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Automotive ELSD Differential: Introduction

  • The term ELSD stands for electronic limited slip differential. It bridges the gap between the full all-wheel drive (AWD) system and a two-wheel-drive differential system. This system delivers maximum tractive effort and improves drivability. It also enhances stability while cornering. Moreover, the ELSD offers higher torque capacity and greater control.
  • Furthermore, an automobile may face the loss of traction on different road conditions. There may be ice on the road, or the road may be slippery. This makes it difficult for a vehicle to navigate steadily on the ground. The wheels need more traction to go through such road conditions. Therefore, ELSD, or electronic limited-slip differential, eliminates such a situation while driving through different road conditions.

Key Drivers of Global Automotive ELSD Differential Market:

  • Rate of adoption of electronically controlled limited slip differential (ELSD) is increasing owing to its better efficiency, unlike mechanical differentials. The ELSD serves the necessity of the mechanical components with more efficiency and durability. Furthermore, it helps improve the overall fuel efficiency and hence, complies with several stringent emission norms, which is a major factor boosting the integration of such components in vehicles. This is likely to drive the automotive ELSD differential market across the globe.
  • Demands of consumers are changing and preference toward four-wheel drive (4WD) and all-wheel drive (AWD) vehicles is increasing in order to attain safety and vehicle dynamic levels. Moreover, original equipment manufacturers (OEMs) are focused on the development of these drive systems to cater to the changing requirement of end-users. Penetration of AWD and 4WD vehicles has been increasing drastically for the last few years, and it is expected to continue in the next few years. These drive systems require two or three differential assemblies to perform driving activities. Therefore, an increase in penetration of AWD and 4WD vehicles is expected to boost the automotive ELSD differential market in the near future.
  • Demand for commercial vehicles in developing nations, owing to urbanization and increased industrial production, is anticipated to increase significantly in the next few years. For instance, the commercial vehicle segment in the automotive industry in India witnessed considerable expansion of both light commercial as well as medium & heavy commercial vehicle segments. Commercial vehicles are mostly rear wheel drive vehicles, which require high-performance differential assemblies to perform driving operations. Therefore, an increase in demand for commercial vehicles is anticipated to fuel the automotive ELSD differential market.

Passenger Vehicle Segment to Offer Attractive Opportunities:

  • The passenger vehicle segment is likely to hold a significant share of the market by the end of the forecast period. This is attributed to a rise in the demand for utility vehicles in highly populated countries such as China, India, and Brazil.
  • High demand for e-class, crossovers, SUVs, and hatchbacks is driving the passenger vehicle segment, which in turn is likely to boost the automotive ELSD differential market. Rise in preference for private transport and buying power of consumers is driving the passenger vehicle segment of the market.
  • ELSD employs proprietary software that analyzes the data from numerous vehicle sensors. The software determines the optimum torque corrections. Subsequently, it calculates the required traction and distributes torque in order to improve handling.

Challenges for Global Automotive ELSD Differential Market:

  • Advancements in technology have led to the integration of electronic components in vehicles in order to improve vehicle performance. In the case of differential, currently, mechanical components are getting replaced by electronic components such as electronic limited slip differential. However, several risks are associated with this technology, such as thermal systems and the risk of fire or component failure, which need to be cautiously assessed. Numerous safety aspects need to be considered regarding component electrification, including electric system safety, functional system safety, and vehicle maintenance, operation, and training.
  • The current challenges that hinder the popularity of electric components are the limitation of overheating and electronic failure of the component. Additionally, it is essential to examine the vehicle behavior, as these systems often fail, making them inefficient when compared to mechanical components used in ICE vehicles. Thus, the auto manufacturer needs to ensure that customers are provided with systems that operate efficiently in varied conditions to effectively promote the use of these electrical systems and components.

Asia Pacific to Hold Significant Share of Global Automotive ELSD Differential Market

  • Asia Pacific is a highly populous region. The urban population across Asia Pacific is increasing consistently, which can be attributed to employment opportunities and increased standards of living in urban areas. This market in the region is projected to expand at a high pace, as the region comprises rapidly developing economies, such as China, Japan, India, South Korea, Thailand in the Asia Oceania region.
  • These countries are witnessing a huge growth of population. Availability of inexpensive labor, lenient regulations for environment and safety, increased FDI for the automotive industry in countries, such as India, and growing demand for vehicles have prompted OEMs, and system/component suppliers to shift their focus to the region. Furthermore, growing inclination toward all wheel and four wheel drive integrated vehicles in countries across Asia has increased the popularity of off-road vehicles and sports cars. These vehicles are equipped with one or two differentials, which ultimately increases the differential requirement per vehicle and consequently, propels the automotive ELSD differential market in the region.

Key Players Operating in Global Market:

The global automotive ELSD differential market is highly fragmented with top manufacturers across the global market. A few of the key players operating and potential in the global automotive ELSD differential market are:

  • Dana Incorporated
  • American Axle & Manufacturing, Inc. (AAM)
  • BorgWarner Inc.
  • Continental AG
  • GKN plc
  • Johnson Electric
  • Eaton Corp. Plc
  • Hyundai Wia Corporation
  • JTEKT Corporation
  • Linamar Corporation
  • PowerTrax
  • Mitsubishi Group
  • Showa Corporation
  • Metaldyne Performance Group Inc.
  • Melrose Industries PLC
  • Schaeffler Group
  • ZF Friedrichshafen AG

Global Automotive ELSD Differential Market: Research Scope

Global Automotive ELSD Differential Market, by Drive Type

  • Front Wheel Drive(FWD)
  • Rear Wheel Drive (RWD)
  • All-wheel drive (AWD)/Four Wheel Drive (4WD)

Global Automotive ELSD Differential Market, by Vehicle Type

  • Passenger Vehicle
    • Hatchback
    • Sedan
    • Utility Vehicles
  • Commercial Vehicle
  • Off-highway Vehicle
  • Buses & Coaches

Global Automotive ELSD Differential Market, by Electric Vehicle Type

  • Battery Electric Vehicles
  • Fuel Cell Electric Vehicles
  • Plug-In Hybrid Electric vehicles
  • Hybrid Electric Vehicles

Global Automotive ELSD Differential Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

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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