Automotive Differential Market Generated $19,959.3 Million Revenue in 2020: P&S Intelligence


The surging adoption of all-wheel-drive (AWD) vehicles, burgeoning demand for heavy-duty and commercial vehicles, and soaring requirement for higher fuel efficiency and road traction are driving the growth of the global automotive differential market. As a result, the market reached $19,959.3 million revenue in 2020, according to P&S Intelligence.

The COVID-19 pandemic caused massive disruptions in the supply chains, impeded business growth, and created uncertain demand scenarios, which hampered the progress of the automotive differential market. The sales of automotive differentials are directly linked to automobile sales and production. As a result, the market dipped sharply because of the fall in automobile manufacturing. However, with the improving condition and the situation becoming normal in many countries, the market is set to exhibit resurgence in the coming years.

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The automotive differential market is classified into rear-wheel drive (RWD), front-wheel drive (FWD), and all-wheel drive (AWD)/four-wheel drive (4WD), depending on drive type. Out of these, the AWD/4WD category is predicted to demonstrate the fastest growth in the coming years. This will be because of the various benefits of AWD/4WD vehicles such as their ability to provide better traction in slippery conditions, which, in turn, leads to better handling and performance.

The market is also categorized into commercial vehicle and passenger vehicle, on the basis of vehicle type. Between these, the passenger category is predicted to contribute higher revenue to the market during the forecast period. This will be due to the higher manufacturing rate of passenger vehicles than that of the commercial vehicles. For example, the total number of passenger vehicles produced all over the world in 2020 was nearly 55 million, while the number of manufactured commercial vehicles was 21 million.

Browse detailed report with COVID-19 impact analysis on Automotive Differential Market Research Report: By Drive Type (Front-Wheel Drive, Rear-Wheel Drive, All-Wheel/ Four-Wheel Drive), Vehicle Type (Passenger Vehicle, Commercial Vehicle), Component (Differential Bearing, Differential Case, Differential Gear), Type (Open Differential, Locking Differential, Limited-Slip Differential, Electronic Limited-Slip Differential, Torque-Vectoring Differential) – Global Industry Analysis and Growth Forecast to 2030 @

Globally, Asia-Pacific (APAC) is expected to hold the largest share in the automotive differential market during the forecast period. This will be due to the fact that South KoreaChina, and Japan dominate the vehicle manufacturing industry across the world. In 2020, these countries recorded the production of more than 36 million vehicles, which was more than 47% of the total automobiles manufactured across the world. This factor will also fuel the growth of the regional market in the coming years, with the market expected to demonstrate the fastest growth during the forecast period.

The players operating in the automotive differential market are actively focusing on launching technologically advanced products to improve their position in the industry. For example, Eaton Corporation plc launched a scalable limited-slip and electronically controlled differential that can be easily used on several vehicle platforms for improving the performance and safety of the vehicle, in August 2020.

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American Axle & Manufacturing Inc. (AAM), Melrose Industries PLC, BorgWarner Inc., Hyundai Wia Corporation, Dana Incorporated, Schaeffler Technologies AG & Co. KG, Eaton Corporation plc, ZF Friedrichshafen AG, Linamar Corporation, and JTEKT Corporation are some of the major global automotive differential market players.

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Automotive Bearing Market – The increasing acceptance of electric vehicles and government policies for encouraging their adoption are projected to drive the demand for automotive bearings in the years to come. The Asia-Pacific region emerged as the major automotive bearing market in the past and the situation is likely to remain the same in the years to come as well.

Two-Wheeler Hub Motor Market – Across the globe, the Europe two-wheeler hub motor market is predicted to exhibit the fastest growth during the forecast period. The increasing demand for high-power motors is a key trend in the two-wheeler hub motor industry.

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