New Trends in Automotive Sector Driven by Technological Advancements to Augur well for the Connected Tire Market
Rampant advances in technology have significantly transformed the automobile industry re-shaping every part of the vehicle in the sector. Advent of Mobility as a Service (MaaS) and Connected, Autonomous, Shared & Services, Electric (CASE), a paradigm shift is being witnessed reflecting the role that vehicles play. Technical changes driven by automation in vehicles have enhanced the functional and operational performance of vehicles and associated parts. In light of these trends and the proliferation of data science and the Internet of Things (IoT), vehicle tires are also being re-invented, thus highlighting the connected tire concept.
In this backdrop, tire manufacturers are focused towards adopting diverse telematics solutions for data sharing, mobility and connected vehicles. By leveraging technology, they are inclined towards testing use of sensors powered by IoT in tires to assess tire life, safety quotient and fuel efficiency. Apart from OEMs, technology companies are also investing in the industry by providing IoT based systems. Tire manufacturing start ups have leveraged this factor in turn developing advanced systems. For instance, Tyre Express developed Tire Performance Management solution based on IoT which is powered by Microsoft Azure. Such trends and developments are expected to augur well for the growth of the connected tire market.
As per industry reports, the global connected tire market was valued at around US$0.7 Mn in 2021 and is projected to grow at a rate of more than 68% in the next seven years likely to touch valuation of around US$45 Mn.
Advanced Feature Integration in Tires to Fuel Connected Tire Market Growth
Increasing adoption of technology in automobile has resulted in integration of advanced features, and tires are no exception. New features such as temperature control and monitoring, tire pressure monitoring and feedback on road and tire condition. The predictive analytics provided by a connected tire can minimize downtime, extend tire service life, enhance safety and decrease the burden of unforeseen maintenance. IoT sensors in connected tire provide real time feedback on various tire specifications which has embossed a positive influence on customers regarding vehicle and personal safety.
In this backdrop, leading manufacturers of tires are inclined towards introducing advanced connected tire technology. They are also collaborating with technology providers to deploy advanced features in tires. For instance, in 2021, Goodyear and Voyomotive collaborated to introduce advanced tire monitoring solutions that facilitate effective vehicle functioning. Same year, Goodyear introduced new connected tire technology in tires that includes cloud-based algorithm and sensors providing real time data on tires to operators. This intelligent tire solution was built for cargo van fleets.
Connected Tire Sales in Passenger Cars Likely to Increase
Adoption of connected tire in passenger car is expected to increase in the coming years. This is mainly due to increased demand for vehicle and human safety owing to increasing road accidents, explicit tire performance and tire service life, complemented by growing spending power. This aspect coupled with rising registrations and sales of passenger cars worldwide has fuelled the growth of the connected tire market. For instance, according to International Organization of Motor Vehicle Manufacturers (OICA) around 55 million units of passenger cars were sold in 2020 which increased to 57 million units in 2021 globally. Growing adoption in passenger cars is likely to present significant growth opportunities for connected tire market, backed by macro aspects such as availability of financial services, improved living standards and increasing purchasing power of customers.
Europe to Account for a Major Share in the Connected Tire Market
Developed countries in Europe are expected to account for a major share in the connected tire market and are likely to maintain their status quo in the following years. This can be attributed towards presence of major tire manufacturing companies in the region coupled with favourable regulatory framework. According to ETRMA (European Tire & Rubber Manufacturers’ Association), tire industry in Europe is one of the most technologically advanced sectors worldwide. Moreover, in Europe, tire is a strictly regulated part in the vehicle and is closely associated with vehicle regulations. This factor has a direct correlation with the technology used in tires, and is instrumental in driving innovations in tire technology. This has influenced the demand for connected tire in the region, consequently bolstering its market growth.
Connected Tire Market: Competitive Landscape
Few of the major players in the connected tire market include Michelin, Goodyear Tire & Rubber Company, Pirelli, Continental AG, JK Tires, Bridgestone Corporation, Trelleborg AB, Toyo Tires, Sumitomo Rubber Industries and Nokian Tires Plc.
Global Connected Tire Market is Segmented as Below:
By Rim Size
By Sales Channel
Key Elements Included In The Study: Global Connected Tire Market
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