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While taking a turn in any vehicle, the driving wheels need to rotate at different rotational speeds, i.e. the outer wheel needs to rotate faster to compensate for extra distance. On the contrary, the inner wheel needs to slow down as the distance to be covered is less. Automotive differential system is a gear train that splits engine power and torque into two components and assists the vehicle to turn smoothly. It also helps avoid slipping of the outer wheel during a turn. Automotive differential system primarily consists of gears and axle rods/shafts arranged specifically inside a casing to split the engine power & torque differentially to both the driving wheels of the vehicle. A differential is a crucial system and is available in front wheel drive, rear wheel drive, and all-wheel drive vehicles. The differential system also improvises the handling and cornering of the vehicle.

The differential system plays an important role in a vehicle. Increasing sales of vehicles, passenger and commercial, is the primary factor driving the demand for differential systems. Sales of passenger and commercial vehicle crossed 93.9 million mark in 2016. This was approximately 4.5% higher than that in 2015. The overall rise in demand for vehicles is anticipated to increase globally due to the several finance options and disposable income. Furthermore, the precise turning control without slipping makes the system vital in a vehicle. Moreover, new technologies, such as electronic traction control, provide much better control. Wheels adjust according to terrain, wet roads, and slippery surfaces. Automotive differential systems virtually have no alternatives; however, automotive differential systems can be internally substituted based on the different types of differentials.

Based on type of differential, the automotive differential system market can be segmented into open differential, locked differential, limited slip differential, and others. Each of the type offers specific advantages over other systems. Furthermore, limited slip differential can be sub-segmented into clutch plate limited slip differential and viscous limited slip differential. In general, regular passenger cars such as family sedans, vans, and economy cars etc. are mostly equipped with open differential. On the other hand, locked differentials are usually, but not necessarily, used in off-road vehicles. Based on vehicle, the market can be divided into passenger vehicles, which includes vehicles such as sedans, minivans, hatchbacks, (multi, sports, etc.) utility vehicles, compact utility vehicles & sedans, and estate wagons; light commercial vehicles; and heavy commercial vehicles. In terms of vehicle type, the differential system market can be segregated into I.C. engine vehicles, electric vehicles, and hybrid vehicles. The I.C. engine vehicles segment can be further divided into Spark Ignition (S.I.) engine (Gasoline etc.) and Compression Ignition (C.I.) engine (Diesel).

In terms of geography, the global automotive differential system market can be classified into Asia Pacific, Europe, North America, Latin America, and Middle East & Africa. Asia Pacific is the key region of the automotive differential system. It is a manufacturing hub. Asia Pacific recorded sale of more than 46.87 million units in 2016. This was followed by 25.54 million units sold in the Americas in the year. Similarly, Europe also accounts for substantial share in terms of sale of vehicles. Thus, collectively, North America, Asia Pacific, and Europe are major markets for vehicles and thus by extension for automotive differential systems. Countries in Asia Pacific such as China, South Korea, and India are prominent manufacturers and assemblers of vehicles. Thus, demand for differential systems in these countries is anticipated to increase in the near future.

Key players operating in the global automotive differential systems market include Eaton Corporation; GKN PLC; Auburn Gear, LLC; Powertrax; and American Axle & Manufacturing, Inc.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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Automotive Differential System Market