

Key Takeaways
The global intelligent tire market is expected to witness high growth, exhibiting CAGR of 8.3% over the forecast period, due to increasing vehicle production and higher preference for safety.

Regional analysis: Asia Pacific region dominates the global market and is expected to grow at the fastest rate during the forecast period due to increasing automotive production in China and India. Growing disposable income is also supporting market growth in the region.

Key players operating in the intelligent tire market are The Goodyear Tire & Rubber Company, Continental AG, Michelin Group, The Yokohama Rubber Company, Limited, Sumitomo Rubber Industries, The Hankook TireGroup, Pirelli & C. S.p.A., and Bridgestone Corporation, ATG Tires, and Apollo Tires Limited. Key players are focusing on new product launches and strategic partnerships to gain more revenue share. For instance, in 2022, Continental AG launched ContiConnect remote tire monitoring system to provide fleet operators real-time insights into tire pressure and temperature.