Saudi Arabia Smart Tire Market By Vehicle Type (Passenger Cars, Commercial Vehicles), By Sensor Type (TPMS, Accelerometer Sensor, Strain Gauge Sensor, RFID Chip, Other), By Product Type (Connected Tire, Intelligent Tire/TPMS), By Demand Category (OEM, Replacement), By Region, Competition, Forecast & Opportunities, 2020-2030F

Market Overview

Saudi Arabia smart tire market was valued at USD 6.06 Billion in 2024 and is expected to reach USD 8.51 Billion by 2030 with a CAGR of 5.8% during the forecast period. The Saudi Arabia smart tire market is experiencing robust growth, driven by a combination of technological advancements, regulatory initiatives, and a growing emphasis on road safety and fleet efficiency. Increasing adoption of electric and connected vehicles across the Kingdom is fueling the demand for smart tires, which offer real-time monitoring, predictive maintenance, and enhanced performance. Government-led initiatives under Saudi Vision 2030 to modernize the transportation sector, coupled with stringent safety regulations and inspection mandates, are prompting OEMs and fleet operators to adopt smart tire technologies more widely. Moreover, the rise of fleet management solutions, especially in logistics and ride-sharing services, has intensified the need for intelligent tires that help reduce operational costs, improve fuel efficiency, and extend tire life through predictive analytics.

A significant trend is the integration of IoT and cloud-based platforms with smart tire systems, enabling continuous data tracking and enhancing vehicle connectivity. The growing penetration of TPMS (Tire Pressure Monitoring Systems) in both luxury and mid-range vehicles is another key growth catalyst, especially as consumers become more aware of the importance of tire health for overall vehicle performance. Global players such as Continental, Michelin, and Bridgestone are increasing their regional presence through partnerships and distribution networks, making smart tires more accessible in the Saudi market. The replacement segment is seeing steady traction due to rising consumer preference for technologically advanced aftermarket products.

Furthermore, the harsh climatic conditions and challenging terrains of Saudi Arabia are pushing demand for durable, sensor-integrated tire solutions that can offer enhanced safety and performance under extreme conditions. Local automotive service providers and tech startups are also collaborating with global manufacturers to offer value-added smart tire solutions tailored to regional needs. As the Kingdom’s urban mobility sector expands—fueled by megaprojects like NEOM and a growing push toward smart cities—the role of intelligent tire technologies is expected to become even more prominent. With increasing digitization, the integration of AI and machine learning in tire monitoring is expected to further optimize vehicle dynamics and driver safety. The convergence of these macroeconomic, technological, and regulatory factors is expected to sustain strong growth momentum for the Saudi Arabia smart tire market in the coming years.

Key Market Drivers

Government Initiatives under Vision 2030 and Transport Modernization

One of the most powerful drivers of the Saudi Arabia smart tire market is the Kingdom's progressive national development strategy, Vision 2030, which includes aggressive investment in transport infrastructure and automotive innovation. The government's emphasis on modernizing the mobility sector is leading to rapid adoption of intelligent technologies such as smart tires, which align with goals for improved safety, efficiency, and sustainability. The Public Transport Authority (PTA) and Saudi Standards, Metrology, and Quality Organization (SASO) are enforcing more stringent vehicle safety and inspection protocols, pushing for broader integration of tire pressure monitoring systems (TPMS) and smart sensors in both commercial and passenger vehicles. Additionally, initiatives to reduce road accidents—a significant national concern—are encouraging the use of advanced driver assistance systems (ADAS) and smart tire technologies that proactively warn users about pressure loss, tread wear, and temperature anomalies. The government's investments in large-scale smart city projects like NEOM, Red Sea Global, and Qiddiya are expected to integrate smart transportation grids with connected vehicle ecosystems, including the widespread use of real-time tire performance monitoring. These urban infrastructure advancements are not only setting the stage for widespread adoption of intelligent mobility solutions but are also creating regulatory environments that support long-term growth in the smart tire segment. Furthermore, government-backed incentives and partnerships with global automotive OEMs are facilitating the localization of smart mobility technologies, thus accelerating the deployment of smart tires across different vehicle categories in the Kingdom.

Growing Fleet Operations and Demand for Predictive Maintenance in Commercial Sector

The rapid expansion of logistics, e-commerce, ride-hailing, and last-mile delivery services across Saudi Arabia is significantly boosting demand for smart tire technologies, especially in the commercial vehicle segment. Fleet operators are increasingly recognizing the value of predictive maintenance capabilities offered by smart tires—enabled through sensors like TPMS, strain gauges, and RFID chips—which provide real-time data on tire pressure, wear, and performance. In a region known for its vast desert terrain, high temperatures, and long-haul trucking routes, ensuring optimal tire performance is crucial not just for operational efficiency but also for safety and compliance. Smart tires help reduce unplanned downtime, lower fuel consumption through proper inflation, and extend tire life, all of which translate to lower total cost of ownership (TCO) for fleet managers. The Kingdom’s growing logistics infrastructure—especially with the development of strategic transport hubs such as the King Salman Park, King Abdulaziz Port, and Jeddah Islamic Port—is fostering increased adoption of vehicle telematics and IoT-enabled maintenance systems, further driving smart tire integration. Additionally, the deployment of connected fleet platforms by both domestic logistics providers and international third-party logistics (3PL) players is reinforcing the need for intelligent tire solutions that can be easily monitored and managed remotely. This trend is especially evident among leading commercial operators that manage large fleets across Saudi Arabia’s intercity trade routes and cross-border logistics corridors such as the GCC Rail Network and Silk Road initiatives.

Technological Advancements and Increasing Consumer Awareness

Technological innovation in tire design and sensor integration is another major driver of the Saudi smart tire market. Advancements in sensor miniaturization, wireless communication, energy harvesting, and cloud-based analytics are enabling the development of highly functional smart tires that are not only more accurate but also more cost-effective. The integration of AI and machine learning algorithms with smart tire data is providing users—both individual drivers and fleet operators—with actionable insights to optimize driving behavior, enhance vehicle dynamics, and prevent accidents. Furthermore, the rise of connected cars and autonomous vehicle technologies is creating a conducive ecosystem for the adoption of intelligent tires that communicate with other vehicle systems. Global tire manufacturers like Bridgestone, Continental, and Michelin are introducing sensor-embedded tire models that offer multi-parameter tracking and are compatible with connected vehicle platforms, including those already being piloted in Saudi Arabia’s new smart city zones. On the consumer front, there is a marked increase in awareness of the impact of tire performance on vehicle safety, fuel economy, and environmental sustainability. High-income households, rising vehicle ownership among tech-savvy youth, and increasing imports of high-end cars equipped with factory-installed smart tires are all fueling market expansion. Saudi consumers are also showing a growing preference for premium aftermarket solutions, particularly as the replacement market grows for vehicles aged three years and older. This shift is further supported by the increasing presence of e-commerce platforms and digital automotive service providers offering smart tire diagnostics, installation, and maintenance packages, thereby making the technology more accessible across urban and semi-urban regions of the Kingdom.

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Key Market Challenges

High Cost of Smart Tire Technology and Limited Affordability in Mass Market Segments

One of the most significant challenges constraining the widespread adoption of smart tire technologies in Saudi Arabia is the high cost of smart tires and sensor systems, especially in comparison to conventional tires. Smart tires embedded with TPMS, RFID chips, accelerometers, and other advanced sensors are priced at a premium, making them less attractive to budget-conscious consumers and small fleet operators. The upfront cost for intelligent tires, combined with the need for compatible vehicle infrastructure or digital platforms to interpret the data, creates a financial barrier for large-scale adoption—particularly in the replacement market where cost is often a key purchasing factor. While luxury car OEMs are increasingly offering smart tires as standard equipment, the broader mid-range and economy segments, which constitute a significant portion of the market, still view the technology as optional or non-essential. Additionally, fleet operators managing older vehicles or operating in rural or less developed areas often lack the capital to invest in smart tire upgrades or associated telematics systems. As a result, despite the long-term cost savings offered through fuel efficiency and reduced maintenance, the high initial investment continues to limit the penetration of smart tires in Saudi Arabia’s mass market, especially outside major urban hubs like Riyadh, Jeddah, and Dammam.

Lack of Technical Expertise and Inadequate Aftermarket Support Infrastructure

Another critical challenge for the Saudi Arabia smart tire market lies in the shortage of skilled technical personnel and limited aftermarket infrastructure required to support sensor-integrated tire technologies. Unlike traditional tires, smart tires require a level of technical handling—both at the time of installation and during ongoing maintenance—to ensure accurate data interpretation and system functionality. However, the current level of technical readiness among local tire retailers, service centers, and mechanics is not uniformly aligned with the sophistication of smart tire technology. Many tire fitment shops across the Kingdom, particularly in Tier 2 and Tier 3 cities, lack the diagnostic tools or trained staff to calibrate or repair smart tire systems effectively. This results in reduced customer confidence and can lead to service delays, incorrect installations, or even sensor malfunctions. The absence of a nationwide standardized training or certification system for smart tire service further exacerbates the problem, slowing the ecosystem development needed to support smart tire deployment at scale. Moreover, in the commercial vehicle sector, fleet operators often depend on third-party service providers for maintenance. If these providers are not adequately equipped to handle smart tire diagnostics and analytics, the operational advantages of smart tires are not fully realized. This gap in technical readiness and infrastructure poses a substantial hurdle to achieving high market penetration, especially in regions where demand exists but service support is lagging.

Low Consumer Awareness and Limited Regulatory Mandates for Smart Tire Usage

Despite the benefits of smart tires in improving vehicle safety, efficiency, and environmental performance, consumer awareness in Saudi Arabia remains relatively low, especially among individual vehicle owners and traditional fleet managers. Many consumers are still unaware of the role that tire pressure, temperature, and tread depth play in preventing road accidents or improving fuel economy. This lack of understanding leads to undervaluing the potential of smart tires and deprioritizing them in favor of lower-cost traditional alternatives. Compounding this issue is the absence of strong regulatory enforcement mandating the use of smart tire systems, particularly in the non-premium passenger car and light commercial vehicle categories. While there has been regulatory progress with the inclusion of TPMS in new vehicles, comprehensive guidelines or mandates on full-fledged smart tire adoption—including RFID-based tracking or predictive analytics—are yet to be implemented. In contrast, markets like the U.S. and Europe have made TPMS a compulsory feature in most vehicles, pushing adoption and innovation. In Saudi Arabia, the regulatory approach remains in the early stages, largely relying on voluntary implementation by OEMs and forward-thinking fleet operators. Without stronger regulatory support or targeted public awareness campaigns, the uptake of smart tire technologies will likely remain confined to a niche segment. This lack of consumer education, coupled with limited policy direction, continues to inhibit the full-scale market acceleration that smart tire technologies are capable of achieving in the Kingdom.

Key Market Trends

Integration of Smart Tires with Telematics and Fleet Management Platforms

A major emerging trend in the Saudi Arabia smart tire market is the integration of smart tire systems with advanced telematics and fleet management platforms, especially within the commercial vehicle and logistics sector. As Saudi Arabia’s logistics and delivery ecosystem evolves, fleet operators are increasingly adopting integrated digital platforms to manage operations more efficiently. Smart tires equipped with real-time pressure, temperature, and wear sensors are now being connected to centralized telematics dashboards, allowing fleet managers to continuously monitor tire performance across dozens or even hundreds of vehicles. This trend is helping companies shift from reactive to predictive maintenance, where tire-related issues are identified and addressed proactively before they result in costly downtime or accidents. Additionally, integration with GPS tracking systems and cloud-based analytics enables dynamic routing based on vehicle condition, road risk, and load management—improving both safety and productivity. As Saudi Arabia invests in modern transport corridors such as the NEOM logistics network, the demand for digitally optimized fleets is growing rapidly. International and domestic fleet operators are aligning with this trend by partnering with smart tire manufacturers to deploy sensor-based monitoring in line with Vision 2030’s goals of sustainability and smart infrastructure. Furthermore, the rise of mobile apps and IoT dashboards customized for the Saudi market is helping facilitate real-time alerts and tire data visualization for fleet managers and drivers alike, pushing smart tire solutions further into the mainstream.

Growth in OEM Collaborations and Smart Tire as a Factory-Installed Feature

Another significant trend gaining momentum in the Saudi Arabia smart tire market is the increasing collaboration between tire manufacturers and original equipment manufacturers (OEMs) to offer smart tires as factory-installed features in new vehicles. Traditionally, smart tire technologies were available primarily in the aftermarket or reserved for luxury vehicle segments. However, recent collaborations—both globally and regionally—have led to the integration of TPMS and intelligent tire systems during vehicle production itself, across mid-range and even entry-level models. This trend is being driven by growing consumer demand for connected vehicles and greater emphasis on safety, especially among young, tech-savvy buyers in the Kingdom. Additionally, as carmakers seek to differentiate their offerings in a competitive market, smart tire technology is emerging as a value-added feature that enhances both performance and branding. In Saudi Arabia, global OEMs such as Toyota, Hyundai, BMW, and Mercedes-Benz are increasingly including tire monitoring systems in their newer models distributed through local dealerships. This built-in technology not only reduces aftermarket installation hassles but also ensures better sensor calibration, connectivity, and compliance with evolving safety standards. Moreover, some manufacturers are developing proprietary tire analytics systems compatible with their vehicle software architecture, enabling more advanced features such as adaptive tire pressure, load-specific monitoring, and even AI-assisted driving alerts based on tire condition. As the Saudi automotive market continues to evolve toward connected, electric, and autonomous vehicles, the integration of smart tire features directly from the assembly line is expected to become a baseline expectation rather than an exception.

Emergence of AI and Machine Learning for Tire Data Analytics

The integration of artificial intelligence (AI) and machine learning (ML) into smart tire analytics is transforming how tire performance is understood and utilized, and this trend is gaining notable traction in the Saudi Arabia smart tire market. As smart tires generate massive amounts of data—from tire pressure and temperature to tread depth and rotational speed—AI is being used to process, interpret, and predict vehicle and driver behavior more accurately than ever before. This goes beyond basic monitoring; AI algorithms are being trained to identify complex patterns such as abnormal wear rates, cornering stress, or specific driving habits that could lead to premature tire failure or road risk. In Saudi Arabia, this is particularly relevant given the region’s challenging driving environments, including high-speed highways, desert terrain, and extreme temperatures. Fleet operators and vehicle service providers are starting to deploy AI-driven dashboards that offer recommendations for tire replacement, rebalancing, or pressure adjustments based on real-time and historical data. For individual consumers, some tire companies are piloting mobile apps that use AI-powered tire scan results to give users tailored maintenance tips or alerts. Moreover, AI integration supports vehicle-to-everything (V2X) communication, enabling smart tires to exchange performance data with other connected vehicle components, infrastructure systems, or cloud-based diagnostic services. As Saudi Arabia’s digital transformation accelerates under Vision 2030, the synergy between AI and smart tires will continue to deepen, paving the way for more autonomous, efficient, and intelligent transportation networks.

Segmental Insights

Demand Category Insights

In Saudi Arabia, the OEM segment leads due to growing integration of smart tire systems at the manufacturing level, supported by partnerships between global automakers and tire technology firms. The OEM segment includes smart tires installed in vehicles during their manufacturing process. Global OEMs such as Toyota, BMW, Mercedes-Benz, and Ford, operating in Saudi Arabia through local dealerships and distributors, are increasingly equipping their new models with smart tire technologies as part of their connected vehicle strategy. The OEM segment is benefiting from consumer preferences for factory-fitted safety and performance technologies, as well as from efforts by vehicle manufacturers to meet international safety and emissions regulations. Furthermore, EV and luxury car OEMs are integrating advanced smart tire solutions, including predictive maintenance and real-time analytics—as differentiating features.

Sensor Type Insights

In Saudi Arabia, TPMS (Tire Pressure Monitoring System) is the most widely adopted sensor technology in the Saudi market. TPMS sensors are often embedded in the valve stems or mounted inside the tire to measure air pressure and notify drivers of deviations from recommended levels. The increasing number of road accidents due to tire blowouts and underinflation, along with the growing regulatory emphasis on vehicle safety, has made TPMS nearly standard in many modern vehicles. Additionally, TPMS is relatively low-cost and easy to integrate, contributing to its widespread usage across both OEM and aftermarket installations.

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Regional Insights

In Saudi Arabia, the Northern & Central region, encompassing Riyadh and surrounding areas, represents the most significant contributor to the smart tire market in Saudi Arabia. Riyadh, the Kingdom's capital and economic hub, houses a large share of high-income residents, automotive dealerships, fleet operators, and connected infrastructure developments. The growing population of passenger vehicles, particularly in urban centers like Riyadh, Al Majma'ah, and Al Zulfi, has contributed to increased awareness and adoption of tire safety and monitoring systems. Additionally, many commercial fleets based in Riyadh operate across the Kingdom, necessitating reliable and intelligent tire solutions for long-distance transport. The presence of vehicle OEMs, tire importers, and well-established aftermarket service networks further consolidates this region’s dominance. Moreover, Vision 2030 initiatives are being piloted in Central regions first, particularly around smart mobility, logistics, and connected infrastructure, making this region a key focal point for early adoption of intelligent transportation technologies.

Recent Developments

• In 2024, Hankook Tire launched its new “iON evo” and “iON evo SUV” electric vehicle tire series in Saudi Arabia. Available in 18–21″ sizes, these tires offer enhanced quietness, improved efficiency, and longer range—catering to the Kingdom’s growing EV user base.
• In 2024, South Korea’s Kumho Tire signed a 20‑year technology-export agreement with Black Arrow Tire Co. (Blatco). Kumho will supply the tech for Blatco’s new passenger tire plant in western Saudi Arabia, set to begin production by 2027 as part of the Kingdom’s Vision 2030 industrial push.
• In 2025, Goodyear officially rolled out its advanced Tire Pressure Monitoring System (TPMS) for fleets in Saudi Arabia. The cloud-based TPMS delivers real-time pressure and temperature alerts, boosting uptime, efficiency, fuel savings, and safety for commercial fleets.

Key Market Players

• Continental AG
• Bridgestone Corporation
• The Michelin Group (Groupe Michelin)
• The Goodyear Tire & Rubber Company
• Pirelli & C. S.p.A.
• The Yokohama Rubber Company, Limited
• Hankook Tire & Technology Co., Ltd.
• Nokian Tyres Plc
• Toyo Tire Corporation
• JK Tyres & Industries Ltd.

Report Scope:

In this report, the Saudi Arabia Smart Tire market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Saudi Arabia Smart Tire Market, By Vehicle Type:

o   Passenger Cars

o   Commercial Vehicles

• Saudi Arabia Smart Tire Market, By Sensor Type:

o   TPMS

o   Accelerometer Sensor

o   Strain Gauge Sensor

o   RFID Chip

o   Others  

• Saudi Arabia Smart Tire Market, By Product Type:

o   Connected Tire

o   Intelligent Tire/TPMS

• Saudi Arabia Smart Tire Market, By Demand Category:

o   OEM

o   Replacement

• Saudi Arabia Smart Tire Market, By Region:

o   Northern & Central

o   Southern

o   Eastern

o   Western

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Saudi Arabia Smart Tire market.

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Saudi Arabia Smart Tire market report with the given market data, TechSci Research offers customizations according to a 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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