This IOT Startup Idea from the 1001 Startup Ideas collection of YoStartups is to develop a real-time sensor enabled tire monitoring system to get notified about the wear and tear of tires for safety, vehicular efficiency and compliance with safety laws.
Market definition for Real-Time Sensor Enabled Tire Monitoring System
In 2016, as per The Royal Society for the Prevention of Accidents (ROSPA)in the UK, eight people were killed, and 20 people were seriously injured in road traffic Accidents due to faulty tires.
A study sponsored by The Safety Institute, USA and conducted by Quality Control Systems Corp revealed an increase in tire-related fatalities by 10.6 per cent from 2013 to 2014 and deaths for all other kinds of crashes involving passenger vehicles increased by only 0.3 per cent in the same time frame.
There have been various studies done across the world which indicate that defective tires lead to accidents and fatalities. While European and US markets have made Tire Pressure Management Systems(TPMS) mandatory, all new Chinese vehicles by 2020 will need to be compulsorily fitted with TPMS as stated by law. As per a report available on Research and Markets, Global TPMS OEM market size was about 47.62 million sets with an installation rate of 50.1% in 2016, and the figures for 2021 are expected to reach a total of 81.27 million sets and 77.4%. The markets are ripe for a startup to introduce a comprehensive tire monitoring system.
Let’s go through the various aspects the startups need to consider to kickstart this idea
Competitor analysis for Real-Time Sensor Enabled Tire Monitoring System
Tyrata. is a sensor development and data management company offering proprietary wireless sensors and systems that monitor and report on vehicular tire treadwear in real time. The company’s patent-pending IntelliTread™ technology monitors, tracks and predicts tire tread wear over the life of any tire. Tyrata serves consumers, fleet management companies, and high-performance specialists who depend on the integrity of tires for safety, efficiency, and profitability.
Pirelli Connesso is formed of a sensor embedded in the tire connected to the Pirelli Cloud and a smartphone app, providing an interface that allows drivers to communicate with tires constantly. It measures tire pressure and temperature even when the car is at rest, plus static vertical load, tire wear, number of kilometres covered for each tire, and, in a future version, the estimated remaining life in kilometres
Pain point and target audience for Real-Time Sensor Enabled Tire Monitoring System
The target audience for this startup can be individual car owners, fleet management companies, racing teams, tire dealerships and even tire companies in the future.
A total of 46,696 motorists were found using worn-out tires in their vehicles in Abu Dhabi last year, and as per federal traffic laws, drivers of cars with worn-out tires can be fined Dh200, and their vehicles can be impounded for a week. In the UK, the driver can be fined GBP 2500 for each defective tire and 3 Penalty points on the license.
In a survey done by Ingenie with Tyre Safe UK among young drivers, 1 in 3 drivers never checked tire and 1 in 4 drivers never checked tire pressure. The survey also found that 62% of drivers underestimated that the minimum legal depth of the tire and 57% of the drivers did not know that they were responsible for road legal tires.
Damaged tires, low pressure and worn tires below the legal limit are the main problems which cause tire-related accidents, which suggests that a good number of motorists in the UK and worldwide are failing to make regular checks on what the condition of their vehicles’ tires are.
The value proposition for Real-Time Sensor Enabled Tire Monitoring System
The value proposition for this startup idea is that the drivers are aware of the wear and tear of the tire tread in real time, this data can help drivers prevent catastrophic accidents and aid them to do preventive maintenance, pleasurable driving experience, optimizing performance and reducing fuel consumption with the more efficient use of tires.
The Traffic and Patrols Department in Abu Dhabi witnessed a drop in tire-related accidents in 2013 as a result of greater awareness among drivers about using defective tires. So an automated monitoring tire monitoring system can be a welcome addition to create awareness and compliance with the rules.
The business model for Real-Time Sensor Enabled Tire Monitoring System
The startup can sell the sensor at actual’s to individuals and enterprises which can be embedded within the tire to relay information to the cloud. The startup can then sell the subscription to the cloud to both individuals and Enterprises through an app. The individuals can be charged a fixed fee per month and the enterprise based on the number of users actively using the platform through the enterprise. The startup can also add additional features like on-call access to tire replacement or repair services through the app.
Way to market for Real-Time Sensor Enabled Tire Monitoring System
The startup will have to design and manufacture a sensor which can measure the pressure, Vertical load, tire wear and the distance covered on the road. The startup can develop a sensor on the principles of electromagnetics and interference which can help in measuring the thickness of tire wall. to the cloud-based platform.; the sensors can be build using carbon composites so that they can withstand high temperature inside the tire
Once the sensor is developed, the sensor can be calibrated to the size of the tire and embedded in the tire itself to send data, and these sensors should be tested in all weather conditions to collect data. The accuracy of the data collected should be validated by checking the physical condition of the tire regularly. The startup can use the principles of machine learning and AI to predict the lifecycle of the tire and its ability to perform in various conditions at different stages of tire wear and tear. Once the sensors are proven to be accurate, and the software is in sync with results. The startup can roll out the product successfully for commercialization with industry partnerships
Key milestones for Real-Time Sensor Enabled Tire Monitoring System
The design and prototype of the sensor should be completed within six months to initiate the testing phase. The software and the algorithms to read and analyze the data through an app can be developed simultaneously. Once the sensor prototype and the software are ready, the startup can start testing the efficacy and accuracy of the sensor and the ability of the software to relay information for the next six months or till the results are in line with the standard regulations or requirements. The packaged product (software +hardware) can be a launched once the trials are completed.
Investment needed for Prototyping Real-Time Sensor Enabled Tire Monitoring System
The start-up can raise to $125k for prototyping the sensors and the software platform from IoT accelerators like Plug and Play, Fast Lane or Dynamo. Maximum funds raised will have to be allocated for prototyping the sensors with various materials, as these sensors need to be functional under extreme conditions within the tire. The software can be developed once the sensors can be ready. No funds should be allocated for operational expenses.
Team capability for Prototyping Real-Time Sensor Enabled Tire Monitoring System
The team will need co-founders who have experience in electromagnetic fields or smart materials which can be used to design the prototype of the sensor required to capture the data. Other team members can be a full stack developer who can develop the cloud-based software and the app. It will also be good to have a co-founder form the tire industry, as he can help onboard customers faster and can get access to the industry for the trial phase.
Investors/Expert take on Real-Time Sensor Enabled Tire Monitoring System
In The year 2017 as per CB Insights, Investors in the auto tech poured nearly $4B in disclosed equity funding across 149 deals, breaking annual records by a wide margin. The Dollar financing specifically got on track to more than triple from last year’s previous high of $1.5B. In Jan 2018, an annual showcase called AutoMobili-D organized by Detroit-based Techstars Mobility featured 57 companies from 11 countries in automotive space have raised $157 million in venture capital.
There has been a consistent and proactive effort made by the regulatory authorities to make motor driving safe, the results of which is an increase in the use of embedded sensors in automobiles to increase safety. With the rise in the demand for both self-driven automobiles and the investor interest in automotive start-ups, the need for safety-related equipment on automobiles is also set to grow.
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