The global Tire Pressure Monitoring System (TPMS) market is set for significant growth in the coming decade. With advancements in automotive safety and a push towards more energy-efficient vehicles, the TPMS market has been expanding steadily. According to the latest research by CMI, the market is expected to witness a Compound Annual Growth Rate (CAGR) of 9.2% from 2024 to 2034. This growth trajectory is supported by a range of factors, including stricter safety regulations, an increasing number of vehicles on the road, and a rise in awareness about the benefits of proper tire maintenance. The market, valued at USD 5.55 billion in 2022, is projected to reach an impressive USD 14.55 billion by 2034.
Key Market Segments
The TPMS market can be categorized into different segments based on type, sales channel, vehicle type, and propulsion method. Understanding these segments is essential to identify the specific growth drivers and trends impacting the industry.
1. By Type: Direct TPMS vs. Indirect TPMS
- Direct TPMS: This system uses sensors inside each tire to directly measure air pressure, providing precise data on individual tire pressures. Direct TPMS is known for its accuracy and reliability, making it the preferred choice for many manufacturers, especially in safety-oriented vehicle models. However, it is generally more expensive than indirect systems, which can affect its adoption in certain regions.
- Indirect TPMS: Unlike direct systems, indirect TPMS does not directly measure tire pressure. Instead, it uses wheel speed sensors and the vehicle’s ABS system to estimate tire pressure, based on rotational speed discrepancies among tires. This approach is often cheaper and easier to implement, making it popular in entry-level and cost-sensitive models.
2. By Sales Channel: OEM vs. Aftermarket
- OEM (Original Equipment Manufacturer): OEM sales dominate the TPMS market as an increasing number of manufacturers incorporate TPMS into their vehicles to comply with stringent safety regulations. As governments worldwide enforce tighter safety standards, the demand for TPMS as an OEM-installed system is projected to increase, especially in regions like North America and Europe.
- Aftermarket: The aftermarket segment for TPMS is also growing, driven by vehicle owners seeking to improve safety and performance. As awareness of TPMS benefits grows and retrofitting costs become more affordable, demand in the aftermarket is expected to rise, especially in developing regions where TPMS may not be mandated but is viewed as a valuable safety upgrade.
3. By Vehicle Type: Passenger, Light Commercial, and Heavy Commercial Vehicles
- Passenger Vehicles: Passenger cars make up the largest share of the TPMS market. With a higher focus on safety and convenience, most passenger vehicles today are equipped with TPMS, either through regulation or consumer demand. The growth in electric vehicles (EVs), particularly in the passenger segment, also supports TPMS adoption, as maintaining optimal tire pressure is crucial for maximizing EV efficiency.
- Light Commercial Vehicles (LCVs): In the light commercial vehicle segment, the demand for TPMS is growing, especially in delivery and logistics sectors, where tire efficiency directly impacts fuel consumption and operational costs. This trend is particularly pronounced in regions with extensive last-mile delivery networks.
- Heavy Commercial Vehicles (HCVs): For heavy commercial vehicles, TPMS adoption is increasingly seen as essential for safety and cost-saving reasons. The high operational costs associated with fuel and tire replacements make TPMS an attractive solution for fleet operators looking to reduce expenses and improve safety.
4. By Propulsion: ICE, Electric and Hybrid, and Alternate Fuel Vehicles
- Internal Combustion Engine (ICE): The ICE segment remains dominant, but regulatory changes and a gradual shift towards electric and hybrid vehicles influence TPMS needs and designs.
- Electric and Hybrid Vehicles: As electric and hybrid vehicle adoption grows, so does the demand for TPMS. Electric and hybrid vehicles have a greater need to maintain optimal tire pressure to extend battery life and maximize efficiency. Automakers are thus prioritizing TPMS integration in these vehicle categories.
- Alternate Fuel Vehicles: Although a smaller segment, vehicles powered by alternate fuels like hydrogen and biofuels are also adopting TPMS to improve safety and efficiency. This segment is expected to grow as more companies explore sustainable vehicle options.
Market Drivers and Trends
- Stringent Safety Regulations: The enforcement of safety regulations mandating TPMS installation is a major market driver, especially in regions such as North America, Europe, and parts of Asia. With these regulations evolving, TPMS is increasingly seen as a standard safety feature.
- Rising Awareness of Fuel Efficiency: Proper tire pressure management directly impacts fuel efficiency, which is a critical factor as fuel prices fluctuate and environmental concerns grow. TPMS helps optimize fuel consumption by reducing tire wear and rolling resistance.
- Growth of Electric Vehicles: The rapid adoption of electric vehicles worldwide is expected to positively impact the TPMS market, as these vehicles benefit from TPMS to improve range and efficiency.
Conclusion
The Tire Pressure Monitoring System market is poised for considerable growth through the next decade. Factors such as regulatory mandates, rising awareness of road safety, fuel efficiency, and technological advancements are driving the market forward. Each market segment, from direct to indirect TPMS and OEM to aftermarket channels, plays a unique role in shaping this expanding industry. As TPMS technology continues to evolve, and the automotive industry increasingly prioritizes safety and sustainability, the TPMS market is expected to be integral in advancing vehicle safety and efficiency worldwide.
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