ID: MRFR/AM/5659-HCR | 100 Pages | Author: Swapnil Palwe | May 2023
The Global Automotive Differential System Market Size is expected to cross USD 23.19 billion by 2030 at a CAGR of 5% during the forecast period ending in 2030
The Automotive Differential System Market Size is expected to grow at a CAGR of 5% during the Automotive Differential System Market Forecast. The automotive differential is a critical component of a vehicle that is responsible for transmitting the needed amount of torque to the wheels at various time intervals based on the needs of the vehicle. Differential assembly is made up of sun and planetary gears that are made up of spider gears, pinion gears, and ring gears. This particular arrangement is required for giving the required speed to various wheels while rotating. Differential assists in giving improved traction by allowing the wheels to rotate at different RPMs due to speed reduction at the pinion gear assembly. Due to its basic operation of rotating wheels at different speeds, especially while turning, as the outer wheels span a bigger circumference, the Automotive Differential System Industry is a vital component of any vehicle. As a result, demand for the automotive differential has never waned. With more people owning personal vehicles and technology improvements, the demand for this differential system will only grow.
The outbreak of COVID-19 has damaged and disturbed the whole automotive ecosystem's supply chain, causing production facilities all over the world to shut down impacting the Automotive Differential System Market Growth and Automotive Differential System Market Trends during the Automotive Differential System Market Analysis. This scenario is projected to have an impact on the automotive differential industry, as Automotive Differential System Market Share and Automotive Differential System Market Growth are directly tied to vehicle production. The Automotive Differential System Market Trends are projected to suffer as vehicle manufacturing declines. COVID-19's epidemic had a tremendous impact on trade and business. Manufacturers are rethinking their product offerings and manufacturing new items to recover from the current predicament. The duration of the pandemic's propagation is still a significant issue when assessing the pandemic's overall impact. However, the Automotive Differential System Market Share is expected to plateau after 2021. One of the most rapidly expanding is Automotive Differential System Market Demand and Automotive Differential System Market Revenue.
AWD and 4WD systems are most commonly found in luxury cars and SUVs. The Automotive Differential System Market Demand has increased as economic conditions have improved, industrialization has increased, and customers' living standards have improved around the world. Furthermore, strict safety rules in regions such as Europe and North America have enticed consumers to opt for AWD and 4WD systems, which provide better traction control and vehicle stability increasing the Automotive Differential System Market Revenue during the Automotive Differential System Market Analysis. The global automotive differential market is being driven by increased demand for heavy-duty and commercial vehicles, as well as increased infrastructure investments leading to an increase in construction equipment sales. The global Automotive Differential System Market Size is Projected to be driven further by the rapidly expanding demand for SUVs and premium cars.
The increased demand for electric vehicles is one of the significant restrictions in the worldwide Automotive Differential System Market. Automakers are investing in electric car technologies as a result of the growing demand for electric automobiles. Several automakers have indicated plans to invest in the development and sale of new electric vehicles. The demand for electric vehicles has surged as governments around the world formulate more strict CO2 emission standards (EVs). Incentives and subsidies are also being offered by governments to stimulate the adoption of electric vehicles. Low or no registration fees, as well as exemptions from import tax, purchase tax, and road tax, are among the benefits.
Growing technological advancements in the automotive sector are expected to open up new prospects for the worldwide automotive differential market. During the projection period, the electronic slip disc differential is expected to be employed more frequently in automobiles. In addition, manufacturers are increasing their spending on technology development, which will make it easier to create better car differentials. Manufacturers are now focused on component electrification as a result of the introduction of vehicle electrification. Electronically restricted slip differentials are now being used to replace differentials. With the help of an electronic control unit, the ELSD system distributes enough torque to each wheel. In the event of a slide, the technique is advantageous since the extra torque is sent to the wheels with the most traction. During high-speed curves and lane changes, the technology provides improved handling. Mitsubishi's Active Center Differential, for example, allows drivers to select several defaults for driving on the road, gravel, and snow. As vehicles become more electrified, component and system manufacturers respond to the sophisticated needs of OEMs such as ELSD.
The Automotive Differential System Market is further bifurcated into various segments depending on various factors to help the market grow as per the predicted CAGR growth by the end of the Automotive Differential System Market Forecast period in 2027. The market has been segmented based on the following:
Due to increased awareness about safety, growing urbanization, and growing aftermarket industry, Asia-Pacific is predicted to have the greatest revenue market share over the forecast period, which is expected to boost the market size for automotive differentials in this region. Furthermore, rising automobile production and sales will fuel the market for automotive differential systems in Asia-Pacific. Off-road vehicles and sports automobiles have also grown in popularity in Asian countries, thanks to a growing preference for all-wheel and four-wheel drive integrated vehicles. These factors are likely to contribute to overall market growth during the forecast period. However, due to the enormous volume of vehicles produced in the region, the overall demand for differential is the largest.
Existing Automotive Differential System Market Key Players control the majority of the Automotive Differential Market. Companies are forming joint ventures, forming alliances, and releasing new products using modern technology to gain an advantage over their competitors. The major Automotive Differential System Market Key Players are as follows:
Eaton has designed an electronically controlled, scalable limited-slip differential that can be used on a variety of vehicle platforms to improve performance and driver safety.
Dana has introduced a new series of eight Spicer Torque-Hub drives, bringing the company's drive and motion solutions for crawler cranes and other big tracked vehicles to a wider audience. The new drives offer adjustable packaging and gear ratios to satisfy manufacturer requirements for tracked and wheeled applications, with torque ratings ranging from 80,000 N-m to 450,000 N-m.
GKN Automotive and Delta Electronics have announced a cooperative development of eDrive technology that will allow for the quick development of next-generation integrated 3-in-1 drive systems with power classes ranging from 80kW to 155kW.
The study on the Global Automotive Differential System Market includes thorough primary research. The report is prepared to acquire a better understanding of the market and industry performance, many industry experts and key opinion leaders conduct extensive qualitative and quantitative analyses. The study provides a thorough picture of the current market situation, including historical and projected market sizes in terms of value and volume, technical advancements, macroeconomic considerations, and market controlling factors. The research includes detailed information on the strategies of the industry's leading firms, as well as a thorough examination of the various market segments and geographies. With recent technological advancements, the Automotive Differential market report covers present and next trends. The study will provide a thorough examination of numerous market segments based on vehicle, product, and drive type. It will be possible to see the market share of major connected car firms around the world.
|Market Size||2030: Significant Value|
|CAGR||5% CAGR (2022-2030)|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Technology, By Application, By Vehicle type, By End Market,|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||ZF Friedrichshafen AG (Germany), Eaton (Ireland), BorgWarnerInc. (US), Schaeffler AG (Germany), GKN plc (UK), JTEKT Corporation (Japan), Dana Limited (US), DREXLER AUTOMOTIVE (Germany), neapco (US), and Powertrax (US).|
|Key Market Opportunities||Increased demand for the heavy duty Commercial vehicles|
|Key Market Drivers||Rapidly growing demand for SUVs and premium cars Rise in construction equipment sales|
The global automotive differential system market is maturing at a moderate 5% CAGR over the review period of 2022 to 2030.
The key players of the automotive differential system market are ZF Friedrichshafen AG (Germany), BorgWarnerInc. (US), Eaton (Ireland), Schaeffler AG (Germany), JTEKT Corporation (Japan), GKN plc (UK), Dana Limited (US), neapco (US), DREXLER AUTOMOTIVE (Germany), and Powertrax (US).
The segments of the automotive differential system market, by propulsion, are hybrid vehicles and ICE.
The segments of the automotive differential system market, by type, are electronic limited slip differential, torque vectoring differential, open differential, locking differential, and limited slip differential.
By component, the automotive differential system market is segmented into differential bearing and differential gear differential case.
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