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Automotive differential industry can demonstrate steady growth at a rate of 5% during the forecast period

02.12.2020 · Posted in Business News Article

The global automotive differential industry can demonstrate steady growth at a rate of 5% during the forecast period (2018-2023), asserts Market Research Future (MRFR).

Top Drivers and Key Restraints

Automotive differential helps the wheels to rotate at varying speeds, since the outer wheels need to cover a bigger circumference, leading to smooth turning. Apart from this, automotive differential helps accelerate the engine power and decrease speed at the output. Original equipment manufacturers (OEMs) are now focusing on the four-wheel-drive instead of two-wheel drive to elevate the fuel-efficiency of the vehicle.

Robust demand for SUVs and crossovers across the U.S. as well as Europe, given the high comfort level and extra boot space drives the growth of the global automotive differential market. In addition, reduction in auto loan interest rates has led to surge in car sales, which is another significant factor that stimulates market growth across the globe.

Simple design, no requirement of friction modifiers and quiet and smooth operation also boost the demand for automotive differential. High demand for electronically controlled limited-slip differential system combined with rising focus of manufacturers on replacement of mechanical components with compact electronic components is working in favor of the market.

Market Segmentation

The worldwide automotive differential market has been segmented based on drive type, type, component, vehicle type, and propulsion.

The drive types included in the report are 2WD and 4WD.

Depending on the type, the market is considered for open differential, electronic limited slip differential (ELSD), locking differential, torque vectoring differential, and limited slip differential (LSD).

With respect to the component, the market consists of differential case, differential bearing and differential gear.

The vehicle types enlisted in the report are commercial vehicle, passenger car, bus, truck, and off-highway vehicles.

Propulsion-wise, the market segments are ICE and hybrid vehicles.

Regional Insight

The geographical study of the global automotive differential market has been done for Europe, in addition to Asia Pacific (APAC), North America, and the Rest of the World (RoW).

The chances of APAC gaining the top spot in the global automotive differential system market are quite high, given the strong demand for four-wheel vehicles. The most profitable markets in the region are India, South Korea, and China. The regional market also benefits from rising awareness about safety, increasing urbanization, and booming aftermarket industry.

In Europe, surge in construction equipment sales is believed to be one of the chief reasons for the high growth rate of the automotive differential market. Also, high demand for passenger cars in the region adds to the market strength. Easy availability of finance, low car loan interest rates, and a high degree of urbanization also boosts the market demand in the region.

The North America market is driven by global market of automobile differential gear are increasing popularity of off-roading in youth, enhanced driving experience in terms of racing and sports cars. Increasing demand of automobile due to increase in the rate of nuclear families, changing lifestyle, accelerating rate of fuel efficient cars in the market, are also expected to drive the demand for differential gears over the forecast period.

Significant Companies

Significant players in the worldwide automotive differential system market include Powertrax (US), BorgWarnerInc. (US), Dana Limited (US), GKN plc (UK), JTEKT Corporation (Japan), ZF Friedrichshafen AG (Germany), Eaton (Ireland), DREXLER AUTOMOTIVE (Germany), neapco (US), Schaeffler AG (Germany), to name a few.

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