In 2021, the size of the global automotive differential market was valued at USD 19.66 billion. By 2030, it is expected to have grown at a compound annual growth rate (CAGR) of 6.5% to reach USD 34.73 billion (2022–2030).
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"The Global Automotive Differential Market 2020-2030 (USD Billion)")
The differential is a crucial component in automobiles that aids in conveniently maneuvering the vehicle at curves with enhanced traction control and preventing accidents. It is a device that splits the engine torque two ways, allowing each output to spin at a different speed. Besides, it helps in multiplying engine power and spin wheel at different speeds. Sale of differential is directly proportional to the automotive production and manufacturing activities. It is found in all modern passenger vehicle, commercial vehicles, and electric vehicles.
The global automotive differential market size is predicted to reach over USD 18.1 billion by 2028. This can be ascribed to the increasing penetration of AWD and 4WD vehicles and rise in demand for commercial vehicles. Besides, significant growth and innovations in the automotive industry is also the key factor driving the market growth for automotive differential.
However, decreasing production and sales of automotive from the last two years (due to pandemic), and rise in production of vehicles with in-wheel electric motor are hampering the market growth. Furthermore, the production of electronic limited slip differentials in developing countries is likely to provide lucrative development opportunities for the automotive differential market in the forthcoming years.
Automotive Differential Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | USD 34.73 billion |
| Growth Rate | CAGR of 6.5 % during 2020-2030 |
| Segment Covered | Type, Driver Type, Vehicle Type, Regions |
| Regions Covered | Component, Deployment Model, Organization Size, Industry Vertical, Regions |
| Key Players Profiled | Melrose Industries PLC, Eaton, American Axle & Manufacturing, Inc., Dana Limited, BorgWarner Inc., Linamar Corporation, Schaeffler AG, ZF Friedrichshafen AG, JTEKT Corporation, Continental AG, Auburn Gear, LLC, Neapco Holdings LLC, Magna International Inc., Drexler Companies Inc., RT Quaife Engineering Ltd., Xtrac Ltd, NSK Ltd., Bharat Gears Ltd., CUSCO Japan co.,ltd. |
Key Segments of the Global Automotive Differential Market
Type Overview, (USD Billion)
- Electronic Limited-Slip Differential (ELSD)
- Locking Differential
- Limited-Slip Differential (LSD)
- Open Differential
- Torque Vectoring Differential
Driver Type Overview,(USD Billion)
- Front Wheel Drive (FWD)
- Rear Wheel Drive (RWD)
- All-wheel drive (AWD)/Four Wheel Drive (4WD)
Vehicle Type Overview, (USD Billion)
- Passenger Car
- Commercial Vehicle
- Electric vehicle
Regional Overview, (USD Billion)
North America
- U.S.
- Canada
Europe
- UK
- Germany
- France
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
Middle East and Africa
- UAE
- South Africa
- Rest of Middle East and Africa
South America
- Brazil
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global automotive differential market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global automotive differential market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the automotive differential industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Type, Driver Type, and industry vertical. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global automotive differential market. The report will benefit Every stakeholder involved in the automotive differential market.
- Managers within the automotive differential industry looking to publish recent and forecasted statistics about the global automotive differential market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global automotive differential market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Frequently Asked Questions (FAQ) :
The market value of automotive differential market in 2030 was USD 34.73 billion
The type of the automotive differential market Type, Driver Type, Vehicle Type, Regions
Asia Pacific dominated the market for automotive differential market and accounted for the largest revenue share.
Over the past few decades, automotive differential assemblies are widely and majorly demanded by OEMs for automotive production activities. With the growing adoption of numerous technologies, automotive is no more limited to a particular department and being adopted across a wide range of industries and their business processes.
Advanced technologies such as Industrial innovation 4.0, 3D printing enable automotive differential to help in smooth operations by assisting the wheels to revolve at different speeds as the outer wheels have to cover larger circumference. It is a part of the rear axle assembly of rear wheel drives which embodies rear drive axles and rear axle housing which allows or splits the power generated to allow the wheels to move independently. Moreover, differentials can take power away from a wheel that is losing traction and give more power to other wheels with traction, which helps prevent excessive wear on the tires.
Furthermore, the automotive differential market movement is totally dependent on vehicle production and sales activities. The declining production and sales of automotive is expected to hamper the overall growth of the automotive differential market.
The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Type Segment
Based on the Type segment, the market is bifurcated into Electronic Limited-Slip Differential (ELSD), Locking Differential, Limited-Slip Differential (LSD), Open Differential, Torque Vectoring Differential. In 2020, the ELSD segment accumulated the maximum market share and it is likely to continue its dominance throughout the forecast years. It is pre-dominantly used in sports and off-road automobiles that offer improved braking systems, off-road and on-road driving experience, comfort and stability of the vehicles over slippery roads. However, the LSD segment is projected to attain major growth throughout the forecast years owing to the increasing need to provide safety to vehicles at its best.
Driver Type Segment
Based on the Driver Type, the market is segmented into Front Wheel Drive (FWD), Rear Wheel Drive (RWD), All-wheel drive (AWD)/Four Wheel Drive (4WD). The All-wheel drive (AWD)/Four Wheel Drive (4WD) sector seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of this segment is largely ascribed to the requirement of two or three differential assemblies to perform the driving activities in these AWD/4WD vehicles.
Vehicle Type Segment
Based on the Vehicle Type, the market is segmented into Passenger Car, Commercial Vehicle, and Electric Vehicle. The Commercial Vehicle segment gathered the major market share in 2020 and it is likely to continue its dominance throughout the forecast years. Commercial vehicles are mostly rear wheel drive vehicles, which require high-performance differential assemblies to perform driving operations. Moreover, rise in demand for commercial vehicles in developing nations, owing to urbanization and increased industrial production are expected to drive major industry growth during the forecast years.
The Asia Pacific region is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the increasing vehicle production in countries such as China, who is a key contributor and India. The demand for automotive gear is rising significantly in these regions due to high production unit setups. However, the North America and Europe are likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the automotive differential market in this region is mostly ascribed to the growing adoption of automotive differential by companies to compete against other regional players.
.png "North American Global Automotive Differential Market 2019-2028 (USD Million)")
The major players of the global automotive differential market are American Axle & Manufacturing, Inc. (AAM), BorgWarner Inc., Dana Incorporated, Eaton, Hyundai Wia Corporation, Linamar Corporation, Melrose Industries PLC, Schaeffler Group, ZF Friedrichshafen AG, and TIBCO Electronic Limited-Slip Differential (ELSD). Moreover, the additional prospective market players in the automotive differential market are Continental AG, Auburn Gear, LLC, Neapco Holdings LLC, Magna International Inc., Drexler Companies Inc., RT Quaife Engineering Ltd., Xtrac Ltd, NSK Ltd., Bharat Gears Ltd., CUSCO Japan co.,ltd. Renowned companies are offering new and modern automotive differential software solutions. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.