The global Automatic Tire Inflation System market size is projected to grow from USD 82 million in 2023 to USD 138 million by 2028, at a CAGR of 10.7% during the forecast period.

This growth is being driven by increasing demand in heavy-duty and off-highway vehicles, the need for enhanced fuel efficiency, longer tire life, and the integration of telematics for connected fleet management.

Market Overview: Size & Share Insights

• Market value in 2023: USD 82 million
• Forecast value by 2028: USD 138 million
• CAGR (2023–2028): ~10.7%
• Leading Regions:
  • North America is expected to be a dominant market.
  • Europe also plays a key role, with growing demand in heavy-vehicle and off-highway segments.

Key Growth Drivers

• Increase in tire & drivetrain life: Maintaining optimal tire pressure improves tire wear, reduces blowouts, and extends life.
• Fuel efficiency benefits: Correct tire inflation helps in reducing rolling resistance and improving fuel economy.
• Cost savings for fleets: Reduced maintenance and longer replacement cycles make ATIS appealing for commercial fleets.
• Integration with telematics: Connectivity (vehicle telematics) enables remote monitoring of tire pressure, predictive maintenance, and safety improvements.

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Market Trends & Opportunities

• Central Tire Inflation System (CTIS): Central type is the largest segment, especially for off-highway and heavy-duty vehicles.
• Component Innovation: Key components include ECU, compressor, pressure sensors, air delivery systems, buffer tanks, rotary unions.
• Agriculture Tractors Dominance in Off-Highway: Tractors (especially high-horsepower) are major users of CTIS, because variable ground traction and load conditions benefit strongly from inflation control.
• Sales Channels: Both OEM and aftermarket are significant — but integration with vehicle OEM offers better performance, monitoring, and durability.

Regional Outlook

• North America: Leading region by value; strong adoption in heavy-duty, long-haul fleets, and off-highway segments.
• Europe: Growing demand from farm tractors, construction equipment, and specialized vehicles.
• Asia-Pacific: Emerging opportunity because of rising vehicle production, off-road application, and infrastructure development.

Challenges & Restraints

• High System Cost: ATIS involves several complex components (ECU, sensors, compressors), making the system expensive to install and maintain.
• Competition from Alternative Inflation Technologies: Systems like nitrogen inflation or airless tires can reduce the need for ATIS.
• Integration Complexity: For fleet owners, adding ATIS means integrating with vehicle electronics and possibly telematics — this complexity can be a barrier.
• Adoption Limited to Specific Segments: High cost and utility make ATIS more suited to heavy-duty, on-highway or off-highway vehicles than small passenger cars.

Why This Market Matters to Stakeholders

• Fleet Operators & OEMs: ATIS can reduce operating costs (fuel + tire maintenance), improve vehicle uptime, and enhance safety — a strong value proposition for commercial vehicles.
• Component Suppliers: Demand for ECUs, pressure sensors, compressors, and rotary unions is expected to grow as ATIS adoption rises.
• Telematics / Connectivity Players: Opportunities to offer integrated tire-pressure-monitoring + inflation + predictive-maintenance solutions.
• Investors & Strategic Planners: Though the base market is relatively small (USD 82 M in 2023), its high growth rate and niche utility offer a targeted opportunity.
• Agricultural & Off-Highway Equipment Manufacturers: Tractors and construction vehicles benefit significantly from CTIS, making ATIS a differentiator for OEMs in these segments.

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FAQ

Q: What is the current size of the ATIS market?

A: Approximately USD 82 million in 2023.

Q: What is the forecast value by 2028?

A: Projected to reach USD 138 million by 2028.

Q: What is the CAGR between 2023 and 2028?

A: ~10.7%.

Q: Which type of ATIS is dominant?

A: Central Tire Inflation Systems are leading, especially in heavy-duty and off-highway applications.

Q: What are key components of ATIS?

A: Rotary union, compressor, pressure sensor, air delivery system, buffer tank, housing, and ECU.

Q: Who are major players in the ATIS market?

A: Major companies include Dana Incorporated, Michelin, IDEX Corporation, Enpro Industries, MERITOR, SAF-HOLLAND, CLAAS, among others.