The global market for tyre pressure monitoring systems

Transcription

1 The global market for tyre pressure monitoring systems Author: Matthew Beecham Published January 2003 No part of this publication may be copied, reproduced, stored in a retrieval system, or be transmitted in any form by any means electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publishers. All material published within this report is copyright Aroq Limited. This report is provided for individual use only. If you would like to share this report with your colleagues, purchase additional copies or sign up for a company wide licence please contact Oliver Wilkinson: Tel: +44 (0) Fax: +44 (0) [email protected] Aroq Limited Registered in England no: Seneca House, Buntsford Hill Business Park, Bromsgrove, Worcs, B60 3DX, UK. Tel: +44 (0) Fax: +44 (0) Web: All content copyright Aroq Limited. All rights reserved. The global market for tyre pressure monitoring systems

2 Table of Contents Table of Contents... i List of Figures... ii Chapter 1 Introduction... 1 Under pressure... 1 Report coverage Market drivers... 4 Market size... 5 Major players... 8 World market shares European market shares North American market shares Asia market shares Chapter 3 Technical Review Siemens VDO Beru s Tyre Safety System Murata Electronics SARCC series...error! Bookmark not defined. Continental...Error! Bookmark not defined. Alps Electric Company...Error! Bookmark not defined. Integrated Vehicle Tyre Monitoring...Error! Bookmark not defined. TRW's TireWatch...Error! Bookmark not defined. Groupe Michelin and TRW...Error! Bookmark not defined. Omron Automotive Electronics...Error! Bookmark not defined. Pacific Industrial Co...Error! Bookmark not defined. Chapter 4 Beru...Error! Bookmark not defined. Chapter 5 Schrader Electronics The global market for tyre pressure monitoring systems i

3 List of Figures Figure 1 Schrader s direct tyre pressure monitoring system... 2 Figure 2 Schrader Electronics comment On US.OMB Regulators to NHTSA Draft of Final Rule and Impact on Driver Safety, dated 15th March 2003.On 13th February Error! Bookmark not defined. Figure 3 OE TPMS for passenger cars, market value in North America, Western Europe and Japan, calendar years 2001, 2003, Figure 4 World market shares for TPMS, 2001 (% of volume) Figure 5 European market shares for TPMS, 2001 (% of volume) Figure 6 North American market shares for TPMS, 2001 (% of volume) Figure 7 Continental s deflation detection system...error! Bookmark not defined. Figure 8 Schrader s TPMS...Error! Bookmark not defined. Figure 9 Schrader's TPMS...Error! Bookmark not defined. The global market for tyre pressure monitoring systems ii

4 Chapter 1 Introduction Chapter 1 Introduction Under pressure Thanks to the Firestone recall of 6.5 million tyres in North America during the summer of 2000, tyre pressure monitoring systems (TPMS) have become big business. By November 2003, all passenger cars, buses and light vehicles built in the US will feature a system that alerts the driver to low air pressure in one or more tyres. The adoption of such systems in Europe meanwhile is accelerating rapidly. A committee is currently drafting proposals for TPMS, including a draft ISO recommendation for the European Commission. These documents will be filed with the Commission in June The industry consensus is that legislation on TPMS could be passed by 2005 and enforced by There are two main types of TPMS currently available: indirect and direct. Indirect systems are those which use algorithms to interpret signals in antilock brake systems. It uses wheel speed sensors and can detect a deflated tyre because it rotates more slowly. Direct systems are those which use separate radio sensors mounted in each wheel which detect deflation and then transmit that information to the driver via a radio frequency signal. With either system, warning lights, messages on the dashboard or audible warnings alert drivers to drops in tyre pressure. The main drawback of the ABS sensor system type is that it only operates when the car is moving. Although it can be argued that such systems provide an inexpensive solution to monitoring tyre pressure, they are not as accurate as the systems that monitor air pressure directly. Direct TPM systems use one sensor complete with radio transmitter per wheel to send pressure information to the dashboard. This type monitors pressure continuously. It uses the same radio frequency technology for remote keyless entry systems. As the transmitter is located inside the tyre, it requires its own battery power source, built to last up to ten years, in other words far beyond the tyre s useful life. TPMS manufacturers are working on next generation systems, which will be battery-less, integrated into the remote keyless entry system (to contain cost) and tyre embedded. The global market for tyre pressure monitoring systems 1

5 Chapter 1 Introduction Despite the apparent flurry of activity in the tyre pressure monitoring systems market, TPM systems themselves are not new. General Motors has been equipping its cars with monitoring systems since GM currently has more than 1.6 million vehicles on the road that are equipped with ABS-sensor systems. By installing tyre monitoring systems, additional benefits are gained, such as increased fuel economy, longer tyre wear, fewer crashes due to tyre blowouts, immobilised vehicles or poor vehicle handling from pressure loss and hydroplaning. It also means that motorists can instantly check their tyre pressure without touching the greasy tyre valve. Tyre pressure monitoring is also essential for the so-called run-flat systems, enabling the motorist to drive a short distance after the tyre has deflated. Figure 1 Schrader s direct tyre pressure monitoring system Source: Schrader The global market for tyre pressure monitoring systems 2

6 Chapter 1 Introduction Report coverage Continuing our series of component market studies, this just-auto.com report reviews the key market drivers for tyre pressure monitoring systems, providing some forward-looking analysis. Chapter two explains the market drivers for such systems and sets out some indications of the market size in Japan, Europe and the US. Chapter three sets out some recent innovations and identifies the forces driving those technical advances. Chapter four provides brief profiles of the two manufacturers that dominate the industry: Beru and Schrader Electronics. The global market for tyre pressure monitoring systems 3

7 Market drivers Thanks to the Firestone tyre recall in the summer of 2000, tyre pressure sensor systems have become a big safety issue. So much so, that by November 2003, tyre pressure monitoring (TPM) systems will become mandatory in the US. The Transportation Recall Enhancement, Accountability and Documentation Act (the aptly named TREAD Act), which was signed into law in November 2000 by then-president Bill Clinton, called on the National Highway Traffic Safety Administration (NHTSA) to modernise the 30-year-old tyre safety standard and mandate tyre pressure monitors. The Act also sets new tyre performance standards, creates rollover tests for new vehicles among other safety provisions. In June 2001, the NHTSA put forth a proposal for a rule that would make it mandatory for car manufacturers to install tyre pressure warning systems in vehicles made after November 2003 (beginning with the model year 2004). The system would require warning of significantly under-inflated tyres of vehicles such as passenger cars, buses and light vehicles. However, both tyre industry groups and consumer groups are unhappy with the NHTSA's ruling on tyre pressure monitoring systems. The NHTSA's rules initially favoured direct tyre pressure monitoring systems to the exclusion of indirect ones, but the US government later forced the agency to give equal weight to indirect ones as well. Direct systems have to warn the driver if any tyre (or tyres) falls below 25% of The global market for tyre pressure monitoring systems 4

8 Market size The TPMS market is set for exponential growth (particularly in the US) following the TREAD Act. In 1997, little more than xx,000 vehicles were fitted with TPMS globally. By 2001, some 1.5 million units were fitted to vehicles worldwide, of which xxx,000 were in North America. Manufacturers estimate that figure will reach four million units in Until the legislation for tyre pressure monitoring systems comes into effect on 1st November 2003, suppliers must decide which of the two main technologies they should adopt, and who should choose the product standards. There are two choices of system at present: Direct systems: consisting of tiny transmitters placed inside the tyre or on the wheel rim; and Indirect systems: which operate via the ABS system (if fitted) measuring the spin rate of the wheels. Indirect sensors are cheaper and need to withstand far less punishment, but they may not be accurate enough to satisfy Federal regulations. The US government reckons that adding this technology should cost vehicle makers an extra $xx - $xx per vehicle. On this basis, assuming that direct TPM systems are applied xxx%, the North American market for TPMS fitted to passenger cars alone could be worth $xxx million from 2004, up from $xx million in Such a system would include a sensor in each wheel, transmitting signals to the driver when one or more of the tyres were at least xxx% under-inflated. Interestingly, the NHTSA first considered mandating TPMS in 1970 and again in 1981 but abandoned its plans due to concerns over product reliability and cost. Since then, the technology has improved and costs have fallen. Although this latest legislation spells out good news for suppliers, there is a concern that there is not sufficient manufacturing capacity in place to supply xx million vehicles annually with sensors. Production capacity is not a problem, insists Carl Wacker of Schrader Electronics. We can expand our capacity in a very short time frame. Although Schrader does not yet have an operating plant in the US that produces TPM systems, its parent company has an existing xxx,000 square foot facility which will commence production when its Northern Ireland plant exceeds capacity. The global market for tyre pressure monitoring systems 5

9 Manufacturers believe that selling TPMS as optional equipment in Europe is easier than in America (before the legislation was passed). European motorists have a higher appreciation of tyre pressure and its affects on fuel economy and tyre wear than Americans. Although the European market is steadily growing, the Japanese market is showing only moderate growth. By 2005, fitment rates to new passenger cars are expected to be x% - x%. Soon after the legislation was introduced in the US, vehicle makers took the view that TPM systems were a commodity item, thereby exerting further price pressure on manufacturers. The global market for tyre pressure monitoring systems 6

10 Figure 2 OE TPMS for passenger cars, market value in North America, Western Europe and Japan, calendar years 2001, 2003, 2005 ($ millions) SAMPLE North America Western Europe Japan North America Western Europe Japan Total Source: just-auto.com, industry estimates The global market for tyre pressure monitoring systems 7

11 Major players For some time, Tomkins Plc-owned Schrader Electronics owned 100% of the infant original equipment market. Based in Northern Ireland, Schrader knows more about tyre pressure than most other companies. Its roots are in tyre accessory and tyre component supplies. Its founder invented the world s first tyre valve. Schrader now supplies more than 60% of the world s market for standard tyre valves. It has also been in the tyre pressure monitoring business longer than any other company. The company entered the TPMS market in 1996 and has recently launched its third generation system. This latest, smaller version offers a number of new features, including lower mass, lower part count thereby improving reliability and reducing cost. Schrader s competitors for TPMS include Beru, TRW, Johnson Controls, Continental and Siemens VDO. Beru s customers include all the major German vehicle makers. Its TPMS products currently appear on the Mercedes- Benz S-, C- and E-class, and Audi A8, amongst others. TRW and Siemens are also supplying some TPM systems in Europe. TRW Automotive Electronics is leveraging its expertise in radio frequency SAMPLE technology in a new relationship with Michelin to jointly develop tyre pressure monitoring systems for Michelin tyres in OE applications. Siemens VDO says it has won contracts with four major car manufacturers in Europe, Japan and the US to supply its tyre pressure monitoring system, Tyre Guard. The first European applications will appear in late The US applications will be from the 2003/4 model year and will be on a volume vehicle produced in excess of 300,000 units a year. The four contracts are worth 400 million to Siemens. The company's latest system uses tyre sensors which transmit their signals by radio, for greater accuracy than that of early systems based on ABS. In September 2001, Siemens made a deal with Goodyear to jointly develop and market its next generation system, where sensors will be moulded into the tyre at manufacture and sold in Goodyear tyres all around the world. Goodyear has chosen Fujikura, based in Tokyo, to be its main supplier of sensor microchips for its low-pressure tyre warning systems. The sensor microchips supplied by Fujikura will be used as monitoring systems in the tyres manufactured by Goodyear and Siemens VDO Automotive Corp. The global market for tyre pressure monitoring systems 8

12 Despite the apparent flurry of activity in the tyre pressure monitoring systems market, General Motors has been equipping its cars with monitoring systems since On 2nd April 2001, GM sold its two-millionth car featuring a tyre pressure monitor. The 2001 GM models that feature tyre pressure monitors as standard or optional equipment include: Buick SAMPLE Cadillac SAMPLE Chevrolet SAMPLE Oldsmobile SAMPLE Pontiac SAMPLE The global market for tyre pressure monitoring systems 9

13 World market shares On the global stage, Schrader currently has an 85% share of the market for TPMS, followed by Beru. The OE systems will drive the aftermarket. The global market for tyre pressure monitoring systems 10

14 Figure 3 World market shares for TPMS, 2001 (% of volume) Beru 12% Others 3% SAMPLE Schrader Electronics 85% Supplier Per cent Schrader Electronics Beru Others Total 100 Sources: Industry estimates, just-auto.com European market shares Schrader also dominates the European OE market for TPMS with a xx% share, with Beru claiming most of the remaining market. Schrader s European customers for TPMS include xxx, xxxx, xxxx and xxxx. The Renault xxx has its TPMS fitted as standard equipment. The global market for tyre pressure monitoring systems 11

15 Figure 4 European market shares for TPMS, 2001 (% of volume) Others 8% Beru 22% SAMPLE Schrader Electronics 70% Company Market share (%) Schrader Electronics Beru Others Total 100 Sources: Industry estimates, just-auto.com North American market shares In North America, Schrader currently has a xx% share of the OE TPMS market. Its only other competitor is Japan s Pacific Industries, which supplies systems for the Lexus 430 from its Japanese plant. The global market for tyre pressure monitoring systems 12

16 Figure 5 North American market shares for TPMS, 2001 (% of volume) Pacific Industries 1% SAMPLE Schrader Electronics 99% Company Market share (%) Schrader Electronics Pacific Industries Total 100 Sources: Industry estimates, just-auto.com Asia market shares In Japan, Schrader dominates the TPMS market. The only other competitor is Pacific Industries. The global market for tyre pressure monitoring systems 13

17 Chapter 3 Technical Review Chapter 3 Technical Review Given the phenomenal market potential, it is not surprising to see a number of manufacturers focusing on developing TPMS. Here are a just a few examples. Siemens VDO Siemens VDO says it is ready and waiting for the surge in demand for TPM systems. Jean Christophe Deniau, Siemens Automotive Business Development Engineer, says: Unlike several other sensors under development in the market, our solution also tracks temperature inside the tyre and measures finite acceleration. This allows, amongst other things, data specific to each tyre to be compared for inconsistencies within safety and operational parameters. The software for this technology can also form part of Siemens' remote keyless entry electronic control unit, enabling the vehicle s radio antenna to transmit tyre pressure information, via a bus network, to the driver s instrument display. Siemens VDO and Goodyear have jointly developed a new software programme that can interpret a large number of vehicle parameters and calculate a suggested tyre pressure based on data such as ambient temperature and pressure, tyre load, speed and driving habits. The new software system conveys two types of messages - a convenience and warning message. A convenience message is delivered when more weight than usual is identified in the car and is travelling at a high speed. When the vehicle stops for refuelling at the next stop, the system suggests that pressure should be added to the tyres. The warning message is more direct indicating that a critical limit for air pressure in one or more tyres has been reached and a calculated number of miles are displayed to rectify the situation. The Siemens VDO-Goodyear warning software is based on Goodyear's skill in tyres, tyre inflation pressure and temperature monitoring and interpretation, along with Siemens' expertise in electronics, secured radio frequency transmission and vehicle system integration technologies. The software is seen by the partners as the first step toward the next generation of TPMS which will be battery-less and tyre embedded as part of the total Siemens VDO-Goodyear Low Pressure Warning System, targeted for vehicle makers. The global market for tyre pressure monitoring systems 14

18 Chapter 3 Technical Review Beru s Tyre Safety System Beru s Tyre Safety System uses wheel electronics in the four tyres, each fitted with sensors, and measures the air pressure and temperature inside the tyre. This data is transmitted at regular intervals by radio communication to antennae which are mounted in the wheel housings and from there are forwarded by cable to the central control unit where the temperaturecompensated nominal pressure is calculated using a pre-programmed equation. By processing this information, the control unit is then able to inform the driver of the air pressure in each tyre. The pressure levels are shown on the central display in the combination instrument. In the event of a sudden, rapid drop in the tyre air pressure, e.g. caused by driving over a nail, a corresponding signal is immediately transmitted in order to warn the driver in good time. This means that a burst tyre resulting from an excessive drop in air pressure can nearly always be avoided. If the pressure falls by 0.2 bar below the nominal pressure normally the result of unavoidable, slow pressure loss caused by diffusion - the driver receives a so-called soft warning asking them to check the tyre pressure in the corresponding tyre. This request is repeated from time to time. If the low pressure exceeds 0.4 bar the driver is sent a hard warning alerting them to the imminent dangers of driving on low pressure. One of the claimed advantages of this system is the automatic individual wheel r The global market for tyre pressure monitoring systems 15

19 Error! Reference source not found. The global market for tyre pressure monitoring systems 16

20 Chapter 5 Schrader Electronics Chapter 5 Schrader Electronics Headquartered in Antrim, Northern Ireland, Schrader Electronics is the market and technology leader in remote tyre pressure monitoring systems (RTPMS). In 2003, the company is aiming to sell ten million units to six of the top eight vehicle makers. Some xx% of Schrader Electronics business is currently from European customers. Schrader operates electronics facilities in Rochester Hills, Michigan; Monroe, North Carolina; Paris and Pontarlier, France; and Tokyo, Japan. Schrader Electronics is part of Tomkins Plc s Industrial and Automotive Division. Schrader Electronics is the world leader in wireless tyre pressure sensing technology and is an approved supplier for Ford, General Motors, DaimlerChrysler, Nissan, Renault and PSA. The company currently supplies the following vehicles with tyre pressure monitoring systems: GM SAMPLE DATA REMOVED DaimlerChrysler SAMPLE DATA REMOVED Nissan SAMPLE DATA REMOVED Renault SAMPLE DATA REMOVED PSA SAMPLE DATA REMOVED In December 2001, Schrader was awarded a contract to supply RTPMS to GM light truck platforms in North America. It was also awarded contracts for Opel and Fiat production in Europe and Isuzu and Subaru production in Japan for vehicles to be sold into the US market. The global market for tyre pressure monitoring systems 17

21 Chapter 5 Schrader Electronics In May 2003, Schrader launched its third generation tyre pressure sensor, GEN3. The company claims it is the most competitively priced sensor on the market with at least xx% improvement in size and weight over any other sensor currently available. Carl Wacker, Worldwide Sales and Marketing Manager said: I believe that our new GEN3 will greatly reduce the cost of TPM systems by more than xx% over the phase-in period of the TREAD Act. In 2001, Schrader redesigned its remote tyre pressure monitoring systems with a new auto-learn feature that eliminates the need to reprogram transmitters and receivers when a tyre has changed position on the vehicle. Schrader's RTPMS consists of four tyre valve-mounted pressure sensors, or transmitters, and four detectors that are mounted at the wheel wells. The sensors send tyre pressure information at regular intervals via radio frequency to an onboard central receiver and to the instrument cluster in the car. Its new Auto Rotation feature reconfigures itself whenever a The global market for tyre pressure monitoring systems 18