Once viewed as purely mechanical components, tyres are now evolving into intelligent, data-generating assets. Beginning with Tyre Pressure Monitoring Systems (TPMS), gradually advancing towards fully integrated smart tyres.
TPMS Adoption on the Rise
TPMS adoption is increasing across Southeast Asia, driven mainly by regulations. Key ASEAN markets such as Malaysia and Thailand have been progressively aligning with global vehicle standards since 2017. Although adoption levels still vary, TPMS is no longer just a safety feature, it has become the foundation of broader digital tyre ecosystem.
China mandated TPMS in 2020, as well as India has also implemented it in new vehicles, creating an irreversible demand. TPMS was once a premium feature, but it has now moved into mid-range passenger vehicle via OEM integration.
The Asia-Pacific TPMS market is expected to grow from about USD 2.1 billion in 2025 to around USD 3.5 billion by 2031, with annual growth of about 8 to 9 per cent. Southeast Asia is smaller in size but is expected to grow faster. This is fuelled by regulatory catch-up, more local production in the supply chains, and a growing aftermarket.
With TPMS sensor lifespans typically ranging between five to ten years, the aftermarket is particularly important. There is already rising demand from more mature markets such as China, and is expected to follow in Southeast Asia. In addition, a large number of older vehicles without factory-installed TPMS is driving demand for retrofit solutions.
However, cost remains a major constraint. TPMS can add between USD50 to USD150 to a vehicle, which is high in price-sensitive ASEAN markets. Additionally, varying regulations across countries further limit economies of scale, and lower-cost TPMS system still in use in certain segments.
Despite these challenges, TPMS is increasingly being integrated into the broader vehicle ecosystem. Leading automotive suppliers such as Continental, Bosch, Denso, and Valeo are positioning TPMS as part of their connected vehicle system.
At the same time, OEMs have preferred direct TPMS instead of indirect TPMS due to its higher accuracy. Sensors are also becoming more advanced, offering not just pressure monitoring but additional data such as temperature and basic diagnostics. As a result, TPMS is no longer a standalone feature, but as a key data node within a vehicle’s electronic architectures.
Across the industry, tyre manufacturers and system suppliers are increasingly aligned in their thinking, including Michelin, Continental, Bridgestone, and Goodyear.
Both Michelin and Continental are moving towards real-time data ecosystems, powered by cloud analytics and predictive maintenance. This marks a fundamental shift in business model, from selling tyres as products to managing them as connected services.
In this model, the value is no longer just in the physical tyre, but in how it performs, how it is monitored, and how it is optimised throughout its lifecycle. Unsurprisingly, the strongest focus is on fleets. Logistics operators, commercial transport users, and shared mobility platforms stand to benefit the most from longer tyre life, lower downtime, and reduced operating costs. These segments are expected to be the first real adopters of smart tyre technology.
Mixed Progress in ASEAN
Adoption patterns vary by country. Continental’s approach, which relies on deeper into integration into vehicle system, is more advanced. It is likely to gain traction first in Thailand, where OEM integration is already well established. Whereas in Indonesia, adoption is driven mainly by cost, with fleet users leading the way as they are more price cautious.
Malaysia is currently in an early stage, but interest is gradually growing, particularly among commercial fleet operators seeking improved efficiency and uptime. For passenger vehicles, basic TPMS systems are already widely available, showing that more people are becoming aware of tyre safety and digital monitoring.
Since its worldwide debut in Malaysia in April 2018, Continental’s ContiConnect digital tyre monitoring platform has evolved from a pilot project into a key part of Continental Malaysia’s digital and sustainability strategy, enabling fleet operators to monitor tyre pressure and temperature via sensors and a centralised web portal to reduce downtime and operating costs. Similarly, Bridgestone has developed integrated TPMS solutions linked with telematics platforms that support real-time alerts and predictive maintenance for commercial vehicles.
Overall, Malaysia’s development is increasingly aligned with a fleet-optimisation approach, which reflects Michelin’s data- and service-driven strategy focused on improving operational efficiency. All these highlight Malaysia’s emerging role as a testing ground for digital tyre monitoring technologies.
TPMS and smart tyres are often grouped together, but they are not the same. The main difference is the scope. Basic TPMS only checks tyre pressure, while advanced TPMS has expanded functionality including temperature and diagnostics. Smart tyres provide much more information, such as real-time data on wear, load, road conditions, and predictive analytics. Therefore, TPMS is a gateway to smart tyres, but cost remains the main challenge.
As Continental has emphasised, “tyre pressure management is only the beginning,” highlighting a clear roadmap towards fully intelligent tyres capable of predicting hazards and integrating with vehicle systems such as braking, ADAS, and telematics platforms.
Outlook and Challenges ahead
According to Market Intelo, the global smart tyre market was valued at approximately USD 1.6 billion in 2024 and is projected to reach USD 8.9 billion by 2033, representing a compound annual growth rate (CAGR) of 20.7 per cent. This growth is driven by advances in sensor technology, real-time data analytics, and the rising demand for connected mobility solutions.
Smart tyres are not only changing the way how individuals use their vehicles, but also how entire industries operate. Their role is becoming increasingly critical in electric and autonomous vehicles, where they contribute to energy efficiency, range optimisation, and safety-critical decision-making. In fleet management, operators are leveraging smart tyre technologies to enhance logistics, reduce downtime, and improve overall operational efficiency.
TPMS will continue to expand first, driven by regulation, followed by a more gradual rollout of smart tyre technologies in ASEAN. However, smart tyre adoption will not be uniform. Fleet applications, such as logistics, trucking, and ride-hailing are expected to lead, while passenger vehicles adoption will be slower due to cost sensitivity. The region is also emerging as an important testing ground for fleet-focused solutions. Challenging road conditions, high tyre wear, and strong cost pressure create opportunity for predictive tyre technologies.
With the TPMS adoption is becoming more consistent across ASEAN due to regulations, the deployment of smart tyres remains uneven. TPMS is converging across the region as safety standards become more aligned. However, smart tyre adoption is different in each country, depending on factors such as infrastructure readiness, fleet maturity, and the level of OEM penetration in each market.
Thailand is moving the fastest, with strong progress in both OEM integration and smart tyre development. Indonesia, meanwhile, offers the largest long-term potential but is expected to adopt more slowly, with fleets serving as the main entry point due to cost and market fragmentation.
Despite these advancements, several challenges remain. High research and development costs, system integration issues, data privacy and overload, the need for stronger digital infrastructure, as well as sensor durability under harsh operating conditions continue to limit the pace of adoption, especially among smaller fleets and in some markets.
The transition from TPMS to smart tyres is not just a technical upgrade, but a fundamental shift in the tyre industry’s value proposition. Looking ahead, the outlook for smart tyres remains highly positive. The continued growth of electric and autonomous vehicles will increase demand for real-time tyre intelligence, while advances in connectivity, sensor technology, and cloud analytics will make solutions more scalable and accessible. As digitalisation accelerates across fleet operations, collaboration between OEMs, tyre manufacturers, and technology providers will further drive integration.
Image: Continental
