Tire Pressure Monitoring Systems Market Size, Share | 2031

Report Description

The global tire pressure monitoring systems (TPMS) market size was valued at USD 5.98 Billion in 2022 and is likely to reach USD 12.30 Billion by 2031, expanding at a CAGR of 8.34 % during the forecast period, 2023 – 2031. The market's growth is attributed to the increasing incidence of road accidents and the growing adoption of TPMS in vehicles to enhance fuel economy.

Growing adoption of TPMS in vehicles to enhance fuel economy is estimated to fuel the market growth. The rolling resistance of any vehicle directly impacts energy or fuel consumption. TPMS offers ideal rolling resistance by maintaining proper tire pressure, which facilitates better fuel economy in vehicles.

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Tire pressure is an electronic monitoring system that monitors the air pressure inside the tires in vehicles. It alerts drivers in real-time using a pictogram display, a gauge, or a simple low-pressure warning light when tire pressure is too low, which creates unsafe driving conditions. It also lowers the car's fuel consumption and CO2 emissions.

Increasing incidence of road accidents due to flat tires or underinflated tires creates a lucrative demand for tire pressure monitoring systems. TPMS system helps drivers avoid potential tire-related accidents by detecting and providing early warnings about low pressure in tires, which creates risky driving situations.

• For instance, according to the National Transportation Safety Board, each year, about 33,000 tire-related passenger vehicle crashes occur, resulting in about 19,000 injuries.

Impact of Artificial Intelligence on Tire Pressure Monitoring Systems

AI-powered tire management systems use data from TPMS sensors to optimize tire performance and longevity. It maintains pressure adjustments based on driving conditions and usage patterns. Artificial intelligence algorithms are applied to TPMS to analyze tire pressure data and identify patterns that indicate potential tire failures.

AI-based TPMS predicts tire failures with high accuracy and provides early warning to drivers, helping them avoid accidents. AI-enabled tire pressure monitoring systems are based on vehicular networking technology that offers reliable safety while saving costs.

The COVID-19 pandemic hampered the demand for tire pressure monitoring systems. The abrupt rise of COVID-19 infection encouraged governments to impose lockdowns all across the world, which drastically hindered the production of microchips, which are used in TPMS automobiles, significantly impeding the global market.

Moreover, a sharp fall was seen in the production of automobiles during the pandemic, which hindered the demand for tire pressure monitoring systems as these systems are installed in vehicles such as cars, trucks, and buses.

• For instance, according to the International Organization of Motor Vehicle Manufacturers, a 16% decline was seen in the production of automobiles in 2020.

Tire Pressure Monitoring Systems Market Dynamics

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Major Drivers

Increasing adoption of automotive safety systems is expected to boost the demand for tire monitoring pressure systems. TPMS is a part of the automotive safety system that is designed to monitor the air pressure of tires to avoid crashes and collisions by detecting flat or under-inflated tires, which encourages people to adopt automotive safety systems such as airbags and TPMS.

Moreover, as the market for automotive safety is rapidly growing, the demand for TPMS is expected to boost in the coming years.

• For instance, the market for automotive safety systems was valued at USD 93.28 billion in 2021 and is expected to reach USD 127.2 billion by 2027.

Growing strict government regulations to install tire pressure monitoring systems in vehicles are projected to drive the market. Governments all around the world are mandating the installation of TPMS in all new passenger cars and multipurpose passenger vehicles to reduce traffic accidents such as rollovers and tire blowouts, which occur due to insufficient air pressure levels.

• For instance, US legislators included tire pressure monitoring as part of its TREAD Act legislation, mandating the installation of TPMS in all new vehicles, aimed at increasing driver safety.

Existing Restraints

Software failures associated with tire monitoring pressure sensors are expected to restrict market growth as sensors are susceptible to damage during mounting or demounting. Moreover, the high cost linked with TPMS is anticipated to hinder market growth. Tire pressure monitoring systems are expensive as they include components like batteries and sensors.

Emerging Opportunities

Increasing investment in research & and development activities by major market players to develop new products in tire pressure monitoring systems creates an immense opportunity in the market. For instance, on June 29, 2022, Sensata Technologies developed the Bluetooth Low Energy (BLE) tire pressure monitoring system to address the market towards smarter and connected tires. BLE TPMS helps improve vehicle safety, performance, and the driving experience.

Scope of Tire Pressure Monitoring Systems Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Tire Pressure Monitoring Systems Market Segment Insights

Type Segment Analysis

In terms of type, the tire pressure monitoring systems market is bifurcated into direct TPMS and indirect TPMS. The direct TPMS segment held a large market share in 2022 and is estimated to grow at a significant pace during the assessment period owing to accurate tire readings and re-synchronized sensors.

Direct TPMS monitors specific tire pressure levels through monitoring sensors present within each tire and transmits the data wirelessly to a central receiver, which displays the information on a dashboard indicator or a screen. It detects slow leaks, temperature changes, and individual tire conditions to offer accurate tire readings to drivers.

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Channel Type Segment Analysis

Based on channel type, the global market is categorized into OEM and aftermarket. The OEM segment accounted for a major market share and is projected to grow at a high CAGR during the forecast period due to better quality, increased durability, and more lifespan.

Original equipment manufacturer (OEM) TPMS is designed and produced by the manufacturer of the vehicle, which enhances the quality and lifespan of TPMS. Moreover, consumers prefer OEM as it is guaranteed to fit and provides a manufacturer-backed warranty, significantly boosting the demand for OEM tire pressure monitoring systems.

The aftermarket is anticipated to grow at a quick pace during the projection period owing to low cost or less expensive compared to OEM, which encourages car owners to adopt aftermarket TPMS. Moreover, aftermarket TPMS are widely available and are purchased from a variety of sources, including auto parts stores, independent mechanics, and online retailers, thus propelling segment growth.

Vehicle Type Segment Analysis

On the basis of vehicle type, the tire pressure monitoring systems market is segregated into passenger vehicles and commercial vehicles. The passenger vehicles segment dominated the market share in 2022 due to the increasing safety measures in passenger vehicles coupled with government initiatives.

Governments around the world are mandating the installation of TPMS in all passenger vehicles, which boosts the demand for TPMS in passenger vehicles. Additionally, major market players are manufacturing passenger vehicles with inbuilt TPMS to offer enhanced safety & security.  

• For instance, On May 4, 2022, Honda launched the Honda City Hybrid with inbuilt 6 airbags, ORVM-mounted lane-watch cameras, a multi-angle rear-view camera, and a tire pressure monitoring system (TMPS).

The commercial vehicles segment is estimated to grow at a quick pace during the assessment period owing to better safety and efficient fuel economy. TPMS increases the safety of commercial vehicles by maintaining proper tire pressure, which improves the vehicle's handling, decreases tire wear, reduces braking distance, and enhances safety and efficient fuel economy. Moreover, key companies are collaborating to introduce new technologically advanced TPMS for heavy-duty and commercial vehicles.

• For instance, on October 25, 2022, Volvo Group, Qamcom Group, and the inventor Roman Iustin formed a new start-up company, Fyrqom AB. The new company will offer an automated system for calibration of the tire pressure monitoring system (TPMS) on heavy-duty vehicles.

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Regional Analysis

In terms of region, the tire pressure monitoring systems market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Europe held a large market share and is expected to grow at a considerable pace in the coming years due to the presence of established companies such as Continental AG and Valeo.

Moreover, the European automotive market is equipped with advanced technology and autonomous vehicles, which significantly increases the demand for TPMS. Additionally, governments across Europe are mandating the installation of TPMS in vehicles, propelling the market growth.

• For instance, the European Union's “General Safety Regulation” (GSR) mandated the fitment of tire pressure monitoring (TPMS) across Europe on all new trucks, trailers, buses, and coaches from July 6, 2022.

Asia Pacific is anticipated to witness a high CAGR growth during the assessment period owing to the increasing adoption of luxury cars and growing awareness among consumers regarding vehicle safety. Moreover, the government's favorable support to mandate the installation of TPMS in vehicles is boosting the demand for tire pressure monitoring systems.

• For instance, on July 22, 2020, the Ministry of Road Transport and Highways (MoRTH) of India issued a notification that amended the Central Motor Vehicles Rules with new norms. This new norm directed manufacturers to install repair kits and tire pressure monitoring systems (TPMS) in all cars and SUVs with tubeless tires.

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