As per the latest report by IMARC Group, titled “Automotive Differential Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” the global automotive differential market size reached US$ 20.1 Billion in 2021. An automotive differential is a crucial component of the automotive drivetrain that enables wheels to rotate at different speeds while turning. It splits the engine torque into two separate units, allowing each output to rotate the wheels at different speeds. It is present in the rear axle assembly of rear-wheel drives and consists of pinion bearings, spider and side gears, side bearings and differential case and drive gears. Some of the commonly used variants in passenger and commercial vehicles include open, locking, limited-slip, electronically controlled limited-slip, and torque vectoring differentials.
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Global Automotive Differential Market Trends:
The market is primarily driven by the expanding automotive industry. The increasing demand for commercial and heavy-duty vehicles is also contributing to the market growth as the differential aids in conveniently maneuvering the vehicle with enhanced traction control. Besides this, the market is further propelled by the rising adoption of electronically limited-slip differential (ELSD) in sports and off-road automobiles as it provides improved braking, ability to drive both off- and on-road, and stability over slippery roads. Along with this, the increasing demand for lightweight and high-performance automotive components represents another major growth-inducing factor. Furthermore, the rising disposable incomes of consumers, increasing preference for luxury and semi-utility vehicles (SUVs) and extensive research and development (R&D) activities to produce more cost-effective variants are some of the other factors anticipated to propel the market growth. Looking forward, IMARC Group expects the market value to reach US$ 26.5 Billion by 2027, exhibiting a CAGR of 5.2% during the forecast period (2022-2027).
- Based on the type, the market has been categorized into electronic limited-slip differential (ELSD), locking differential, limited-slip differential (LSD), open differential, and torque vectoring differential.
- On the basis of the drive type, the market has been segmented into front-wheel drive (FWD), rear-wheel drive (RWD), and all-wheel drive/ four-wheel drive (AWD/4WD).
- Based on the vehicle, the market has been classified into passenger cars, light commercial vehicles, heavy commercial vehicles, and off-highway vehicles.
- On the basis of the component, the market has been segregated into differential bearings, differential gears, and differential cases.
- The market has been segmented based on the vehicle propulsion type into I.C. engine vehicles (spark ignition engine-based vehicles and compression ignition engine-based vehicles), electric vehicles (battery electric vehicles and fuel cell electric vehicles), and hybrid electric vehicles (hybrid electric and plug-in hybrid electric).
- Region-wise, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others), Latin America (Brazil, Mexico, and others), and Middle East and Africa.
- The competitive landscape of the market has been analyzed in the report, with some of the key players being American Axle & Manufacturing Inc., Borgwarner Inc., Continental AG, Dana Limited, Eaton Corporation Inc., GKN Plc (Melrose Industries), JTEKT Corporation (Toyota Motor Corporation), Linamar Corporation, PowerTrax, Schaeffler Group and ZF Friedrichshafen AG.
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