A system and method are provided for estimating and applying vehicle tire traction. Vehicle data (e.g., movement and location-based data) and tire sensor data are collected at a vehicle and transmitted to a remote computing system (e.g., cloud server). A wear status is determined, and traction characteristics determined for at least one tire, based at least on the vehicle data and the determined tire wear status. The predicted tire traction characteristics are transmitted from the remote computing system to an active safety unit associated with the vehicle, or a fleet management system, wherein the recipient is configured to modify vehicle operation settings based on at least the predicted tire traction characteristics. A maximum speed for the vehicle may be defined by the recipient, or a minimum following distance where, e.g., the vehicle is one of multiple vehicles in a defined platoon.