Automotive Differential Market Size, Share, Growth, Trends, Production, Consumption, Revenue and Forecast 2020 to 2027

Published Date : Jan 2020 | No. of Pages : 200 Pages | Category :

The global automotive differential market is expected to grow more than 5% CAGR during the forecast period from 2020 to 2027 to reach close to US$ 29 Bn in 2027.

The need of better traction on roads and fuel efficiency are key drivers for the growth of the market. The automotive differential market has good growth opportunities amid increasing vehicle production. The growing demand for all wheel drive vehicles is also a major driver for the differential market.

According to the report, the global market will continue to be influenced by a range of macroeconomic and industry-specific factors. Asia-Pacific will continue to be at the fore-front of global demand, with the market in the region growing at above 5.89% through 2027.

Differential market across the globe is witnessing transformation in the automotive industry. Rise in sales of SUVs, crossovers has been noticeable in recent past years owing to the growing end user focus towards comfort, safety and large boot space. Declining car loan rates and easy availability of customizable financing options have empowered the end user to go a step ahead for buying premium cars integrated with advanced differentials. Rising urbanization and hub-spoke architecture in different countries has attributed towards the increase in overall vehicle miles driven globally by approximately 2% - 4% over the past recent years. All these primary factors are likely to pave the way for the growth of automotive differentials in the coming two to four years. 

The rise in demand for limited slip differential is one the major trend that will drive the market for differential during the forecast period. Limited slip differential is expected to grow at a higher CAGR of 6.76% in forecast period. It provides better traction control in snow, mud and during off road owing to its unique features. To provide better grip or provide greater differentiation between wheels, limited slip differential is an increasingly popular among top selling SUVs and cSUVs. Models M2, M3, M4, M5, and M6 of BMW are equipped with the active limited slip differential which provides locking effect depending on situation. Similarly Cadillac ATS, Chevrolet Camaro, Dodge Challenger SRT392, and Ford mustang are having limited slip differential. The electronic limited slip differentials (eLSD) is witnessing greater adoption rate on account of its better efficiency unlike mechanical differentials. Furthermore, the eLSD aids in attaining better fuel efficiency, thereby sufficing several stringent emission norms. 

Population amidst countries like the U.S. and some of the Asian countries prefer high driving position along with better ride quality. Crossovers are erected on a car unibody platform which combines in greatly adjustable degree structures of a sport utility vehicle (SUV) with that of passenger cars. Hence, crossovers serves end user requirements with better fuel efficiency on account of low curb weight. The increased demand towards crossovers and SUVs integrated with differentials, catering the end customer’s demand have thereby raised the opportunities for differential’s market growth in such countries. Open differentials are gradually being switched by more competent and compact eLSD for better fuel efficiency. 

Asia Pacific held higher market share on account of the high vehicle production in countries like China, India and Japan. The report projects differential market for automotive to grow at more than 5% CAGR and reach US$ 13.6 Bn by 2025. In 2016, Asia Pacific dominated the differential market for automotive with more than 40% market share and is expected to follow the same trend during the forecast. 

Demand for heavy commercial vehicles, light commercial vehicles is anticipated to rise during the forecast period due to rapid industrialization and expansion of the construction industry in Asia Pacific. Construction industry in Asia Pacific is expected to drive the market of heavy commercial and light commercial vehicle thereby reinforcing the differential’s market growth. 

Key players in the automotive differential industry are expected to benefit from the formation of strategic alliances with global players in the differential market for automotive market. Prominent players in the differential market for automotive market are ZF Friedrichshafen AG, Eaton, BorgWarner, Schaeffler, GKN PLC, JTEKT Corporation, DANA Limited, and Drexler Automotive GmbH, Neapco Inc. 

ZF Friedrichshafen AG, GKN, Eaton and Schaeffler AG are the leading companies among all and have a large product portfolio other than differential. Eaton Corporation and Dana Ltd., are specialized in manufacturing of the differentials and they manufactures different types of differentials for automotive industry. Dana Ltd., developed the electronic limited slip differential which bridges the gap between all-wheel drive system and two wheel drive open differential system by providing better traction, which improves drivability. 

The differential market for automotive industry is highly consolidated with the presence of big, and medium sized manufacturers.

Segmentation

  • Global Differential Market for Automotive, by Differential Type
    • Open Differential
    • Lock Differential
    • Limited Slip Differential
    • Electronic Differential
       
  • Global Differential Market for Automotive, by Drive Type
    • Two Wheel Drive
    • Four Wheel Drive
       
  • Global Differential Market for Automotive, by Vehicle
    • Passenger Vehicle
    • Commercial Vehicle
    • Electric Vehicle
       
  • Global Differential Market for Automotive, by Geography
    • North America
      • U.S.
      • Canada
    • Europe
      • Germany
      • France
      • UK
      • Spain
      • Italy
      • Rest of Europe
    • Asia Pacific
      • Japan
      • China
      • India
      • Rest of Asia Pacific 
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Mexico

The Automotive Differential market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Automotive Differential market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Automotive Differential market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Automotive Differential market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Automotive Differential market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Automotive Differential capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Automotive Differential by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Automotive Differential market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Automotive Differential market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Automotive Differential market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Automotive Differential industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

Automotive Differential market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Automotive Differential market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Automotive Differential market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Automotive Differential market. These factors have benefited the growth of the global market for Automotive Differential. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Automotive Differential. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Automotive Differential are as follows:

  • History Year: 2016-2019
  • Base Year: 2019
  • Estimated Year: 2020
  • Forecast Year 2020 to 2027

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2016-2019) and forecast (2020-2027);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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