Automotive Differential Gear Market by Vehicle Type and Geography - Global Forecast and Analysis 2019-2023

The global automotive differential gear market has the potential to grow by USD 4.08 billion. The growth momentum will accelerate throughout the forecast period, and the market will grow at a CAGR of around 4%.

Rising consumer preference for AWD and FWD vehicles and the use of 3D printing in gear manufacturing are some of the major factors driving market growth. China, the US, and Japan are currently the major markets for automotive differential gears.

Automotive Differential Gear Market Report - Key Insights

Scope of the Report

The report provides a detailed analysis of the market by vehicle type and geography. Also, the report analyzes the market’s competitive landscape and offers information on several market vendors.

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Market Segmentation

Automotive Differential Gear Market by Vehicle Type

• Passenger cars
• Commercial vehicles

Automotive Differential Gear Market by Region

• APAC
• Europe
• MEA
• North America
• South America

Market Competitive Analysis

The automotive differential gear market is fragmented, and the degree of fragmentation will increase during the forecast period. Vendors are using alternative lightweight composites in the manufacturing process to develop high-performance vehicle components within specified weight constraints. American Axle & Manufacturing Inc., AmTech International, and Bharat Gears Ltd. are some of the major market participants. Though the accelerating growth momentum will offer immense growth opportunities, volatility in raw material prices will challenge the growth of the market participants. To make the most of the opportunities, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The report provides information on the production, sustainability, and prospects of several companies, including:

• American Axle & Manufacturing Inc.
• AmTech International
• Bharat Gears Ltd.
• Dana Ltd.
• Eaton Corp. Plc
• JTEKT Corp.
• Linamar Corp.
• Melrose Industries Plc
• Meritor Inc.
• Showa Corp.

Automotive Differential Gear Market: Key Drivers and Trends

AWD and FWD vehicles effectively distribute power to wheels with higher traction in high-performance vehicles, thereby improving stability and reducing excessive wear and tear of tires. Vehicles equipped with AWD and FWD technologies have an axle fitted with differential box and a transfer case to split power equally among the front and rear axles. Automobile manufacturers are increasingly offering AWD and FWD variants in their vehicles because of the growing consumer preference for such vehicles. For example, Kia Motors recently launched the Telluride SUV for the US market. The vehicle features AWD lock mode which enables the driver to choose between AWD and two-wheel-drive modes. The increasing sales and the launch of vehicles equipped with AWD and FWD technologies is expected to drive global automotive differential gear market growth.

• The use of 3D printing in gear manufacturing will also influence market growth.
• Vehicle manufacturers are focusing on developing lightweight, efficient, and cost-effective components because of the need to comply with stringent emission norms.
• Vendors are adopting additive manufacturing technologies to develop 3D objects from computer-aided design models. This eliminates the wastage of raw materials, thereby reducing overall manufacturing costs.
• The use of 3D technology is allowing gear manufacturers to develop differential gears with advanced designs and material compositions.
• Gear manufacturers are using advanced materials in additive manufacturing to improve ductility, wear resistance, toughness, and fatigue strength in differential gears.
• As a result of automotive differential gear market trends such as the use of 3D printing, the market will register a CAGR of around 4% of during 2019-2023.

Automotive Differential Gear Market: Segmentation by Region

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The introduction of low-cost mini and compact SUVs and the rising consumer preference for high-comfort and off-road vehicles have increased the demand for vehicles with AWD and FWD technologies in APAC. Several automobile manufacturers in the region are also offering EV models featuring AWD and FWD technologies.

During the forecast period, nearly 54% of the overall market growth will originate from APAC. However, market growth in APAC will be slower than the growth of the market in South America and MEA.

Automotive Differential Gear Market: Segmentation by Vehicle Type

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The introduction of stringent emission norms and announcements regarding the ban on diesel vehicles have compelled automakers to introduce low-cost EV models. Moreover, several governments are offering incentives and making significant investments in EV charging infrastructure development. These factors have increased the sales of EVs across the world. This will have a positive impact on the demand for differential gears for passenger car applications.

As a result, the automotive differential gear market size will steadily increase during the forecast period. However, market growth in the passenger car segment will be slower than the growth of the market in the commercial vehicles segment.

Automotive Differential Gear Market: Key Highlights of the Report

• CAGR of the market during the forecast period 2019-2023
• Detailed information on factors that will accelerate the growth of the market during the next five years
• Precise estimation of the global automotive differential gear market size and its contribution to the parent market
• Accurate automotive differential gear market forecast on upcoming trends and changes in consumer behavior
• The growth of the automotive differential gear industry across APAC, Europe, MEA, North America, and South America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of automotive differential gear market companies

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