A number of factors such as the rising adoption of all-wheel-drive (AWD) vehicles, surging need for enhanced fuel efficiency and road traction, and burgeoning demand for heavy-duty and commercial vehicles will support the automotive differential market growth during the forecast period (2021–2030). According to P&S Intelligence, the market revenue stood at $19,959.3 million in 2020. At present, the increasing electrification of vehicles is becoming a prominent market trend, due to the mounting focus on mitigating vehicular pollution.
At present, the automotive differential market is fragmented in nature, due to the presence of a few players such as ZF Friedrichshafen AG, JTEKT Corporation, Linamar Corporation, American Axle & Manufacturing Inc. (AAM), Hyundai Wia Corporation, Eaton Corporation plc, BorgWarner Inc., Schaeffler Technologies AG & Co. KG, and Dana Incorporated. Currently, these companies are largely focusing on product launches to gain a competitive edge in the market. For instance, in August 2020, Eaton Corporation plc introduced an electronically controlled scalable limited-slip differential that can be installed in multiple automobile platforms to enhance vehicle performance and ensure driver safety.
Furthermore, the vehicle type segment of the automotive differential market is divided into commercial vehicle and passenger vehicle. Under this segment, the passenger vehicle category is projected to account for the larger market share in the forecast years. This will be primarily credited to the higher manufacturing rate of passenger vehicles as compared to commercial vehicles. The International Organization of Motor Vehicle Manufacturers (OICA) revealed that in 2020, 55,834,456 passenger cars were produced, whereas only 21,787,126 commercial vehicles were manufactured globally.
Therefore, the burgeoning demand for AWD vehicles and increasing production of passenger cars and commercial vehicles will drive the demand for automotive differentials in the foreseeable future.
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