The Global "Automotive Intelligent Tires Market" is expected to grow at a high CAGR of 10.8% during the forecasting period (2022-2029).
An intelligent tire can use the connectivity feature to transfer information regarding the physical health of the tire. Besides road safety, intelligent tires can increase the tire life cycle, reduce fuel consumption, and improve gas mileage. Accurately inflated tires will ensure the shortest braking distance, reduce blowouts, and mitigate hydroplaning for better road handling.
The technological advancement in the electronics automotive industry, coupled with the rising demand for connected cars worldwide, is anticipated to drive the Automotive Intelligent Tires market in the forecast period.
The Global Automotive Intelligent Tires Market is primarily driven by Automotive Intelligent Tires' high demand in the connected electric vehicles. The features of intelligent tires such as monitoring tire pressure, informing in case of the blowout, and the road accidents the information is passed for the medical emergency through connected GPS systems by tire sensors. The technological advancement in terms of an intelligent tire is revolutionizing the market as the demand for connected electric cars owing to the environmental problem is growing significantly.
For instance, according to the International Energy Agency (IEA), in 2019, over 7.2 million electric cars were sold in the world, with countries like Norway, China, and the US dominating the global EVs market in terms of market share.
However, higher prices than the traditional types is one of the major factors which is hampering the automotive intelligent tires market for the forecasted period.
COVID-19 Impact Analysis
The COVID-19 pandemic has disrupted the global economy and halted the key processes of almost all companies. Consequently, the global automotive intelligent tires market was also affected. The disturbances in supply chain management and transportation of goods and services had a negative impact on the growth of the market. Many manufacturing and production units were disrupted due to the government enforced lockdowns and curfews across the world which led to losses and wastage of many paper core products. The automotive industry faced losses during the pandemic. The pandemic also significantly changed the consumer demand and behaviour. Consumers refrained from purchasing non-essential products amid the pandemic thereby impacting the sales of automotive intelligent tires. The uncertain and unexpected situation caused by the pandemic significantly impacted the market hence, slowing its growth. However, the post-pandemic scene has improved and the global automotive intelligent tires market has recovered. The resumption of manufacturing operations will play a major part to boost the production and sales of vehicles. Also, consumers in developed countries are more likely to buy products from e-commerce platforms, which will lead to an increase in the number and volume of goods transported by cargo trucks which will lead to increase the adoption of torque converters in trucks. Hence, the market is set to grow at a high rate.
By Vehicle Type, the Global Automotive Intelligent Tires Market is segmented into Commercial Vehicles and Passenger Cars
Among these, the Passenger car segment had the highest market share in 2019. This growth is anticipated due to a rise in sales and production due to the growing population demand for traveling around the globe. They are expected to retain their dominance in the forecasted period due to the large demand and sales of passenger cars worldwide. Moreover, the rise in demand for electric passenger cars also boosts the market for the following period. According to the International Organization of Motor Vehicle Manufacturers (OICA), 64,341,693 units of the total number of passenger cars were sold worldwide in 2019.
However, the rising pollution creates demand for commercial electric vehicles, which will boost Automotive Intelligent Tires' market for the commercial vehicle segment in the forecasted period. The Heavy Commercial vehicles (HCV) and the Light Commercial vehicles (LCV) segment is growing faster due to an increase in the demand for transportation of goods with a surge in global population and rising vehicle production. According to the International Organization of Motor Vehicle Manufacturers (OICA), 27,016,764 units were sold, including heavy trucks, light vehicles, buses, and coaches worldwide in 2019.
By geography, the global Automotive Intelligent Tires Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA)
Among all of the regions, Europe is the dominant region for the global automotive intelligent tires market and is expected to grow at the highest CAGR during the forecasted period due to the presence of a huge number of manufacturing facilities with the surge in the sale of automotive vehicles.
However, Asia Pacific region is after Europe in terms of the market share of the Automotive Intelligent Tires Market due to the increasing sales of passenger cars in the region. The major contributor to the market share in China, Japan, and India. The rise in passenger car sales in the region directly impacts the automotive intelligent tires market during the forecasted region. For example, as per the International Organization of Motor Vehicle Manufacturers (OICA) in 2019, in the Asia Pacific and the Middle East region, the total number of commercial vehicles sold was around 8,043,351 vehicles, heavy trucks, buses, and coaches. This propels the demand for automotive intelligent tires.
The global automotive intelligent tires market is fragmented with the presence of several local and international players. The product diversification and opportunities for market growth through new product launches intensify the competition among companies. The major players include Bridgestone, Continental, MICHELIN, Pirelli, and The Goodyear Tire & Rubber. Other key players in the market include The Yokohama Rubber, Hankook Tire, and Sumitomo Rubber Industries.
Key players are adopting strategies such as investing in R&D, new product launches, expansion in distribution channels to stand out as strong competitors in the market. The companies enter into collaborations, mergers, strategic partnerships, and acquisitions to increase automotive intelligent tires demand and expansion across the globe. For example, in May 2021, The Yokohama Rubber Co. Ltd acquired the Polish tire distributor ITR CEE Spolka. This acquisition will enable the company to increase its foothold in European market, specifically in Poland. In December 2018, MICHELIN Completed the acquisition of Camso. This will help the company to strengthening its global leadership position in the specialty businesses.
Overview: Bridgestone is a Japanese auto and truck parts manufacturing company and is the world’s largest tire and rubber company.
Product Portfolio: Bridgestone products include automotive components, especially motor vehicle tires, industrial products, parts and materials for electronic equipments, etc.
Key Developments: In May 2020, Bridgestone announced the acquisition of German specialist tire trade group, REIFF Reifen und Autotechnik GmbH. This acquisition will enable the company to become a mobility solutions leader of premium tires, mobility solutions and customer centric retail networks.
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