Automatic Tire Inflation System Market

Global Automatic Tire Inflation System Market Size (2024 to 2032)

The global automatic tire inflation system market was valued at USD 0.83 billion in 2023 and is anticipated to reach USD 0.93 billion in 2024 from USD 2.21 billion by 2032, growing at a CAGR of 11.5% from 2024 to 2032.

MARKET DRIVERS

The automotive tire inflation system (ATIS) comprises a rotary joint, compressor, and hoses to track and adjust the air pressure in vehicle tires. The spike in the manufacturing of vehicles around the world is acting as a primary catalyst for growth in the global automatic tire inflation system market. The rise in the usage of trucks and off-road vehicles in the commercial fleet, along with the increased demand for electric vehicles (EVs), sport utility vehicles (SUVs), and compact SUVs, is also driving the growth in the tire inflation system business. Also, the focus on fuel efficiency and improved performance is acting as a benefactor for tire inflation systems as they help optimize air pressure in the tire and decrease rolling resistance during the movement.

In addition, the enhanced security offered by these systems to avoid conditions like tire blasts and punctures at remote places is drawing more consumers, which supports the sales in the automatic tire inflation system market. Companies in the automotive sector are continuously funding research and development activities to improve the reliability of components like tire inflation solutions. Besides, the increasing developments in technology like advanced sensors, telematics systems, and data analytics are creating a positive outlook for the automatic tire inflation system market. Also, the latest trend of electric vehicles with the requirement of special tires and green tires to decrease carbon footprint is likely to fuel the business for tire inflation systems. Moreover, the expansion of the commercial fleet and tractors in agricultural practices, along with reduced maintenance costs for the vehicles, is predicted to generate new growth opportunities for the global automatic tire inflation system market in the anticipated period.

MARKET RESTRAINTS

Although the tire inflation system provides advantages in the long run, the initial setup cost of this system is very expensive, impacting its adoption by vehicle operators. Also, several geopolitical and economic factors like factory shutdowns and strikes lead to uncertainty in commercial activities, affecting business operations. In addition, the lack of proper awareness among the fleet operators and concerns related to compatibility with the existing mechanism can negatively impact the automatic tire inflation system market. Another important aspect to consider is the lack of standardization to integrate the ATIS with various vehicles along with the consumer doubts related to the robustness of these systems. Besides, the issues related to different regulations and standards in national and international exports can indirectly pull the automatic tire inflation system market down. Furthermore, the intense competition in the automobile industry can compromise the overall quality and increase the costs of the vehicles, creating various constraints for the automotive tire inflation system business in the future.

Impact Of COVID-19 On The Automatic Tire Inflation System Market

The COVID-19 pandemic had a huge impact on the automatic tire inflation system market due to disruptions to the supply chain and restricted movements across the globe. The lockdown situation globally changed consumer priorities towards essentials, restricting the purchase of vehicles. In addition, the temporary shutdown of industries led to the halt of several research and development activities in the automotive industry. The market instability along with the uncertainty in the adoption of new processes, had limited most of the companies to slow down their investments in the innovations in the automobile market, which affected the automatic tire inflation system market. In addition, several governments have shifted investments towards essentials during COVID-19, which impacted the additional investments and developments in the automobile sector. Moreover, the strict lockdown conditions and safety protocols resulted in a decrease in workers at the manufacturing units and a shortage of raw materials, leading to a negative impact on the entire tire inflation system business. However, the pandemic also highlighted the significance of fuel efficiency and enhanced safety, which, in the long run, will benefit the automatic tire inflation system market.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Automatic Tire Inflation System Market By Type

The central tire inflation system accounts for a prominent portion of the global market and is likely to witness steady growth over the forecast period because of its favorable driving conditions. The space advantage offered by the central tire inflation system between the tire and the ground is a driving aspect for the adoption of this type.

Global Automatic Tire Inflation System Market By Application

Commercial vehicles, including light-duty vehicles and heavy-duty vehicles, are expected to record the highest growth rate in the global automatic tire inflation system market in the forecast period. The spike in commercial fleet operations coupled with the demand for off-road vehicles is the major factor boosting the profits in this segment. Similarly, the agriculture tractors will register a considerable growth rate owing to the latest developments in farming and skyrocketed investments from the public and private sectors. The benefits like optimum performance, soil protection, and crop safety are creating a positive environment for agricultural tractor applications.

Global Automatic Tire Inflation System Market By Component

The ECU that monitors the tire pressure and alarms the driver in case of low pressure is expected to rule the global automatic tire inflation system market in the predicted period. The real-time display of the data and the ability to integrate with the existing vehicle mechanisms are primarily fuelling the adoption of this segment. Also, the requirement for durable tires, effective fuel consumption, and enhanced safety features is promoting the adoption of ECUs in vehicles.

Global Automatic Tire Inflation System Market By Sales Channel

The OEM segment accounted for the majority share of the global automatic tire inflation system market and is supposed to continue its dominion over the forecast duration. The integration support offered by the OEM as a part of vehicle manufacturing is majorly promoting the demand for this sales channel. The stringent government regulations for the safety of the passengers, mixed with the augmented investments from the automobile companies, are encouraging the OEMs to add ATIS during the production and configuration stages.

REGIONAL ANALYSIS

North America accounts for a significant share of the global automatic tire inflation system market and is expected to expand at a steady growth rate in the forecast period. The United States of America is the leading nation in this regional market due to the increasing use of commercial vehicles and off-road vehicles. North America is also home to some of the market giants in the automotive sector that are funding innovations heavily. Government regulations, including time pressure monitoring systems in automobiles, along with a strong focus on passenger safety, are boosting the demand for the North American ATIS market.

The Asia Pacific region is likely to witness the highest growth rate in this market in the coming years. China, India, and Japan are the leading nations in this region, with an increasing transportation and logistics network and an established automotive industry. The high volume of cars manufactured in this area, coupled with the emphasis on decreasing the number of road accidents, is propelling the business of automatic tire inflation systems in this area. Besides, the skyrocketed commercial logistics because of the spike in e-commerce transactions, government funding towards roadways infrastructure, and improved agricultural activities in recent years are creating a positive outlook for the Asia Pacific ATIS market. Furthermore, the adoption of the latest technologies like connected vehicles and telematics will support the rapid business development in this area.

Europe is also anticipated to register a notable growth rate in the market with the increasing investments from both government and private organizations for electric vehicles and reducing carbon footprint. The United Kingdom, Germany, and France are the leading automotive players in this region. The ongoing transitions in the roadway networks, like intelligent transport systems and smart highways, are supposed to push the demand for ATIS upward. Also, the surge in innovations in the automobile industry is further supporting the European ATIS market.

Latin American and Middle Eastern African nations hold only a smaller share of the global ATIS market. However, the surge in foreign investment, stabilizing economic conditions, and concerns related to road and vehicle safety are predicted to boost the market profits in these regions in the future.

KEY MARKET PLAYERS

Michelin, IDEX Corporation, Bridgestone Corporation, Meritor, Inc., Dana Inc., CLAAS, Parker Hannifin Corporation, Goodyear Tire & Rubber Co., Aperia Technologies Inc., EnPro Industries Inc., Nexter Group, SAF-Holland, Bigfoot Equipment Ltd, FTL Technology Ltd, Servitech Industries Ltd., Hendrickson USA, Continental AG, and WABCO. Some major key players are involved in the global automatic tire inflation system market.

RECENT HAPPENINGS IN THE GLOBAL MARKET

• In April 2023, BFGoodrich Tires introduced its ActivAir, a comprehensive tire inflation system to support off-road vehicle drivers. ActivAir offers drivers the option to select the terrains which will automatically deflate or inflate the vehicle tires.
• In October 2022, Volvo Group combined hands with Qamcom Group and investor Roman Lustin to form a new start-up company Fyrqom AB. Through this newly formed entity, Volvo intends to offer automated tire pressure monitoring system calibration for heavy-duty vehicles.

DETAILED SEGMENTATION OF THE GLOBAL AUTOMATIC TIRE INFLA MARKET INCLUDED IN THIS REPORT

This market research report on the global automatic tire inflation system market is segmented and sub-segmented into the following categories.

By Type

• Central Tire Inflation
• Continuous Tire Inflation

By Application

• Passenger Vehicles
• Light Duty Vehicles
• Heavy-Duty Vehicles 
• Tractors
• Construction Equipment

By Component

• Compressor
• Rotary Union
• Pressure Sensor
• Hosing
• Air Delivery System
• Electronic Control Unit (ECU)
• Buffer Tank

By Sales Channel

• Original Equipment Manufacturer (OEM)
• Aftermarket

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa