Latest News - Automotive Differential Gear Market: Aftermarket is expected to lead the Channel segment during 2024-2028

The Automotive Differential Gear Market is being driven by Increase in sales of SUVs

The Automotive Differential Gear Market is expected to grow at a CAGR of 4.36% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 5645.9 million. The global automotive market is experiencing a significant shift towards Electric Vehicles (EVs), with sales tripling due to various factors. Strict emission regulations, announcements of diesel vehicle bans, EV subsidies, and expanding charging infrastructure are driving this trend. In response, automakers are investing in innovative technologies to enhance EV range and performance. One such solution is the wheel hub motor, an electric motor directly integrated into the vehicle wheel. Featuring Brushless Direct Current (BLDC) technology, hub motors offer improved power density and efficiency. BLDC motors represent an advanced iteration of DC motors, replacing mechanical communication with electronic communication. This technology's adoption in EVs is expected to boost performance and efficiency, making them increasingly competitive with traditional internal combustion engine vehicles. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Channel
  • Aftermarket
  • OEM
• Vehicle Type
  • Passenger cars
  • Commercial vehicles
• Geography
  • APAC
    • China
    • India
    • Japan
  • North America
    • US
  • Europe
    • Germany
  • South America
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increase in sales of SUVs
• Rising consumer preference for AWD and FWD vehicles
• Increasing sales of luxury vehicles

However, the market also witnesses some limitations, which are as follows:

• Product recall
• Global decrease in vehicle sales
• Raw material price volatility

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Market Scope in Automotive Differential Gear Market Research Report

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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 global automotive components and equipment market encompasses businesses producing parts and accessories for various vehicle types, including passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. According to Technavio, the market size is determined by the consolidated revenue generated by automotive components and equipment manufacturers. Key growth drivers in the automotive parts and equipment sector include the surge in electronic components utilization in automobiles, fueled by the rising sales of electric vehicles, motorcycles, and passenger cars, leading to a substantial increase in demand for electronic control units (ECUs) and other electrical components over the past decade. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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