Smart Tire Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Pneumatic, Non-Pneumatic), By Vehicle Type (Passenger Car, Commercial Vehicle), By Technology Type (Tire Pressure Monitoring, Temperature Monitoring, Tire Tread Monitoring, Load Monitoring), By Sales Channel Type (OEM, Aftermarket), Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 96.58 Billion
CAGR (2026-2031)	8.15%
Fastest Growing Segment	Passenger Cars
Largest Market	North America
Market Size (2031)	USD 154.54 Billion

Market Overview

The Global Smart Tire Market will grow from USD 96.58 Billion in 2025 to USD 154.54 Billion by 2031 at a 8.15% CAGR. Smart tires are defined as advanced automotive components embedded with microsensors that monitor and transmit real-time operational data such as pressure, temperature, and tread depth to vehicle management systems. The primary drivers propelling this market include stringent government safety regulations mandating tire pressure monitoring systems and the escalating demand for predictive maintenance within commercial fleets to minimize costly downtime. Furthermore, the accelerating development of autonomous and connected vehicle infrastructure requires the precise road contact data that these intelligent units provide to ensure optimal vehicle safety and performance standards are met.

According to the U.S. Tire Manufacturers Association, in 2024, total U.S. tire shipments were projected to reach 338.9 million units, indicating the massive scale of the foundational market available for smart technology integration. Despite this potential, a significant challenge impeding widespread market expansion is the high production cost of sensor enabled tires compared to conventional alternatives, which limits affordability for general consumers. Additionally, the lack of universal standardization for data transmission protocols creates integration difficulties between tire producers and vehicle manufacturers, further complicating mass adoption across the global automotive sector.

Key Market Drivers

The escalating demand for predictive maintenance in commercial fleet operations serves as a primary catalyst for the integration of intelligent tire technologies. Fleet managers increasingly utilize sensor-embedded tires to transmit real-time data regarding pressure, temperature, and load, which allows for the preemptive identification of potential failures before they result in costly downtime. This capability is essential for optimizing fuel economy and extending casing life, directly impacting the operational budget of logistics companies. According to Bridgestone Corporation, June 2024, in the 'Integrated Report 2024', the organization managed approximately 1.2 million vehicles under subscription within its digital fleet solutions division, underscoring the substantial industrial shift toward connected mobility tools that leverage data analytics for efficiency.

Concurrently, the accelerated adoption of electric vehicles necessitates advanced tire solutions capable of handling increased vehicle weight and higher torque characteristics. Because electric powertrains induce faster tread wear and require strict range management, smart tires provide the essential feedback loops needed for battery optimization and safety assurance. This technological evolution is critical as the automotive landscape transitions away from internal combustion engines. According to the Society of Motor Manufacturers and Traders, January 2024, in the 'December 2023 New Car Registrations' update, battery electric vehicle uptake in the UK reached a record volume of 314,687 units for the year, signaling a robust market for specialized components. This focus on high-tech segments supports financial resilience for major players; according to Continental AG, in 2024, the company reported that sales in its Tires group sector rose to 14.0 billion Euros for the preceding fiscal year, driven largely by premium product mixes.

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Key Market Challenges

The high production cost of sensor-enabled tires constitutes a primary obstacle limiting the expansion of the Global Smart Tire Market. Integrating microsensors and data transmission units necessitates intricate manufacturing procedures that inevitably inflate the retail price of these components. For general consumers and commercial fleet managers operating on tight budgets, the significant price premium over conventional tires often outweighs the benefits of predictive data. This affordability gap prevents the technology from achieving the necessary sales volume to lower manufacturing costs, effectively restricting smart tires to a niche segment rather than allowing them to become an industry standard.

Economic constraints further exacerbate this issue by forcing buyers to prioritize basic operational needs over advanced features. When market conditions tighten, capital expenditure on premium automotive components typically declines as purchasers retreat to more affordable alternatives. According to the European Tyre and Rubber Manufacturers' Association, in 2024, general inflationary pressures negatively impacted industry demand, causing the truck and bus tire segment to register a decline of 8 percent in the first quarter compared to the previous year. This market contraction highlights how financial sensitivity directly impedes the widespread integration of higher-cost intelligent tire solutions.

Key Market Trends

The advancement of Vehicle-to-Everything (V2X) communication is transforming tires into active safety components. Sensor-embedded units now transmit real-time friction data to Advanced Driver Assistance Systems (ADAS), allowing vehicles to dynamically adjust braking controls before traction loss occurs. This capability extends beyond passive monitoring, enabling automated systems to react instantaneously to hazardous road conditions. For instance, according to Goodyear, January 2025, in the 'Goodyear and TNO Demonstrate Advanced Vehicle Integration' announcement, incorporating tire intelligence into a vehicle's Automatic Emergency Braking system demonstrated the potential to mitigate crashes at speeds of up to 80 kph on low-friction surfaces. This shift moves the industry from simple observation to active intervention, significantly enhancing safety protocols for connected mobility.

Simultaneously, the convergence of smart technology with sustainable materials is driving the creation of "smart and green" tires. Manufacturers are leveraging connectivity to track the lifecycle of bio-based and recycled components, facilitating efficient retreading and circular economy practices. This integration ensures transparency regarding material origin and helps validate environmental impact reductions. Illustrating this progress, according to Manufacturing Digital, June 2025, in the 'How Michelin is Advancing Sustainable Manufacturing' report, Michelin increased the share of recycled or renewable materials in its tires to 31% across its global operations. This trend highlights how digital capabilities are being utilized not just for performance, but to optimize the environmental footprint of next-generation mobility solutions.

Segmental Insights

The passenger cars segment is expected to emerge as the fastest-growing category in the global smart tire market due to the increasing integration of connectivity features in modern private vehicles. This expansion is largely supported by safety standards from regulatory bodies like the National Highway Traffic Safety Administration which prioritize active safety systems to minimize road accidents. Furthermore, the global transition toward electric vehicles creates a strong necessity for real-time tire data to manage vehicle range and efficiency effectively. Consequently, automotive manufacturers are increasingly prioritizing the deployment of sensor-equipped tires to meet evolving consumer and regulatory demands.

Regional Insights

North America holds the dominant position in the Global Smart Tire Market, driven by stringent safety regulations and a robust automotive infrastructure. The National Highway Traffic Safety Administration enforces rigorous standards for vehicle safety and fuel economy, compelling manufacturers to integrate advanced tire monitoring systems. Additionally, the high adoption rate of connected vehicles among commercial fleets and consumers supports market expansion. The presence of established tire manufacturers further enables the seamless implementation of sensor technology, ensuring North America remains the primary hub for smart tire development and deployment.

Recent Developments

• In September 2025, Pirelli announced a partnership with Aston Martin to integrate its Cyber Tyre technology into the luxury car manufacturer's future models. This collaboration marked a significant advancement in the smart tire sector, as the system employed sensors embedded directly within the tire tread to gather real-time data. These sensors transmitted critical information to the vehicle's electronic control unit, enabling the car to adjust safety systems such as ABS and traction control based on specific tire conditions. The technology aimed to refine the driving experience by providing detailed insights into road surfaces and tire performance, enhancing both safety and vehicle dynamics.
• In September 2024, Bridgestone Corporation introduced its "Smart On-site" mining solutions program at MINExpo International. This new initiative integrated premium tire products, digital mobility solutions, and a robust service network into a single, manageable system for mining operations. As part of the launch, the company debuted all-new underground tires featuring specialized sensors and construction to enhance load performance and durability. The program was designed to optimize fleet performance by leveraging enhanced connectivity and data analytics, allowing mining operators to maximize productivity while minimizing downtime and operational costs through a turn-key, customizable approach.
• In May 2024, Continental AG presented its comprehensive portfolio of intelligent tire and digital service solutions at TOC Europe in Rotterdam. The company highlighted its "Smart Port – Better Flow" vision by introducing advanced product solutions such as the DockMaster+ and TerminalMaster tires, which were designed for the demanding environment of port terminals. Furthermore, Continental launched a new Valve Cap Sensor intended for efficient tire pressure monitoring, which allowed for easy installation directly at the tire valve. This development underscored the company's commitment to supporting the digital transformation of port operations through technologies that combined adaptability, efficiency, and environmental responsibility.
• In January 2024, The Goodyear Tire & Rubber Company and TDK Corporation announced a strategic collaboration to advance next-generation tire solutions. The partnership focused on accelerating the development and adoption of integrated intelligent hardware and software within tire and vehicle ecosystems. Unveiled at CES 2024, the initiative aimed to bring a robust tire sensing system to market by combining TDK's expertise in software, sensors, and electronic components with Goodyear's extensive knowledge of tire development. This collaboration was designed to provide real-time intelligence from the road to the tire, enhancing vehicle performance, safety, and efficiency in the evolving mobility landscape.

Key Market Players

• Continental AG
• Bridgestone Corporation
• Michelin
• The Goodyear Tire & Rubber Company
• Pirelli Tyre S.p.A.
• The Yokohama Rubber Co., Ltd
• Hankook Tire & Technology Co., Ltd.
• Nokian Tyres plc
• Toyo Tire Corporation
• JK Tyre & Industries Ltd.

By Type	By Vehicle Type	By Technology Type	By Sales Channel Type	By Region
Pneumatic Non-Pneumatic	Passenger Car Commercial Vehicle	Tire Pressure Monitoring Temperature Monitoring Tire Tread Monitoring Load Monitoring	OEM Aftermarket	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

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

• Smart Tire Market, By Type:

• Pneumatic
• Non-Pneumatic

• Smart Tire Market, By Vehicle Type:

• Passenger Car
• Commercial Vehicle

• Smart Tire Market, By Technology Type:

• Tire Pressure Monitoring
• Temperature Monitoring
• Tire Tread Monitoring
• Load Monitoring

• Smart Tire Market, By Sales Channel Type:

• OEM
• Aftermarket

• Smart Tire Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE