Automotive Differential Gear Market size is set to grow by USD 5.32 billion from 2023-2027, increase in sales of SUVs boost the market, Technavio

NEW YORK, April 16, 2024 /PRNewswire/ -- The global automotive differential gear market size is estimated to grow by USD 5321.44 mn from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of 4.28% during the forecast period. The automotive industry has seen significant growth in SUV sales during the current decade. Factors such as compact and mini-SUVs, decreased costs, and enhanced comfort and safety have driven this trend. In 2021, SUVs accounted for approximately 45% of global vehicle sales, with Russia, the US, Canada, and China contributing 46%, 45%, 43%, and 42%, respectively. Europe also experienced an increase in SUV sales. Keywords: SUVs, braking system, response time, control, weight, size reduction, compact, efficient, performance, traction control, electrification, batteries, power electronics, gearbox, engine power.

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This automotive differential gear market report extensively covers market segmentation by Channel (Aftermarket, OEM) Vehicle Type (Passenger cars, Commercial vehicles) Geography (APAC, North America, Europe, South America, Middle East and Africa)

Market segmentation by Channel

The Automotive Differential Gear Market encompasses various types of vehicles, including passenger cars, commercial vehicles, and off-road vehicles. Differential gears play a crucial role in these vehicles, ensuring optimal performance by distributing torque and speed equally between drive wheels for efficient power transfer. In braking, quick response time and control are essential, making differentials a vital component. Weight and size reduction are key considerations in today's market, with compact, lighter, and quieter differentials gaining popularity. Electronic control units, traction control systems, and slippage prevention are increasingly integrated into differentials for enhanced handling and high-speed curve management. Premium SUVs, Sedans, Heavy duty engines, and Heavy commercial vehicles benefit from advanced differentials, such as those used in autonomous vehicles and electrified powertrains. Electric vehicles, traction motors, electric motors, electric compressors, batteries, power electronics, and gearboxes all rely on efficient differentials for optimal performance. In summary, the Automotive Differential Gear Market caters to diverse vehicle applications, focusing on weight reduction, size optimization, and improved handling and traction control. Electrification and autonomous vehicle trends further drive the demand for advanced, efficient, and reliable differential gear systems.

The APAC automotive industry's growth is driven by the demand for passenger cars, including Premium SUVs and Sedans, and commercial vehicles, such as Heavy duty engines powering Heavy Commercial Vehicles, Light Commercial Vehicles, Heavy Trucks, and Buses. The region's expanding construction and mining sectors further boost demand. In 2022, APAC accounted for the majority of global vehicle sales and production, with a significant increase in Electric Vehicle (EV) adoption. EVs utilize Traction Motors, Electric Motors, and Electric Compressors, powered by Batteries and advanced Power Electronics. The Gearbox, a crucial component, ensures efficient Engine power transmission. Passenger cars and trucks employ Front Wheel Drive and Rear Wheel Drive systems, while Locking Differentials and Torque Vectoring Differentials enhance Traction and control. Size reduction, weight savings, and improved performance are key benefits of compact, lighter, quieter, and efficient Differential Gear systems in Automotive Vehicles. Braking systems ensure optimal response time and control, enabling smooth turns on curves. 

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• The global automotive market experiences a threefold increase in electric vehicle (EV) demand. Factors such as emission norms, EV subsidies, and charging infrastructure expansion drive this trend. Manufacturers focus on advanced solutions like wheel hub motors, which are BLDC electric motors installed in wheels, to enhance EV range and performance. Key components including batteries, power electronics, traction motors, and gearboxes are integral to this development. Hub motors offer size reduction, weight savings, and improved efficiency for various vehicle types, including SUVs, sedans, heavy commercial vehicles, and buses.
• The automotive differential gear market encompasses advanced transmission systems in premium vehicles, featuring multiple clutches, synchromesh gear sets, and lightweight materials. These developments improve drivability but increase cost and complexity, with liability-sharing models amplifying concerns over drivetrain vulnerability. Electronics and sensors in trucks, buses, and passenger vehicles facilitate effective cornering, traction control, and handling, while electrification and torque vectoring differentials enhance performance.

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The Automotive Differential Gear Market encompasses various types of vehicles, including Premium SUVs, Sedans, Buses, and both Light and Heavy Commercial Vehicles. These vehicles may feature Heavy Duty Engines and rely on Heavy Trucks for transportation of goods. Electric Vehicles, too, are a growing segment, utilizing Traction Motors, Electric Motors, and Electric Compressors, all of which require Batteries and Power Electronics for optimal performance. Gearboxes are essential components in these vehicles, with Engine Power driving the rotation of shafts within the Epicyclic Train. Differentials, such as Locking Differentials and Torque Vectoring Differentials, ensure efficient power transfer between the wheels in various driving conditions. Front Wheel Drive and Rear Wheel Drive systems utilize these differentials, while the speed of the vehicle is determined by the number of gears engaged.

The Automotive Differential Gear Market encompasses the production, sale, and installation of vehicle components that facilitate power transmission to wheels while accommodating differences in wheel speed. Comprised of vehicles with heavy loads and those requiring high maneuverability, this market caters to a diverse range of applications. Heavy vehicles, such as trucks and buses, rely on robust differential gears for optimal performance on rough terrain. Conversely, passenger cars employ lighter, more efficient differentials to enhance fuel economy and handling. The market comprises various types of differentials, including open, limited-slip, and locking differentials. Additionally, vehicle manufacturers and aftermarket suppliers contribute to the market's growth through continuous innovation and technological advancements. The global Automotive Differential Gear Market is expected to grow significantly due to increasing vehicle production and sales, particularly in emerging economies.

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SOURCE Technavio