MARKET OVERVIEW- ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET
Limited-slip differentials are often known by the generic trademark Positraction, a brand name owned by General Motors. A limited-slip differential (LSD) is a type of differential that lets its two output shafts rotate at different speeds but limits the maximum difference between them. By making better use of engine power, a limited slip differential improves a vehicle's power and speed and makes driving a car easier and more pleasurable. Limited slip differential units can help prevent slippage and spinouts even on standard roads, resulting in near-perfect traction and a safer, smoother ride. ELSD essentially represents an electric limited slip differential. 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 differential is a gear system that lets different drive wheels on the same axle rotate at different speeds, like when the car is turning. There are typically multiple parts to the differential. However, the primary and main components of the differential are the ring and pinion gears. Increasing demand for road safety and the development of all-wheel drive for future vehicles will drive market growth over the foreseen period in the Asia Pacific region.
MARKET DRIVERS
The factors that are responsible for market expansion include technological innovations in this region and increasing consumer disposable income. The region contributes about 55–60% of the vehicle production across the globe. In addition, rapid urbanization and government initiatives are the major factors propelling the overall growth of the market. Many of the countries in the region, including China and India, have populations that are expanding at the fastest rate. It shouldn't come as a surprise that Asian economies and markets are constantly changing due to their growing populations. One such market is the electric limited slip differential. An increased population produces an increased demand for effective mobility. The region has a reputation as being home to some of the world’s most valuable vehicle manufacturers. It is anticipated that the market will also expand at a faster rate due to the rising preference for luxury vehicles or electric vehicles. These are the factors that are anticipated to positively contribute to the market growth in this region over the forecast period.
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 toward luxury vehicles are anticipated to provide market growth opportunities over the foreseen period. A limited slip differential increases the safety of a vehicle because it increases the control a driver has over the vehicle. In addition, high development prospects in all segments of the electric limited slip differential market and the adoption of advanced technology, along with innovation in design and smooth operation, will further offer a variety of growth opportunities for the electric limited slip differential market in the Asia Pacific over the forecast period.
MARKET RESTRAINTS
The cost of any limited slip differential in a vehicle varies by the requirements and design. It directly increases the cost of the overall vehicle. Increased vehicle features and high engine capability lead to a rise in cost. Limited slip differentials consist of clutch plates that may get worn out. Furthermore, its maintenance cost is higher than open differentials, which may restrain market growth. 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 market's growth rate is expected to be significantly hampered by issues with developing and distributing electronics that guarantee safety and the decline in automotive sales and production. These are the main considerations that are supposed to present key challenges for the market's development over the period.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of Asia Pacific 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.
ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET SEGMENTAL OVERVIEW
The Asia Pacific electric limited slip differential market comprises of different market segments like drive type, vehicle type, component, propulsion and country.
ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY DRIVE TYPE
By drive type, the Asia Pacific 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 Asia Pacific 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 Asia Pacific electric limited slip differential market over the foreseen period. This is due to improved vehicle safety, stability, and driving dynamics. Four-wheel drive (4WD) refers to vehicles with two axles providing torque to four axle ends. The development of intelligent torque vectoring for four-wheel-drive vehicles is driving the growth of the market. In addition, the introduction of technological innovations in these vehicles is enabling the integration of advanced systems in automotive four-wheel-drive vehicles.
ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY VEHICLE TYPE
By vehicle type, the Asia Pacific 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 Asia-Pacific electric limited slip differential market is divided into passenger cars, light commercial vehicles, heavy commercial vehicles, and off-highway. The passenger car segment dominates the electric limited slip differential market in this region over the forecast period. This is due to the large number of vehicles and changing consumer preferences toward adopting newly advanced cars.
ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY COMPONENT
By component, the Asia Pacific electric limited slip differential market includes key segments like
- Differential Bearing
- Differential Gear
- Differential Case
On the basis of component, the Asia Pacific 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. The bearings serve to reduce friction and allow for smoother rotation. This cuts down on energy consumption which is the important function of bearings.
ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY PROPULSION
By propulsion, the Asia Pacific electric limited slip differential market includes key segments like
- I.C. Engine Vehicles
- Electric Vehicles
- Hybrid Vehicles
On the basis of propulsion, the Asia Pacific 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. EVs are cheaper and more efficient than others. In addition, increasing consumer demand for electric vehicles is contributing to market expansion in this region. In addition, the market's growth is also driven by its efficiency, reduced CO2 emissions, and sustainability. The EV can be powered by an electric motor that draws electricity from a battery and can be charged from an external source.
ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET BY COUNTRY
The Asia Pacific electric limited slip differential market is studied for the following countries
- China
- India
- Japan
- Rest of APAC
The China is projected to hold the majority of shares during the forecast period followed by India and Japan. The dominance is due to the presence of automotive manufacturers, a strong supply chain, and supportive government policies. Furthermore, increasing demand for four-wheel drives, rapid urbanization, and rising awareness regarding safety in the region are anticipated to propel market growth in this region. India and Japan are anticipated to witness high growth demand over the forecast period due to presence of well-established automotive industries.
COVID-19 IMPACT ANALYSIS ON ASIA PACIFIC ELECTRIC LIMITED SLIP DIFFERENTIAL MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors on the Asia Pacific electric limited slip differential market. In addition, complete analysis of changes on the Asia Pacific electric limited slip differential market expenditure, economic and international policies on supply and demand side is provided in this exclusive report. The report also studies the impact of pandemic on Asia Pacific economies, international trade, business investments, and GDP and marketing strategies of key players present in the market.
The COVID-19 pandemic has had a significant negative impact on the electric limited slip differential market in Asia Pacific region. Many automakers have been compelled to suspend production as a result. The market for limited slip differentials is expected to suffer in the midst of this epidemic because of a decline in car manufacturing and sales. Governments around the world enforced strict lockdowns and social distance in order to stop the COVID-19 virus from spreading. As a result, a number of businesses started work-from-home programs as a precaution. As a result, there was a sharp drop in Asia Pacific demand for electric limited slip differential market. The adverse impacts of the COVID-19 pandemic resulted in massive supply-demand challenges in this region.
However, the growth has been high after the market opened after COVID-19, it is expected that there would be considerable growth in the sector, owing to increases the safety of a vehicle and consumer disposable income in this region. The electric limited slip differential market in Asia-Pacific will also be provided with a variety of growth opportunities due to the adoption of advanced technology, high development prospects in all segments, innovative design, and smooth operation.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of electric limited slip differential market is primarily focused on expanding the Asia Pacific 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)
- Neapco Holdings (United States)
- Melrose Industries Plc (United States)
- Schaeffler Group (Germany)
- ZF Friedrichshafen AG (Germany)
RECENT DEVELOPMENT:
September 2022: ZF has joined forces with Freudenberg to develop sustainable, highly integrated fuel cell eDrive systems for commercial vehicles.
August 2021: The luxury brand of Hyundai, Genesis, launched the GV70 luxury SUV, which comes equipped with an all-wheel-drive system along with an electric limited-slip differential to augment the ride quality of the vehicle.
