Authored By: Sarah
11 Jul 2024

 Automotive Differential Gear Market Size to grow by USD 5645.9 million between 2024-2028

According to a research report “ Automotive Differential Gear Market” by Channel (Aftermarket, OEM) Vehicle Type (Passenger cars, Commercial vehicles) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 5645.9 million, at a CAGR of  4.36% during the forecast period. The automotive differential gear market has experienced significant growth in the last decade, driven by the increasing popularity of Sport Utility Vehicles (SUVs). Factors fueling this trend include the introduction of compact and mini-SUVs, affordability, and enhanced comfort and safety features in new generation models. In the 2021 fiscal year, SUVs accounted for approximately 45% of global vehicle sales, representing a 35 million unit increase compared to the previous year. Key markets contributing to this growth include Russia, the US, Canada, and China, which collectively accounted for 166% of their total vehicle sales in the fiscal year 2021, with respective shares of 46%, 45%, 43%, and 42%. Europe also experienced an uptick in SUV sales.

Browse market data tables, figures, and in-depth TOC on “Automotive Differential Gear Market” by Channel (Aftermarket, OEM) Vehicle Type (Passenger cars, Commercial vehicles) Geography (APAC, North America, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample


By Channel, the Aftermarket segment is projected to dominate the market size in 2024

In the automotive industry, differential gears play a crucial role in enabling optimal performance and maneuverability in passenger cars. These vehicles, designed primarily for passenger transport, are multi-axle systems with a driver and typically four wheels. Differential gears facilitate equal torque and speed distribution between the wheels connected to the differential. During vehicle turning, they allow the outer wheel to rotate faster than the inner wheel, preventing skidding. In two-wheel-drive passenger cars, the differential is mounted on the rear axle, while in front-wheel-drive vehicles, it is situated on the front axle. This design ensures efficient power transmission and improved handling characteristics.

By Vehicle Type, Passenger cars  segment is expected to hold the largest market size for the year 2024

The automotive aftermarket serves as a significant secondary market, encompassing the production, duplication, distribution, retail, and installation of various vehicle components, chemicals, tools, and enhancements following the OEM's sale of the car to the consumer. This market segment caters to replacement parts for wear and tear, collision repairs, aesthetic upgrades, and performance enhancements. The aftermarket offers a diverse selection of parts, ranging from economical to premium, for a vast array of vehicle makes and models. Consumers have the flexibility to either self-repair or engage professional repair shops. The aftermarket's role in maintaining the longevity and customization of vehicles will significantly contribute to the expansion of the global automotive differential gear market over the forecast period.

APAC is forecasted to hold the largest market size by region in 2024

The Automotive Differential Gear Market represents a significant business opportunity for manufacturers and suppliers due to the increasing demand for advanced drivetrain systems in vehicles. This market is driven by factors such as rising automotive production, growing preference for fuel-efficient vehicles, and technological advancements in differential gear systems. Key players in this market include ZF Friedrichshafen AG, Dana Incorporated, and JTEKT Corporation. Collaborations, acquisitions, and product innovations are common strategies to gain a competitive edge.

The Automotive Differential Gear Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • 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.
  • Shandong Heavy Industry Group Co. Ltd.

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Research Analysis Overview

The Automotive Differential Gear Market encompasses various types of differentials used in automobiles, including those in rear axles of buses, trucks, and passenger cars. These differentials facilitate the rotation of the wheels at different speeds during turns, enabling improved traction and stability. The components of a differential include shafts, gears, and an epicyclic train. Rear Wheel Drive (RWD) and Front Wheel Drive (FWD) vehicles utilize differentials for power transmission. Torque Vectoring Differentials and Locking Differentials are advanced technologies that enhance vehicle performance by optimizing power distribution and improving grip. The shift towards electric vehicles (EVs) has led to the integration of electric motors, power electronics, batteries, electric compressors, and traction motors in the differential system. Heavy trucks, light commercial vehicles, and heavy commercial vehicles also employ heavy-duty engines and gearboxes in their differentials. The automotive differential gear market is expected to grow significantly due to the increasing demand for improved vehicle performance, fuel efficiency, and safety features. The market is segmented based on vehicle types, including buses, sedans, premium SUVs, and commercial vehicles. The future of the market lies in the development of advanced differential technologies for electric vehicles and heavy-duty applications.

Market Research Overview

The Automotive Differential Gear Market is witnessing significant growth due to the increasing demand for improved handling and efficient performance in automotive vehicles. High-speed curves and tight turns require precise torque distribution between drive wheels to ensure optimal traction and control. Differentials play a crucial role in this regard, employing various technologies like electronic control units, traction control, and torque vectoring. Electrification is another key trend in the market, with electric and hybrid vehicles adopting compact, lightweight, and efficient differentials. These components are essential for electric vehicles, as they facilitate the rotation of shafts and gears in the epicyclic train, ensuring smooth power transmission from the electric motor to the drive wheels. Commercial vehicles, including buses, trucks, and heavy commercial vehicles, also rely on robust differentials to handle heavy loads and demanding off-road conditions. Size reduction and weight optimization are critical factors in this segment, with multi-utility vehicles and passenger cars also seeking lighter and more compact differentials for improved fuel efficiency and quieter operation. Braking systems and locking differentials further enhance vehicle performance and control, especially in off-road and heavy-duty applications. The market for automotive differentials is expected to grow significantly in the coming years, driven by advancements in power electronics, batteries, electric compressors, and electric motors.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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