At the end of the year, TPMS predicted that the market would increase by 50percent in 2020

category:Finance
 At the end of the year, TPMS predicted that the market would increase by 50percent in 2020


What is TPMS?

The tire pressure monitoring system (TPMS) monitors the tire pressure, temperature and other data by installing high-sensitivity sensors on each wheel of the car, and transmits the data to the receiver through radio frequency signal, so as to remind the driver.

For example, TPMS can give an alarm when the tire deviates from the standard tire pressure, the temperature exceeds the standard, and the air leaks rapidly, so as to ensure the driving safety.

TPMS can effectively prevent tire burst accidents, improve vehicle safety, keep the tires in the best use state at all times, and ensure fuel economy and tire life.

Like etc, which became a hot spot in the middle of this year, TPMS is not a new thing. Many high-end cars in China have been equipped with this system. But these TPMS systems can be divided into two types: indirect TPMS and direct TPMS.

The direct TPMS uses a pressure sensor inside or outside each wheel. The sensor physically measures the tire pressure in each tire and reports it to the vehicles instrument panel or the appropriate monitor. Indirect TPMS does not use physical pressure sensors, but measures air pressure by monitoring the speed of each wheel and other available signals outside the tire.

Most domestic research institutions agree that the reliability of direct TPMS is higher than that of indirect TPMS, which is also the future development trend. Most domestic TPMS manufacturers adopt the direct TPMS technology route.

TPMS consists of transmitter (fixed in tire through valve), controller (including antenna) and display interface (usually integrated in vehicle instrument).

According to a research report on the relationship between TPMS system and vehicle tire pressure by oica, the probability of abnormal tire pressure of vehicles equipped with TPMS system is significantly lower than that of vehicles without TPMS system.

In addition to the main purpose of monitoring tire pressure, TPMS system can save fuel and prolong tire life.

The main raw materials of TPMS are chips, lithium batteries and antennas. Among them, the mainstream chips of TPMS are mainly in the hands of large international companies, such as Infineon and NXP.

In the OEM market, most of the sensors are mounted on the inside of the rim and the battery is not replaceable. If the battery runs out of power, it means that the whole sensor must be replaced, and the battery can only be replaced after removing the tire. The service life of the battery becomes a crucial parameter.

TPMS compulsory national standard performance requirements and test methods for passenger car tire pressure monitoring system (gb26149-2017) stipulates: vehicles shall be installed with TPMS specified in this standard according to the following provisions: a) for passenger cars with engine in the middle and w / H ratio less than or equal to 0.9, the new application for type approval shall be implemented from January 1, 2020, and the vehicle type approved shall be 202 It will be implemented from January 1, 2001. b) For other M1 vehicles, the newly applied model for type approval shall be implemented from January 1, 2019; the model for which type approval has been obtained shall be implemented from January 1, 2020.

A technician of nishang group (002593, SZ) explained to the reporter of daily economic news: the implementation of the above-mentioned A and B segments is mainly aimed at different models. The first part (i.e. a) is the requirements for minicars, and the second part (i.e. b) is the general passenger cars.

The reason why there is a difference between 2019 and 2020, the technician said: we need to apply for a model first, and then produce it. Generally, it takes 1-2 years for the newly applied model to be mass produced.

In the second round of examination and inquiry letter of its IPO, daotong technology analyzed that laws and regulations have promoted most M1 vehicles (vehicles with at least 4 wheels or 3 wheels, and the factorys maximum total mass is more than 1t, and no more than 8 passenger seats except drivers seat), that is to say, passenger vehicles will be forced to install TPMS in succession.

That is to say, according to the requirements of gb26149-2017, from January 1, 2020, the type approved vehicles of M1 category must be forced to install TPMS system, which will lead to high growth of TPMS system.

A research report on TPMS by Wanlian Securities pointed out that in 2018, the TPMS penetration rate of new passenger cars in China was about 40%. According to the estimation of penetration rate of 60% in 2019 and 90% in 2020, the total scale of TPMS market in new car market is about 2.23 billion yuan and 3.23 billion yuan respectively.

The reporter combed the recent prediction of the total scale of TPMS OEM market by major institutions. The prediction results of Wanlian securities, Great Wall Securities, Dongfang wealth securities and CITIC Securities show that the total market scale in 2020 is between 1.8 billion yuan and 4.1 billion yuan. Among them, CITIC Securities is the most conservative, and the TPMS scale is predicted to be 1.8 billion yuan.

Major research institutions of securities companies believe that TPMS will enjoy high growth in 2020 along with the mandatory requirements of policies. Wanlian securities, Great Wall Securities, Dongfang wealth securities and CITIC Securities predicted the growth rate of the total market scale in 2020 to be 44.84%, 47.57%, 70.83% and 32.35% respectively, and the average growth rate predicted by the four institutions was 48.9%. In addition, TPMS products of commercial vehicles are at the initial stage, and the reporter has not found any research institutions to predict the market. The main TPMS listed companies in the A-share market are Baolong Technology (603197, SH), Wantong intelligent control (300643, SZ) and nishang group. According to the prospectus (application draft) of Shenzhen Daotong Technology Co., Ltd., the TPMS products of Baolong technology are mainly sold in the OEM market, while Wantong intelligent control has both AM market and OEM market business. According to the reporter, Nissin groups TPMS products are mainly commercial vehicles. Source: editor in charge of daily economic news: Yang bin_nf4368

Major research institutions of securities companies believe that TPMS will enjoy high growth in 2020 along with the mandatory requirements of policies. Wanlian securities, Great Wall Securities, Dongfang wealth securities and CITIC Securities predicted the growth rate of the total market scale in 2020 to be 44.84%, 47.57%, 70.83% and 32.35% respectively, and the average growth rate predicted by the four institutions was 48.9%.

In addition, TPMS products of commercial vehicles are at the initial stage, and the reporter has not found any research institutions to predict the market.

The main TPMS listed companies in the A-share market are Baolong Technology (603197, SH), Wantong intelligent control (300643, SZ) and nishang group.

According to the prospectus (application draft) of Shenzhen Daotong Technology Co., Ltd., the TPMS products of Baolong technology are mainly sold in the OEM market, while Wantong intelligent control has both AM market and OEM market business. According to the reporter, Nissin groups TPMS products are mainly commercial vehicles.