The Global Market for TPMS is Projected to Reach US$4 Billion by 2020
Resurgence in Automobile Production to Drive the
Global Tire Pressure Monitoring Systems Market, According to a New Report by Global Industry Analysts, Inc.
GIA announces
the release of a comprehensive global report on Tire Pressure Monitoring
Systems (TPMS). The
global market for TPMS is projected to reach US$4 billion by 2020, driven
by the recovery in automobile production.
Given the rise
in automobile accidents either due to error in judgment on part of the driver or
due to mechanical failures caused by poor maintenance, automotive safety
technologies are rising in popularity. The growing consumer emphasis on safety and
the renewed focus of automobile manufacturers on enhancing safety features are catalyzing
the growth of automotive safety technologies. Also, adherence to international
safety standards has received due importance from auto OEM majors as they
strive to achieve customer satisfaction. Over the years, safety technologies
have evolved from passive safety techniques designed to react and mitigate
effects after the occurrence of accident to active safety measures that aim at
proactively preventing accidents. As an active safety system designed to prevent
accidents caused by over-inflated and under-inflated tires, Tire Pressure
Monitoring Systems have been growing in prominence in the automotive industry.
In the United
States, the TREAD Act has played an instrumental role in shaping growth. In
Europe, a similar legislation that imposes mandatory adoption of TPMS in M1
category of vehicles is helping foster demand for TPMS in the OEM market. Growing
consumer emphasis on fuel efficiency, compounded by the government’s push
towards reducing vehicular emissions will also continue to spur growth in
demand for TPMS. Low tire pressure results in millions of gallons of fuel
wastages each year. Under inflated tires tend to increase both wear and tear of
the tire and fuel consumption. The quest for fuel efficiency therefore offers a
strong business case for TPMS. In
addition, technology innovation involving the development of programmable and
configurable TPMS systems will also benefit market growth.
Primarily a regulatory driven market, demand
for TPMS will grow strongly supported by the expected improvement in auto
production after a period of slowdown between 2013 & 2014. Improving economic
climate in the United States and Europe, growth in developing markets such as
India, and predominance of Chinese economy despite relative slowdown in recent
times, will help revive the automotive industry in the coming years. The growing
demand for new automobiles, particularly in India and other developing markets
in Asia-Pacific will fuel growth in automotive production thus lending traction
to TPMS integration in the coming years. Although mandatory TPMS legislations
are yet to be implemented in most parts of Asia-Pacific, proactive integration of
TPMS by auto OEMs as a means to achieve product differentiation will drive
demand in the coming years.
TPMS has enjoyed high OE installation rates
in the United States since 2007. Future growth in the country is forecast to
come from the huge replacement demand, supported by the fact that the average life
of TPMS ranges from 5-10 years. Direct TPMS
will continue to witness strong gains in the market as compared to Indirect
TPMS. Most indirect TPMS, which are factory fitted, are designed to detect tire
deflation using the vehicle’s anti-lock braking system (ABS). Although cheaper
than direct TPMS, indirect TPMS have numerous drawbacks such as, inability to
measure the actual drop in tire pressure, and pinpoint the specific wheel with
low air pressure. Direct TPMS, in comparison, are expensive and are designed to
be directly installed on the wheel. The sensor mounted onto the valve of each
tire identifies low tire pressure, and sends a dashboard alert when pressure
dips below 25% of manufacturer recommended levels.
As stated by
the new market research report on Tire Pressure Monitoring Systems, the United States
represents the largest regional market worldwide. Asia-Pacific is forecast to
emerge as the fastest growing market with a CAGR of 13.9% over the analysis
period, led by new TPMS regulations in South Korea, and the growing demand for full
featured, high-end luxury cars in countries such as China and India.
Major players
in the market include Advantage PressurePro LLC, ALLIGATOR Ventilfabrik GmbH,
Bartec USA LLC, Bendix Commercial Vehicle Systems LLC, Bosch Automotive
Technology, Continental AG, Delphi Automotive LLP, Dill Air Control Products,
Doran Manufacturing LLC., Dunlop Tech GmbH, GE Measurement and Control, Hella
Ireland Limited, Huf Electronics Bretten GmbH, Johnson Controls Inc., Murata
Electronics Oy, NIRA Dynamics AB, Orange Electronic North America, Pacific
Industrial Co. Ltd., Schrader Electronics Ltd., Silicon Microstructures Inc.,
Standard, Transense Technologies Plc., and TRW Automotive Holdings Corp.
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