Direct TPMS Drives North American Tire Pressure Monitoring System Market

Reportlinker.com announces that a new market research report is available in its catalogue: Strategic Analysis of the North American Market for Tire Pressure Monitoring Systems

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OEM Preference for Direct TPMS Will Cap Indirect TPMS at 2% Penetration by 2020

Key Findings

• Almost 99.7% of the revenue in the North American tire pressure monitoring system (TPMS) market is currently contributed by direct TPMS.

Region Level

• The North American TPMS market is expected to contribute a revenue of about $xx billion in 2020, at a compound annual growth rate (CAGR) of xx %.

Technology Mix

• The TPMS market in North America is more inclined toward direct systems rather than indirect systems.

OEM Level

• Audi and Volkswagen (VW) of the Volkswagen Group prefer an indirect system over a direct system.
• Original equipment manufacturers (OEMs) such as Honda and Fiat are expected to follow the same in the coming years.

Suppliers

• Schrader is the market leader for direct TPMS in North America. NIRA Dynamics and Continental are fast-growing suppliers of indirect systems with a tire pressure indicator (TPI) and a deflation detection system (DDS) with LocSync software.

Comparative Analysis by Segment

• While suppliers of direct TPMS focus on producing low-cost TPMS solutions, the suppliers of indirect TPMS target customer value enhancement.
• Demand growth is from xx million units in 2012 to about xx million units in 2020.
• Suppliers are eager to produce cost-efficient direct TPMS sensors to compete with low-cost indirect TPMS. Focus is more toward the development of sensing technologies.
• OEMs and consumers will likely prefer indirect TPMS over direct TPMS in the coming years.
• Suppliers address the requirements of customers to add more value to their products.

Key Conclusions and Future Outlook

• Trends of TPMS market will have positive but flat growth until 2020.

Market Status :

• Robust growth is observed in the market, and TPMS legislation is driving the growth of TPMS.
• The market is expected to have steady growth until 2020.

Competition

• With a combined share of xx %, the market is consolidated by xx participants (Schrader, Continental, and Pacific) in North America.
• Competition is aggressive from market participants such as Pacific and Continental and newer participants for intelligent tires.

Solutions

• Interest persists in reducing the price of direct TPMS sensors.
• Higher level of awareness among end users is pushing concentration levels toward indirect systems.

Technology

• The market will likely shift from direct to indirect TPMS in the coming years.
• Hybrid TPMS is expected to gain significance after 2018.
• Deflation warning with auto-location and intelligent tires has potential in the future.

Value Proposition

• Suppliers have the ability to offer low-cost direct TPMS sensors with high performance.
• OEMS have the ability to integrate applications into TPMS (for example, remote keyless entry (RKE) and direct TPMS) and provide battery-less TPMS sensors.
• Systems will be fuel-efficient.

Barriers in the North American Market

• There is a need for consumer/public awareness.
• With cost competitiveness, there is a need to adapt strategic pricing methods that incorporate advanced embedded and sensing technologies.

Source: http://www.reportlinker.com/