Jan 14, 2020 4:23 AM ET
Torque Vectoring Market Size is Expected to Grow at CAGR of 20.20% During 2020-2025
iCrowd Newswire -
Jan 14, 2020
Torque vectoring is a technique used in automotive differentials. Torque Vectoring Market size is forecasted to reach $19.03 billion by 2025 from $ 5.36 Billion in 2018, after growing at a CAGR of 20.20% during 2020-2025. The torque vectoring market
for the automotive sector is mainly driven by increased demand for luxury and performance vehicles including SUVs, crossovers and off-highway vehicles. According to the International Energy Agency, SUVs account for about 39% of the total car sales in 2018. With the growing need for luxury cars and rising concern of safety, the SUVs sales are likely to shoot up during the forecast period.
- Europe market dominates the Torque Vectoring industry owing to increasing demand from applications such as the automotive and aviation industries.
- Increasing demand for battery electric vehicles and the ban on diesel and gasoline vehicles going forward in the European countries will create hurdles for the Torque Vectoring market.
- All-wheel drive vectoring segments hold the highest market share due to their extensive use and enhanced usability.
- The passenger car segment is expected to grow at a CAGR of 15.42% during the forecast period.
By Propulsion- Segment Analysis
All-wheel drive vectoring system segments have the largest market share due to their widespread use and improved functionality. A 4WD (four-wheel drive) system provides extreme traction for all vehicle wheels which eliminates loss of control, particularly on slippery roads. In addition an AWD or all-wheel drive system involves all four wheels in a vehicle and eliminates the need for 4WD to 2wd (Two-wheel drive) mode switching. The AWD/4WD torque vectoring system market is driven primarily by increasing demand for SUVs and luxury vehicle. Similarly, the increasing concern towards safety and stability during driving has enforcing manufacturers to introduce advanced technology like torque vectoring to augment the customer safety and experience. The All-wheel Drive systems market is expected to grow by a CAGR of 8.82% during 2019-2025 due to its large adoption in sports utility vehicles (SUVs) segment. This is likely to create opportunity for torque vectoring market.
By Vehicle Type – Segment Analysis
During the forecast period, the passenger car segment is expected to be the fastest growing torque vectoring market with a CAGR of 15.42%. The vectoring unit market for passenger car torque is driven primarily by sustained growth in demand for luxury passenger cars. Similarly, passenger car demand is considerably higher than other vehicle demand, hence capturing the majority of the market share. According to International Organization of Motor Vehicle Manufacturers, there were 68.69 million passenger cars sold in 2018, of which 29.77 million were SUVs, with volume up by 7% from 2017. In the same year, the sale of passenger vehicles was almost 63% greater than the commercial vehicles. This creates a favorable market for torque vectoring system.
Geography – Segment Analysis
In 2018, the Torque vectoring market share for the European region was 34.21%. This due to the presence of large automotive base in the countries like Germany, the UK, France and Spain, which account for a significant share of the European automotive industry. OEMs like BMW AG (Germany), Daimler AG (Germany), Fiat (Italy), PSA / Peugeot-Citroen (France) dominate the market. In 2018, according to European Automobile Manufacturers’ Association (ACEA), there are 15.6 million new vehicle registration in the EU and EFTA. In September 2019, new passenger vehicle registration in EU and EFTA has increased by 14.4% from September 2018. This increase in the new vehicle sales in Europe is expected to drive the European Torque vectoring market.
Drivers – Torque Vectoring Market
- Increased awareness of greater safety and dynamics of vehicles
According to World Health Organization, as a result of road traffic crashes, about 1.35 million people die each year. Safe cars play a key role in avoiding damage due to collisions and reducing the likelihood of severe injury. Increased interest for safety of vehicle among consumers is driving the demand for torque vectoring system. The torque vector market is expected to expand with the development of better and more sophisticated safety measures for luxury cars and other commercial vehicles.
- Growing demand for battery powered electric vehicles
The demand for electric vehicle is growing rapidly since 2016 due to rising environmental regulation and government incentives. The global electric car fleet exceeded 5.1 million in 2018, up by 2 million from 2017, almost doubling the number of new registrations for electric cars. The Netherlands and Japan are front-runners in the electronic vehicles category, according to International Energy Agency (IEA). Also, in 2017, France’s government announced that it will completely ban diesel and gasoline-powered cars and switch to electric vehicles by 2040 in order to meet zero emission targets under the “Paris Climate Accord.” Torque vectoring system being one of the major components in electric vehicle is likely to witness the demand from the growth of electric vehicle industry.
Challenges – Torque Vectoring Market
- Growth in mobility services
Growth in mobility services is the biggest restriction on the automotive torque vectoring market. Infrastructure and IT developments enable more connectivity services, resulting in more pooling services using apps or remote services. This increase in shared mobility services is negatively affecting the vehicle market as people are now preferring ride-sharing services as the more convenient and affordable mean of transport. Therefore, the sales of passenger vehicle is expected to decline during forecast period, thereby hindering the market growth for torque vectoring system.
Technology launches, expansion and R&D activities are key strategies adopted by players in the Torque Vectoring market. In 2018, the market of Torque Vectoring has been consolidated by the top five players accounting for 35% of the share. Torque Vectoring top 10 companies are GKN, American Axle, Dana, BorgWarner, Eaton, ZF, JTEKT, Magna, Bosch and Schaeffler.
- In March 2019, with a two-speed transmission and torque vectoring on the front axle, GKN Automotive launched the first battery-electric vehicle (BEV).
- Toyota Motor Corp. (Toyota Motor) revealed in February 2018 the design of two new AWD systems, namely dynamic torque vectoring AWD and ‘ E-Four 4WD system. The dynamic torque vectoring system uses the world’s first dog clutches on the front and rear wheel shafts of the ratchet type. This type of clutch stops the drive system’s rotation, which in 2WD mode helps to transmit the driving force to the rear wheels.
- Schaeffler announced in November 2017 that it will extend its activities at INA Bearings in Pune. The expansion would include in existing premises a new manufacturing facility and a new R&D facility. The new production plant will manufacture components for engine and transmission to meet domestic and export markets.
IndustryARC primarily focuses on Cutting Edge Technologies and Newer Applications market research. Our Custom Research Services are designed to provide insights on the constant flux in the global supply-demand gap of markets. Our strong team of analysts enables us to meet the client research needs at a rapid speed, with a variety of options for your business. Any other custom requirements can be discussed with our team, drop an e-mail to [email protected] to discuss more about our consulting services.
Mr. Venkat Reddy
Email: [email protected]
Contact Sales: +1970-236-3677
Keywords: Torque Vectoring Market, Torque Vectoring Market Forecast, Torque Vectoring Market Growth, Torque Vectoring Market Report, Torque Vectoring Market Research, Torque Vectoring Market Share, Torque Vectoring Market Size, Torque Vectoring Market Trend, Torque Vectoring Market Outlook