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Asia Newsire: Press releases on Asia

Automotive Differential Market Future Growth Prospect and Trends to 2030

(AsiaNewsWire.Net, September 06, 2019 ) The Automotive Differential Market size, by value, is estimated to be USD 22.52 billion in 2018 and is projected to reach USD 30.17 billion by 2025, at a CAGR of 4.27% from 2018 to 2025. 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.

The decreased emission limits and increased fuel efficiency limits have fuelled the demand for hybrid vehicles such as HEVs and PHEVs, which in turn is expected to have a significant impact on the global differential market. These vehicles mostly come under luxury and premium segment and hence, require advanced differentials such as limited slip differential (LSD), electronic LSD, and torque vectoring differential. Also, these hybrid vehicles come with all wheel drives which is also the major driving factor for the differential market. Torque vectoring differential is also a major technological advancement in the differential market as it can be equipped to all vehicle types. In a torque vectoring differential, the differential can decide that what torque needs to be applied to the wheels. Torque vectoring differential can use this specific situation to apply more torque to the outer wheel and lesser to the inner wheel. This is the most advanced differential in this market, the advantages offered by this differential makes it an attractive opportunity for the manufacturers.

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The electronically controlled limited slip differential is projected to be a high-growth segment of the automotive differential market. In an electronically controlled limited-slip differential a computer provides speed and more precision. When one-wheel slips, more power is provided to the other wheel leading to improved traction. 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.

Asia Oceania is estimated to lead the automotive differential market and will see a significant growth, with China being the highest contributor for this growth, owing to the increasing buying capability, stronger political outlook, positive GDP growth, and trade policies. Also, countries such as China and India have additional advantages like the availability of low-cost raw materials, low manufacturing costs, and use of domestically produced tools and other equipment. Hence, the automotive differential market will grow in this region with the increasing vehicle production.

The emphasis on the advancement of mobility solutions will foster the growth of the differential market, and therefore, players can tap these opportunities. As the automotive industry is moving toward automation and electrification, there is an increasing trend of vehicle electrification, semi-autonomous and autonomous vehicles. These vehicles will show a high requirement of advanced differentials such as LSD, ELSD, and torque vectoring to maintain the comfort, safety, and vehicle performance leading to an increase in the requirement of these advanced differentials. Hence, the need for different differentials is expected to rise in line with the growing requirement for electrification, autonomous and semi-autonomous vehicles.

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Target Audience

• Differential manufacturers

• Investment and equity research firms

• Private equity firms

• Differential Component manufacturers

• Aftermarket Differential providers

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Mr. Shelly Singh


Source: EmailWire.Com

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