Tire Pressure Monitoring Systems (TPMS): A Global Strategic Business Report
San Jose, CA (PRWEB) August 24, 2011
Given the rise in automobile accidents both as a result of errors in judgment made by the driver and by mechanical failures caused by poor maintenance, automotive safety technologies are rising in popularity. Poised to gain against this backdrop are intelligent automotive technologies that revolve around safety, comfort and convenience. Currently in the spotlight is Tire Pressure Monitoring System (TPMS), which harbor the potential to reduce the number of accidents caused by under-inflated tires. Numerous accidents occur annually as a result of unevenly inflated tires, which compromise the stability and balance of the vehicle, thereby increasing the risk of car crashes. The economic cause associated with accidents and the push extended by the public authorities remains prime factors driving developments in TPMS.
Tire Pressure Monitoring System (TPMS) is a market driven largely by legislations. Several legislations already in place like in the United States and yet to be implemented in Europe and Asia, have and will continue to shape growth patterns in the market. 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. 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. 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.
While mandates continue to be the main market shaper for the TPMS market, the auto manufacturers can still make a choice as to what technology to deploy in monitoring tire pressure: direct or indirect TPMS technology. Currently, direct tire pressure monitoring systems are considered as technologically superior for meeting required safety standards. Direct TPMS have the deepest penetration in the United States given its ability to meet the stringent NHTSA final ruling requiring all vehicles to be installed with a four-tire TPMS capable of detecting a 'more than 25% under-inflated tire and simultaneously sending a warning signal to the vehicle dashboard within a detection threshold of 20 minutes. However, the market can witness a complete 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 tire-pressure monitoring system (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 dependent upon the overall health of the automobile industry, the recent economic recession temporarily held back growth in the global tire pressure monitoring systems (TPMS) market. The unusually pronounced length, depth and magnitude of the current recession sent ripples of unrest across the entire automotive value chain including the market for TPMS. 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 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. Expensive aftermarket electronic installations especially have been impacted, a direct fallout of weakening employment rates, consumer income and spending power.
However, as the heat and dust raised by the economic turmoil settles down and the current year limps out on a broken economy, improvement in the business environment and recovery in growth, which is already visible, is forecast to be in sync with the resurgence in automobile production. 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. Legislations in the US that make integration of TPMS mandatory in all cars has and will continue to drive growth. The market will gain additional momentum when similar legislations are passed in Europe by 2012 or 2014. Manufacturers of tire pressure monitoring systems (TPMS) will as a result come under direct pressure to reduce costs of these expensive systems, which are no longer considered as optional extras.
Innovation is emerging into a key strategy adopted by players in the market to differentiate product offerings. Product development efforts are largely geared towards achieving low maintenance, operating costs, and more accurate and reliable monitoring of tire pressure. Provision of value added features, such as, measurement of pressure, temperature & 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. Current product development efforts, including those targeted at Wireless TPMS that help in eliminating the need for additional electronics to make a wired connection, is expected to generate new opportunities in the short to medium term period.
Major players in the marketplace include Alps Electric Co Ltd, Bendix Commercial Vehicle Systems LLC, BorgWarner BERU Systems GmbH, Continental AG, Delphi Automotive LLP, Dunlop Tech GmbH, General Electric Company, Hella KGaA Hueck & Co., Kavlico Corporation, NIRA Dynamics AB, PressurePro, Pacific Industrial Co. Ltd., Robert Bosch GmbH, Schrader Electronics Ltd, Silicon Microstructures Inc., Transense Technologies Plc, TRW Automotive Holdings Corp., and VTI Technologies Oy.
The research report titled “Tire Pressure Monitoring Systems (TPMS): A Global Strategic Business Report” announced by Global Industry Analysts, Inc., 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 US, Europe (France, Germany, Italy, United Kingdom, Spain and Rest of Europe), and Rest of World.
For more details about this comprehensive market research report, please visit –
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