The automatic tire inflation systems market (ATIS) is expected to grow from USD 82 million in 2023 to USD 138 million by 2028, with a CAGR of 10.7% during the forecast period.
The increasing demand for improved tire life and accident prevention due to tire blowouts is creating growth opportunities for ATIS in heavy-duty vehicles and farm tractors.
Within off-highway ATIS systems, the segment for ATIS in farm tractors is projected to be the largest during the forecast period. The farm tractor market is also expected to grow significantly, particularly for tractors with a horsepower range of 130-250, driven by factors such as increasing traction needs and commercial agriculture demand. Many of these tractors in Europe are equipped with ATIS, and the region is also the largest market for >250 HP farm tractors.
On the other hand, the penetration of ATIS in <130 HP tractors is currently negligible due to their suitability for smaller farm sizes. However, as the demand for high HP tractors increases, especially in Europe and North America, the demand for ATIS is expected to grow.
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In terms of sales channels, the OEM segment is projected to hold the largest market share in 2028. Original equipment manufacturers (OEMs) are integrating ATIS into their vehicles and designing the chassis accordingly. This seamless integration ensures compatibility and optimal performance, with ATIS systems being designed in collaboration with the vehicle manufacturer.
In contrast, aftermarket ATIS systems may vary in quality, compatibility, and support. Retrofitting ATIS systems in existing vehicles can be complex and may require additional installation steps or modifications, which are not preferred currently.
North America is estimated to be the largest market for ATIS, driven by the region’s extensive farmlands, large market for trucks and trailers, and emphasis on road safety regulations and fuel efficiency. The presence of major automotive manufacturers in North America further contributes to the growth of the ATIS market in the region.
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The ATIS market is dominated by a few key players, including Dana Incorporated, MICHELIN, IDEX Corporation, Enpro Industries, MERITOR, SAF-HOLLAND, and CLAAS. These players have adopted strategies such as new product development, partnerships, and joint ventures to innovate their offerings and expand their customer base.
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