MARKET OVERVIEW- GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET
A limited-slip differential (LSD) is a type of differential that limits the maximum difference between its two output shafts while allowing them to rotate at different speeds. Limited-slip differentials are often known by the generic trademark Positraction, a brand name owned by General Motors. Limited-slip differentials like these are sometimes used in automobiles instead of standard differentials because they offer some dynamic advantages but also more complexity. The electric limited slip differential basically directs torque, making it possible for the vehicle to drive over terrain and road conditions in a way that a conventional axle could not. The system is always on and requires no communication from the driver. A limited slip differential improves a vehicle's power and speed by utilising engine power more efficiently, thus allowing for a smoother and more enjoyable drive. Electric limited-slip differentials are becoming increasingly common as automobile technology advances. They are equipped with multi-disc clutches for torque distribution on the basis of ordinary open differentials, and they have gradually replaced mechanical limited-slip differentials. In addition, electric systems such as ESP also extend the role of a similar electric limited slip differential, which is the so-called electric differential lock on many configuration tables.
MARKET DRIVERS
The factors that are responsible for market expansion includes rising vehicle production and the expansion of the automotive industry, as well as rising investment for the improvement of infrastructure. The limited slip differential helps to prevent excessive tire wear because it can give more power to wheels with traction and take power away from wheels with less traction. Because they can rotate at a variety of speeds, the axle shafts won't be subjected to excessive stress or pressure during turns. In addition, electric limited slip differentials have the potential to control a vehicle's yaw stability without slowing down its speed. It is anticipated that the market will also expand at a faster rate due to the rising preference for luxury vehicles, rising disposable income, and rising demand for light and heavy commercial vehicles.
MARKET OPPORTUNITY
The market is expected to have new opportunities with technological advancements and ongoing R&D activities to develop quality electric limited slip differential products. Increasing people and their preferences towards luxury vehicles are anticipated to provide market growth opportunities over the foreseen period. Furthermore, the growing adoption of cutting-edge technology, innovative design, and smooth operation. will further offer a variety of growth opportunities for the market in the forecast period. These are the factors that are expected to provide ample new growth opportunities in the market during the forecast period.
MARKET RESTRAINTS
A key factor that is anticipated to restrain market growth is the lack of appropriate technologies. In addition, when compared to a locking differential, the amount of torque that can be transmitted to the wheel with traction is limited. These are the factors that are expected to hamper market growth over the foreseen period.
MARKET GROWTH CHALLENGES
A key challenge that may affect the growth of the market is the cost. The limited slip differentials cost more than traditional open differentials and require more maintenance and care to ensure they're in top condition. Additionally, the main drawback of LSDs is that they can't provide 100% power to one wheel. On the other hand, the issues regarding developing and providing electronics that ensure safety, along with the decrease in automotive production and sales, are projected to pose a major challenge to the market's growth rate. These are the major factor that is expected to pose key challenges for the market growth over the forecast period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of global electric limited slip differential market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for electric limited slip differential in various applications is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029.
GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET SEGMENTAL OVERVIEW
The global electric limited slip differential market comprises of different market segments like drive type, vehicle type, component, propulsion and geography.
GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY DRIVE TYPE
By drive type, the global electric limited slip differential market includes key segments like
- Front Wheel Drive (FWD)
- Rear Wheel Drive (RWD)
- All Wheel Drive/Four Wheel Drive (AWD/4WD)
On the basis of drive type, the global electric limited slip differential market is segmented into front wheel drive (FWD), rear wheel drive (RWD), all-wheel drive/four-wheel drive (AWD/4WD). The all-wheel drive/four-wheel drive (AWD/4WD) segment holds the major shares in the global electric limited slip differential market over the foreseen period. This is due to improved vehicle safety, stability, and driving dynamics. 4WD and AWD vehicles can simultaneously deliver torque to all of their wheels with better traction since every wheel gets power. If one tire begins to slip, there are three others that can work to regain traction. Front-wheel drive is a form of engine and transmission layout used in motor vehicles where the engine drives the front wheels only.
GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY VEHICLE TYPE
By vehicle type, the global electric limited slip differential market includes key segments like
- Passenger Car
- Light Commercial Vehicle
- Heavy Commercial Vehicle
- Off-Highway
On the basis of vehicle type, the global electric limited slip differential market is divided into passenger car, light commercial vehicle, heavy commercial vehicle, off-highway. The passenger car segment dominates the global electric limited slip differential market over the forecast period. This is due to increasing industrialization, urban population, and commuting needs. A passenger car is a vehicle with multiple tracks, at least two axles, a driver, and typically four wheels. Its primary use is for transporting passengers. Most passenger cars are road vehicles used in public road transport.
GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY COMPONENT
By component, the global electric limited slip differential market includes key segments like
- Differential Bearing
- Differential Gear
- Differential Case
On the basis of component, the global electric limited slip differential market divided into differential bearing, differential gear, differential case. The differential bearing segment hold the majority of shares over the foreseen period. In drive differentials, pinion bearings help the smallest gears in the differential work smoothly. Differentials are made up of a series of gears and cogs, and it is the smallest gears that allow one wheel to safely rotate faster than the other.
GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY PROPULSION
By propulsion, the global electric limited slip differential market includes key segments like
- I.C. Engine Vehicles
- Electric Vehicles
- Hybrid Vehicles
On the basis of propulsion, the global electric limited slip differential market has been segmented into I.C. engine vehicles, electric vehicles, and hybrid vehicles. The electric vehicle segment holds the majority of shares over the foreseen period. The growth is due to the rise in demand for fuel-efficient, high-performance, and low-emission vehicles. An electric vehicle (EV) is a vehicle that involves at least one electric engine for propulsion. All-electric vehicles, also referred to as battery electric vehicles (BEVs), have an electric motor instead of an internal combustion engine. The internal combustion (IC) engine manufacturing sector experiences significant growth over the forecast period owing to the continuous developments in product offerings in order to support emission targets.
GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY COUNTRY
The global electric limited slip differential market is studied for the following countries
North America
The Asia Pacific is projected to lead the market during the forecast period. The dominance is due to the rising demand for four-wheel drive, rapid urbanization, and increased safety awareness in the region. In addition, higher production levels of passenger cars in this region also contribute to the market expansion. The growth of the automotive differential is significantly determined by automotive production activities. As a result, the global automotive ELSD market is most likely to be driven in the coming years by the rising demand for commercial vehicles and lightweight and high-yielding automotive components. However, rising demand for passenger vehicles and growing technological advancements in Europe and North America are set to witness unprecedented growth during the forecast period and will project the highest compound annual growth rate (CAGR).
COVID-19 IMPACT ANALYSIS ON GLOBAL ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET
Nearly every industry has been negatively impacted by the COVID-19 pandemic. The movement restrictions of workers, a decline in demand from consumers, and the closure of production facilities have negatively impacted the growth of the market. Governments around the world enforced strict lockdowns and social distance to stop the spread of the COVID-19 virus. As a result, a number of businesses started work-from-home programs as a precaution. This led to a sudden fall in global demand for electric limited slip differentials. The automotive industry experienced a number of setbacks in 2020 as more and more countries across the globe limited transportation as a result of the coronavirus (COVID-19) outbreak. These included a prolonged truncation of demand due to national lockdowns and a slowdown in supply as manufacturing plants temporarily shut down. In addition, demand, supply, price, vendor adoption, and sustainable outcomes were also affected by the pandemic.
However, the growth has been high since the market opened after COVID-19, and it is expected that there will be considerable growth in the sector, owing to the increasing demand for four-wheel drive, increased safety awareness, and rising investment for the improvement of infrastructure.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of electric limited slip differential market is primarily focused on expanding the global growth of electric limited slip differential industry with new product innovation, business expansion, increasing presence of range of manufacturer operating in electric limited slip differential sector has led the growing demand for the market. Besides, the market offers range of products in different application to fulfil the required demand of consumer which is further contributing healthy growth in the market.
The key players studied in market are
- Dana Incorporated (United States)
- American Axle & Manufacturing Inc. (AMM) (United States)
- BorgWarner Inc. (United States)
- Continental AG (Germany)
- GKN Plc (United Kingdom)
- Johnson Electric (China)
- Eaton Corp. Plc (Ireland)
- Hyundai Wia Corporation (South Korea)
- JTEKT Corporation (Japan)
- Linamar Corporation (Canada)
- PowerTrax (United States)
- Neapco Holdings (United States)
- Drexler Automotive (Germany)
- RT Quaife Engineering Ltd. (United Kingdom)
- Melrose Industries Plc (United States)
- Schaeffler Group (Germany)
- ZF Friedrichshafen AG (Germany)
RECENT DEVELOPMENT:
June 2021: Alpine F1 Team announced a partnership with BorgWarner that builds on the long-standing collaboration between BorgWarner and Renault Group. BorgWarner and Alpine will combine their expertise through structured forums to identify technologies and technical collaborations for the upcoming Alpine Electric Vehicle lineup.
March 2019: Dana Incorporated launched the Spicer Trac-Lok limited-slip differential for Spicer S140 single-drive axles. The differential provides improved traction during unexpected wheel-slip events and utilizes a reliable five-pinion design to serve Class 6 applications. It provides improved traction capability without requiring switches, wires, sensors, air hoses, or manual input from the driver.
