Press Release

India Smart Tires Market to Grow with a CAGR of 18.65% through 2031

Increasing demand for predictive vehicle safety systems, rising adoption of connected mobility solutions, and government push for vehicle telematics integration are the factors driving the market in the forecast period 2027–2031.


According to TechSci Research report, “India Smart Tires Market – By Region & Competition, Opportunity, and Forecast, 2021-2031F”, India Smart Tires Market was valued at USD 129.52 million in 2025 and is expected to reach USD 361.35 million by 2031 with a CAGR of 18.65% during the forecast period. Smart tire adoption in India is being accelerated by the demand for enhanced road safety, real-time monitoring, and intelligent driving solutions. The increasing focus on advanced driver assistance technologies and vehicle connectivity aligns with the emergence of smart tire systems. Road safety concerns, supported by government regulations, are leading automakers and consumers to consider sensor-embedded tires to reduce accidents and improve efficiency.

However, the transition faces hurdles including limited awareness and affordability issues, particularly in lower-income and rural areas. Despite the size of India’s vehicle population, market penetration remains modest due to cost sensitivity and lack of data communication standardization across aftermarket products. These issues slow the pace of smart tire integration, especially in retrofitting applications.

With India set to experience significant EV growth, the need for tires that are adaptable, energy-efficient, and compatible with connected systems becomes more relevant. Partnerships for sensor development, use of RFID technologies, and emphasis on V2X integration are some of the trends redefining how tires are perceived, not just as components but as smart data contributors in modern mobility networks.


Browse over India Smart Tires Market data Figures spread through XX Pages and an in-depth TOC on " India Smart Tires Market"

 

India Smart Tires Market is Segmented By Vehicle, Sensor, Propulsion, Distribution Channel and Region.

Smart tires are finding application in both Internal Combustion Engine (ICE) vehicles and Electric Vehicles (EVs), though the functional priorities differ across propulsion types. In ICE vehicles, smart tires primarily enhance fuel efficiency, alert drivers to inflation anomalies, and improve tire life through pressure and temperature monitoring. These benefits directly impact operational cost savings, making sensor-enabled tires an attractive value addition, especially in long-distance diesel fleets.

For electric vehicles, which often have heavier batteries and different weight distribution, smart tires serve an even more strategic role. They help optimize rolling resistance, manage dynamic pressure levels based on torque variations, and prevent range loss by ensuring optimal traction and balance. EV users also prefer connected systems that integrate tire health with battery diagnostics and telematics, creating a seamless vehicle health ecosystem.

As India ramps up its EV adoption, especially in two-wheelers, passenger cars, and fleet applications, smart tires are emerging as necessary components to meet performance, safety, and efficiency benchmarks. Their ability to improve drivetrain performance and range efficiency in EVs is accelerating demand, even as ICE-based segments continue to deploy them for cost optimization and regulatory compliance. This dual applicability expands the market’s potential across propulsion technologies.

The southern region of India has emerged as the fastest growing market for smart tires in 2025, driven by expanding automotive manufacturing clusters and increasing EV adoption. States like Tamil Nadu, Karnataka, and Telangana are home to major vehicle production facilities, which are embedding sensor-enabled tires into new models for domestic and export markets. This OEM integration is rapidly building ecosystem familiarity and demand among consumers and fleet buyers.

Urban hubs such as Bengaluru, Chennai, and Hyderabad are early adopters of connected vehicle technologies. These cities host a high concentration of tech-savvy consumers and shared mobility operators who prioritize safety and performance monitoring. The presence of software development centers has also encouraged local innovation in IoT-enabled automotive applications, creating a favorable environment for smart tire solutions.

Rapid EV fleet electrification programs, including electric buses and two-wheeler delivery fleets, are spurring demand for advanced tire technologies that support predictive diagnostics. Smart tires in these applications are valued for their ability to prevent range drop, reduce roadside failures, and enable predictive servicing. The confluence of digital mobility ecosystems, urban congestion, and government support for green transport ensures sustained momentum for smart tire technologies across the southern region.


Major Market Players Operating in India Smart Tires Market Are:

  • Apollo Tyres Limited
  • Balakrishna Industries Limited
  • Bridgestone Corporation
  • Continental India Ltd
  • Goodyear Tire & Rubber Company
  • JK Tyre and Industries
  • Michelin Group
  • MRF Limited
  • Pirelli & C SpA
  • Yokohama Rubber Company Limited


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“The India Smart Tires Market is gaining traction due to increasing demand for safety, predictive maintenance, and EV efficiency. Sensor-embedded tires are helping reduce road accidents and maintenance costs through real-time monitoring and diagnostics. Both passenger and commercial vehicles are adopting smart tires for fuel efficiency and performance insights. As electric vehicles gain market share, smart tires are evolving to support low rolling resistance and dynamic pressure adjustments. Growing OEM integration, urban tech adoption, and fleet electrification are further accelerating market expansion. The sector benefits from synergy with connected mobility trends, making it an integral part of India’s automotive future.” said Mr. Karan Chechi, Research Director of TechSci Research, a research based global management consulting firm.

India Smart Tires Market By Vehicle (Passenger Cars, Commercial Vehicles), By Sensor (TPMS, Accelerometer Sensor, Strain Gauge Sensor, RFID Chip, Other Sensors), By Propulsion (ICE, Electric Vehicles), By Distribution Channel (OEMs, Aftermarket), By Region, Competition, Opportunities and Forecast, 2021-2031F”, assesses the market's future growth potential and provides data on market size, trends, and forecasts. It aims to offer comprehensive market insights, helping decision-makers make informed investment choices. The report also highlights emerging trends, key drivers, challenges, and opportunities in the India Smart Tires Market.

 

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India Smart Tires Market By Vehicle (Passenger Cars, Commercial Vehicles), By Sensor (TPMS, Accelerometer Sensor, Strain Gauge Sensor, RFID Chip, Other Sensors), By Propulsion (ICE, Electric Vehicles), By Distribution Channel (OEMs, Aftermarket), By Region & Competition, Opportunities and Forecast, 2021-2031F

Automotive | Aug, 2025

Increasing demand for predictive vehicle safety systems, rising adoption of connected mobility solutions, and government push for vehicle telematics integration are the factors driving the market in the forecast period 2027–2031.

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