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

Market Overview

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. Growing vehicle electrification, increased consumer preference for intelligent mobility solutions, and rising concerns over road safety are fueling interest in smart tires. Integration of sensors for real-time monitoring of tire pressure, wear, and temperature offers better vehicle performance and predictive maintenance. According to the Ministry of Road Transport & Highways, over 4.6 lakh road accidents occurred in India in FY23, prompting regulatory focus on technologies that enhance safety, such as Tire Pressure Monitoring Systems (TPMS). The increasing deployment of connected car systems and the growth in EV adoption create a fertile ground for smart tire integration.

Cost concerns and low awareness among tier-2 and rural consumers are key obstacles for adoption. According to the Society of Indian Automobile Manufacturers (SIAM), India had over 30 million registered commercial vehicles as of 2023, yet smart tire penetration in this segment remains under 2%, reflecting affordability gaps and retrofit challenges. The fragmented aftermarket and absence of uniform standards for data sharing between vehicle systems and tire sensors further complicate market expansion.

As per the International Energy Agency, India's EV stock is projected to reach 10 million by 2030, which will require advanced tire technology optimized for different weight distributions and rolling resistance. Growing traction in smart fleet management, integration with AI-driven diagnostic systems, and OEM push for IoT-enabled vehicle systems present strong opportunities. Trends such as embedded RFID tags, self-inflating tire prototypes, and partnerships between tire manufacturers and tech firms are shaping future innovation pathways. Integration of smart tires into broader V2X ecosystems will further enhance their value proposition.

Market Drivers

Rise in Road Safety Regulations

The growing incidence of road accidents in India has prompted stronger safety regulations, including mandates for TPMS in vehicles. According to the Ministry of Road Transport and Highways, India recorded over 4.6 lakh accidents in 2022. Government pressure to reduce fatalities is driving automakers to integrate sensor-based smart tires capable of alerting drivers to issues like low pressure or tread wear, directly contributing to proactive maintenance and reduced breakdowns. These regulations make smart tires not only a technological upgrade but a necessity for compliance in newer vehicles, fostering rapid adoption.

Increased Demand for Predictive Maintenance

Fleet owners and logistics providers in India are prioritizing cost-efficient vehicle maintenance through predictive technologies. Smart tires, equipped with real-time wear and temperature sensors, allow operators to forecast servicing needs before critical failures. According to the Indian Foundation of Transport Research & Training, logistics inefficiencies cost the country around 14% of GDP annually. Smart tires reduce downtime and fuel inefficiencies by maintaining optimal inflation and wear levels. Their use in commercial fleets, including buses and heavy vehicles, aligns with cost-control priorities in the logistics industry.

EV Integration Requires Smart Tire Compatibility

Electric vehicles, with different weight dynamics and torque distribution, place unique demands on tires. Smart tires equipped with embedded pressure and temperature sensors help optimize rolling resistance and energy consumption. The International Energy Agency estimates India's EV stock will grow to 10 million by 2030. As EV adoption increases, OEMs are designing smart tire systems suited to these vehicles, helping improve range and battery efficiency. This compatibility is crucial in India’s aggressive EV roadmap, driving demand for sensor-integrated tire technologies.

Growing Interest in Connected Vehicles

India is seeing a rise in connected vehicle technologies such as telematics, GPS tracking, and AI-driven diagnostics. According to India Cellular & Electronics Association (ICEA), connected car penetration could cross 20% by 2026. Smart tires play an integral role in such systems, feeding data to central vehicle control units. This enables early detection of performance anomalies and supports broader vehicle health analysis. Smart tires become a key node in connected mobility solutions, aiding in the integration of ADAS and fleet telematics platforms.

Smart City Initiatives and Infrastructure Evolution

With India’s ongoing investment in smart cities, intelligent transport systems are gaining ground. Smart tires enable dynamic interaction between vehicles and road infrastructure via vehicle-to-everything (V2X) communication. As per the Ministry of Housing and Urban Affairs, over ₹2 lakh crore has been allocated to Smart Cities Mission projects. These investments encourage technologies that can support automated traffic management, safety alerts, and sustainable mobility—functions smart tires are increasingly capable of. Their potential to serve as real-time data sources makes them essential in future urban mobility ecosystems.

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Key Market Challenges

High Cost of Smart Tire Systems

Smart tire systems involve embedded sensors, connectivity modules, and sometimes onboard processing units, all of which raise costs. According to the Automotive Component Manufacturers Association of India (ACMA), the cost of a TPMS unit alone can range from ₹3,000–₹10,000 per tire. In a price-sensitive market like India, this makes adoption difficult for low-cost passenger and two-wheeler segments. While benefits are clear, the upfront cost discourages many consumers and small fleet operators from transitioning to intelligent tire systems.

Lack of Standardization in Sensor Integration

Interoperability between different tire sensor platforms and vehicle control systems remains an issue. With no universal protocols in place, aftermarket sensors may not integrate well with certain vehicle ECUs. This leads to inconsistent data or system conflicts. The lack of open standards hampers both OEM and aftermarket segments. Such integration challenges slow down scalability, especially when consumers are reluctant to switch entire systems or vehicles just to support tire sensor compatibility.

Low Consumer Awareness in Tier-2 and Rural Areas

While urban centers are adopting smart mobility at a faster rate, tier-2 and rural areas lag due to limited awareness. According to a Nielsen India mobility survey, less than 18% of vehicle owners in non-metro cities were aware of smart tire technologies. This digital divide and knowledge gap make it difficult for market penetration beyond high-end or commercial segments. Educational campaigns and dealer-level promotion are yet to reach scale in these markets.

Limited Availability in Aftermarket Channels

Unlike traditional tires, smart tires often need calibration, embedded firmware, and real-time updates. India's tire aftermarket remains largely unorganized and lacks access to trained technicians and compatible diagnostic equipment. A report by the Automotive Tyre Manufacturers’ Association states that over 60% of India's tire replacements happen through non-OEM channels. Without structured access to smart tire systems or sensor replacements, consumers are often restricted to basic options even if their vehicle supports advanced systems.

Battery and Power Constraints in Sensor Modules

Smart tire sensors operate in harsh environments, enduring heat, motion, and constant vibration. Many sensors run on embedded batteries that degrade over time and require replacement or recharging. In India’s tropical climate, sensor batteries may deteriorate faster, affecting accuracy. Unlike central vehicle sensors powered by the vehicle’s battery, tire sensors have limited power support. This impacts long-term performance, reliability, and trust in the technology, particularly among frequent or long-distance drivers.

Key Market Trends

RFID Integration for Tire Lifecycle Tracking

Smart tires with embedded RFID tags are becoming essential for lifecycle and inventory tracking, especially in commercial fleets. In 2025, Beontag and Michelin partnered to develop RFID-enabled tires to offer real-time tire data. These RFID tags enable identification, performance history, and predict wear patterns. The ability to store and communicate unique tire IDs helps manufacturers and fleet managers keep track of tire performance and automate replacement cycles. This trend aligns with the broader move toward digitized maintenance and transparent supply chain systems in India’s logistics and transport industries.

AI-Powered Predictive Analytics

Sensor-equipped tires are enabling AI-based analytics platforms that predict tire health based on usage patterns and environmental factors. For example, temperature and pressure data feed into machine learning models that forecast when tires will degrade or fail. Companies involved in AI vehicle diagnostics are integrating smart tire data to improve precision. These AI systems help users avoid sudden breakdowns, reduce operational costs, and enhance road safety. The rise of mobility-as-a-service and shared fleets will make predictive analytics more relevant, as downtime reduction becomes a financial priority.

Expansion of Embedded TPMS in Entry-Level Vehicles

Earlier limited to premium segments, embedded Tire Pressure Monitoring Systems (TPMS) are now being introduced in mid-range and entry-level vehicles. Driven by regulatory discussions and consumer expectations, manufacturers are integrating basic smart tire features even in affordable cars. The Bureau of Indian Standards is working on making TPMS mandatory in certain vehicle categories. As this trickles down to mass-market offerings, it will expand the smart tire ecosystem and create demand across income brackets, catalyzing aftermarket services and sensor production.

Self-Inflating Tire Prototypes Under Development

Self-inflating tire technologies are emerging globally, with prototypes that adjust tire pressure automatically based on terrain and load. Though still in R&D in India, local manufacturers are exploring integration for commercial uses. These systems, powered by onboard compressors or peristaltic pumps, promise better fuel economy and tire longevity. In India, where tire maintenance is often neglected, self-inflation features could transform vehicle upkeep and reduce roadside failures, especially in heavy-duty logistics or remote applications.

Collaboration Between Tire and Tech Companies

Technology companies are increasingly partnering with tire manufacturers to embed sensors, RFID, and software modules. NIRA Dynamics and BNAF have partnered on smart tire systems aimed at predictive safety and maintenance. These partnerships are reducing development timelines and creating holistic solutions that combine hardware and cloud-based analytics. This multidisciplinary approach is speeding up innovation and broadening the commercial use cases of smart tires, from city buses to mining vehicles.

Segmental Insights

Vehicle Insights

In the passenger car segment, the push toward personalized mobility and real-time vehicle monitoring is leading to increased demand for smart tires. Car buyers, especially in urban and semi-urban areas, are showing interest in integrated safety systems and vehicle diagnostics. Smart tires in this segment often come with embedded TPMS, wear sensors, and connectivity to mobile apps that provide alerts and maintenance suggestions. These features align with modern expectations of tech-enabled, safe, and fuel-efficient driving experiences.

Commercial vehicles, including trucks, buses, and fleet vans, are increasingly deploying smart tires to reduce operating costs and improve safety. With growing digitization in fleet management, sensor-embedded tires are enabling predictive maintenance, which in turn reduces downtime and enhances asset utilization. Real-time data from commercial vehicle tires—covering pressure, temperature, and load—helps logistics operators prevent blowouts, optimize routes, and reduce fuel consumption. With India’s logistics and transport sector undergoing structural changes through government-led digitization and infrastructure upgrades, commercial vehicles are becoming a major growth avenue for smart tire technologies.

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Region Insights

In 2025, the Northern region of India saw the highest activity in smart tire adoption, driven by vehicle density, industrialization, and fleet operations across states like Delhi, Punjab, Haryana, and Uttar Pradesh. This region features one of the highest concentrations of registered vehicles in the country, especially commercial fleets operating in urban and peri-urban freight corridors. With government focus on pollution control and vehicle monitoring, the demand for tire performance tracking and smart pressure management has risen substantially.

The presence of integrated logistics hubs and NCR-based e-commerce distribution centers has created strong demand for sensor-enabled tires in long-haul trucking and intracity delivery fleets. These operations rely on real-time vehicle diagnostics to optimize fuel efficiency and reduce breakdowns. Commercial operators in North India are increasingly investing in preventive maintenance technologies to comply with delivery timelines and sustainability goals.

Passenger vehicle owners in metropolitan clusters like Delhi NCR and Chandigarh are also gravitating toward smart safety features in vehicles, including embedded TPMS and wear tracking. Consumers here are more digitally literate, which supports acceptance of app-connected tire systems. Frequent stop-and-go traffic and seasonal temperature shifts across this region elevate the importance of dynamic pressure management—something smart tires can handle effectively.

Growing connectivity infrastructure, digital transport initiatives, and OEM presence in the region reinforce its dominance. Educational outreach, smart mobility pilots, and aftermarket service readiness have made North India an early adopter region for smart tire technology. The convergence of consumer awareness, commercial needs, and regulatory momentum positions the North as a continued demand center through the forecast period.

Recent Developments

• In January 2024, JK Tyre launched its Smart Tyre range at the Auto Expo, integrating Bluetooth-based sensors that transmit real-time data via a mobile app. The system monitors tire pressure, temperature, and wear. The feature aims to enhance driver safety and reduce maintenance costs. This marks a significant step toward connected mobility solutions in the Indian market.
• In 2024, Beontag partnered with Michelin to co-develop RFID-enabled smart tires for enhanced tracking and lifecycle management. These tires include embedded RFID tags that transmit unique data for inventory, pressure, and temperature. The collaboration supports the evolution of predictive tire maintenance. It also aligns with global shifts toward digital vehicle ecosystems.
• In June 2025, Continental announced the expansion of its Tire Pressure Monitoring System (TPMS) production in India. This move aims to meet rising domestic demand for intelligent tire safety systems. The facility focuses on advanced sensors used in passenger and commercial vehicles. The expansion reflects increasing OEM interest in local sourcing for smart components.
• In March 2024, Apollo introduced a whitepaper titled “Smart Tires for Not-So-Smart Roads,” highlighting how advanced tire tech can improve safety and efficiency on India’s poorly maintained roads. The paper detailed solutions for real-time inflation control and wear monitoring. The initiative focuses on commercial applications. It emphasizes the role of smart tires in bridging infrastructure gaps.
• In January 2025, Beontag and Michelin announced collaboration to integrate RFID technology into their smart tires globally. These tags allow better lifecycle tracking and integration into fleet management systems. The initiative supports data-driven mobility. It positions smart tires as key enablers of IoT in automotive operations.
• In June 2025, NIRA Dynamics partnered with BNAF to co-develop an advanced smart tire system focused on predictive safety and maintenance. The system uses tire-mounted sensors and vehicle data fusion for real-time insights. It targets commercial fleets and OEMs. The collaboration enhances preventive diagnostics and supports next-gen mobility platforms.

Key Market Players

• 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

Report Scope:

In this report, the India Smart Tires Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

·         India Smart Tires Market, By Vehicle:

o    Passenger Cars

o    Commercial Vehicles

·         India Smart Tires Market, By Sensor:

o    TPMS

o    Accelerometer Sensor

o    Strain Gauge Sensor

o    RFID Chip

o    Other Sensors

·         India Smart Tires Market, By Propulsion:

o    ICE

o    Electric Vehicles

·         India Smart Tires Market, By Distribution Channel:

o    OEM

o    Aftermarket

·         India Smart Tires Market, By Region:

o    North

o    South

o    West

o    East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the India Smart Tires Market.

Available Customizations:

India Smart Tires Market report with the given market data, TechSci Research, offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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