Automotive TPMS Market Expands as Demand for Real-Time Tire Monitoring Soars

Overview of the Market

The global Tire Pressure Monitoring Systems (TPMS) market has emerged as a key component in ensuring vehicle safety and efficiency, particularly in modern automobiles. TPMS are active safety systems that monitor the air pressure within the tires and alert the driver when there is a deviation from the optimal range. The market for TPMS has been growing steadily, largely driven by the increasing demand for enhanced vehicle safety features and regulatory mandates in developed regions such as North America, Europe, and China. In 2018, the TPMS market was valued at approximately USD 11.65 billion and is expected to reach USD 23.62 billion by 2026, registering a compound annual growth rate (CAGR) of 9.2%.

The key drivers for this market's growth include rising automotive production and a greater focus on vehicle safety systems. Moreover, regulations in various countries requiring the installation of TPMS in vehicles are fueling its widespread adoption. The leading segment in this market is the passenger car segment, which is projected to dominate in terms of market share by the end of 2026. Geographically, North America is anticipated to maintain its dominant position, driven by stringent regulations and a mature automotive market, with increasing penetration of TPMS in both OEM and aftermarket sales channels.

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Key Highlights from the Report

➤ The global TPMS market is expected to reach USD 23.62 billion by 2026, growing at a CAGR of 9.2%.
➤ Direct TPMS is projected to hold 89.2% of the market share by 2026.
➤ The passenger car segment dominates the global TPMS market and will account for 83.1% of the market share by 2026.
➤ OEM sales channels are expected to capture 60.7% of the market share by 2026.
➤ North America is expected to maintain the largest market share, accounting for 37.0% in 2018.
➤ The regions of China and SEA & Pacific are expected to see some of the highest growth rates in the forecast period.

Market Segmentation

The TPMS market is segmented into various categories, primarily based on product type, vehicle type, sales channels, and regional distribution. Among the product types, the global market is primarily divided into two segments: direct TPMS and indirect TPMS. Direct TPMS is the more widely adopted technology, expected to dominate the market, capturing a substantial 89.2% of the total market volume by 2026. This type utilizes pressure sensors installed within the tire to provide real-time tire pressure data, offering higher accuracy compared to its indirect counterpart, which relies on wheel speed sensors of the ABS/ESC systems to infer tire pressure.

The market is also segmented based on vehicle type, which includes passenger cars, light commercial vehicles (LCVs), and heavy commercial vehicles (HCVs). Among these, the passenger car segment holds the largest share, expected to represent 83.1% of the market by the end of the forecast period in 2026. This dominance is driven by the increasing consumer preference for safer, more technologically advanced vehicles, with TPMS becoming a standard feature in many new passenger vehicles.

Regional Insights

The North American region is a key player in the global TPMS market, accounting for a significant share of 37.0% of the market volume in 2018. The market in North America is driven by stringent government regulations that mandate the inclusion of TPMS in all new vehicles, contributing to both OEM and aftermarket sales. The region is expected to see steady growth, with a CAGR of 8.3%, particularly as the replacement market for TPMS batteries continues to expand.

On the other hand, the markets in China and Southeast Asia & Pacific are poised to experience some of the highest growth rates globally. The anticipated growth rates of 10.3% and 10.0% CAGR, respectively, reflect the expanding automotive industry in these regions. Increasing automotive production and the adoption of safety technologies are contributing factors to the rapid uptake of TPMS in these regions. As the economies in these areas continue to grow, the demand for vehicles equipped with TPMS is expected to rise substantially.

Market Drivers

A major driver of the global TPMS market is the increasing regulatory pressure to incorporate TPMS into vehicles. Countries like the United States and those in the European Union have stringent regulations requiring the installation of TPMS in new vehicles. These mandates have significantly contributed to the growing adoption of TPMS in both passenger and commercial vehicles. Furthermore, the heightened awareness among consumers about vehicle safety and fuel efficiency has also amplified the demand for TPMS, as maintaining optimal tire pressure can improve fuel economy and extend tire life.

Another key driver is the growth of the global automotive industry. The rise in global vehicle production, especially in emerging markets, is creating significant opportunities for TPMS manufacturers. As more vehicles are sold worldwide, the demand for advanced safety features, including TPMS, is expected to increase. Additionally, the rise in automotive sales in developing regions such as China and India, which are seeing increased investments in the automotive sector, is expected to further drive the market for TPMS.

Market Restraints

Despite the growth drivers, several factors may act as restraints to the TPMS market. One of the primary challenges is the high cost associated with TPMS installation and replacement. Direct TPMS, in particular, tends to be more expensive due to the sensors and batteries involved. For budget-conscious consumers, this additional cost can be a deterrent, especially in regions where TPMS is not yet mandated by law.

Another restraint is the limited lifespan of TPMS sensors. Typically, the batteries used in TPMS last between 6 to 10 years. Once the battery dies, the entire system needs to be replaced, leading to additional costs for vehicle owners. While the development of longer-lasting batteries and sensors may alleviate this issue over time, it currently remains a challenge for market growth.

Market Opportunities

The market for TPMS offers significant growth opportunities, particularly in emerging regions. The increasing adoption of vehicle safety systems in countries such as China and India provides a promising avenue for TPMS manufacturers. As automotive production and sales in these countries rise, the demand for advanced technologies, including TPMS, is expected to grow rapidly.

Additionally, the growing trend of electric vehicles (EVs) presents a unique opportunity for TPMS manufacturers. As the adoption of EVs continues to rise, there is a need for high-tech safety solutions, including tire pressure monitoring systems, to ensure optimal performance and safety. Manufacturers that can integrate TPMS into EVs and hybrid vehicles will be well-positioned to capitalize on this growing segment.

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Frequently Asked Questions (FAQs)

➤ How Big is the Tire Pressure Monitoring Systems Market?
➤ Who are the Key Players in the Global TPMS Market?
➤ What is the Projected Growth Rate of the TPMS Market?
➤ What is the Market Forecast for the TPMS Industry in 2032?
➤ Which Region is Estimated to Dominate the TPMS Market through the Forecast Period?

Company Insights

The global TPMS market is highly competitive, with several key players dominating the landscape. Some of the prominent companies operating in this market include:

✦ ZF Friedrichshafen AG
✦ Continental AG
✦ Sensata Technologies, Inc.
✦ Denso Corporation
✦ Pacific Industrial Co., Ltd.
✦ NXP Semiconductors
✦ WABCO
✦ Huf Hülsbeck & Fürst GmbH & Co. KG
✦ NIRA Dynamics AB
✦ Bendix Commercial Vehicles Systems LLC
✦ Dunlop Tech GmbH
✦ Hamaton Automotive Technology Co., Ltd.
✦ Bartec USA LLC
✦ ATEQ

Recent Developments

■ Continental AG has launched a new range of sensors for TPMS that are designed to improve the accuracy of tire pressure data in real time.

■ Sensata Technologies announced an expansion in its TPMS offerings by integrating smart tire solutions that provide predictive maintenance for fleets, improving tire management and reducing operational costs.

Conclusion

The global TPMS market is poised for significant growth, driven by the rising demand for vehicle safety systems, stringent regulatory requirements, and technological advancements. With key segments such as direct TPMS, passenger cars, and the OEM sales channel leading the way, the market is expected to continue expanding, particularly in regions like North America, China, and Southeast Asia. The increasing adoption of safety systems, alongside rising vehicle production and regulatory mandates, offers both challenges and opportunities for manufacturers operating in this space. By embracing technological innovations, such as long-lasting sensors and smart tire monitoring solutions, the market can overcome its current limitations and continue its upward trajectory in the coming years.

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This release was published on openPR.