Global Automotive Intelligent Tires Market 2017-2021
About Automotive Intelligent Tires
Original equipment manufacturers (OEMs) are trying to fine tune their ADAS offerings considering the tread wear, which refers to a specificity of tires that changes with use. Some innovative ADAS manufacturers have programmed a specific wear rate based on the miles a tire travels. They have calibrated their ADAS responses based on this factor. This has led to the development of intelligent tires, wherein an assortment of embedded sensors in the tire feeds data to the ECU regarding the wear rate, tire pressure, specific road conditions, suspension feedback, and other related information. This information is used to fine-tune the responses of the vehicle ECU, seating and suspension, ADAS, safety features, and others, thus continuously providing an enhanced ride experience.
Technavio’s analysts forecast the global automotive intelligent tires market to grow at a CAGR of 291.23% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global automotive intelligent tires market for 2017-2021. To calculate the market size, the report considers the revenue generated from the sales of automotive intelligent tires.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Automotive Intelligent Tries Market 2017-2021
Technavio recognizes the following companies as the key players in the global automotive intelligent tires market: Bridgestone, Continental, Goodyear, Michelin, Pirelli, and Yokohama Rubber
Other Prominent Vendors in the market are: Sumitomo Rubber Industries and Hankook
Commenting on the report, an analyst from Technavio’s team said: “Upcoming intelligent tire embedded sensors and microchips are expected to work with very less or no power at all. Battery-less sensor chips are already in advanced development stages by players like PsiKick, ARM Holdings, and imec. These chips can tap into tiny bleed-through power leakages in their circuits, thus consuming between 1% and 0.1% of the power that typical comparable chips need. Hence, the chips that are embedded in the inner lining of the tread would be armed with a large or an unlimited power supply. This assures a complete lifetime service for the tire the chip is fitted on.”
According to the report, the traditional automotive value chain dictates a streamlined flow where electronic component manufacturers supply components to OEMs that further integrate these components or systems into a vehicle. In the case of TPMS, the traditional value chain involves electronics suppliers, which offer sensors used in TPMS. However, a few structural changes have been observed in the value chain in the past couple of years, wherein tire manufacturers are developing TPMS in-house and integrating the system with their tires. Hence, in the larger scheme of the supply chain, they have backward integrated to provide TPMS as well as tires. For instance, Bridgestone has been offering the automated TPMS system along with its tires since 2014. This trend has led to the development of intelligent tires or TMS since many of the prominent players in the market are originally tire manufacturers.
Further, the report states that the average pricing of the sensors in intelligent tires, depending on the geography and end-use, may be around $1,000. This is a detriment to the dynamic use of the sensors, which has been envisioned in the intelligent tire concept. Analysts at Technavio suggest that the existing prices would need to come down to around $10 or below per sensor to make the system viable for mass market vehicles. In countries like India and China, where the average entry-level car costs $5,000 or below and where the entry-level makes up almost 40% of the passenger car market, the integration of a $1,000 TMS sensor is impractical.
Bridgestone, Continental, Goodyear, Michelin, Pirelli, Yokohama Rubber, Sumitomo Rubber Industries and Hankook