The automotive differential market is projected to reach USD 23.7 billion by 2027 from USD 20.0 billion in 2022, at a CAGR of 3.5%. The increase in demand for light commercial and heavy commercial vehicles, increased investment in infrastructure to boost the demand for construction equipment, and hence, the differential has led to the growth of the automotive differential market.
With the rising increase in global vehicle sales, government & regulatory bodies such as European Commission (EC) and the United States Environmental Protection Agency (US EPA) around the world have implemented stringent emission norms for controlling CO2 emissions. Stringent emission norms have shifted the global focus towards electric vehicles, results in exponential growth for these vehicles in recent years and simultaneously for differential in these vehicles. Further, rising adoption of AWD/4WD cars and multi-axle trucks in developed as well as developing countries such as India, and China would create the demand for differentials in coming years.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=57980081
The electronically controlled limited slip differential is projected to be a high-growth segment of the automotive differential market. The rise in penetration of electronic limited-slip differentials (ELSD) is one of the major trends that will gain traction in this market. The increased focus of the automotive OEMs to replace the mechanical parts with compact electrical components for fuel-efficiency will result in the adoption of ELSD in all vehicle segments. Further, increasing sales of premium cars could be the driving factors for ELSD as most premium cars are fitted with this type of differential owing to its excessive cost.
Asia Pacific is expected to be the fastest market for automotive differential market growing at a CAGR of 4.0% during the period of 2022-2027. The market growth in Asia Pacific can be attributed to the rising vehicle production, increasing stringent emission norms and growing demand for comfort features especially in China, Japan, and India. The huge vehicle production in China offers lucrative growth opportunity for automotive differential in this region. Further, the countries in this region such as China, Japan, and South Korea accounted for ~93% of total vehicle produced. At the same time, the demand for luxury cars has increased in the region considerably, hence the demand for AWD/4WD drive system would increase which will create higher demand for differential as well. Mostly, these vehicles are installed with limited slip differential and torque vectoring differentials. Thus, rise in premium and overall vehicle production in Asia Pacific is expected to witness a robust growth during the forecast period.
Key Market Players:
The automotive differential market is led by established global suppliers such as GKN Driveline (UK), Eaton plc (Ireland), American Axle & Manufacturing Company (US), JTEKT Corporation (Japan), Dana Inc. (US), BorgWarner Inc (US), Linamar Corporation (Canada), Schaeffler AG (Germany), ZF (Germany), and Hyundai Wia Corporation (South Korea). These companies adopted several strategies to gain traction in the automotive differential market. New product development, partnerships, and expansion strategies from 2018 to 2022 helped them to innovate its offerings and broaden its customer base.
Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=57980081
Browse related report:
Automotive Axle & Propeller Shaft Market – Global Forecast to 2025
All Wheel Drive Market – Global Forecast to 2027
Automotive Gears Market – Global Forecasts to 2020