TPMS market is about to break out, who will be the beneficiary

According to the TPMS global market industry chain, the demand for TPMS is constantly increasing and expanding, and China will become the main driving force for the growth of the TPMS market. The TPMS market is about to usher in an explosion. Who will be the beneficiary in this market that is about to break out again? How to seize the TPMS market that is about to blast under China's strong standards?

Under the joint promotion of technologies such as autonomous driving, new energy, and network, the automotive industry is undergoing a major transformation. However, no matter how it changes, safety is the eternal element of the car. Following ABS and airbags, TPMS (Tire Pressure Monitoring System) became the third largest automotive safety system. Since the United States passed legislation in 2005, the EU, South Korea, Taiwan, and China have successively issued mandatory standards for TPMS. From January 1st, 2019, all new certified passenger cars in the Chinese market must be installed with TPMS; from January 1, 2020, all mandatory passenger cars will be required to implement mandatory installation requirements.

China's strong TPMS global market will be re-exploded under the strong standard

The United States is the first country in the world to force the installation of TPMS. It is now the world's largest TPMS OEM market. Europe is second only to the United States. However, due to the small market capacity in South Korea and Taiwan, the implementation of the strong standard has contributed little to the global market. Today, China has become the world's largest auto market. With the implementation of strong standards, it will once again ignite the global TPMS pre-installed OEM market. It is estimated that by 2020, the global market will reach 12 billion.

Forecast of TPMS Demand for Global Passenger Vehicle OEM Market from 2017 to 2021.

In the next few years, China will become the main driving force for the growth of the TPMS market. Eric Toulouse, vice president and general manager of pressure sensor product line at NXP, also confirmed this in the MSMS TPMS market forecast presented at the launch ceremony of Baolong Technology's “15 millionth TPMS Sensor”.

MSMS TPMS Market Forecast (Blue: China Market)

"Prepare for war" on the eve of the outbreak

Who will be the beneficiary in this market that is about to break out again?

The TPMS industry chain can be divided into upstream chips, packaging and testing, mid-stream module links and downstream OEMs.

TPMS industry chain situation

What efforts and layout did the beneficiaries do?

In the downline activities of Baolong Technology's “15 millionth TPMS Sensor”, the company interviewed Eric Toulouse, vice president of NXP and general manager of pressure sensor product line, and Dr. Li Wei, general manager of Baolong Technology Automotive Electronics. In the face of TPMS market opportunities, the two sides interpreted the cooperation and their respective situations.

Eric Toulouse, Global Vice President and General Manager of Pressure Sensor Product Line (left), Dr. Li Wei, General Manager of Baolong Technology Automotive Electronics (right)

NXP is located upstream of the TPMS industry chain, and the competition is relatively weak. Especially in the complete solution of "ASIC/MCU+MEMS+ antenna", NXP is one of the only three players. For the TPMS solution with different chip architectures of ASIC and MCU, Mr. Eric said: "The ASIC solution has the advantage of being easy to use; the MCU solution has the advantages of wide application scenarios and can be upgraded by programming. NXP provides new algorithms for customers. Work closely with customers on product upgrades."

For NXP TPMS products, Mr. Eric said: “Now, NXP TPMS products are the fourth generation, and there is a big improvement in performance, such as 30% longer battery life. NXP pays attention to TPMS size miniaturization, performance and quality. As a result of the upgrade, a lot of R&D and testing work has been carried out. At the same time, NXP's latest technical solutions will also be tested and verified in Baolong Technology, and the TPMS solution will be checked again. “In the interview, Mr. Eric also expressed his opinion on Baolong. Technology is grateful for the NXP and OEM channel, and said that it will have more cooperation with Baolong Technology in the future.

Baolong Technology began research and development of TPMS products in 2002. Since 2004, it has maintained close partnership with NXP and started to enter the OEM market in 2009.

Dr. Li Wei added: "Baolong Technology understands the car, NXP is familiar with the chip, and the two can achieve the upgrade of the TPMS module through cooperation. At the same time, the cooperation between the two parties is not limited to the field of TPMS, and there is deep cooperation in various fields such as images."

“In 2002, Baolong Technology entered the field of TPMS. It was created from scratch, so it concentrated on product development. In the case of large-scale industrialization, it was limited to the situation that the domestic automation level could not meet the high requirements of automotive electronics at that time, so it was automated by itself. Production line research and development, which in turn makes Baolong a very competitive in automotive electronics automation, and also makes Baolong's products have production advantages in industrialization; in terms of product performance, China's road conditions are complex, and foreign TPMS standards are China does not work. In order to adapt to the 'national conditions', we have put forward a lot of corporate standards that are higher than the industry standards." Dr. Li Wei recalled the three difficulties and work done by Baolong Technology in the initial stage of the TPMS field.

Baolong Technology is in the middle of the TPMS industry chain, and the competition is fierce. At present, in the module segment, the gap between domestic enterprise technology and overseas companies is small and there are supporting R&D, cost and channel advantages, and there are huge opportunities. As a leading TPMS company in China, Baolong Technology has reached the international level and is in an international leading position in some aspects. As the main TPMS sensor chip supplier of Baolong Technology, NXP is not only committed to providing high quality and high performance for Baolong Technology. The product also integrates Baolong Technology's product roadmap with its own product planning. In the face of the fast-growing TPMS market, Baolong Technology's capacity increase will be the key to winning more markets.” When talking about Baolong Technology's competitiveness in TPMS field When Mr. Eric said.

For the improvement of production capacity, Dr. Li Wei said that Baolong Technology is ready. The self-developed production line adopts a modular and generalized plan. A new production line can be built and put into production within 3 months, so the demand for TPMS is increasing. No pressure.

If one sentence is used to summarize the characteristics of the TPMS market, “policy is the first productivity of the TPMS industry”. Today, the implementation of the strong standard is only for light passenger cars, but there are no regulations for buses and trucks. Eric said: "NXP has made arrangements for buses and trucks to meet the market that will break out in the future."

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