Global Differential Assembly Market Size, Share And Forecast To 2031

(MENAFN- Straits Research) The differential assembly is a critical component of an automobile's drivetrain, and its primary function is to keep the RPMs of any two connected wheels proportional to one another. It is a necessary vehicle component regardless of where it is located. Its purpose is to allow the wheels to move at different speeds. The demand for differential assemblies is driven by the production of automobiles in various parts of the world. The growth of the all-wheel-drive (AWD) and four-wheel-drive (4WD) vehicle markets is expected to support the expansion of the differential assembly market. To conduct business in procuring differential assemblies, the original equipment and differential assembly manufacturers enter into long-term contracts and agreements.
Market Dynamics
Rising Use of Fuel-Efficient Vehicles Growing Number of Vehicles Equipped with (AWD) and (4WD) and Commercial Vehicles Drives the Global Market
As most automobiles are equipped with high-end electrical and electronics technology-driven systems, the automotive industry has seen significant technological evolution. Electrical and electronic components are used by original equipment manufacturers (OEMs) because of their high output efficiency and significant weight reduction of the corresponding component, resulting in a fuel-efficient solution. Furthermore, vehicle emissions are a significant factor because they are a source of harmful greenhouse gases that have a long-term impact on the environment. Governments worldwide are working together to establish uniform emission standards for motor vehicles to reduce greenhouse gas emissions and maintain a healthy environment. In addition, end consumers and drivers demand technologically advanced electrical components and systems for increased ease and comfort during the driving experience.
Drivetrains, powertrains, safety, and vehicle stability have all seen technological advancements in automotive manufacturing to increase vehicle operational efficiency. The buyers of automobiles demand that their vehicles have higher output efficiency and optimal performance in high-end driving operations. In addition, the demand outlook from end-users has moved more toward an increased emphasis on luxury, comfort, and driving dynamics. The evolving demand of end consumers is increasing interest in four-wheel drive and all-drive-wheel vehicles to achieve the desired levels of vehicle safety and dynamics. In addition, Original Equipment Manufacturers, also known as OEMs, are encouraged to adopt these drive systems to satisfy end-users ever-evolving demands. In recent years, sales of all-wheel drive and four-wheel drive vehicles have seen significant increases, and this upward trend is expected to continue in the years to come. These drive systems require two or three differential assemblies to perform their driving duties. Therefore, the market share of all-wheel drive (AWD) and four-wheel drive (4WD) vehicles is anticipated to drive demand for differentials and bevel gear in the distant future.
Production of Electronic Limited-Slip Differentials Creates Tremendous Opportunities
Electronic limited-slip differentials increase traction on dry and wet roads and improve handling, making them suitable for high-performance cars. Innovative automakers are developing electronic limited-slip differentials. Eaton introduced a new electronic limited-slip differential that functions as a traction management system; ZF also introduced a networked ELSD rear axle transmission. This transmission is for sports and off-road vehicles. This new differential is fully networked with the vehicle's braking system, improving driving dynamics, comfort, and stability. The production of electronic limited-slip differentials by automotive manufacturers is expected to provide a growth opportunity for differential companies.
Key Highlights

The global differential assembly market was valued at USD 23.95 billion in 2021. It is expected to reach USD 30.99 billion by 2030, growing at a CAGR of 3.0% during the forecast period (2022–2030).
Based on vehicle type, the global differential assembly market is segmented into passenger cars, light commercial vehicles, heavy commercial vehicles, and tractors. The passenger car segment is the highest contributor to the market and is estimated to reach USD 23.59 billion by 2030, growing at a CAGR of 3.6% during the forecast period.

Competitive Analysis
The global differential assembly market's major key players are Dana Limited,BorgWarner Inc., JTEKT Corporation, GKN, Hyundai WIA Corporation, American Axle & Manufacturing Holdings, Inc., and Eaton, Schaeffler Technologies AG & Co. KG., ZF Friedrichshafen AG, Linamar Corporation, and others.
Market News

May 2022- BorgWarner provided eMotors for the Leading EV Brand in China. BorgWarner, a global leader in providing innovative and sustainable mobility solutions for the vehicle market, has been chosen to supply high-voltage hairpin (HVH) eMotors for China's leading electric vehicle manufacturer.
May 2022- Dana and Lion Electric Co. Announced a Long-term Agreement for Electrified Systems. Dana Incorporated (NYSE: DAN) announced that it had confirmed its strategic supply relationship with current OEM partner Lion Electric Co. to support its line-up of electric buses and medium- and heavy-duty trucks.
April 2022- Rolls-Royce and Schaeffler enter a 12-year partnership. Schaeffler will provide Rolls-Royce with the most advanced production technologies and manufacturing processes over the long term.

Global Differential Assembly Market: Segmentation
By Vehicle Type

Passenger Car
Light Commercial Vehicles
Heavy Commercial Vehicles
Tractors

By Regions

North America
Europe
Asia-Pacific
Rest of the World (ROW)

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