Technavio analysts forecast the global tire pressure monitoring systems (TPMS) market to grow at a CAGR of close to 15% during 2016-2020.
Technavio analysts highlight the following three factors that are contributing to the growth of the global tire pressure monitoring systems market:
Reduction in fuel consumption and carbon emissions from vehicles
Advance automotive technologies are aimed at making the driving experience safer, comfortable, and convenient in addition to making them eco-friendly in nature. Rolling resistance from tires plays a crucial role in delivering the optimum fuel efficiency and level of exhaust emission from the vehicle. It has been found that low pressure in the tire leads to high rolling resistance. According to industry experts, with every 1 bar pressure drop in the tire from the stipulated value, the rolling resistance of tire increases by 20%-25% in passenger cars. A higher rolling resistance leads to increased fuel consumption by the engine, which results in significant reduction of the vehicle’s fuel efficiency.
The need for a device that can monitor the tire pressure continuously becomes crucial for optimum fuel efficiency and lower emissions. TPMS is one of those systems that can continuously monitor tire pressure to increase fuel efficiency can help reduce the exhaust emission from the vehicles by 0.6%-0.9%, which may arise due to under inflated tires.
Strict government mandates to curb vehicular emissions and increase fuel efficiency
The governments and automotive governing councils of various nations worldwide are encouraging the use of advanced systems and technologies that can help in reduction of vehicular emissions for a cleaner and healthier environment. In addition to these, governments of many countries have enforced various rules and initiatives that are aimed at the use of energy-efficient technologies. Gauging at the consequences of greenhouse effects and deteriorating air quality with increased vehicular emissions worldwide, the governments of various economies have mandated emission standards to be followed by the automakers.
TPMS form a part of rapidly growing ADAS market
As TPMS form a key feature of the overall ADAS suite in vehicles, we can justify the correlation between ADAS and TPMS markets. Hence, it is imperative to understand the market for ADAS and derive a consensus, should the penetration of ADAS increase the demand for TPMS at the same pace.
ADAS essentially consist of sub-systems and features that work independently. These features are combined to provide assistance, which not only ensures safety but also comfort and convenience to drivers of modern day vehicles. The inception of this technology can be attributed to the constantly tightening safety regulations that pushed the automotive value chain to develop technologies that could not just satisfy the regulatory requirements but also prove helpful in gaining a competitive advantage in the form of product differentiators.