According to a recent report published by Prudent Markets, titled, “Automotive DifferentialMarket byDrive Type, Vehicle Type, andType: Global Opportunity Analysis and Industry Forecast, 2019–2026,”the global automotive differentialmarket sizewas valued at $19.16 billion in 2018, and is projected to reach $28.57 billion by 2026, registering a CAGR of 5.2% from 2019 to 2026.

Presently, Asia-Pacificdominates the market, followed byEurope,North America, andLAMEA.Chinadominated the Asia-Pacificautomotive differentialmarket share in 2018, and is anticipated to maintain its leadduring the forecast period.

Introduction of new range of automobiles and focus of automotive manufacturers on development of innovative automotive differential is anticipated to propel the market and offer remarkable growth opportunities for the players operating in the market.Rise indemand for commercial vehicles, owing to urbanization, surge inindustrial production, and growth inconstruction activities drive the growth of the automotive differential market for commercial vehicles.Automobile manufacturers are increasing investments for the development of automotive differential for electric vehicles, which, in turn, is anticipated to propel the market for the electric vehicle segment. For instance, on August 30, 2019, in India, Sona Group, announced that itplans toinvest for the development of differential for electric vehicles.

An open differential can be defined as the most basic form of differential that comprisestwo halves of an axle with a gear on each end, whichare connected by a third gear making up the three sides of the square. This is generally supplemented by a fourth gear for enhanced strength, completing the square. In addition, this arrangement of gears is the most common type of automotive differential.Leading supercar manufacturers are adopting installation of open differential in their vehicles, which is anticipated to propel the market for the open differential segment. For instance, McLaren, a British Racing team launched a new McLaren 720S Spider with open differentials thatallows variations in amount of torque delivered to either driven wheel.

 

Open differential offers various advantages over other types of differentials such as it splits the torque provided by the engine into two different outputs and allow the rotation of wheels at different speeds. In addition, the open differential reduces the power in a wheel when other tire loses traction and this type of differential are generally installed in economy cars and sedans.

Alocked differential is variant of automotive differential found insome vehicles, which are primarily designed for off-roading. This type of differential is an open differential with the ability to be locked in place order to create a fixed axle rather than independent one, which can be controlled manually or electronically depending upon the technology in the vehicle. The automobile industry giants are introducing new range of automobile with locking differential, which boosts the growth of this segment in the global automotive differential market. For instance, on June 17, 2019, Mahindra & Mahindra Ltd. launched Mahindra Thar 700 Special Edition Model, which uses low ratio 4x4 transfer case and a rear locking differential.

Limited-slip differential allows faster cornering of a vehicle by shuffling the torque between the driven wheels, which allows it to use engine’s output in the most efficient way possible by maximizing traction and preventing wheelspin. In addition, limited-slip differential restricts the difference in the wheel’s rotational speeds, thus feeding the outside wheel more and inside wheel less, resulting in improved traction. Leading multinational automobile manufacturers are introducing new range of automobiles with limited slip differential, which is anticipated to boost the growth of this segment. For instance, on March 16, 2018, Ford, one of the leading automobile manufacturers launched Ford Fiesta ST, which offers limited-slip differential.

Rise indemand for commercial vehicles is anticipated to propel the growth of the automotive differential market. In addition, increase in automobile production propels the growth of the market. However, rise inproduction of vehicles with in-wheel electric motors is anticipated to hinder the growth of the market. Further, production of electronic limited slip differentials is anticipated to provide remarkable growth opportunitiesfor players operating in the automotive differential market.

According to Lalit Katare& Anvay Sonpimple, Lead Analysts, Automotive and Transportation at AlliedMarket Research, “On the basis ofdrive  type, the front wheel drive (FWD)segmentdominatedthe global automotive differentialmarket in 2018, in terms of revenue. In addition,byvehicle type, the electric vehiclesegment isexpected to exhibit remarkable growth rate during the forecast period.Presently, Asia-Pacificis the highest revenue contributor, followed by Europe,North America, and LAMEA.”

KEY FINDINGS OF THE STUDY

• On the basis ofdrive type, the all-wheel drive (AWD)segmentis anticipated to exhibit a remarkable growth during the forecast period.

• On the basis ofvehicle type, the passenger carsegmentwas the highest contributor to global automotive differentialmarket in terms of revenue and is anticipated to maintain its lead during the forecast period.

• Region wise,Asia-Pacific is anticipated to exhibit remarkable growth rate during the forecast period followed by Europe, North America, and LAMEA.

The key players analyzed in this report are GKN, Eaton, Dana, ZF Friedrichshafen AG, Schaeffler Technologies AG & Co. KG, BorgWarner Inc., Continental AG, JTEKT Corporation, American Axle & Manufacturing Inc., Linamar Corporation, and others. 

Research Link:https://www.prudentmarkets.com/report/automotive-differential-market/516/