Increasing need for improving fuel efficiency of vehicles using smart tyres is among the major factors to drive the global market for smart tyres to reach $ 126.91 billion in 2028 from $ 76.78 billion in 2020.
According to the latest analysis by Emergen Research, the global automotive smart tyre market size reached $ 76.78 billion in 2020 and is expected to register a significantly steady revenue CAGR of 6.6% during the forecast period.
The adoption of more fuel-efficient vehicles is increasing rapidly due to various benefits, including Corporate Average Fuel Economy (CAFE), and this trend is expected to continue over the forecast period. In addition, fuel efficiency reduces the impact on the environment, and the use of smart sensor-based tyres will enable vehicles to comply with pollution-related government regulations. Besides, rising demand for sensor systems in vehicle tyres, which provide real-time data for vehicle users, are key factors driving market revenue growth, and this is expected to open up further opportunities for automotive smart tyre solution providers.
However, the lower adoption rate of smart tyres due to high cost and product availability for the premium vehicle segment are restraining the growth of the automotive smart tyre market, the market research and consulting company said.
Also, technology errors or malfunctioning, which can occur due to incorrect data or information and low-quality tyres, can hamper the growth of the automotive smart tyre market.
Increasing demand for the Internet of Things (IoT) for efficient development for smart tyres is another factor driving the market growth.
Major companies covered in the market report include Continental, Bridgestone, Goodyear, Sumitomo, Pirelli, Toyo, Nexen, JK, Maxxis and Interco.
The COVID-19 pandemic led to the downsizing of various businesses and also negatively impacted the growth of the automotive smart tyre market due to reduced manufacturing, production, and sales of new vehicles in 2020. Furthermore, due to restrictions and lockdown imposed globally, vehicle usage was reduced drastically, and tyre wear was also reduced in parallel. In addition, the number of vehicles being sent for repair, maintenance, and replacement of vehicle parts declined significantly.
Technological advancements, deployment of Artificial Intelligence (AI), and Tyre Pressure Monitoring System (TPMS) in automotive smart tyre solutions are key factors boosting the adoption of smart sensor tyres. Also, rising environmental sustainability concerns with vehicle safety are expected to increase the implementation of automotive smart tyre solutions.
Europe To Lead The Pack
The European automotive smart tyre market is expected to register the fastest revenue growth rate during the forecast period. Key factors contributing to the rapid revenue growth rate are high demand for premium cars, increasing preference for vehicles with advanced safety features, technological advancements in vehicles, and the region being a production hub for luxury car manufacturing companies. In addition, government regulations and safety norms are driving the deployment of smart tyres in countries in the region, the market research and consulting company added.
Courtesy: Emergen Research. NB: Photo is representational; courtesy: Continental.