Overview of the global automotive differential market
Market research analysts at Technavio predict that the global automotive differential market will grow steadily during the next four years and in terms of units, will post a CAGR of more than 6% by 2020. This market research analysis identifies the rise in demand for SUVs and crossovers in several countries around the globe as one of the primary growth factors for the automobile differential market. The increased preference for comfortable rides over long distances and the availability of extra boot space has resulted in a significant rise in demand for crossovers and SUVs in the US. Additionally, the decreasing interest rates for car loans that enabled people to purchase expensive vehicles also led to the rise in sales of SUVs in the country. One of the major automotive companies Toyota, has already planned to shift its production to Mexico to meet the demand from Canada and the US and another major automaker General Motors has planned to launch more SUVs and crossovers in the US in the coming years. This increase in demand for luxury vehicles will increase the adoption of AWD systems for safer handling, in turn, driving the market’s growth prospects.
The rise in penetration of electronic limited slip differentials (eLSD) will be one of the major trends that will gain traction in this market in the coming years. The increased focus of automotive OEMs to replace the mechanical parts with compact electrical components for fuel-efficiency will result in the adoption of e-LSD in several mid-segment cars as well.
Competitive landscape and key vendors
The market consists of several well-established players and small-scale vendors who offer products that have a number of applications. Major players such as ZF, Borg Warner, GKN, Schaeffler, and Eaton account for the major revenue shares and currently dominate the market. These automotive differential manufacturers have a wide product portfolio and also offer customized solutions to cater to the needs of the customers. With all market players competing to gain maximum revenue shares, the market’s competitive environment is intense.
The leading vendors in the market are -
- GKN
- BorgWarner
- ZF
- Eaton
- Schaeffler
The other prominent vendors in the market are JTEKT, Linamar, Neapco, and Dana.
Segmentation by product and analysis of the automotive differential market
- All-wheel drive (AWD)
- Two-wheel drive (2WD)
During 2015, the two-wheel drive segment accounted for the major shares and dominated this market. Though the increasing popularity of AWD will result in decreasing the market shares of 2WD in Europe and the US, the constant demand for two-wheel drive from several countries in the APAC especially Indonesia, will drive the growth of this market segment in the coming years.
Geographical segmentation and analysis of the automotive differential market
This market study estimates that in terms of geographical regions, APAC will be the major revenue contributor to the car differential market throughout the forecast period. The growth in sales of passenger cars in countries such as China and the rise in demand for all-wheel drive in countries such as Japan, China, and India due to the increase in demand and sales of SUVs, will propel the market’s growth prospects in this region.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global automotive differential market?
- What are the key market trends impacting the growth of the global automotive differential market?
- What are the challenges to market growth?
- Who are the key vendors in the global automotive differential market?
- What are the market opportunities and threats faced by the vendors in the global automotive differential market?
- Trending factors influencing the market shares of APAC, Europe, and the US.
- What are the key outcomes of the five forces analysis of the global automotive differential market?
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Table of Contents
PART 01: Executive summary
PART 02: Scope of the report
- Market overview
- Top-vendor offerings
PART 03: Market research methodology
- Research methodology
- Economic indicators
PART 04: Introduction
PART 05: Market landscape
- Market overview
- Market size and forecast
- Five forces analysis
PART 06: Market segmentation by product
- Global automotive differential market by 2WD
PART 07: Geographical segmentation
- Global automotive differential market by geography
- Automotive differential market in US
- Automotive differential market in Europe
- Automotive differential market in APAC
PART 08: Key leading countries
PART 09: Market drivers
- Increasing demand for SUVs and crossovers
- Resurgent US auto industry
- Low penetration of cars in emerging countries
PART 10: Market challenges
- Rise in on-demand taxi operators in China and India
- Government regulation for privately owned cars in China
- Increase in demand for public transports
PART 11: Impact of drivers and challenges
PART 12: Market trends
- Growing penetration of electronic limited slip differentials (eLSD)
- Electric drive axles replacing driveshaft and mechanical differentials
- Increasing penetration of AWD systems in luxury sedans
PART 13: Vendor landscape
PART 14: Key vendor analysis
PART 15: Appendix
PART 16: Explore Technavio
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
Secondary sources
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
DATA ANALYSIS
Data Synthesis
- Collation of data
- Estimation of key figures
- Analysis of derived insights
Data Validation
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
REPORT WRITING
Qualitative
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
Quantitative
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape