The global automotive differential gear market is projected to expand by £4.5 billion between 2024 and 2028, according to Technavio. This represents a compound annual growth rate (CAGR) of 4.36% over the forecast period. The rise in sales of SUVs is a key driver for this market growth, alongside the growing trend towards developing hub motors. However, product recalls present a significant challenge. Key players in the market include American Axle and Manufacturing Holdings Inc., AmTech International, Bharat Gears Ltd., Circle Gear and Machine Company Inc., Dana Inc., Eaton Corp. Plc, FA.TA. Ricambi S.p.A., Gear Motions Inc., GKN Sinter Metals Engineering GmbH, Hitachi Ltd., Linamar Corp., Neapco Holdings LLC, NSK Ltd., Perfect Gears Pvt. Ltd., Polaris Inc., and Shandong Heavy Industry Group Co. Ltd.
Market Drivers
The demand for electric vehicles (EVs) is a major force driving growth in the global automotive differential gear market. With increasing pressure from stricter emissions regulations, the phasing out of diesel vehicles, EV subsidies, and expanding charging infrastructure, EV sales are experiencing a rapid surge worldwide. In response, manufacturers are focusing on developing advanced solutions to enhance the range and performance of EVs.
One such solution is the wheel hub motor, an electric motor directly installed in the vehicle wheel to power it. Hub motors utilise brushless direct current (BLDC) technology, an advanced form of DC motors. This technology offers increased power density and eliminates the need for contact between the stator and rotor, resulting in a longer motor lifespan.
Since hub motors directly drive the vehicle wheel, they eliminate the need for a gearbox, differential, and other power transmission components, leading to reduced vehicle weight and improved efficiency. However, challenges such as decreased vehicle speed, increased unsprung weight, and complex harness design are hindering the widespread adoption of hub motors. Despite these obstacles, companies like Protean Electric, GM, Elaphe Propulsion Technologies Ltd., Brabus GmbH, ZIEHL-ABEGG SE, and Dana TM4 are investing heavily in hub motor technology. This investment is expected to lead to technologically advanced hub motors, ultimately contributing to the growth of the global automotive differential gear market.
Market Challenges
The automotive differential gear market faces several challenges, including:
Increased Complexity and Cost: The integration of automatic transmission systems in premium vehicles is leading to more complex and costly drivetrains. These systems rely on intricate algorithms, multiple clutches, and synchromesh gear sets, often incorporating lightweight and rigid materials to enhance drivability. However, these advancements can significantly increase repair costs and the potential for vehicle recalls. Recent recalls by Benz U.S. (May 2022) and Volkswagen AG (March 2022) highlight the vulnerability of drivetrains, demonstrating the consequences of malfunctions or issues with components such as differential gears. Such recalls lead to substantial costs for both component makers and original equipment manufacturers (OEMs) due to liability-sharing business models.
Diverse Needs across Vehicle Segments: The automotive differential gear market faces specific challenges across different vehicle segments, such as trucks, buses, and commercial vehicles. Traction is paramount in off-road applications, where locking differentials provide a solution. However, torque vectoring differentials offer superior handling and response time for passenger vehicles. Size and weight reduction are critical for multi-utility and autonomous vehicles. Front-wheel and rear-wheel drive systems require efficient differentials for optimal performance, with components such as the epicyclic train, gears, shafts, and rear axle playing crucial roles. High-speed curves and braking systems demand efficient differentials with rapid response time and control. Weight and size reduction are paramount for compact vehicles, making lighter, quieter, and more efficient differentials a priority. Electrification in automotive vehicles necessitates advanced electronic control units to manage torque distribution and traction control, minimising slippage to ensure efficient power transfer. Handling and performance are critical, particularly in high-performance vehicles. Electronic circuits and traction control systems are becoming increasingly important to maintain optimal drive wheel torque during turns. The market needs to address these diverse needs to cater to the automotive industry effectively.
Market Segmentation
This automotive differential gear market report provides extensive market segmentation by:
Channel
Vehicle Type:
Passenger cars
Commercial vehicles
Geography:
APAC
North America
Europe
South America
Middle East and Africa
About Technavio
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