The global automotive differential market was valued at $20.1 billion in 2021 and it is expected to reach $33.9 billion at a CAGR of 4.8% between 2022 and 2032. The advancements in comfort and autonomous safety systems that premium SUVs provide, as well as advantages like better agility, more room, and superior comfort compared with sedans, are driving up demand for SUVs in both developing and developed nations.
A key element of the automotive drivetrain that enables multiple drive wheels to perform efficient driving activities is the differential. Every form of driving vehicle needs a differential. These parts are put in place in the space between each set of driving wheels. The need for differentials is anticipated to increase as the use of AWD and 4WD cars increases. Commercial cars are in greater demand every day. Furthermore, lightweight and high-performance automotive components are used to make cars more dependable and practical. In addition, the demand for automobile differential parts would increase as more and more emerging businesses, such as e-commerce, the food industry, and others, came into existence. Eventually, there would be a greater need for commercial cars as businesses would broaden their services by providing delivery and transportation options.
Source: SAI Research
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All cars require differentials, so it is impossible to switch to a different type of technology to replace the current system. For electronics to ensure that both wheels receive identical torque under all circumstances, a fairly complex computer program is needed. However, it is challenging to create a computer program that does so under all circumstances in such a safety-critical environment. Additionally, differentials have been utilized in automobiles for a very long time, making it very impossible for the differential market to transition to another technology. For electronics to ensure that both wheels receive identical torque under all circumstances, a fairly complex computer program is needed.
The automotive differential market's dominant trend is the advancement of technology. Leading automobile differential manufacturers are creating and introducing new technologies, like differentials with improved performance and usefulness. However, COVID-19's impact on declining automotive production and sales during the last two years as well as the surge in in-wheel electric vehicle production is impeding the market's expansion.
Based on fluid type, the open differential segment has led the market growth over the past few years. Its reduced price and improved traction on smooth roads are the determining considerations. The first answer to a common issue was open differentials. They eliminate wheel hop, vehicle instability, and excessive tire wear by allowing the wheels to rotate independently of one another. These benefits would also create more growth opportunities for the market in several regions.
In terms of vehicle type, the passenger car segment accounted for the largest share of this market due to rising demand among a large number of people across several emerging nations. The rising per capita income and rising standard of living are the main contributing elements. The inclusion of these systems in mid-range passenger cars has led to an increase in demand globally. Previously, these systems were exclusively offered in high-end automobiles. The development of AWD systems and their adoption in the expanding electric vehicle industry are additional important drivers anticipated to fuel the market's expansion throughout the projected period.
Based on regions, the Asia-Pacific holds most of the market share. Additionally, most of the key players are established in several countries across this region which is another benefit for the market. Asia-Pacific is anticipated to have the largest revenue market share over the forecast period due to growing urbanization, an expanding aftermarket industry, and higher safety consciousness, which is anticipated to enhance the market size for automotive differentials in this region. However, the overall demand for differential is the highest in the region because of the massive amount of automobiles produced there.
According to the study, key players such as American Axle (U.S), Auburn Gear (U.S), BMW (Germany), Bharat Gears (India), CUSCO (Japan), Continental AG (Germany), Dana Incorporated (U.S), Drexler Automotive (Germany), Eaton Corporation (U.S), Honda (Japan), Hyundai (South Korea), Linamar (Canada), Mercedes (Germany), Magna International (Canada), Melrose Industries (U.K), Porsche SE (Germany), Suzuki (Japan), Toyota (Japan), UCI Holdco (U.S), Zen Technologies (India), among others are leading the global electric vehicle fluids market.
|Market Size in 2021||US$ 20.1 Billion|
|Market Volume Projection by 2032||US$ 33.9 Billion|
|Forecast Period 2022 to 2032 CAGR||4.8%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Fluid Type: An Electronically Limited-Slip Differential, Open Differential, Locking Differential Torque Vectoring Differential & Others
By Vehicle Type: Passenger Car, Commercial Vehicle, Truck, Bus, Other
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||American Axle (U.S), Auburn Gear (U.S), BMW (Germany), Bharat Gears (India), CUSCO (Japan), Continental AG (Germany), Dana Incorporated (U.S), Drexler Automotive (Germany), Eaton Corporation (U.S), Honda (Japan), Hyundai (South Korea), Linamar (Canada), Mercedes (Germany), Magna International (Canada), Melrose Industries (U.K), Porsche SE (Germany), Suzuki (Japan), Toyota (Japan), UCI Holdco (U.S), Zen Technologies (India), among others.|
The Global Automotive Differential Market – by Fluid Type:
The Global Automotive Differential Market – by Vehicle Type:
The Global Automotive Differential Market – by Regions:
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