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The torque vectoring market size is forecast to increase by USD 13.43 billion at a CAGR of 20.62% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Improved safety and vehicle dynamics are primary drivers, as torque vectoring technology enhances traction and stability, reducing the risk of skidding and improving overall handling. Additionally, the growing demand for electric vehicles (EVs) is fueling market growth, as torque vectoring technology can optimize power distribution in EVs for improved performance and efficiency. The market includes applications in light commercial vehicles, heavy commercial vehicles, hybrid electric vehicles, and heavy duty vehicles. Furthermore, the increasing popularity of mobility services, such as ride-hailing and car-sharing, is creating new opportunities for torque vectoring technology in the automotive industry. Market analysis suggests that these trends will continue to shape the market in the coming years.
The market is witnessing significant growth due to the increasing demand for premium vehicles, off road vehicles, electric vehicles, and light duty vehicles. Torque vectoring is a technology that enables precise distribution of engine torque to each wheel for improved vehicle stability, traction, and performance optimization. This technology is widely used in all four-wheel drive systems, luxury cars, and performance vehicles. Advanced connectivity, autonomous driving, powertrain electrification, and carbon emission reduction are key trends driving the market. Torque vectoring systems use sensors, algorithms, and differentials to monitor road conditions and adjust torque distribution accordingly. This results in better cornering ability, reduced understeer, and improved traction. Active torque vectoring systems use hydraulic clutches or electronic clutches to control torque distribution. The market is expected to grow significantly due to the increasing demand for clean energy and the need for performance optimization in various vehicle segments. These companies are focusing on developing advanced torque vectoring systems for various vehicle applications to meet the growing demand for improved vehicle performance and safety.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth by the Passenger car segment will be significant during the forecast period. The market encompasses technologies that enable optimal torque distribution to the wheels in real-time, enhancing vehicle stability and performance in both on-road and off-road conditions. Premium vehicles, electric vehicles, and off-road vehicles are major sectors driving the demand for torque vectoring systems. Advanced connectivity, autonomous driving, powertrain electrification, and safety systems are key trends shaping the market.
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The Passenger car segment in the global market has steadily grown from USD 3.62 billion in 2018. Luxury car manufacturers, such as BMW, Mercedes-Benz, and Audi, are integrating torque vectoring into their SUV models, including compact, mid-size, and class D SUVs. Torque vectoring is also gaining traction in light and heavy commercial vehicles for improved handling and fuel efficiency. Torque vectoring systems can be passive, utilizing clutch actuation, or active, employing electronic clutches. Passive systems are commonly found in front-wheel-drive and rear-wheel-drive passenger cars, while active systems are prevalent in electric vehicle models and high-performance vehicles. The market for torque vectoring is expanding to include autonomous vehicles, providing enhanced driver comfort and safety. The market caters to the needs of passenger cars, light duty vehicles, heavy duty vehicles, and light commercial vehicles. The shift towards clean energy and reducing carbon emissions is a significant factor driving the growth of the market. Electronic stability control and safety systems are essential components of torque vectoring technology, ensuring vehicle stability and passenger safety. Automotive manufacturers are investing heavily in research and development to introduce advanced torque vectoring systems to meet the evolving demands of consumers.
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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The market encompasses the use of advanced technologies in torque distribution for premium vehicles, including off-road models and electric vehicles. Torque vectoring enhances all-wheel drive systems in luxury cars by optimizing power delivery to individual wheels for improved traction and stability. This technology is also gaining popularity in electric vehicle models and SUVs, such as compact, mid-size, and sports utility vehicles. Torque vectoring systems can be passive or active, utilizing hydraulic clutch or electronic clutch actuation. Advanced connectivity and autonomous driving are key trends in the automotive industry, and torque vectoring plays a significant role in these developments. Powertrain electrification, including battery electric vehicles and hybrid electric vehicles, is another significant trend driving the market. Torque vectoring systems are essential for light-duty and heavy-duty passenger cars, light commercial vehicles, and heavy commercial vehicles, contributing to carbon emission reduction and the adoption of clean energy. Electronic stability control and safety systems are also crucial components of torque vectoring systems, ensuring driver comfort and vehicle performance on both on-road and off-road conditions. Autonomous vehicles are expected to further expand the application of torque vectoring technology.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Improved safety and vehicle dynamics is notably driving the market growth. The market is witnessing significant growth due to the increasing demand for enhanced vehicle handling and stability, particularly in various terrain systems. Torque vectoring technology, which is integrated into all-wheel-drive (AWD) systems, distributes engine torque to each wheel based on the driving conditions and road surface. This results in improved traction, reduced understeer, and better cornering performance. In high-performance cars, sports cars, racing vehicles, and crossover vehicles, torque vectoring plays a crucial role in optimizing fuel efficiency and reducing emissions.
Furthermore, it achieves this by monitoring sensors that detect steering wheel angle, yaw rate, and wheel speed, allowing for real-time adjustments to the torque distribution. Consequently, this technology enhances safety and convenience by enabling stability control features, such as lane departure warning, adaptive cruise control, emergency braking, and semi-autonomous driving. Additionally, torque vectoring improves fuel economy and reduces emissions by minimizing power loss and optimizing engine performance. Thus, such factors are driving the growth of the market during the forecast period.
Growing demand for electric vehicles is the key trend in the market. The global market for electric vehicles (EVs), specifically plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), experienced substantial growth in 2021, with over 7 million units delivered worldwide. China led the way in EV sales, accounting for a significant portion of the global market. Europe and the US followed closely behind in terms of BEV deliveries. The increasing demand for EVs can be attributed to their contribution to vehicle handling and stability, fuel efficiency, and performance optimization.
Furthermore, advanced technologies such as sensors, algorithms, and differentials enable EVs to provide improved cornering capabilities, reduce understeer, and enhance traction, particularly in high performance cars, sports cars, racing vehicles, and crossover vehicles. Additionally, EVs contribute to emission reduction, fuel economy, and the implementation of advanced safety features like stability control, lane departure warning, adaptive cruise control, emergency braking, and semi-autonomous driving. The global EV market is expected to continue growing during the forecast period, driven by these factors and the increasing focus on sustainable transportation solutions. Thus, such trends will shape the growth of the market during the forecast period.
Growing mobility services is the major challenge that affects the growth of the market. The expansion of mobility services and the resulting shift towards shared transportation have influenced the automotive industry, including the market. Advanced infrastructure and IT developments enable more connectivity services, leading to an increase in pooling options through applications or remote services. This trend is driving technological advancements, including over-the-air upgrades for car technologies, which are propelling the adoption of torque vectoring in various vehicle segments. However, the rise of shared services may impact car ownership, as individuals seek more convenient and cost-effective transportation alternatives. Consequently, this shift in consumer behavior could hinder the growth of the market during the forecast period.
Furthermore, Torque vectoring technology enhances vehicle handling and stability, improving fuel efficiency and performance optimization in hybrid vehicles, high-performance cars, sports cars, racing vehicles, and crossover vehicles. By utilizing sensors, algorithms, and differentials, torque vectoring optimizes traction during cornering, reducing understeer and improving overall driving dynamics. Additionally, it enhances safety features such as stability control, lane departure warning, adaptive cruise control, emergency braking, and semi-autonomous driving. Furthermore, torque vectoring technology contributes to emission reduction and fuel economy, making it an essential component for vehicles in the era of stringent emission regulations. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
BorgWarner Inc.- The company offers torque vectoring such as torque converter clutch.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing demand for advanced safety systems and performance enhancement in premium vehicles, off-road vehicles, and electric vehicles. Torque vectoring is a technology that enables precise distribution of engine torque to each wheel for improved vehicle stability, handling, and traction. Premium vehicles, including luxury cars and sports utility vehicles (SUVs), are major contributors to the market. Advanced connectivity and autonomous driving features are driving the demand for torque vectoring in these vehicles. Electric vehicles, such as battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs), are also adopting torque vectoring for powertrain electrification and improved performance. Torque vectoring is also gaining popularity in off-road vehicles, light duty vehicles, and heavy duty vehicles for enhanced traction and stability.
Furthermore, the technology is used in both front-wheel drive (FWD) and rear-wheel drive (RWD) vehicles, as well as in all-wheel drive (AWD) systems. Passive torque vectoring and active torque vectoring are the two main types of torque vectoring systems used in the automotive industry. The market is expected to grow significantly due to the increasing demand for improved safety systems, such as electronic stability control and safety systems, in passenger cars, light commercial vehicles, and heavy commercial vehicles. The market is also driven by the growing focus on reducing carbon emissions and promoting clean energy through propulsion technologies, such as hydraulic clutch and electronic clutch systems. In conclusion, the Market is poised for growth due to the increasing demand for advanced safety systems, performance enhancement, and propulsion technologies in premium vehicles, electric vehicles, and SUVs. The market is expected to continue growing as automotive manufacturers focus on improving vehicle handling, traction, and stability across various vehicle segments.
Market Scope |
|
Report Coverage |
Details |
Page number |
152 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 20.62% |
Market growth 2024-2028 |
USD 13.43 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
16.56 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 34% |
Key countries |
Germany, UK, US, China, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Axle and Manufacturing Holdings Inc., BorgWarner Inc., Continental AG, Dana Inc., Eaton Corp. Plc, Ford Motor Co., Hyundai Motor Co., JTEKT Corp., Linamar Corp., Magna International Inc., Melrose Industries Plc, Ricardo Plc, Robert Bosch GmbH, Schaeffler AG, Xtrac Ltd., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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