Automotive Differential Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The North America Automotive Differential Market is anticipated to register a CAGR more than 4.9% during the forecast period (2020 – 2025).

Automotive Differential Market is an integral component of any vehicle due to its basic functionality of rotating wheels at different speeds, especially while turning, as the outer wheels cover a larger circumference. As a result, the automotive differential has always remained in demand. Now, with more extensive ownership of personal cars and growing technological advancements, the need for this differential system will only increase.

In the Asia Pacific, the rise in the Chinese and Indian economy with increased income levels, especially among middle-class consumers , will drive the growth of the automotive market. Both China and India are world-leading Automotive Differential markets with a combined market share of over 60%. Emerging markets also include South East Asian Countries like Indonesia, Bangladesh, and Vietnam, which saw positive growth.

With EV entering the market, some automotive parts business has seen a drop in market demand. Although, in the case of the automotive differential market, the industry is thriving with an increase in electric cars. Most electric vehicles from reputable manufacturers use differentials. For 4WD models, Tesla provides differentials for front and rear motors. While 2WD models can have differentials with a single large electric unit instead of multiple ones, this makes it highly economical.

Scope of the Report

The Automotive Differential market report covers the current and upcoming trends with recent technological development. The report will provide a detailed analysis of various areas of the market by vehicle, product and drive type. The market share of significant connected cars companies across the world will be provided.

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Key Market Trends

Rise of EV Will Also Increase the Demand for Automotive Differential

Differentials are used in all cars, making it impossible to replace the existing system with another form of technology. Electronics require a highly sophisticated computer program to guarantee that both wheels get equal torque in all conditions. Still, in such a safety-critical environment, it is tough to build a computer program that does so in all circumstances. Even simpler, less safety-critical settings such as electronic throttle control for Toyota's ETCS-i system have had bugs.

Differentials are also used in cars for a long time now, making it practically impossible for the differential market to replace it with another form of technology. Electronics require a highly sophisticated computer program to guarantee that both wheels get equal torque in all conditions.

Many car manufacturers produce components more than just a differential. Although, many of these companies are looking to develop advanced electronic differential to be equipped in electric vehicles to provide higher traction control. The function of the electronic differential is to give required torque to each driving wheel and allows different wheel speeds electronically. However, keeping safety as the primary requirement, the electric differential unit has years to come into the market segment. The mechanical differential remains a very sure way to guarantee that equal torque is distributed to both wheels indicating towards its future growth in the automotive market.

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