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The Worldwide Automotive Differential Industry is Projected to Reach $23.7 Billion by 2027 -

PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.
December 15, 2022 GMT

DUBLIN--(BUSINESS WIRE)--Dec 15, 2022--

The “Automotive Differential Market by Type (Open, Locking, Limited Slip, Electronic Limited Slip, Torque-Vectoring), Drive Type (FWD, RWD, 4WD/AWD), OE Component, On- & Off-Highway Vehicle, Electric Vehicle, Aftermarket & Region - Global Forecast to 2027” report has been added to’s offering.

The automotive differential market is projected to grow from USD 20.0 billion in 2022 to USD 23.7 billion in 2027 at a CAGR of 3.5%.

Companies Mentioned

  • 12 Commercial Gear & Sprocket Company, Inc.
  • American Axle & Manufacturing Inc.
  • Amtech International
  • Auburn Gear
  • Bharat Gears Ltd.
  • Borgwarner Inc.
  • Cusco
  • Dana Limited
  • Drexler
  • Eaton
  • Gkn
  • Hyundai Wia Corporation
  • Jiangsu Pacific Precision Forging Co. Ltd.
  • Jtekt Corporation
  • Linamar Corporation
  • Magna International Inc.
  • Meritor Inc.
  • Neapco Holdings LLC
  • Nsk Ltd.
  • Powertrax
  • Quaife
  • Schaeffler AG
  • Showa Corporation
  • Xtrac
  • Zf Friedrichshafen AG


Passenger cars is the largest market for automotive differentials.

Passenger cars registered the largest market share in the global automotive differential market owing to the rising production of passenger cars in developing countries such as India, China, and Thailand. Further, a drastic preference shift is noted for bigger cars, with doubled SUVs share over the past few years.

According to IEA, the number of SUVs on the world’s roads increased by more than 35 million in 2021. According to the publisher Analysis, of total premium cars produced globally, the share of premium SUVs stood at ~53% in 2016, which grew to ~62% in 2021. US, Canada, China, Japan, and South Korea lead the market for premium SUVs and sedan cars, constituting more than 90% of total production globally.

Further, almost half of all cars sold in the US and one-third of those sold in Europe are SUVs. Furthermore, with consumers shifting their inclination towards bigger cars with basic and advanced comfort and luxury functionalities, global OEMs are expanding their SUVs and medium and premium cars with either RWD or 4WD/AWD systems. In line with this, the demand for open differential and advanced differentials market would also grow for the passenger cars segment.

Open Differential hold the largest share in the automotive differential market.


Open differential is the simplest form of differential which transmits the equal torque to each wheel of the two wheels. Most of the passenger cars are front wheel drives installed with open differential due to lower price amongst other types, less energy loss, and less gear configuration used in differential.

Asia Pacific holds the largest market share for open differential due to the higher production of passenger cars in this region. Almost 60-65% passenger cars are equipped with open differential type. and it also have wide application in commercial truck and light commercial vehicle. Thus, rise in demand for passenger cars and commercial trucks will create demand for open differentials.

Differential seals hold the largest share in the automotive differential component aftermarket.


The differential seals are located at the output shafts of a vehicle’s differential. They usually seal the axle shafts against the differential and prevent fluid from leaking out of the differential as it operates.

Differential seals have maximum and frequent chances of wearing out as compared to other components of a differential system; hence it requires replacement over fixed time intervals. Using damaged seals in the differential may lead to considerable damage to gears, axles, and other differential components owing to oil leakage. It may further damage whole differential assembly. Thus, the high number of seals in differentials and replacement over fixed time intervals creates the demand for differential seals in the aftermarket.

North America is estimated to be the second-largest market for automotive differential

North America accounted to be the second-largest market for automotive differentials. The region has a higher demand for passenger vehicles, particularly premium cars (C segment and above). These premium cars are installed with advanced safety, driving features, and AWD/4WD drive systems. With increasing premium car sales, the region’s demand for automotive differentials is expected to grow.


Key Topics Covered:

1 Introduction

2 Research Methodology

3 Executive Summary

4 Premium Insights

5 Market Overview

5.1 Introduction

5.2 Market Dynamics

5.2.1 Drivers

5.2.2 Restraints

5.2.3 Opportunities

5.2.4 Challenges

5.3 Trends/Disruptions Impacting Buyers

5.4 Automotive Differential Market Scenario

5.4.1 Realistic Scenario

5.4.2 Low-Impact Scenario

5.4.3 High-Impact Scenario

5.5 Porter’s Five Forces Analysis

5.6 Automotive Differential Market Ecosystem

5.7 Supply Chain Analysis

5.7.1 Global

5.8 Average Price Trend

5.8.1 By Region

5.9 Case Study Analysis

5.10 Trade Analysis

5.11 Patent Analysis

5.12 Key Conferences & Events in 2022-2023

5.13 Key Stakeholders & Buying Criteria

5.14 Regulatory Landscape

5.15 Technology Trends

6 Automotive Differential Oe Market, by Differential Type (Ice)


7 Automotive Differential Oe Market, by Drive Type (Ice)

8 Automotive Differential Oe Market, by Vehicle Type (Ice)

9 Electric & Hybrid Differential Oe Market, by EV Type

10 Electric & Hybrid Differential Oe Market, by Differential Type

11 Automotive Differential Oe Market, by Component

12 Automotive Differential Aftermarket, by Component

13 Automotive Differential Oe Market, by Off-Highway Vehicle Type

14 Automotive Differential Oe Market, by Region

15 Recommendations

16 Competitive Landscape

17 Company Profiles

18 Appendix

For more information about this report visit

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SOURCE: Research and Markets

Copyright Business Wire 2022.

PUB: 12/15/2022 11:49 AM/DISC: 12/15/2022 11:49 AM