Rising focus on fuel efficiency and stringent safety norms are expected to boost the global automotive tyre pressure monitoring system (TPMS) market to US$7.5 billion at the end of 2016, according to the “Global Market Study on Automotive Tire Pressure Monitoring System (TPMS): Industry Analysis and Forecast, 2016-2024” report by Persistence Market Research.
Direct TPMS is projected to account for 99% revenue share in the global market at the end of 2016, rising at a CAGR of 6.7% for the forecast period. The major upsurge is expected owing to the implementation of TPMS legislations in India, Japan, Russia, and China.
Reducing damage to property owing to accidents caused by low tyre pressure and the growing focus towards fuel efficiency are expected to increase the demand for automotive TPMS through the forecast period. The rising adoption of automotive safety systems is also a major driver in the global automotive TPMS market.
However, the high cost of implementation, especially in emerging regions is expected to be a major restraint in the global automobile TPMS because of the demand for budget cars in the regions.
The market is segmented into direct TPMS and indirect TPMS product types, where the direct TPMS segment is expected to dominate the market in terms of value and volume through the forecast period.
In terms of vehicle types, the market is segmented into passenger car, light commercial vehicle, and heavy commercial vehicle. Passenger car segment is the largest, estimated to account for 79% share in terms of revenue at the end of 2016. The demand for luxury cars across the globe is expected to push the market. Also, the market is expected to receive a major boost due to the mandating use of TPMS in the US, EU, and South Korea for the passenger cars segment.
The market is also divided into OEM and aftermarket sales channels, where the aftermarket segment is projected to account for the major share in the global market at the end of 2016. OEM sales are expected to increase at a steady rate through the forecast period.
In terms of region, the market is split into North America, Latin America, Europe, Asia Pacific, and Middle East and Africa (MEA). North America is projected to dominate the global market with 47.3% value share at the end of 2016. Europe is expected to register healthy growth owing to the mandatory adoption of TPMS in the region.
Denso Corporation, Pacific Industrial Co., Ltd., NIRA Dynamics AB, Bendix Commercial Vehicles Systems LLC., Bartec USA LLC., Hamaton Automotive Technology Co., LTD., Dunlop Tech GmbH., Continental AG, NXP Semiconductors, ZF Friedrichshafen AG, Huf Hülsbeck & Fürst GmbH & Co. KG, ATEQ, Sensata Technologies, Inc., and WABCO are the major players in the global automotive tyre pressure monitoring systems market.
Major players are concentrating on mergers and acquisitions to cover maximum market share and increase their distribution network. Being a major source of revenue, companies are concentrating on aftermarket businesses.