Automatic Tire Inflation System Market

[316 Pages Report] The automatic tire inflation system market is projected to grow from USD 82 million in 2023 to USD 138 million by 2028, at a CAGR of 10.7% during the forecast period. The increased demand for heavy-duty vehicles and farm tractors would create growth opportunities for the ATIS market. North America and Europe remain the key market for ATIS, though the demand is also increasing in Asia-Pacific.

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Market Dynamics

DRIVER: Increase in tire and drivetrain life.

Tire Inflation Pressure and Life of tire

The tire of a vehicle is designed in such a way that it has uniform contact with the road surface across its width and can spread the load it carries across the full width of the tread. This condition only happens when there is even and optimal wear across its tire tread, producing maximum tire life. The over-inflated or under-inflated tires cannot achieve uniform contact of the tread with the road surface and, as a result, generally experience uneven wear and reduced tire life. The tire depends on factors like tire heating, tire sidewalls crack, even out-of-tread segments, and road conditions. Low tire pressure allows side walls to flex excessively; there can create heat. A moderate amount of heat affects the tire tread wear. Even high heat leads to loss of tread segments or even blowout.

According to the research study conducted by Federal Motor Carrier Safety Administration (FMCSA), improper tire inflation accounts for 80% of tread separations, bruises, cuts, blowouts, and crushes. A pressure drop of only 5 PSI reduces tire life by 25%. According to the American Trucking Associations Technology & Maintenance Council, a constant 20% underinflation will reduce tire life by 30%, and 40% underinflation will reduce tire life by 50%.

Thus, the growing demand for fuel efficiency in vehicles, along with the comfort and convenience offered by the ATIS, and rising demand for tires with less maintenance and repair, further raise the demand for automatic tire inflation system during the forecast period.

RESTRAINT: Increasing Demand For Airless And Nitrogen-Inflated Tires

Tubeless and nitrogen tires do not support the automatic tire inflation system. Nitrogen tires offer benefits such as high fuel economy, lower rolling resistance, and IPLR resulting in the enhanced service life of vehicles. The market for nitrogen tires is growing as many manufacturers prefer nitrogen as an inflation gas. Companies such as Goodyear (US) and Continental (Germany) support nitrogen as an inflation gas in tires. Inflating tires with nitrogen improves steering, improves handling, improves braking, reduces tire oxidation, eliminates interior wheel corrosion, reduces running temperatures, and decreases false alarms from the tire pressure monitoring system.

Tubeless tires work at an optimum level in better road conditions. Governments in developed and emerging economies worldwide are making significant investments in constructing better road networks. India and China are investing in developing road infrastructure. In 2020, the US government announced USD 63 billion for infrastructure and granted an additional USD 83 billion in infrastructure funding to states that would build strong connectivity. In 2020, the European Commission invested USD 2 billion in 140 transport projects to boost the transport infrastructure in the region. The European Union will seek to mobilize USD 340 billion in public and private infrastructure investments by 2027 to offer emerging countries.

According to Organization for Economic Co-operation and Development (OECD), China's Belt and Road Initiative (BRI) development strategy aims to build connectivity and cooperation across six main economic corridors encompassing China and: Mongolia and Russia; Eurasian countries; Central and West Asia; Pakistan; other countries of the Indian sub-continent; and Indochina. Asia needs USD 26 trillion in infrastructure investment by 2030. In India, the government announced road projects worth USD 13.48 billion (Rs. 1 lakh crore) to develop road infrastructure in Jammu and Kashmir. The region has also witnessed growth in national highways, from 7 in 2014 to 11 in 2021.

OPPORTUNITY : Rise in the integration of telematics in vehicles

Telematics has merged into the automotive mainstream at a rapid rate. Car telematics help improves driving behavior, road safety, vehicle function monitoring, and preventive maintenance check-up. According to the Global System for Mobile Communications (GSMA), the telematics industry is expected to reach USD 750 billion by 2030. There are two major reasons for the growth of the telematics industry. First is governments' increasing willingness to mandate telematics services such as emergency-call capabilities, which is already happening in the European Union and Russia—the second is the increasing demand for greater connectivity and intelligence in vehicles.

Major technology giants are partnering with tire inflation system manufacturers to offer telematics features, which improve the driving experience and enhance the comfort and safety of vehicles. In 2019, Phillips Connect Technologies partnered with Pressure Systems International to offer telematics solutions for P.S.I.’s Automatic Tire Inflation System and TireView products. The system proactively pre-checks the status of a transportation asset remotely from any device connected to the internet. It can be helpful for fleet owners to monitor the tire check-up remotely. Pirelli Cyberfleet, for example, includes sensors in the tires (of any type and brand if they are tubeless) that detect the operational parameters and send them to an app for smartphones/tablets.

According to a trial demonstrated by Matrix Telematics, with the use of telematics, there was a reduction in monthly miles driven by the truck fleet and a significant average increase in MPG fuel efficiency by more than 14%, while speeding offenses also reduced significantly. Thus, the growing application of connectivity and data transmission and implementation of stringent emission standards is expected to drive the adoption of telematics, ultimately driving vehicle tire inflation systems.

CHALLENGE: High Cost of Automatic Tire Inflation System

The growth of the advanced tire inflation system has been restricted to large load-carrying vehicles as high manufacturing and maintenance costs are involved. For example, an inflation system such as central tire inflation costs more than three times the tire pressure monitoring system in heavy commercial vehicles. Vehicles with an automatic tire inflation system are more expensive than others. Therefore, an automatic tire inflation system adds to the overall cost of the vehicle. Advanced tire inflation system involves multiple electronic components, which helps it for proper inflation. However, this increases the overall cost of the system. These tire inflation systems are manufactured with various components such as wheel valves, electronic control units (ECU), air delivery systems, operator control panels, and speed and pressure sensors with various switches. The pressure sensor is placed in an automatic tire inflation system to track tire pressure status. The air delivery system is responsible for delivering adequate pressure to the tires.

The high cost of the system impacts the commercialization of the vehicle and increases the overall costs of the vehicle. Adopting automatic tire inflation systems is increasing in developed economies in North America and Europe. Manufacturers such as Goodyear (US) and Michelin (France) have strong distribution networks for selling automatic tire inflation systems in developed economies. Additionally, the governments in these developed countries have started promoting automatic tire inflation systems.

Central Tire Inflation System is estimated as the largest type over the forecast period.

The central tire inflation system segment is estimated to lead the market owing to its high fuel efficiency and increased safety. Central tire inflation systems provide smooth driving conditions for the driver. They offer an advantage over continuous tire inflation systems by creating a larger area between the tire and the surface that limits tire damage.

Furthermore, many leading tire inflation system providers such as EnPro Industries (US), Michelin (France), IDEX Corporation (US), SAF-HOLLAND (Germany), and Dana Incorporated (US), and others are offering central tire inflation systems for heavy-duty vehicles applications. For instance, In April 2023, BFGoodrich Tires introduced a new product called BFGoodrich® ActivAir, a fully integrated tire inflation system designed to enhance off-road capabilities. This system enables drivers to adjust tire pressure without leaving their seats, offering convenience and flexibility in various off-road situations. In 2019, Inside Trelleborg Wheel Systems and Dana Incorporated jointly developed a product called CTIS+ Inside. The central pressure control system will enable tractor drivers to inflate or deflate tire pressures directly from the tractor cabin, according to the recommended pressure calculated by the advanced Trelleborg Load Calculator (TLC) software.

The ECU segment will dominate the market.

DURING THE FORECAST PERIOD, the ECU segment is estimated to lead the ATIS market.

The ECU is responsible for monitoring each tire's tire pressure on a vehicle and alerting the driver if the pressure falls below a certain threshold. ECUs used in automatic tire inflation systems are increasingly designed to integrate with other vehicle systems, such as telematics and vehicle control units. This integration allows for more comprehensive monitoring and control, providing real-time tire pressure data and enabling proactive maintenance and diagnostics. In a typical automatic tire inflation system, the cost of the ECU can range from around 25% to 30% of the system's total cost. ECU costs more than other components used in the overall automatic tire inflation system.

The need for improved safety, regulatory compliance, fuel efficiency, and tire longevity drives the rising demand for ECUs in automatic tire inflation systems. As the automotive industry prioritizes these aspects, adopting automatic tire inflation systems with ECUs is expected to increase further.

North America is expected to dominate the component segment during the forecast period. North America has implemented regulations that mandate using tire pressure monitoring systems (TPMS) in vehicles. TPMS typically rely on ECUs to monitor tire pressure and provide alerts to drivers in case of deviations. These regulations, such as the US Federal Motor Vehicle Safety Standard (FMVSS) 138, have driven the widespread adoption of ECUs in automatic tire inflation systems.

ECU plays a crucial role in the tire inflation system by integrating sensor inputs, monitoring tire pressure, controlling the inflation and deflation process, regulating pressure levels, performing diagnostics, and facilitating communication with the driver and other vehicle systems. It ensures optimal tire pressure, improving safety, fuel efficiency, and performance. ECU enables the automation of inflation and deflation and the interface between all other system components. Hence, with the increasing demand for ATIS in North America, there will be an increase in the demand for ECUs. The cost of the ECU is declining rapidly owing to the advancements in semiconductor technology.

Agricultural Tractors to Dominate the automatic tire inflation system market

During the forecast period, agricultural tractors dominate the automatic tire inflation system market. This is mainly because the tire inflation system in agriculture tractors has proven effective. Many OEMs are investing in R&D activities to develop new and efficient tire inflation systems, driving the growth of this segment. Companies such as Dana Incorporated (US), TI Systems (Germany), Michelin (France), and Haltec Corporation are some of the major companies that have invested in R&D and developed CTIS products, especially farm tractors and construction equipment. John Deere has its CTIS system for its farm tractors, an optional feature in certain regions such as the Middle East & Africa and Europe. The >250 HP farm tractor market is expected to hold the largest market in Europe during the forecast period. The increasing popularity of commercial farming and new product launches by various major players is expected to boost the market in the region. For instance, John Deere has launched the John Deere 8 Series Tractor MY22's new central tire inflation system (CTIS) allows for quick tire pressure adjustments from the cab.

The need for optimal traction, soil protection, increased efficiency, and crop preservation drives the demand for tire inflation systems in agriculture tractors. While tire inflation systems can also benefit construction equipment, the specific requirements and priorities in the construction industry may differ, leading to relatively lower demand than agriculture tractors. Large farm tractors are used by professional farmers who have large landholdings. The adoption of ATIS in these tractors having above 150 HP is expected to witness high growth. Europe and North America are expected to be potential markets for these tractors equipped with ATIS.

Companies like Michelin (France), Dana Incorporated (US), CLAAS (Germany), and John Deere (US) use their CTIS in farm tractors. In 2019, Michelin launched the ZEN@TERRA CTIS, the first project resulting from its collaboration with PTG. This solution allows farmers to change the tire pressure from the tractor cab to low pressure in the fields and switch to higher road pressure for higher speeds. Dana offers the Spicer® CTIS (Central Tire Inflation System), designed for agriculture tractors. It allows operators to adjust tire pressure on the go, improving traction, fuel efficiency, and tire life. Michelin (US) launched Michelin Auto Inflate, allowing off-road vehicles such as tractors to maintain an ideal tire pressure automatically. Michelin Auto Inflate can save USD 2,400 per tractor-trailer annually by decreasing tire-related downtime, increasing tire life, improving fuel economy, and enhancing vehicle safety. These benefits are expected to drive off-road vehicles' automatic tire inflation system market.

North America is estimated to be the largest market in 2023

American automotive manufacturers such as EnPro Industries, Goodyear Tire & Rubber Company, Dana Incorporated, IDEX Corporation, The Boler Company, Airgo Systems, Aperia Technologies, Haltec Corporation, Pressure Systems International, Opladen LLC, Trans Technologies Company, Servitech Industries, Vigia, and Velocity offer automatic tire inflation systems.

In 2023, the US was the largest market for automatic tire inflation systems for on-highway vehicles in the region, with a market share of >90%, followed by Canada (~4%) and Mexico (~2%). North America is the largest manufacturer of light commercial vehicles. The region is expected to grow in the automatic tire inflation system market for all vehicle types in the coming years.

Many accidents related to tire malfunction occur in the US every year. According to NHTSA, 733 traffic fatalities occurred due to tire malfunctioning in 2016. The NHTSA also estimated that automatic tire inflation systems could save 260,000 accidents annually.

Key Market Players

The ATIS market is led by established players, such as Dana Incorporated (US), MICHELIN (France), IDEX Corporation (US), Enpro Industries (US), MERITOR (US), SAF-HOLLAND (Germany), and CLAAS (Germany). These companies have adopted several strategies to gain traction in the market. They have expanded in various geographical locations through mergers & acquisitions and expansions and entered into joint ventures/collaborations with other industry players to sustain their position in the market.

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Scope of the Report

With the given market data, MarketsandMarkets offers customizations per the company’s specific needs.

The study segments the Automatic tire inflation system market:

By Type:

• Central Tire Inflation
• Continuous Tire Inflation

By Component

• Rotary Union
• Compressor
• Pressure Sensor
• Housing
• Air Delivery System
• ECU
• Buffer Tank

By On-Highway Vehicle

• Light Duty Vehicle
• Heavy-Duty Vehicle

By Off-Highway Vehicle

• Agriculture tractors
• Construction Equipment

Electric Truck Automatic Tire Inflation System Market, By Propulsion

• Battery Electric Truck
• Plug-In Hybrid Electric Truck
• Fuel Cell Electric Truck

Electric Bus Automatic Tire Inflation System Market, By Propulsion

• Battery Electric Bus
• Plug-In Hybrid Electric Bus
• Fuel Cell Electric Bus

Automatic tire inflation system market for Agriculture Tractors, By Type

• Central Tire Inflation
• Continuous Tire Inflation

Automatic tire inflation system market for Construction Equipment, By Type

• Central Tire Inflation
• Continuous Tire Inflation

By Sales Channel

• OEM
• Aftermarket

By Region

• Asia Pacific
• North America
• Europe
• Rest of the World [RoW)

Recent Developments

• In April 2023, BFGoodrich Tires has recently introduced a new tire-inflation system, ActivAir, which allows off-roaders to change their tire pressure without leaving the driver's seat. ActivAir is fully integrated and enables drivers to adjust their tire pressure to specifications. The patented technology has been pressure-tested and developed by some experienced builders in the most challenging terrains, such as the Dakar Rally and the Ultra4 Racing circuit. The driver can choose from four operating terrains, and the system automatically inflates or deflates the tires. Skilled drivers can manually select their desired pressure. ActivAir helps drivers to maximize traction and transfer all available power to the ground for an optimized off-road driving experience.
• In March 2023, SAF-HOLLAND SE completed its acquisition of Haldex AB in Sweden and now owns 100% of the firm. Haldex manufactures braking systems and air suspension solutions that improve commercial vehicle safety, performance, and longevity.
• In October 2022, Spicer Electrified eSP502 e-Transmission, a versatile platform created to support the electrification of vehicles across the construction, mining, material handling, and forestry markets, was introduced by Dana Incorporated.
• In 2021, John Deere(US) launched its 8R series tractor with home-built ATIS integrated into them as an option.

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