Report: Global TPMS market will be worth $3 billion by 2017

The global Tyre Pressure Monitoring System (TPMS) market could be worth around US$3 billion according to a report published by Global Industry Analysts (GIA).

According to the paper, the TPMS market is driven largely by legislation. Several pieces of legislation already exist in places like the US and will shortly be implemented in Europe and Asia. Over the last decade, governments around the world have focused on legislating active road safety measures, given the rise in the number of casualties on road worldwide. Unlike in the US where the TPMS legislation was solely driven by safety issues triggered by the massive recall of tyres due to tread separation in 2000, in Europe TPMS legislation is driven by fuel efficiency benefits and reduction of CO2 emissions. With the exception of South Korea, the Asia-Pacific region, by comparison, has no mandatory TPMS legislation and market penetration is currently low. However, success in lobbying efforts in mandating TPMS in the region could result in Asia emerging into a driving force in the world TPMS market.

GIA reports that the US represents the largest regional market. Direct TPMS have the deepest penetration here as regulations mandate the use of direct TPMS after studies revealed the ineffectiveness of indirect TPMS in sending out timely alerts, thus making the system unreliable. Despite its higher cost, direct TPMS dominates the market supported largely by legislations mandating direct TPMS, which has in effect changed the market from a value proposition business to a commodity business. Unlike in the US, EU legislation is technology neutral and allows both indirect and direct tyre pressure monitoring systems to be used as long as they conform to the defined specifications.

Given that market opportunities for TPMS are largely dependent upon the overall health of the automobile industry, the recent economic recession is said to have temporarily held back growth in the global TPMS market. The unusually pronounced length, depth and magnitude of the current recession sent ripples of unrest across the entire automotive value chain including the market for TPMS.

According to the report, the trickle down impact of the depressing business climate in the automotive industry on this market was reflected in the growth rates, which largely failed to meet the optimistic expectations of the pre-recession era. However, as the heat and dust raised by the economic turmoil settles down and the current year limps out on a broken economy, improvement in the business environment and recovery in growth, which is already visible, is forecast to be in sync with the resurgence in automobile production.

GIA reports that Alps Electric Co Ltd, Bendix Commercial Vehicle Systems LLC, BorgWarner BERU Systems GmbH, Continental AG, Delphi Automotive LLP, Dunlop Tech GmbH, General Electric Company, Hella KGaA Hueck & Co., Kavlico Corporation, PressurePro, Pacific Industrial Co. Ltd., Robert Bosch GmbH, Schrader Electronics Ltd, Silicon Microstructures Inc., Transense Technologies Plc, TRW Automotive Holdings Corp., and VTI Technologies Oy are all major players in this market.

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