According to a recent report published by Allied Market Research, titled, “Automotive Differential Market by Drive Type, Vehicle Type, and Type: Global Opportunity Analysis and Industry Forecast, 2020–2030,” The global automotive differential market was valued at $20,530.1 million in 2020, and is projected to reach $32,293.6 million by 2030, registering a CAGR of 4.7%.

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Asia-Pacific dominates the market in terms of revenue, followed by Europe, North America, and LAMEA. China led the global automotive differential market share in 2020 and is expected to grow at a significant rate during the forecast period due to the wide presence of automotive manufacturers across the country.

The automotive differential is a part of the front and/or rear axle assembly that has an important function in a vehicle by allowing the movement of wheels at various speeds. It is a component of an automotive driveline, that distributes torque and power to the wheels in executing driving operations. The primary function of this system is to deliver proportional RPMs between two connected wheels. Moreover, the sale of differential assemblies is strongly influenced by automotive production activities across the globe. These procurements are completed through contracts and agreements between original equipment manufacturers and differential assemblies’ manufacturers.

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Asia-Pacific and Europe are leading consumers of automotive differential, and this trend is projected to continue during the forecast period. India is developing at a significant rate, as a result of government initiatives, such as self-reliant India, to boost its manufacturing activities and enhance the outlook for automotive manufacturers.

The factors, such as increase in penetration of AWD and 4WD vehicles, and rise in demand for commercial vehicles, and lightweight & high-performance automotive components drive the growth of the global automotive differential market. However, increase in production of vehicles with in-wheel electric motors as well as decrease in production and sales of automotive are expected to restrain market growth t during the forecast period. Moreover, development of electronically limited- slip differentials, increase in demand from developing countries, and contract/agreement winning are the key strategies adopted by the key players to gain a competitive advantage while production of electronically limited-slip differentials is expected to supplement the global automotive differential market growth. These factors, however are expected to provide a better opportunity for the market growth t soon.

The sale of the automotive differential is directly associated with automotive production and sales activities across the globe. The spread of the COVID-19 pandemic has negatively impacted the growth of the automotive differential market, owing to commute restrictions and poor financial performance of the market players in 2020. The COVID-19 crisis is causing uncertainty in the automotive differential market by delaying supply chains, hampering business growth, generating uncertain demand scenarios, and increasing panic among the customer segments.

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Key Findings Of The Study

By drive type, the all-wheel-drive (AWD) segment is expected to register significant growth during the forecast period.
On the basis of vehicle type, the IC engine passenger car segment is projected to lead the global market in terms of market share by the end of the forecast period.
Depending on type, the electronic limited slip differential segment is expected to register significant CAGR during the forecast period.
Asia-Pacific dominated the market in 2020, and is projected to lead the market growth and maintain its dominance in the global market.

The key players profiled in the report are American Axle & Manufacturing, Inc. (AAM), BorgWarner Inc., Dana Incorporated, Eaton, Hyundai Wia Corporation, JTEKT Corporation, Linamar Corporation, Melrose Industries PLC, Schaeffler Group, and ZF Friedrichshafen AG.

About Us

Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.

We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Allied Market Research CEO Pawan Kumar is instrumental in inspiring and encouraging everyone associated with the company to maintain high quality of data and help clients in every way possible to achieve success. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.


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