Indirect tire pressure monitoring systems (iTPMS) help OEMs reduce production costs without compromising safety or compliance. It outlines the cost drivers behind traditional TPMS and how software-based solutions eliminate them.
For OEMs, every additional component in a car affects the bottom line. Hardware-based direct TPMS requires a sensor in each wheel, plus the associated radio modules, batteries, installation labor, and quality checks. Multiplied across hundreds of thousands of vehicles, these small pieces add up to millions in extra cost every year.
Beyond purchasing, there’s the logistics challenge: maintaining a steady supply of sensors, warehousing them, tracking multiple part numbers for different wheel sizes or regions, and dealing with supplier lead times. All of this ties up resources and can create production bottlenecks.
Indirect TPMS eliminates these hardware requirements. By using existing sensors in the vehicle, such as wheel speed and ESC signals, the system can detect pressure loss through changes in wheel dynamics. The result is accurate, regulation-compliant tire pressure monitoring without adding a single new hardware part.
For OEMs, the benefits start immediately:
Lower Bill of Materials (BoM): No extra sensor costs.
Simpler Assembly: One less component (or actually four-five) to install, calibrate, and test.
Streamlined Supply Chain: Fewer suppliers and part numbers to manage.
Consider a mid-size OEM producing 500,000 vehicles annually. If each direct TPMS sensor costs just $15 (including logistics), removing four sensors per car saves almost $30 million per year. And those savings don’t include reduced warehousing, transportation, and supplier management costs.
Modern iTPMS solution, like NIRA’s Tire Pressure Indicator (TPI), also deliver enhanced capabilities. Features such as indication of loose wheels or vehicle load improve safety and driver awareness without adding to production complexity.
By removing hardware while adding features, OEMs can strengthen their product offering and improve margins simultaneously.
The automotive industry is moving toward software-defined vehicles, where functions are delivered or enhanced through software updates. iTPMS fits perfectly into this model — it can be updated, refined, and even expanded post-production without touching the physical car.