Global Automotive Differential Market 2016-2020

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

• APAC
• Europe
• US

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?

Technavio also offers customization on reports based on specific client requirement.

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