NEW
YORK, July 26, 2024 /PRNewswire/ -- The
global automotive differential gear market size is
estimated to grow by USD 5.64 billion
from 2024-2028, according to Technavio. The market is estimated to
grow at a CAGR of 4.36% during the forecast period. increase
in sales of SUVs is driving market growth, with a trend
towards development of hub motors. However, product
recall poses a challenge. Key market players include American Axle
and Manufacturing Holdings Inc., AmTech International, Bharat Gears
Ltd., Circle Gear and Machine Company Inc., Dana Inc., Eaton Corp.
Plc, FA.TA. Ricambi S.p.A., Gear Motions Inc., GKN Sinter Metals
Engineering GmbH, Hitachi Ltd., Linamar Corp., Neapco Holdings LLC,
NSK Ltd., Perfect Gears Pvt. Ltd., Polaris Inc., and Shandong Heavy
Industry Group Co. Ltd..
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Automotive
Differential Gear Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
4.36%
|
Market growth
2024-2028
|
USD 5645.9
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
4.11
|
Regional
analysis
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Performing market
contribution
|
APAC at 67%
|
Key
countries
|
US, China, Japan,
India, and Germany
|
Key companies
profiled
|
American Axle and
Manufacturing Holdings Inc., AmTech International, Bharat Gears
Ltd., Circle Gear and Machine Company Inc., Dana Inc., Eaton Corp.
Plc, FA.TA. Ricambi S.p.A., Gear Motions Inc., GKN Sinter Metals
Engineering GmbH, Hitachi Ltd., Linamar Corp., Neapco Holdings LLC,
NSK Ltd., Perfect Gears Pvt. Ltd., Polaris Inc., and Shandong Heavy
Industry Group Co. Ltd.
|
Market Driver
The global automotive differential gear market is experiencing
significant growth due to the increasing demand for electric
vehicles (EVs). With stricter emission norms, the ban on
diesel-powered vehicles, EV subsidies, and expanding charging
infrastructure, the sales of EVs are tripling worldwide. In
response, manufacturers are focusing on developing advanced
solutions to enhance EV range and performance. One such solution is
the wheel hub motor, an electric motor directly installed in the
vehicle wheel to power it. Hub motors use brushless direct current
(BLDC) technology, an advanced version of DC motors, which improves
power density and eliminates the need for contact between the
stator and rotor, increasing motor life. Hub motors directly drive
the vehicle wheel, eliminating the need for a gearbox,
differential, and other power transmission components, reducing
vehicle weight and improving efficiency. However, challenges such
as decreased vehicle speed, increased unsprung weight, and complex
harness design are hindering hub motor adoption. Despite these
challenges, companies like Protean Electric, GM, Elaphe Propulsion
Technologies Ltd., Brabus GmbH, ZIEHL-ABEGG SE, and Dana TM4 are
investing in hub motor technology, which is expected to lead to
technologically advanced hub motors and positively impact the
global automotive differential gear market.
The Automotive Differential Gear Market is witnessing
significant growth due to increasing demand for automotive
vehicles, especially in the segments of Premium SUVs, Sedans, Heavy
Duty Engine vehicles, Heavy Commercial Vehicles, Light Commercial
Vehicles, Heavy Trucks, and Electric Vehicles. Key trends include
the use of traction motors, electric motors, and electric
compressors in Electric Vehicles. Batteries, power electronics, and
gearboxes are also in high demand. The focus is on improving engine
power and vehicle performance, while reducing weight, size, and
noise. Gearboxes are essential for Passenger Cars, Trucks, and
Buses to manage speed and torque during turns and braking. Locking
Differential and Torque Vectoring Differential technologies enhance
traction control and response time. Front Wheel Drive and Rear
Wheel Drive systems use epicyclic trains, rotation shafts, and rear
axles for efficient power transfer. The market is expected to grow
as automotive manufacturers continue to innovate and improve the
design and functionality of differentials for various vehicle
types.
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Market Challenges
- The automotive differential gear market is witnessing
significant advancements with the integration of automatic
transmission systems in premium vehicles. These systems utilize
complex algorithms, multiple clutches, and synchromesh gear sets,
along with lightweight and rigid materials, enhancing drivability.
However, these developments increase the cost and complexity of the
drivetrain. Any malfunction or issue in a single component, such as
differential gears, can lead to high repair costs and vehicle
recalls, impacting both the component maker and the OEM due to
liability-sharing business models. In recent times, recalls by Benz
U.S. (May 2022) and Volkswagen AG
(March 2022) highlight the
vulnerability of drivetrains. These recalls, due to corroded brake
boosters and differential gear leakage, respectively, result in
increased costs for all stakeholders and limit market growth during
the forecast period.
- The Automotive Differential Gear Market faces challenges in
various vehicle segments, including trucks, buses, and commercial
vehicles. Traction is crucial in off-road applications and locking
differentials provide the solution. However, torque vectoring
differentials offer improved handling and response time for
passenger vehicles. Size and weight reduction are essential for
multi-utility and autonomous vehicles. Front-wheel and rear-wheel
drive systems require efficient differentials for optimal
performance. The epicyclic train, gears, shafts, and rear axle are
key components. High-speed curves and braking systems demand
efficient differentials with quick response time and control.
Weight and size reduction are essential for compact vehicles,
making lighter, quieter, and efficient differentials a priority.
Electrification in automotive vehicles necessitates advanced
electronic control units to manage torque distribution and traction
control. Slippage must be minimized to ensure efficient power
transfer. Handling and performance are critical factors, especially
in high-performance vehicles. Electronic circuits and traction
control systems are becoming increasingly important to maintain
optimal drive wheel torque during turns. The market must address
these challenges to cater to the diverse needs of the automotive
industry.
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Segment Overview
This automotive differential gear market report extensively
covers market segmentation by
- Channel
- Vehicle Type
- 2.1 Passenger cars
- 2.2 Commercial vehicles
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Aftermarket- The automotive aftermarket serves as a
significant sector in the global automotive industry, encompassing
the production, supply, and installation of various vehicle
components post-original equipment manufacturer (OEM) sale. This
segment includes replacement parts for wear and tear, collision
repairs, aesthetic enhancements, and performance upgrades. The
aftermarket caters to a vast array of parts for diverse vehicle
makes and models, offering consumers flexibility in choosing repair
shops or handling DIY repairs. This freedom of choice, coupled with
the availability of parts of varying quality and affordability,
ensures that vehicles remain operational and customizable. These
aspects propel the expansion of the global automotive differential
gear market throughout the forecast period.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data
(2017-2021) - Download a Sample Report
Learn and explore more about Technavio's in-depth research
reports
The global Automotive Constant Velocity Joint (CVJ) market is
experiencing steady growth, driven by increasing demand for
high-performance vehicles and advancements in automotive
technology. Similarly, the global Automotive Direct Drive Motor
market is expanding rapidly, fueled by the shift towards electric
vehicles (EVs) and the need for more efficient propulsion systems.
The global Metal Stamping market is also on the rise, bolstered by
its applications in the automotive, aerospace, and electronics
sectors. Key trends include technological innovations, regulatory
changes, and growing end-user demand.
Research Analysis
The Automotive Differential Gear Market encompasses various
types of vehicles, including Premium SUVs, Sedans, and commercial
vehicles such as Heavy duty engines for Heavy Commercial Vehicles
and Light Commercial Vehicles, Heavy Trucks, and Buses.
Differentials are essential components in these vehicles, enabling
power transmission to the wheels while accommodating the difference
in wheel speed during turns. Electric vehicles integrate
Differentials with Traction Motors, Electric Motors, and Electric
Compressors, while Batteries and Power Electronics play a crucial
role in their functioning. Gearboxes, with their epicyclic trains,
rotation shafts, and rear axles, facilitate the required speed
gears for optimal vehicle performance. Differentials come in
various configurations like Locking Differential, Torque Vectoring
Differential, and Front Wheel Drive (FWD) or Rear Wheel Drive (RWD)
systems. The engine power and vehicle type determine the specific
differential requirements, with Passenger Cars and Trucks having
unique needs. In summary, the Automotive Differential Gear Market
caters to a diverse range of vehicles, ensuring efficient power
transmission and optimal vehicle performance through various
differential configurations and components.
Market Research Overview
The Automotive Differential Gear Market encompasses various
types of vehicles, including Premium SUVs, Sedans, Heavy duty
engines, Heavy commercial vehicles, Light commercial vehicles,
Heavy trucks, Electric vehicles, and Buses. Differentials are
essential components in these vehicles, enabling power transmission
to the drive wheels while accommodating the difference in wheel
speed during turns. Differentials come in various configurations
such as Traction motors, Electric motors, and Electric compressors
in Electric vehicles. They are integrated with Batteries, Power
electronics, and an Electronic Control Unit for optimal
performance. Differentials are used in Passenger cars, Trucks, and
Multi Utility Vehicles, catering to diverse applications like
Off-road vehicles and Autonomous vehicles. The market focuses on
developing compact, lighter, quieter, and efficient differentials
for improved vehicle performance. Differentials are designed to
handle high engine power and provide optimal response time during
curve negotiation, ensuring effective traction control and
handling. They are available in various configurations, including
Front Wheel Drive, Rear Wheel Drive, and Torque Vectoring
Differential systems. The market also caters to the needs of Heavy
trucks and Buses, offering differentials suitable for high weight
and size reduction applications. The latest trends include the
integration of electronic circuits for enhanced control and
improved braking system response time. In summary, the Automotive
Differential Gear Market is a dynamic and evolving industry that
focuses on developing advanced, efficient, and compact
differentials for various vehicle applications, including passenger
cars, trucks, and electric vehicles. These differentials cater to
diverse requirements, such as high engine power, optimal response
time, and effective traction control, ensuring improved vehicle
performance and handling.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Channel
-
- Vehicle Type
-
- Passenger Cars
- Commercial Vehicles
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
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technologies, spanning across 50 countries. Their client base
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Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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