AUTOMATIC TIRE INFLATION SYSTEM MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Automatic Tire Inflation System Market Size and Trends

The automatic tire inflation system market is estimated to be valued at USD 2.23 Bn in 2024 and is expected to reach USD 3.93 Bn by 2031, growing at a compound annual growth rate (CAGR) of 8.4% from 2024 to 2031.

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The market is expected to witness significant growth during the forecast period. The growth of the market is attributed to growing concerns regarding vehicle safety and efficiency. Major automakers are focusing on incorporating automatic tire inflation systems to offer enhanced safety, comfort, and fuel efficiency. Additionally, the adoption of advanced tire pressure monitoring systems (TPMS) in commercial vehicles will further boost the demand for automatic tire inflation systems. Reducing maintenance cost is also encouraging large fleet operators to equip their vehicles with ATIS. Stringent regulations regarding vehicle safety and fuel economy are further expected to promote the adoption of automatic tire inflation systems.

Safety Concerns Leading to Stringent Government Regulations

As automotive safety continues to be a major priority for both consumers and governments across the world, tire safety in particular has come under increased scrutiny in recent years. For instance, the California Air Resources Board (ARB) enforces regulations to reduce greenhouse gas emissions from vehicles operating inefficiently with under inflated tires. These regulations apply to vehicles with a gross vehicle weight rating of 10,000 pounds (lbs.) or less. Tire failures and under inflation have been identified as significant contributors in road accidents.

In response, regulatory agencies are introducing newer safety standards mandating technologies that can automatically monitor and maintain optimal tire pressure levels. For commercial fleets that carry passengers or goods, penalties for non-compliance with tire safety norms have also been made more stringent. This is prompting large fleet operators to adopt automatic tire inflation systems especially integrated with remote fleet monitoring systems. Such systems not only ensure compliance but also deliver efficiency gains through reduced fuel consumption and lower maintenance costs associated with improperly inflated tires over long distances and varying outdoor conditions. Significant research is also ongoing to apply similar tire pressure monitoring on passenger vehicles through either retrofits or direct OEM integration. If regulatory support increases for passenger vehicles as well, it could lead to a massive uptick in aftermarket installations and factory fits of automatic tire inflation technology across multiple vehicle categories.

Market Concentration and Competitive Landscape

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Growing Demand for Active Vehicle Maintenance and Preventive Fleet Management

With the rapid growth of connected vehicles and integrated vehicle health management systems, there is a discernible shift in preferences towards active and predictive vehicle maintenance over traditional time- or mileage-based servicing. Telematics allow real-time tracking of various vehicle parameters and remote diagnosis of anomalies. This has created the demand for automotive solutions that can autonomously detect and address minor issues before they escalate into expensive repairs or downtime. Keeping tires at their optimal pressure falls right within this paradigm of proactive upkeep of commercial vehicles.

Automatic tire inflation systems address one of the most common yet easily preventable causes of truck breakdowns - underinflated tires. For fleets running on tight schedules with driver turnovers, remotely checking inflation levels and adjusting pressures ensures tire health is never compromised due to human errors of omission or commission. The predictive maintenance capabilities as well as the ability to receive tire pressure alerts help fleet managers better plan their operations, maintenance cycles and inventory.

For instance, Haltec’s automatic tire inflation systems provide a precision tool to maintain properly inflated tires with high speed and accuracy for commercial fleet management. Haltec’s custom manufactured 89MTIS Series inflates 1-5 wheels simultaneously with 0.3 PSI accuracy.

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One of the key challenges for the automatic tire inflation system market is the high development cost involved in designing and manufacturing such systems. Maintaining tire pressure automatically adds to the production costs of vehicles. Additionally, consumer reluctance to pay more for this additional feature also poses a challenge for automobile manufacturers to increase adoption rates. Gain in fuel economy and safety benefits have also been under scrutiny.

Market Opportunities: Introduction of Regulatory Mandates

However, the market sees significant growth opportunities with the introduction of regulatory mandates. Adoption is expected to increase with stricter fuel economy and vehicle safety norms. Moreover, increasing focus on predictive vehicle maintenance and preventive tire care offers opportunities for aftermarket system sales and installations. With rising vehicle usage and road travel, demand for convenience and tire monitoring is growing, presenting an avenue for innovators to enhance features and value proposition.

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Insights, by Type: Endurance and Reliability Drive the Adoption of Central Tire Inflation Systems

The central tire inflation system segment is estimated to contribute the highest share of 67.3% in 2024 in the global automatic tire inflation system market owing to its proven durability even under heavy usage. As central tire inflation systems are directly connected to the vehicle's compressed air source, they ensure tires maintain optimal pressure continuously without any external intervention. This independence from manual monitoring and refills makes central tire inflation systems highly attractive for commercial fleets operating long-haul trucks and buses that log high annual mileages. Their automatic operation removes human error which can cause accidents from under-inflated tires. The set-and-forget functionality of central tire inflation systems saves fleet operators from frequent downtimes for tire maintenance and repairs. This enhances vehicle uptime and productivity over time.

Central tire inflation systems also improve overall tire life significantly by preventing premature wear form irregular pressure levels. Commercial vehicles rely on maximizing mileage from each set of expensive tires to reduce operational costs. Central tire inflation systems help meet this objective through their round-the-clock pressure maintenance capability. For applications involving off-road or adverse conditions like military vehicles, agriculture equipment, central tire inflation systems offer unmatched reliability compared to manual inflation methods prone to failures. Their tough automotive-grade components withstand extreme vibration and weather extremes with minimal maintenance needs. This ruggedness and "fit and forget" quality attracts demand from businesses investing in assets with long lifecycles like construction machinery.

For instance, IDEX Sealing Solutions, offers Central Tire Inflation Systems (CTIS), which maximize vehicle mobility and performance in demanding terrain and conditions, by adjusting the tire pressure to improve traction, eliminate tire leak and reduce soil compaction. This gives the driver complete control over a vehicle.

Insights, by Vehicle Type - Growing Transportation Needs drive On-Highway Vehicle Adoption

The on-highway vehicles segment is estimated to contribute the highest share of 64.4% in 2024 in the market owing to rising transportation activities globally. Rapid growth of e-commerce and just-in-time inventory models has increased the demand for commercial trucks and trailers to timely deliver goods over long distances. Rising incomes and urbanization also drive personal transportation, boosting passenger vehicle production annually. Both trends necessitate maintaining large commercial and private vehicle fleets in good working condition over many years as replacements are costly. On-highway vehicles like trucks and buses traverse varied terrains and weather, placing tire integrity under consistent stress. Proper tire inflation plays a vital role in avoiding accidents and maintaining uptime of transportation assets. Automatic Tire Inflation Systems help fleet managers economically achieve these goals through their set-and-forget convenience and ability to minimize tire-linked vehicle downtime.

Managing tire pressure manually across thousands of vehicles spread over diverse geographies involves high labor and administrative costs. Automatic Tire Inflation Systems centralize this task, freeing up personnel for more productive duties. Their active pressure maintenance on all tires simultaneously improves fuel-efficiency compared to uneven manually-filled tires. This enhances profitability of commercial transportation operations immensely over the vehicle lifecycle. As transportation networks expand globally to facilitate trade, the on-highway vehicle segment is poised for sustained growth, creating long-term demand opportunities for automatic tire inflation systems.

For instance, Cummins Inc., American multinational corporation, has equipped Meritor Tire Inflation System (MTIS) on more than 1 million on-highway vehicles such as trailers till now, which helps keep tires properly inflated to reduce wear and increase fuel economy.

Insights by Sales Channel - Regulatory Safety Compliance Boosts OEM Adoption

The OEM segment is estimated to contribute the highest share of 56.7% in 2024 in the market due to stricter emission regulations being enforced globally. Growing environmental concerns mandate minimizing commercial vehicle downtime and improving fuel-efficiency. Automatic tire inflation systems address these imperatives when factory-fitted by OEMs. Their round-the-clock pressure optimization enhances aerodynamics to boost miles-per-gallon, helping fleet owners comply with emission norms. Pre-installed OEM systems also simplify maintenance workflows against manual refilling equipment which needs periodic replacement. This bodes well for resale values of equipped vehicles.

Rising road accident penalties make safety compliance a top priority for commercial fleet owners and transport Ministers. Automatic Tire Inflation Systems pre-empt tire pressure related accidents by maintaining optimal levels automatically without human errors of omission. This mitigates legal liabilities and insurance costs in the long-run when fitted by OEMs during production. They also future-proof new vehicles against changing regulations by facilitating continuous compliance through the lifecycle. Major fleet leasing companies now routinely specify OEM-fitted Automatic Tire Inflation Systems to guarantee residual value and efficiency over contract durations. This growing institutional demand pulls OEM adoption rates as original equipment over aftermarket installations.

Regional Insights

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North America has established itself as the dominant regional market for automatic tire inflation systems and is estimated to hold the market share of 31.8% in 2024. This can be attributed to a well-established automotive industry in countries like the U.S. and Canada. Commercial vehicle manufacturers in North America are actively adopting advanced tire technologies to improve fuel efficiency as well as vehicle and driver safety. Many fleets and logistics companies are investing in ATIS to reduce maintenance costs associated with tire checks and repairs. The demand is further strengthened by regional presence of leading ATIS providers who can work closely with fleet managers for installation and service.

Asia Pacific is poised to be the fastest growing regional market in the coming years. Economic development across countries like China and India have led to rapid growth of commercial vehicle fleet. Apart from domestic demand, Asia Pacific is also emerging as an export hub for automotive and logistics industries. This has increased vehicle miles travelled and emphasis on reducing operating expenses. ATIS offers an effective solution to manage tire pressure across long-haul trucks and cargo vehicles. Additionally, countries in Southeast Asia such as Indonesia, Malaysia, and Thailand are witnessing expansion of mining and construction sector which heavily relies on commercial vehicles. Original equipment manufacturers based in Asia are also steadily enhancing driver assist technologies. This is raising adoption of ATIS as an integrated solution.  

Europe is another major market for ATIS driven by stringent fuel economy and vehicle safety regulations of the European Union. Large automakers and their tier 1 suppliers are continuously upgrading commercial vehicle designs to comply with regulatory norms. Germany, France, the U.K., and other Western European nations have strong logistics infrastructure with regional as well as intercontinental transport requirements. Fleet owners recognize benefits of ATIS in reducing tire-related breakdowns and improving total cost of ownership. The market is further supported by local system manufacturers leveraging automotive engineering expertise.

Market Report Scope

Automatic Tire Inflation System Industry News

• In April 2023, BFGoodrich Tires launched ActivAir, a fully integrated tire inflation system. ActivAir is patented premium technology developed and pressure-tested by top builders in some of the most extreme environments, such as Dakar Rally and the Ultra4 Racing circuit. The driver chooses one of four operating terrains, and the system inflates or deflates the tires. More experienced drivers have the option to manually select their desired pressures. ActivAir allows a transfer of all available power to the ground and maximizes traction.
• In March 2023, Aperia Technologies expanded its tire analytics solution to cover trailers with the release of Halo Trailer Connect, which enables fleets to manage all tires using a single platform to improve vehicle uptime and tire service life and reduce maintenance costs. Aperia Technologies’ system is capable of identifying when a tire has reached the end of its service life, is losing air, or when it might benefit from an updated cold inflation pressure target.
• In March 2023, SAF-HOLLAND SE, an automatic tire inflation system manufacturer, completed the acquisition of a Sweden-based company, Haldex AB and now holds 100 percent of the shares
• In March 2021, John Deere updated its 8 Series Tractors for model year 2022 by building on a strong foundation of existing technology and offering new solutions with single-dealer support of specialized options. The 8 Series includes wheel 8R, two-track 8RT, and four-track 8RX models. New specialized options for 8R Tractors include the Central Tire Inflation System (CTIS).

*Definition: An automatic tire inflation system is an emerging product in the automotive aftermarket that automatically monitors and maintains optimal tire pressure levels for vehicles. It consists of pressure sensors on each wheel to detect losses and an onboard compressor that can inflate tires back to the recommended pressure level at the push of a button. This helps optimize fuel efficiency and tire tread life by ensuring tires are properly inflated at all times with minimal effort from the driver.

Market Segmentation

• Type Insights (Revenue, USD Million, 2019 - 2031)
  • Central Tire Inflation System
  • Continuous tire Inflation System
• Vehicle Type Insights (Revenue, USD Million, 2019 - 2031)
  • On-Highway Vehicle
    • Light Duty Vehicle
    • Heavy Duty Vehicle
  • Off-Highway Vehicle
    • Agriculture Tractors
    • Construction Equipment
• Sales Channel Insights (Revenue, USD Million, 2019 - 2031)
  • OEM
  • Aftermarket
• Regional Insights (Revenue, USD Billion, 2019 - 2031)
  • North America
    • US
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Russia
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • Goodyear
  • Dana Limited.
  • Hendrickson USA, LLC.
  • Cummins-Meritor
  • SAF-HOLLAND S.A.
  • WABCO
  • Rotex Automation
  • STEMCO Products Inc.
  • Haltec Corporation
  • TI Fluid Systems
  • Michelin
  • Bremsen Technik Group (PSI)
  • FTL/IDEX
  • Aperia Technologies inc.
  • Airgo Systems, LLC
  • VIGIA
  • Trans Technologies
  • Continental
  • BFGoodrich
  • Deere & Company