The global market for Tire Pressure Monitoring Systems (TPMS), which can help prevent accidents caused by under-inflated tires, will reach $3 billion by 2017, according to a comprehensive report by the research firm Global Industry Analysts (GIA).
In summary, the report found that growth in the TPMS market will be “driven by resurgence in automotive industry and stringent legislations focusing on active road safety measures… (the) focus on fuel efficiency, growing popularity of run-flat tires and product innovation/differentiation strategies adopted by manufacturers.”
U.S. legislation that makes integration of TPMS mandatory in all cars has and will continue to drive growth, according to the GIA report.
“The market will gain additional momentum when similar legislation is passed in Europe by 2012 or 2014,” according to GIA.
Unevenly inflated tires, which compromise the stability and balance of the vehicle, increase the risk of car crashes. And beyond the tragedy of someone losing life or limb in an accident, the costs stemming from vehicular accidents and government legisaltion mandating TPMS use will be the force behind developments in the safety devices, according to GIA.
There is already some legislations in place in the United States, and more that’s yet to be implemented in Europe and Asia. Those factors will dictate growth in the TPMS market, according to GIA.
“Over the last decade, governments around the world have focused on legislating active road safety measures, given the rise in the number of casualties on road worldwide,” GIA said in a press release. “Unlike in the United States, where the TPMS legislation was solely driven by safety issues triggered by the massive recall of tires due to tread separation in the year 2000, in Europe TPMS legislations are driven by fuel efficiency benefits and reduction of CO2 emissions.”
In addition, GIA said, “With the exception of South Korea, Asia-Pacific, in comparison, has no mandatory TPMS legislations and market penetration currently remains low. However, success in lobbying efforts in mandating TPMS in the region could result in Asia emerging into a driving force in the world TPMS market.”
Auto makers have two choices as to what technology to deploy in monitoring tire pressure: direct or indirect TPMS technology. And according to GIA, roght now direct TPMS are considered as technologically superior for meeting required safety standards.
Direct TPMS have the deepest penetration in the United States, accordingn to GIA, because of its ability to meet the stringent National Highway Traffic and Safety Administration final ruling requiring all vehicles to be installed with a four-tire TPMS capable of detecting a ‘more than 25 percent under-inflated tire, while simultaneously sending a warning signal to the vehicle dashboard within a detection threshold of 20 minutes.
However, the market could completely change in the event of successful technology innovations that help indirect TPMS match the accuracy levels of direct TPMS. Currently, spearheading developments in this space is NIRA Dynamics’ Tire Pressure Indicator (TPI), an indirect TPMS capable of detecting tire under inflation in all four tires and designed to meet both American FMVSS 138 and the European ECE R-64 safety regulations on tire pressure.
Given that market opportunities for TPMS are largely depend on the overall health of the automobile industry, the current worldwide recession temporarily has held back growth in the global TPMS market, GIA said. The trickle-down impact of the depressing business climate in the automotive industry on this market was reflected in the growth rates, which largely failed to meet the optimistic expectations of the pre-recession era.
“While the slump in new car sales displaced business opportunities at large, postponements of aftermarket purchases of safety systems, solutions and products, as a result of consumers’ preference to delay or even cancel discretionary purchases during difficult economic conditions, squeezed opportunities for TPMS in the aftermarket sector,” GIA said in its press release. “Expensive aftermarket electronic installations especially have been impacted, a direct fallout of weakening employment rates, consumer income and spending power.”
According to the GIA, ” With automotive production increasing, most cars scheduled for roll out in the upcoming years will come high on safety features, next generation automotive safety technologies. Regulatory riders that mandate the use of TPMS together with the strategy of wielding these systems as key brand differentiating factors will continue to encourage OEM’s interest in TPMS.”
TPMS manufacturers will be under pressure to reduce the cost of expensive systems, which are no longer considered as optional extras.
“Product-development efforts are largely geared towards achieving low maintenance, operating costs, and more accurate and reliable monitoring of tire pressure,” GIA said in its reelase. “Provision of value-added features, such as measurement of pressure, temperature and torque to provide additional benefits, such as complete data analysis so as to invoke changes in driving style to extend tire life, is also rising in popularity as a competitive tool.”
Product-development efforts, including those targeted at Wireless TPMS that eliminate the need for additional electronics to make a wired connection, are expected to generate new opportunities in the short- to medium-term period.
Major players in the marketplace include Alps Electric Co., Bendix Commercial Vehicle Systems LLC, BorgWarner BERU Systems GmbH, Continental AG, Delphi Automotive LLP, Dunlop Tech GmbH, General Electric Co., Hella KGaA Hueck & Co., Kavlico Corp., NIRA Dynamics AB, PressurePro, Pacific Industrial Co., Robert Bosch GmbH, Schrader Electronics Ltd, Silicon Microstructures Inc., Transense Technologies Plc, TRW AutomotiveHoldings Corp. and VTI Technologies Oy.
The research report titled “Tire Pressure Monitoring Systems (TPMS): A Global Strategic Business Report” announced by Globa Industry Analysts provides a comprehensive review of market trends, drivers, company profiles and key strategic industry activities. The report analyzes the global TPMS market for all major geographic markets, including the United States, Europe (France, Germany, Italy, United Kingdom, Spain) and other parts of the world.
Attorney Gordon Johnson
Past Chair Traumatic Brain Injury Litigation Group, American Association of Justice
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