Market Research Report
Automotive Tire Pressure Monitoring System (TPMS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
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|Automotive Tire Pressure Monitoring System (TPMS) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
|Published: April 21, 2021||Content info: 100 Pages||
The automotive tire pressure monitoring system (TPMS) market studied was valued at over USD 5 billion in 2020, and it is expected to reach a value of USD 12 billion by 2026 while registering a CAGR of more than 13.3% during the forecast period
With the shutdown of assembly lines and with social distancing norms and stringent lockdown all over the world due to the Covid-19 pandemic, the research and development of Tire Pressure Monitoring Systems were successfully carried out but the fabrication of materials and sensors phase had a fallback. This is where the market took a back step but with more personal mobility preference that is to come up post-pandemic, the market is hoping to get back up into a good economic position.
The major factors driving the TPMS market are:
Asia-Pacific is the largest market for automotive TPMS, with Japan and China as the major automotive hubs. The growing consumer awareness, aftermarket installation of TPMS, and increasing demand for luxury vehicles are expected to drive the market for automotive TPMS in India.
Increasing Adoption of TPMS in Passenger Cars
TPMS usually finds major applications in the passenger vehicle segment, where tire pressure management is considered to be a critical safety system. The automotive industry has been stepping up on introducing features that aid in minimizing the impact of collisions, reduce fatalities, and improve overall vehicle safety. This, in turn, is fueling the growth of the automotive TPMS market during the forecast period.
Despite the poor growth rate of the passenger vehicle segment, the market for premium luxury vehicles is expected to increase significantly in Asia-Pacific. Luxury vehicles are expected to witness an extremely high growth rate across the entire passenger vehicle segment. With TPMS fitted in a majority of these vehicles, the passenger vehicle segment is poised to drive the market for automotive TPMS significantly.
Companies, like Dill Air Control, are now producing TPMS systems for high-end models of automakers, such as Toyota, Lexus, BMW, Volkswagen, Hyundai, Chrysler, Jeep, and Rolls Royce. The sports-, premium-, and luxury-segment passenger cars from major automakers are now employing TPMS as a standard, with the tire pressure being displayed in the instrument panel display. With the growing consumer demand for vehicles with advanced safety features, TPMS is highly anticipated to be available as a standard in C-segment hatchbacks, Sedans, and SUVs.
Asia-Pacific Growing at a Fast Pace
The Asia-Pacific automotive TPMS market is expected to witness a high CAGR during the forecast period. Countries from Asia-Pacific are expected to hold a significant share in the global automotive TPMS market by the end of 2026.
The market in the region is driven by China and India. Factors, like increasing market penetration of premium cars and a rise in safety installations per vehicle (due to the adoption of safety regulations by governments/agencies), are accelerating the demand for TPMS and other ADAS. In the advanced economies of Asia-Pacific, like Japan, South Korea, and Singapore, safety systems, including automotive TPMS, featured in compact and mid-sized vehicles, are advanced in nature and usually at par with those available in Europe and North America.
In addition, the automotive OEMs in the region, such as Hyundai and Nissan, aim to increase their revenue by strategically manufacturing and integrating advanced automotive TPMS technology with safety systems. As a whole, although the regional market for TPMS is quite limited at present, it is expected to grow at a very high rate during the next five years.
Global players, such as Continental AG and Valeo, have their presence in Asia-Pacific, and their aggressive marketing strategies are expected to influence the market demand for automotive TPMS in the region during the forecast period.
The market for automotive TPMS is fairly fragmented, in terms of tier-2 and tier-3 supplies. However, regarding the supply to OEMs, companies, like Sensata Technologies, Huf Electronics, Continental, Infineon Technology, Lear Corporation, and ZF TRW, dominate the market.
The demand for products with high accuracy and durability was one of the main reasons for automakers to prefer products from major manufacturers. Additionally, these big players increased their R&D spending exponentially to integrate automotive TPMS with other safety-related solutions. This resulted in better TPMS-based advanced driver assistance systems for automotive applications.