AWD Integration in Mid-Range Cars To Drive Automotive Differential Demand
The International Organization of Motor Vehicle Manufacturers (OICA) states that 24,372,388 commercial vehicles were sold around the world in 2020. It also reveals that Saudi Arabia, Brazil, Mexico, China, India, Germany, Canada, and the U.S. sold 64,835 units, 442,495 units, 444,276 units, 5,133,338 units, 505,189 units, 350,544 units, 1,208,830 units, and 11,051,054 units of commercial vehicles, respectively, in 2020. The rising number of commercial vehicles will create a huge requirement for automotive differentials in the coming years.
Moreover, the increasing adoption of all-wheel-drive (AWD)/four-wheel drive (FWD) options in mid-range passenger cars will help the automotive differential market grow during 2021–2030. According to P&S Intelligence, the market revenue stood at $20 billion in 2020. AWD offers improved stability, drive control, and safety, owing to which automobile original equipment manufacturers (OEMs) are incorporating this system in mid-range passenger cars. Additionally, the ongoing technological advancements in AWD systems will also accelerate the adoption of automotive differentials globally.
In contemporary times, Hyundai Wia Corporation, ZF Friedrichshafen AG, Schaeffler Technologies AG & Co. KG, Eaton Corporation plc, Melrose Industries PLC, Dana Incorporated, Linamar Corporation, BorgWarner Inc., JTEKT Corporation, and American Axle & Manufacturing Inc. (AAM) have been the leading manufacturers of automotive differentials. Nowadays, these companies are largely focusing on product launches to meet the evolving needs of automakers. For example, Eaton Corporation plc unveiled an electronically controlled scalable limited-slip differential in August 2020. This differential can be integrated into numerous vehicle platforms to improve performance and ensure driver safety.
Globally, the Asia-Pacific (APAC) region is expected to lead the automotive differential market in the forthcoming years, owing to the large-scale vehicle production and presence of numerous automotive component manufacturers in China and Japan. According to the International Trade Administration (ITA), under the Department of Commerce of the U.S., China sold 19.99 million passenger vehicles and 5.23 million commercial vehicles in 2019. Likewise, the Society of Indian Automobile Manufacturers (SIAM) states that India sold 2,711,457 passenger vehicles and 568,559 commercial vehicles in the financial year (FY) 2020–2021.
Therefore, the increasing commercial vehicle sales and accelerating vehicle electrification rate will propel the use of automotive differentials in the foreseeable future.
