Increasing focus on fuel economy worldwide will drive global market for automotive tire pressure monitoring system, reaching US$ 7.5Bn in 2016.
Stringent vehicle safety regulations are also estimated to push the market. Direct TPMS will be a clear dominator globally. The global automotive TPMS market is expected to register a compound annual growth rate (CAGR) of 6.7% in terms of value during the forecast period (2016-2024)
Rising adoption of automotive safety systems and strict regulations by various governments regarding TPMS equipment in passenger vehicles are predicted to be the key drivers throughout the forecast period. Increasing need for reduction in number of accidents caused as a result of low tire pressure, is also a major factor influencing the automotive TPMS market growth.
Direct TPMS will remain the dominant segment with nearly 99% of the total market revenue share, owing to technological advancement. Moreover, direct tire pressure monitoring systems need to be replaced after regular intervals, which is a key factor fueling their demand in market. Indirect TPMS segment is estimated to witness steady growth in developing nations because of lower costs.
By vehicle type, passenger cars will remain the largest segment, accounting for nearly 79% market share in terms of revenues, in 2016. Increasing preference for luxury cars and mandatory use of TPMS in passenger cars all over the U.S., EU, and South Korea is expected to propel the demand for automotive TPMS further.
Based on region, North America, the largest market for automotive TPMS, is expected to face strong competition from Asia Pacific. North America will account for over 47% revenues in 2016 but may drop the top position during the forecast period. Automotive TPMS are foreseen to witness robust demand in Europe as well. China, Japan, India, and Russia will emerge as highly lucrative markets for direct TPMS, following the potential regulatory legislations regarding TPMS.
Leading companies are expected to continue merger and acquisition strategy, followed by the expansion of aftermarket businesses, an emerging revenue generation channel.