The “Global Automotive Tire Pressure Monitoring System (TPMS) Market, by Product Type (Direct TPMS and Indirect TPMS), by Vehicle Type (Passenger Car, LCV and HCV), by Sales Channel (OEM and Aftermarket) and by Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Global Forecast to 2027”, is expected to exhibit a CAGR of 6.7% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights
Automotive tire pressure monitoring system (TPMS) is a system used for monitoring and measurement tire pressure of vehicles by using pressure sensors or with the help of wheel speed sensors such as ESC and ABS system. There are two types of TPMS used in vehicles namely direct TPMS and indirect TPMS. Moreover, it is typically used in HCV, LCV, and passenger cars. Generally, tire pressure monitoring system is battery-operated with the battery having a lifespan of 6-10 years.
The global automotive tire pressure monitoring system (TPMS) market is estimated to account for US$ 9,335.4 Mn in terms of value by the end of 2019.
Presence of Tire Pressure Monitoring System Legislation in the U.S. is expected to drive the global automotive tire pressure monitoring system (TPMS) market during the forecast period
In 2000, the U.S. Congress passed the TREAD Act, which was in response to the Firestone Tire Recall controversy in the 1990s. During 1990s, a number of accidents occurred due to failure of various Firestone branded tires, which led to injuries and number of fatalities. The TREAD act mandates the use of TPMS in vehicles. The schedule for compliance was in three phases starting from 20% compliance for model year 2006 and 100% for model year 2008. Following the U.S., Following the U.S., the European Union also mandated the use of TPMS. In the EU, regulation is mandatory for new types of cars as of 2012, and in 2014 it is mandatory for all new cars. Moreover, in South Korea, TPMS is mandatory for vehicles with gross vehicle weight (GVW) of 4.5 metric ton or less.
Emergence of aftermarket sales is expected to offer lucrative growth opportunities
According to Coherent Market Insight’ analysis, aftermarket sales are expected to emerge as major sales channels for TPMS. The average lifespan of battery used in TPMS is around 6-10 years, which is molded into the sensor assembly. Therefore, once the battery runs down, the entire TPMS system needs to be replaced. A TPMS can cost between US$ 50 to over US$ 150, depending upon the type of sensor and the application. As batteries in these systems are expected to last for 6-10 years, numerous customers around the world would require new TPMS sensors. This, in turn, is expected to pose significant growth opportunities for market players in the near future.
Lack of standardization and high cost of TPMS is expected to restrain the global automotive tire pressure monitoring system (TPMS) market growth over the forecast period
Although TPMS offers safety against accidents lack of standard TPMS in certain regions, especially emerging economies is expected to restrain the market growth during the forecast period. Automated TPMS manufactured with inferior parts and low quality technology is expected to impact the results significantly thereby hindering the market growth. Moreover, high initial cost of TPMS is another factor hampering its adoption in passenger cars.
Increasing demand for TPMS from developed as well as emerging economies has compelled key players to develop novel tire pressure monitoring products, in order to retain revenue share in the market. Furthermore, several companies are focused on product line expansion, in order to develop sustainable TPMS products in the market. Key players such as Continental launching their VDO-REDI Sensor and Bartec U.S.A LLC introducing its new TPMS tools namely Tech400Pro and Tech300Pro.
Key players in the market are focused on enhancing their market share in indirect TPMS, since it offers more efficient and accurate results. Major market players such as Continental VOD offers its own direct TPMS, which uses VDO REDI Sensor. Moreover, Schrader International uses EZ Sensor and Pacific Industrial Co., LTD has its own TPMS B-01 direct TPMS.
Key players operating in the global automotive tire pressure monitoring system (TPMS) market are ZF Friedrichshafen AG, ATEQ, Continental AG, Bartec USA LLC, Sensata Technologies, Inc., Huf Hülsbeck & Fürst GmbH & Co. KG, AUTOMOTIVE TECHNOLOGY CO., LTD., Rivigo Services, Denso Corporation, DUNLOP TECH GmbH, Pacific Industrial Co., Ltd., Bendix Commercial Vehicles Systems LLC, NXP Semiconductors, NIRA Dynamics AB, WABCO, and HAMATON AUTOMOTIVE TECHNOLOGY CO., LTD.