Strategic Overview of Class 6 8 Tire Pressure Monitoring System and Telematics Aftermarket for Commercial Vehicles in North America

The Impact of the Top 3 Strategic Imperatives on the Class 6–8 Tire Pressure Monitoring System TPMS and Telematics Aftermarket

Transformative Mega Trends

• Why: During the next 5 years, original equipment manufacturers (OEMs) in the Class 6–8 vehicle segment will focus on developing technology for autonomous driving. Regulations and safety standards are still under development as autonomous testing continues.
• Frost Perspective: The industry does not mandate that Class 6–8 vehicles contain TPMS sensors. However, with the eventual arrival of autonomous trucks, TPMS sensors will become standard solutions for safety reasons. Autonomous trucks will require a multitude of safety measures and fail-safe solutions that TPMS sensors can provide.

Competitive Intensity

• Why: The TPMS aftermarket is mature, with well-established competitors across all distribution channels. In this environment, product differentiation is low, creating a need for competitors to create value for their customers.
• Frost Perspective: Competition will continue to increase and drive growth in the relatively low-volume TPMS aftermarket. As a result, TPMS competitors must consider creating new customer-focused ecosystems that promote customer engagement and loyalty throughout the life cycle of their vehicles.

Innovative Business Models

• Why: Most competitors, including OEMs and Tier I suppliers, are focusing on telematics, resulting in a push to encourage use among end users.
• Frost Perspective: Telematics installation rates will grow 13.3% year-over-year from 2022 to 2023. TPMS sensors will enable Tier I suppliers and tire suppliers to enter the market and compete with OEMs in offering telematics.

Research Scope

Key Questions This Study Will Answer

• What is the market and revenue size for TPMS and telematics installation in the Class 6–8 vehicle segment?
• What are the pricing trends of the TPMS market during the forecast period?
• What factors will affect the outlook of the TPMS and telematics market?
• What market trends and challenges does the TPMS and telematics market face?
• What strategies will foster growth for participants in the Class 6–8 vehicle TPMS and telematics aftermarket?

Growth Drivers

• All major tire manufacturers and wheel-end suppliers focus on connectivity solutions, and TPMS sensors have become connectivity enablers for these suppliers. These suppliers are building innovation and value-added features beyond traditional TPMS sensors through data insights and are enabling new revenue models.
• Large fleets will benefit from the essential solutions that enhanced TPMS features offer, such as yard monitoring, tire management, and real-time updates on all assets, including higher return on investment (ROI).
• New regulations could require autonomous trucks to use TPMS sensors for safety reasons. Developers will need to implement a multitude of safety measures and fail-safes into the architecture of autonomous trucks. As a result, TPMS sensors could become the standard means to monitor tire and wheel-end health.

Growth Restraints

• Unlike passenger vehicles, government regulations do not mandate that Class 6–8 utilize TPMS solutions; therefore, owners, operators, and fleets have not prioritized their adoption during the past 10 years in the OEM or aftermarket channels.
• Many total cost of ownership (TCO) and technological options are chasing limited consumer dollars in the market today from telematics, TPMS, and driver safety solutions. This has restricted the growth of TPMS adoption in the Class 6–8 vehicle segment because consumers cannot purchase individual solutions for each component. Integration, subscription models, and sensor fusion will combine all disparate solutions into a cohesive option for consumers.
• The high initial cost and relatively low ROI of TPMS sensors have restrained growth for price-sensitive customers in the Class 6–8 truck segment.

Key Competitors

• Bendix
• ZF
• Pressure Systems International (P.S.I)
• PressurePro
• ConMet
• Goodyear Tire & Rubber Company
• Continental AG
• Bridgestone Corporation
• Sensata Technologies