Boston, MA - April 3, 2008 - The Strategy Analytics report, "TPMS Market Update: Indirect Systems Meet TREAD Act Requirements," offers an updated market forecast because a new indirect TPMS system, supplied by NIRA Dynamics, will soon be installed on US-sold Audi models.

The current Tire Pressure Monitoring System (TPMS) market is dominated by direct systems which utilize pressure sensors on each tire. To date, these have been the only systems to meet the legislative requirements of the United States TREAD Act, where TPMS installation is mandated. However, this technology is more costly to implement than indirect systems, in which tire pressure is estimated by comparing the rotational speed of the wheel, measured by sensors fitted to an existing anti-lock brake or stability control system. NIRA Dynamics claim that their indirect system, with the additional measurement of resonant frequency of the tires, is just as capable as direct systems in identifying the faulty tire and the deflation in many tires at similar rates, but retains its low cost advantage.

According to the author of this report, Kevin Mak, Industry Analyst in the Strategy Analytics Automotive Electronics Service, "If the claims by NIRA Dynamics hold true, then indirect systems are set to compete against, if not completely overhaul, direct systems. In this scenario, low segment car models will be the vanguard for installation of indirect systems. This will be accentuated by the growing demand for compact cars as fuel prices increase. Thus, with the growing concern for carbon dioxide emissions, Europe will champion indirect systems over direct."

"We expect to see vendors of direct systems respond with improvements and additional functionality as they seek to retain the profitable high-end business," added Ian Riches, Director, Automotive Electronics Service.