Automotive Differential Market Size is Projected to Reach $34.83 Billion by 2030, Growing at a CAGR Of 6.5%: Straits Research
The increasing popularity of all-wheel drive and four-wheel drive vehicles, as well as the rising demand for commercial vehicles, will drive growth in the global market for automotive differentials.
New York, United States, Oct. 26, 2023 (GLOBE NEWSWIRE) — The differential is a crucial component of an automobile’s drivetrain, enabling distinct drive wheels to execute turning and driving functions. A differential is a system that divides the engine’s torque into two outputs, allowing each work to spin the vehicle’s wheels at a different speed. “The global automotive differential market size was at USD 19.76 billion in 2021. It is projected to reach USD 34.83 billion by 2030, growing at a CAGR of 6.5% during the forecast period (2022–2030),” stated by the Research Manager at Straits Research P. Ltd.
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Significant technological developments in automobile drivetrains, powertrains, safety, and vehicle stability have all increased the operational efficiency of automobiles. Four-wheel drive (4WD) and all-wheel drive (AWD) cars can attain higher levels of safety and vehicle dynamic performance due to the changing needs of consumers. In recent years, the market share of all-wheel drive (AWD) and four-wheel drive (4WD) automobiles has increased significantly, and industry analysts expect this trend to continue in the coming years. These drive systems require two or three differential assemblies to perform their driving functions. For instance, the commercial vehicle market of the Indian automotive industry witnessed an exceptionally high growth rate which is valid for all three categories of commercial vehicles: light, medium, and heavy.
A vehicle with an electronic limited-slip differential has better traction, which is advantageous on dry and wet roads. This differential offers several advantages, such as improved control and handling, excellent performance, and improved traction in slippery weather. The development of electrically limited-slip differentials is the principal focus of R&D at several of the world’s leading automobile manufacturers. For instance, Hyundai Wia Corporation expanded the production capacity of its Changwon plant in Korea to manufacture electronically limited-slip differentials (ELSD). In addition, Eaton has released the most recent generation of their electrically limited-slip differential, a rapid-response device for controlling traction. ZF has also created a brand-new networked ELSD rear axle transmission. This sort of transmission is primarily designed for sport and off-road vehicles. This unique differential is fully networked with the vehicle’s braking system, which improves the vehicle’s on-road and off-road driving characteristics, comfort, and stability.
Leading automakers are creating automotive differential systems to improve traction, stability, and performance, driving the Asia-Pacific market. Continuous advancements in automotive differentials drive industry expansion. The development of electrically regulated slip differentials represents a further market expansion possibility. The contribution of this territory to the global market is relatively modest due to expansion in the automotive industry and increased demand for commercial cars.
The United States, Canada, and Mexico will experience a substantial increase in differential demand. Leading luxury manufacturers deliver new vehicles with enhanced amenities and innovative differentials, stimulating the North American automotive differential market. Porsche Cars North America, Inc. debuted the 718 Boxster T and 718 Cayman T with a limited-slip differential. With the development of innovative technologies for enhanced vehicle control and dynamics, the differential market in North America is anticipated to expand. Audi’s luxury automobile manufacturer introduced a new Audi Q8 SUV S variant featuring a torque-vectoring rear differential and limited-slip center differential in Europe.
- Open locking is the superior automotive differential and is expected to grow at a CAGR of 5.6 % during the forecast period.
- Based on drive type, the global automotive differential market is classified into Front-Wheel Drive (FWD), Rear-Wheel Drive (RWD), and All-Wheel Drive (AWD). The front-wheel-drive (FWD) is the most dominant automotive differential and is expected to grow at a CAGR of 6.2% during the forecast period.
- Based on vehicle type, the global automotive differential market is classified into Passenger Car, Commercial Vehicle, And Electric Vehicle.
- Based on type, the global automotive differential market is classified into Open, Locking, LSD, ELSD, And Torque Vectoring.
- The global automotive differential market is primarily classified into three regions, namely North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific was the highest contributor to the global automotive differential market and is expected to grow at a CAGR of 6.2% during the forecast period.
The global automotive differential market’s major key players are American Axle & Manufacturing Inc., BorgWarner Inc., Dana Incorporated, Eaton, Hyundai WIA Corporation, JTEKT Corporation, Linamar Corporation, Melrose Industries Plc, Schaeffler Group, and ZF Friedrichshafen AG.
- In February 2022, AAM Invests in Autotech Ventures, Will Leverage Access to New Mobility Opportunities.
- In May 2022, BorgWarner to Provide eMotors for Leading EV Brand in China.
- In April 2022, Hyundai Wia plans to conquer Europe with the Tech Cube.
- In May 2022, Schaeffler Group starts the new year with an excellent first quarter, Automotive Technologies, with 2.0 billion euros in order intake in E Mobility BD.
Global Automotive Differential Market: Segmentation
By Drive Type
- Front-wheel drive (FWD)
- Rear-wheel drive (RWD)
- All-wheel drive (AWD)
By Vehicle Type
- Passenger car
- Commercial vehicle
- Electric vehicle segments
- Torque vectoring
- North America
Get Detailed Market Segmentation @ https://straitsresearch.com/report/automotive-differential-market/segmentation
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