New York – The value of the global market for tire pressure monitoring systems (TPMS) is expected to hit $7.59 billion (€6.75 billion) this year, according to a report by Persistence Market Research (PMR).
Government regulations mandating that new passenger vehicles come equipped with TPMS, the growing adoption of automotive safety systems and rising focus on improving fuel economy and reducing property damage as a result of accidents associated with low tire pressure are key factors expected to fuel demand for automotive TPMS through 2024, according to PMR.
The firm said the high growth is due to expected implementation of legislations related to the TPMS in countries such as China, India, Japan and Russia.
By vehicle type, passenger cars are the largest segment in the global automotive TPMS market, which is estimated to account for 79-percent value share of the market by year-end 2016. Growing demand for luxury cars is expected to continue to push demand for TPMS in passenger car segment, PMR reported.
North America is expected to remain the largest market for automotive TPMS, accounting for 47.3 percent revenue share of the market by year-end 2016.
Mandatory use of TPMS in passenger vehicles in the US, South Korea, and the European Union will further fuel the growth in the global automotive TPMS market, the firm said.
Direct TPMS is estimated to account for a 99-percent market revenue share by year-end, as global sales of direct TPMS are expected to increase at a compound annual growth rate of 6.7 percent from 2016 to 2024, the firm reported.
Indirect TPMS is expected to experience steady growth in Asia/Pacific, the Middle East and Africa due to its lower cost compared with direct TPMS.
Since direct TPMS requires replacement after a certain period of time and the vehicle parc is continuing to grow, aftermarket sales are expected to surge, especially in the US and the European Union where the TPMS use is mandatory for passenger vehicles, according to PMR.
The company identifies the leading TPMS suppliers as Sensata Technologies Inc., Continental AG, Pacific Industrial Co. Ltd, Huf Hülsbeck & Fürst GmbH. & Co. KG and ZF Friedrichshafen AG.
Mergers and acquisitions remain a key business strategy for leading players in the global automotive TPMS market, PMR said, noting major players in the global TPMS market are focusing on expanding their aftermarket businesses, as the aftermarket sales is a major revenue generation source for TPMS manufacturers.