BOSTON -- Strategy Analytics reveals growing opportunities for the safety feature market in its latest report, "Automotive Tire Pressure Monitoring Systems (TPMS) Market Analysis." This will lead to greater sensor and semiconductor demand. TPMS will boost demand for silicon sensors and RF (Radio Frequency) integrated circuits from both niche and major sensor players.

TPMS monitors the air pressure in order to warn drivers of either under or over inflation. Stress from improper tire pressure can lead to tire blowouts, and serious, or even fatal, automotive accidents. As a niche product TPMS has been available for some time. Following the experience of Ford Motor Company and Bridgestone, Congress enacted the Transportation Recall, Enhancement, Accountability, and Documentation (TREAD) Act in 2002 in response to the many deaths and injuries attributable to tread separation on Ford Explorers equipped with certain Firestone tires.

Beginning in October, and over the next two years, the TREAD Act will require a monitoring system for all US passenger vehicles and light trucks sold in the United States, which will indicate up to a 25 percent pressure variation from ideal measures as specified by the National Highway Traffic Safety Administration. This US regulation is influencing other regions, creating further demand opportunities for safety systems around the world including Canada, Japan and Europe.

"TPMS will become the fastest growing automotive electronic system with volume over the next few years," according to Simon Schofield, Senior Analyst with the Strategy Analytics Automotive Electronics Practice. "The next challenge is to perfect a battery-less design in order to reduce costs and avoid recycling issues including heavy metals directives".

About Strategy Analytics
Strategy Analytics, Inc. - a global research and consulting firm - provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Boston, MA. and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics & Multimedia, Digital Consumer, Wireless Strategies and Enabling Technologies.

Thursday, July 14, 2005 03:07 AM

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