Publishing: October 2021 | Report Code: AT12216 | Available Format: PDF
The global automotive differential market stood at ~$20 billion in 2020. The increasing adoption of all-wheel-drive (AWD) vehicles, rising demand for commercial and heavy-duty vehicles, and surging need for improved road traction and fuel efficiency are some of the key factors driving the demand for automotive differentials globally.
The COVID-19 pandemic forced governments all over the world to impose various restrictions, which resulted in partially or fully closed factories. The pandemic disturbed the whole automotive ecosystem's supply chain, and export and manufacturing entities were forced to halt their operations to some extent. This scenario is projected to have a negative impact on the automotive differential industry, as the market growth is directly tied to vehicle production. Resultingly, the market for automotive differential is projected to suffer, as vehicle manufacturing declines.
The growing demand for sports utility vehicles (SUVs), as well as the increasing need for improved vehicle safety, stability, and enhanced driving dynamics, are boosting the demand for all-wheel drive (AWD)/four-wheel drive (4WD) differentials in the automotive differential market, based on drive type. Since torque is sent to all four wheels, all the wheels are capable of propelling the vehicle forward. If any of the wheels loses traction due to slippery surfaces, such as ice, snow, or mud, the rest of the wheels can continue to drive the vehicle. Furthermore, performance cars or sports cars also take advantage of the AWD system’s extra traction to attain faster acceleration in lesser time.
The open differential category held the largest market share in 2020, in terms of type. This was because open differentials allow the wheels to turn independent of one another, which eliminates wheel hop and vehicle instability and reduces tire wear.
The APAC region is the largest hub for vehicle production, and the presence of large production facilities in China and Japan increases the demand for automotive differentials. For instance, China and Japan remained the first- and third-largest producers of passenger cars in 2020, manufacturing approximately 33 million units combined. Hence, the overall demand for automotive differentials is the highest in the region, and it will continue being so till 2030.
With automotive differentials being used in cars for a long time now, it is difficult to replace them with any other technology. Manufacturers are now focusing on component electrification as a result of the introduction of emission reduction targets and purchase and manufacturing subsidies for clean-energy automobiles. Electronic limited-slip differentials are now being used to replace conventional differentials. With the aid of an electronic control unit, this device provides enough torque to each wheel. In the event of a instability, the mechanism is useful since the extra torque is transferred to the wheels.
During high-speed curves and lane changes, the machine provides improved handling. For example, Mitsubishi's Active Center Differential allows drivers to choose different presets for driving on asphalt, dirt, and snow. Therefore, growing vehicle electrification is major trend witnessed in the automotive differential market.
Improved safety, stability, and drive control, as provided by these systems, are just a few of the factors that are helping the market grow fast. These systems were previously only available in high-end vehicles, but their inclusion in mid-range passenger cars has resulted in a surge in the global demand. Other significant factors that are expected to propel the growth of the market during the forecast period are the improvements in AWD systems, as well as their penetration in the growing electric vehicle market. Thus, due to aforementioned factors, the automotive differential market is expected to witness an exponential growth during the forecast period.
|Base Year (2020) Market Size||~$20 Billion|
|Report Coverage||Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Regional and Country Breakdown; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis; Company Profiling|
|Market Size by Segments||By Drive Type, By Vehicle Type, By Component, By Type, By Region|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Spain, Japan, China, India, Australia, South Korea, Brazil, Mexico, Saudi Arabia, South Africa|
|Secondary Sources and References (Partial List)||Automotive Parts Manufacturer's Association (APMA), Bureau of Transportation Statistics (BTS), China Association of Automobile Manufacturers (CAAM), Chinese Association for Artificial Intelligence (CAAI), Connected Vehicle Trade Association (CVTA), Danish Artificial Intelligence Society (DAIS), European Association for Artificial Intelligence (EurAI), European Automobile Manufacturers Association (ACEA).|
The global market for automotive differential is fragmented in nature with the presence of players such American Axle & Manufacturing Inc. (AAM), BorgWarner Inc., Dana Incorporated, Eaton Corporation plc, Hyundai Wia Corporation, JTEKT Corporation, Linamar Corporation, Melrose Industries PLC, Schaeffler Technologies AG & Co. KG, and ZF Friedrichshafen AG.
The automotive differential market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Drive Type
Based on Vehicle Type
Based on Component
Based on Type
Market Segment Analysis of Countries
The value of the global automotive differential market in 2020 was ~$20 billion in 2020.
The automotive differential industry is expanding because of the soaring demand for heavy-duty and commercial vehicles and increasing usage of all-wheel-drive (AWD) vehicles.
Asia-Pacific will be the fastest growing region in the automotive differential industry during 2021–2030.
The market for automotive differential will boom in Asia-Pacific during 2021–2030, because of the existence of large automobile manufacturing facilities in Japan and China.
Vehicle electrification is the major trend currently being witnessed in the market for automotive differential.
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