Market Size (2018)
2018
$7.31B
Vertical: AutoBase Year: 202110 Sections
Market Size (2018)
2018
$7.31B
Projected (2030)
2030
$25.14B
CAGR (2018–2030)
10.8%
10.8%Key Players
107+
The global torque vectoring market is consistently growing due to the Increase in demand for premium vehicles and rising demand for off-road vehicle driving market growth across globe. Furthermore, increasing sales of electric vehicles is likely to drive the market throughout the forecast year.
The global torque vectoring market is projected to grow at 13.8% CAGR during the forecast period, 2022–2030. In 2021, the global torque vectoring market was dominated by Asia-Pacific with a 42.8% share, followed by Europe, and North America with shares of 27.8%, and 19.7% respectively, while developing countries such as India and China are projected to showcase substantial growth throughout the forecast period.
The global torque vectoring market has been segmented based on wheel drive, technology, propulsion, vehicle type, application, and region. Based on wheel drive, the global torque vectoring market has been segmented into Front Wheel Drive (FWD), Rear Wheel Drive (RWD), and All-Wheel Drive (AWD). The All-Wheel Drive (AWD) segment is estimated to grow at 14.9% during the forecast period, while in 2021, while it accounted for 43.7% share.
Based on technology, the global torque vectoring market has been segmented into active torque vectoring system and passive torque vectoring system. The passive torque vectoring system is expected to grow at 13.6% during the forecast period. In 2021, the segment held a 57.6% share of the global torque vectoring market.
Based on propulsion, the global torque vectoring market has been segmented into Battery Electric Vehicle (BEV), Hybrid Electric Vehicles (HEVs), and Plug-in Hybrid Electric Vehicles (PHEVs). The Battery Electric Vehicle (BEV) is expected to grow at 13.6% during the forecast period. In 2021, the segment held a 55.7% share of the global torque vectoring market.
Based on vehicle type, the global torque vectoring market has been segmented into passenger cars, and commercial vehicles. The passenger car is expected to grow at 13.5% during the forecast period. In 2021, the segment held a 65.4% share of the global torque vectoring market.
Based on application, the global torque vectoring market has been segmented into on-road and off-road. The on-road segment is expected to grow at 13.5% during the forecast period. In 2021, the segment held a 74.7% share of the global torque vectoring market.
The Torque Vectoring Market market is projected to grow at a CAGR of 10.8% from 2018 to 2030.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansTorque vectoring is a technology used in differential to transfer torque to the wheel on-demand. This technology provides the ability to the vehicle to widely vary the torque to each wheel. Recently, the latest technique of torque distribution is very popular in all-wheel drive (AWD) vehicles. As the technology is in the phase of development, it is expected to increase the technology presence in vehicles in the near future. This technology is primarily used to grip the road for better handling and launch of vehicle. The basic application of torque vectoring differential was found in racing in the initial development phase of technology.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2021
Historical Period
2018 – 2021
Forecast Period
2021 – 2030
Primary Interviews
150+
Historical data (2018–2021) and forecast period (2021–2030)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansThreat of New Entrants
The global torque vectoring market is capital-intensive, and the level of technical expertise required for product development and manufacturing is high. The presence of well-known automotive components companies, such as BorgWarner Inc, Robert Bosch GmbH, Dana Limited, and Magna International Inc, with their strong brand image, make it difficult for the new entrants to create brand value and achieve economies of scale. Moreover, established torque vectoring manufacturers have vast distribution networks and geographic reach, giving them a competitive advantage. Furthermore, the established market players are venturing into new regions through strategic partnerships and joint ventures with local suppliers to increase their market share, reducing the potential profit margins for new entrants. Thus, the threat of new entrants in the global torque vectoring market is expected to be low during the forecast period.
Bargaining Power of Suppliers
Torque vectoring system manufacturers procure both raw materials and additives from suppliers. The raw materials required for manufacturing tires include steel, plastic, and sensors. Several steel suppliers are operating in the global market. Established torque vectoring procures these raw materials in high quantities, which reduces the bargaining power of suppliers to a certain extent. However, torque vectoring companies cannot easily switch suppliers due to the risks involved in the timely delivery of the required quantity and quality of materials from new suppliers. Hence, these manufacturers tend to have long-term contracts with their suppliers. Thus, the bargaining power of suppliers in the global torque vectoring market is expected to be moderate during the forecast period.
Threat of Substitutes
The torque vectoring system has no direct substitute. However, the conventional differential system is used in the vehicle, which cannot control the torque. Torque vectoring systems are mostly installed in luxury, commercial, and electric cars. Hence, the threat of substitutes is expected to be low in the global torque vectoring system market during the forecast period.
Bargaining Power of Buyers
The concentration of buyers is high, as the product is used in various vehicle applications. The buyers prefer purchasing from existing torque vectoring system providers due to the potential risks associated with the product quality and replacement services of new torque vectoring system manufacturers, making the impact of brand identity moderate. However, the switching costs for the buyers are low.
Many automotive OEMs tend to have strategic contracts with torque vectoring system manufacturing companies, enabling them to purchase the product in large quantities and gain high bargaining power. Thus, the overall bargaining power of buyers in the global torque vectoring system market is expected to be moderate during the study period.
Intensity of Rivalry
The intensity of rivalry in the torque vectoring system market is high as the torque vectoring system companies are developing innovative designs to improve the product's operational efficiency. Moreover, market players strategically invest in research & development to offer advanced products. The global market is dominated by top players, such as BorgWarner Inc, Robert Bosch GmbH, Dana Limited, and Magna International Inc. These players continuously compete to increase their respective market shares, while the rest have an intense rivalry, owing to their presence in the unorganized aftermarket.
Thus, moderate market competition, high industry growth, and high product innovation contribute to the high intensity of rivalry in the global torque vectoring system market during the forecast period.
Market estimates by geography (2030)
InsightAsia Pacific leads with $10.58B by 2030, while North America is projected to grow fastest at a 11.9% CAGR.
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View Subscription Plans| REGION | 2018 | 2021 | 2030 | CAGR | SHARE |
|---|---|---|---|---|---|
| North America | $1.40B | $2.36B | $5.38B | 11.9% | 21% |
| Europe | $2.07B | $3.17B | $6.59B | 10.1% | 26% |
| Asia Pacific | $3.15B | $4.95B | $10.58B | 10.6% | 42% |
| Rest of the World | $698.70M | $1.16B | $2.59B | 11.5% | 10% |
| Total | $7.31B | $11.64B | $25.14B | 10.8% | 100% |
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View Subscription PlansTotal Market Size
$25.14B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| By Wheel Drive_Rear Wheel Drive (RWD) | $11.98B | 10.8% | 72% |
| Rear Wheel Drive (RWD) | $8.07B | 10.8% | 40% |
| Front Wheel Drive (FWD) | $5.09B | 10.8% | 82% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Torque Vectoring Market covering market dynamics, competitive landscape, and strategic outlook.
The Torque Vectoring Market market is projected to reach $25.14B by 2030, growing at 10.8% CAGR. The By Wheel Drive_Rear Wheel Drive (RWD) segment holds the largest share.
The global torque vectoring market is expected to grow in the coming years. The demand for torque vectoring is poised to be driven by the increase in demand for premium vehicles and SUVs along with rising demand for off-road vehicles in the market. However, the high cost of the torque vectoring solutions and supply chain complexities may hinder its growth in the market.However , increasing sales of electric vehicle will fuel the demand for torque vectoring market.
The rising demand for luxury cars in the market is due to increasing concern about convenience, comfort, safety, entertainment, advanced connectivity features, autonomous driving options, and the latest powertrain electrification technologies. The prime reason for the growing luxury car segment is the rising income of individuals which results in the growth of the luxury automobile segment in Europe, North America, Asia, and the Middle East. This regional demand for luxury cars has attracted new entrants to the market due to strong geolocation and technology shifts, resulting in new product launches. The influx of electric vehicle disrupters, as well as the strong supply infrastructure, is also one of the reasons for the growing luxury car market. Various luxury brands offer electric vehicle models, and some are planning to launch in 2025. In India, 36 SUV models were launched by the automaker from 2017 to 2022. India has witnessed a growing demand for top-end variants having a feature such as a sunroof as well as connected technologies, whereas entry-level and mid-size SUVs are experiencing a growth in demand, resulting in product launches in the market. All compact, mini, and mid-size SUVs are offered with two-row seats and 5 passenger seating capacity. The demand for compact, mini, as well as mid-size sport utility vehicles in Europe and the Asia-Pacific is expected to drive the market. Growing prosperity and urbanization in Asia-Pacific countries influence the customer to choose stylish and feature-rich cars, which will drive the demand for 5-seater SUVs in the region. Furthermore, premium mid-size sports utility vehicles have noticed significant demand in the European region as these cars with five-seater configurations offer large spacious seating and boot space. Thus due to this factor, European automakers such as BMW, Mercedes-Benz, Volkswagen, Audi, and Skoda provide a broad portfolio of mid-size sports utility vehicles for a competitive edge in the regional market. Moreover, the Class D sports utility vehicle holds the largest share in the global SUV market due to the increasing adoption of Class D sport utility vehicles in developing countries such as China, India, and Thailand. The increasing demand for premium vehicles due to their advanced features and growing income across different regions drives the torque vectoring market.
Sales of EVs in the year 2021 were 6.6 million. Around 10% of global car sales were electric in 2021, which is 4 times the market share in 2019. Thus, the total number of EVs on the road to about 16.5 million, three times as compared to 2018. sales of electric cars rose strongly in the year 2022, in which 2 million electric cars were sold in the first quarter, up 75% from the same period in the year.
Furthermore, the demand for high-performance, fuel-efficient, and low-emission vehicles, government rules and regulations toward vehicle emission as well as a reduction in the cost of EV batteries as well a growing fuel costs supplement are fueling the demand for electric vehicles. To support sustainability, it is important to develop and use alternative fuel sources. This involves using EVs, which do not use gas, and as well as economical over conventional vehicles. With the rising environmental concern, governments worldwide are enacting stringent emission norms and laws for reducing vehicle emissions. Major regulatory rules are stringent emission targets for reducing NOx and CO2 in the air. These factors lead to a rise in the demand for electric vehicles, which will allow the expansion of the torque vectoring market.
The growth in mobility services is retraining the torque vectoring market. The developing infrastructure and information technology are enabling more connectivity services, which leads to polling services via the help of apps or remote services. Also, because of emerging of such services and advancement in technology, vehicles are obtaining over the air (OTA), which is driving the mobility services market. This resulted in a rise in shared mobility services which would impact the car-ownership model because people would shift towards convenient and affordable transport alternatives. Hence, car ownership is anticipated to decline with the emergence of shared vehicles, which would impact the SUV market growth, restraining the growth of the global torque vectoring market.
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Profiles of 107 companies operating in the Torque Vectoring Market market, including revenue, employee count, and market positioning where available.
Showing 107 of 107 companies
Drako Motors
Company Headquarters: US Founded: 2013 Workforce: ~NA Company Working: Drako Motors designed and developed driver-focused supercars that deliver high performance with maximum control and safety on track and road. The company offers GTE, a supercar having advanced quad-motor electric architecture. It offers Darko Dragon, the fastest, most powerful hyper luxury sports utility vehicle.
GKN PLC (MELROSE INDUSTRIES PLC)
GKN Plc. GKN plc (GKN) is a global engineering business company serving the automotive, aerospace and off-highway manufacturers. The Company operates in four primary areas: Automotive, Powder Metallurgy, Aerospace and OffHighway. GKN is a primary supplier of automotive driveline components and systems. The Company is a manufacturer of sintered components and a producer of metal powder in North America. GKN is engaged in the design and manufacture of advanced composites, transparencies and metal aerostructures. GKN designs and manufactures a portfolio of products for off-highway vehicles positions in the supply of power takeoff shafts and wheels. On January 5, 2009, the Company acquired the trade and assets of the wing component manufacturing and assembly operation of Airbus UK, which is located on the Airbus Filton site
American Axle & Manufacturing Holdings Inc.
Company Headquarters: Michigan, US Founded: 1994 Workforce: ~ 19,000 Company Working: American Axle & Manufacturing, Inc. (AAM) is a manufacturer and supplier of automotive driveline and metal forming products. Axles, driveshafts, power transfer units, transfer cases, constant velocity joints, PTU shafts and gears, wheel hubs, and spindles are among its main products. Lightweight beam axles, lightweight and efficient RWD and AWD drive modules, hybrid and electric drive systems, traction-enhanced differentials, torque vectoring rear drive module, disconnecting all-wheel drive system, and winter and hot test facilities are also available from the company. Products from the company are used in light trucks, sport utility vehicles, passenger cars, crossover and commercial vehicles. General Motors Company, FCA US LLC, Ford, Mercedes-AMG, and OEM customers are among its major customers.
JTEKT
Company Headquarters: Osaka, Japan Founded: 1921 Workforce: ~40,756 Company Working: JTEKT, a subsidiary of Toyota Motors, is engaged in manufacturing and selling steering systems, driveline components, bearings, machine tools, electric control devices, and home accessory equipment. The company offers steering systems, such as electric power steering, hydraulic power steering, and unit components, driveline components, engine and peripheral parts, transmission, and wheels. It also offers sensor systems and pressure transducers for welding guns and indicators as well as for medical equipment. The company also offers bearings, oil seals, driveshafts, and other products for applications in automobiles, construction/transportation/agricultural machinery, steel production equipment, machine tools, renewable energy, medical equipment, aircraft, and railroad vehicles. It also offers products for office, home, and leisure applications. Furthermore, it provides machine tools such as grinders and machining centers and mechatronic products. The company operates in Japan, India, China, and several countries across Asia, North America, South America, and Europe.
ZF Friedrichshafen AG
Company Headquarters: Germany Founded: 1915 Workforce: ~1,47,797 Company Working: ZF Friedrichshafen AG is a global technology company that is engaged in providing suspension systems for passenger cars, commercial vehicles, and industrial technologies. Additionally, it supplies driveline and chassis as well as active & passive safety technology to OEMs and aftermarket consumers. The company is primarily known for its design, research & development, and manufacturing activities in the automotive industry. It operates through nine business segments, which are car powertrain technology, car chassis technology, commercial vehicle technology, industrial technology, e-mobility, active safety systems, passive safety systems, aftermarket, and electronics & ADAS. Automotive braking systems are offered under its active safety systems segment. The car chassis technology segment offers shocks, dampers, steering, and chassis parts. ZF Friedrichshafen AG provides its products and services through various brands, including SACHS, LEMFÖRDER, and TRW. It has a strong global presence and operates across 230 locations in around 40 countries worldwide. The company has its production locations in the countries such as The Czech Republic, Germany, India, and Slovakia.
Schaeffler AG
Company Headquarters: Germany Founded: 1883 Workforce: ~90,000 Company Working: Schaeffler AG (Schaeffler) is a global automotive and industrial supplier. It operates through three business segments, namely, automotive OEM, automotive aftermarket, and industrial. The automotive OEM segment covers engine systems, transmission systems, hybrid and electric drive systems, chassis systems, and e-mobility. The powertrain sub-segment comprises gasoline technologies, diesel technologies, electrification, and digitalization. The e-mobility sub-segment includes hybrid modules, primary components for continuously variable transmissions (CVTs), electric axle drives, hydrostatic clutch actuators, and electric wheel hub motors. The company offers safe, efficient, intelligent, and affordable solutions for vehicles, machines, and industries. The automotive OEMs segment offers a range of products for engine systems, transmission systems, e-mobility, and chassis systems. Schaeffler comprises 151 companies, which also include non-controlled companies. It has 74 manufacturing plants and 18 research & development centres located in 22 countries worldwide, including Spain, China, India, France, Germany, Canada, and the US. Schaeffler Philippines Inc., Schaeffler Skalica, SPOL. SRO, and Schaeffler Bearings Indonesia, PT are some of the key subsidiaries of the company.
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Torque Vectoring Market