Global Automotive Differential Market 2016-2020
About Automotive Differential
The global automotive differential market is categorized as AWD market and 2WD market based on the type of the differential mechanism installed in the vehicle. There is an increasing demand for AWD from emerging countries such as China, India, Brazil, and South Korea. The emerging countries are estimated to have the highest growth rate in these regions, contributing to the growth of the global automotive differential market. The market for 2WD is declining as the penetration in APAC, Europe, and the US has declined due to the increasing volume and growth of AWD systems. The open differentials are increasingly being replaced by more efficient and compact electronic limited slip differential units such as eLSD for fuel efficiency as part of vehicle electrification trend.
Technavio’s analysts forecast the global automotive differential market to grow at a CAGR of 6.47% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global automotive differential market for 2016-2020. To calculate the market size, the report provides the performance and market dominance of each of the vendors in terms of experience, product portfolio, geographical presence, financial condition, and R&D.The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Automotive Differential Market 2016-2020
Technavio recognizes the following companies as the key players in the global automotive differential market: GKN, BorgWarner, ZF, Eaton, and Schaeffler.
Other Prominent Vendors in the market are: JTEKT, Linamar, Neapco, and Dana.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is growing penetration of electronic limited slip differentials (eLSD). Before 2010, e-LSD was only limited to the luxury segment, but now it is being used in mid-segment cars such as Ford Focus ST, VW Golf R line, and Subaru WRX. The eLSD basically provides better handling during high-speed curves and lane changes and serves the purpose of conventional differentials along with a digital speed and accuracy. As a part of the vehicle electrification trend, which has seen a lot of mechanical parts being replaced by more efficient and compact electrical units in pursuit of fuel efficiency. The open differentials are the simplest form of differentials having the highest percentage of application across the world, but they have their own set of deficiencies. A limited slip differential is different from the open differentials as it helps the driven wheel to get a limited amount of slip before the differential acts in and corrects the slippage of the wheel. In open differentials, it takes around five to ten seconds before the differentials act on the wheels after slippage.”
According to the report, one driver in the market is increasing demand for SUVs and crossovers. The sales of SUVs and crossovers increased by about 10% in the total US passenger car market in 2015. Increasing preference for comfortable rides over long distances, three-row seats, and extra boot space in crossovers and SUVs are the main drivers for their growth in the US. Although both SUVs and crossovers look similar, they are distinct in fuel efficiency and usability. Crossovers are highly fuel efficient compared to SUVs as they are built from car frames and are considerably lightweight. Most American customers prefer space and higher riding profile. Crossovers usually weigh less than SUVs as SUVs are built from truck frames, leading to high curb weight for the vehicle.
Further, the report states that one challenge in the market is government regulation for privately owned cars in China. China has been plagued by rising pollution levels and heavy congestion on its roads. The country has been implementing various regulations to limit the number of private cars on the roads to reduce congestions and limit pollution. National Highway G110 and Beijing-Tibet expressway (G6) are ill-reputed for huge traffic congestion. The Chinese roadways are currently experiencing unmanageable pressure from the rising population of cars. Tier 1 Chinese cities like Shanghai, Beijing, Chongqing, and Guangzhou have roadways measuring less than one kilometer per 1000 people. The local Chinese policy makers have imposed various restrictions in several cities like license plate bans and vehicle quotas. The restrictions are expected to be followed by other Chinese cities experiencing an increase in their congestion rates.
GKN, BorgWarner, ZF, Eaton, Schaeffler, JTEKT, Linamar, Neapco, and Dana.