Torque Vectoring Market By Vehicle Type (Passenger cars, Commercial Vehicles), Propulsion Type (Front Wheel Drive, Rear Wheel Drive, All Wheel Drive (AWD)/Four Wheel Drive (4WD)), Technology Type (Active Torque Vectoring, Passive Torque Vectoring), Region for 2024-2031

Torque Vectoring Market Valuation – 2024-2031

Increasing growth of premium mid-size and compact SUVs in Europe and Asia Pacific is primarily owing to the high demand for spacious interiors and advanced features. European automakers like BMW, Mercedes-Benz, Volkswagen, Audi, and Skoda are expanding their portfolios of mid-size SUVs to maintain a competitive edge. Thus, the expansion of mid-size SUVs and increasing adoption of spacious interiors surge the growth of market size surpassing USD 14.86 Billion in 2024 to reach a valuation of USD 56.36 Billion by 2031.

The rising demand for commercial vehicles in developing economies contributes to market growth. Urbanization and increased industrial activity drive the need for light, medium, and heavy commercial vehicles, which utilize rear-wheel drive and require high-performance differential assemblies. Thus, the growing demand for commercial vehicles enables the market to grow at a CAGR of 20.00% from 2024 to 2031.

Torque Vectoring MarketDefinition/ Overview

Torque vectoring is a sophisticated technology implemented in automobiles to enhance stability, handling, and cornering performance, particularly in high-performance and all-wheel-drive vehicles. The core function of torque vectoring systems is to autonomously regulate the distribution of torque rotational force across individual wheels or axles, thereby optimizing vehicle dynamics and control.

Torque vectoring systems can be categorized into active and passive variants. Active torque vectoring systems use electronic controls to adjust the torque distributed to each wheel in real time, while passive systems rely on mechanical mechanisms to manage torque distribution. Additionally, these systems are classified based on the type of driving wheels, including rear-wheel drive, front-wheel drive, and all-wheel drive configurations. In practical applications, torque vectoring is utilized across a wide range of vehicles, including passenger cars, commercial vehicles, and off-road vehicles. The technology can be integrated with various engine types, including diesel, petrol, CNG, and electric engines. By enhancing control in dynamic driving scenarios such as high-speed cornering or driving on slippery surfaces torque vectoring systems significantly improve vehicle stability and agility. This results in superior driver control and confidence across diverse driving conditions.

Torque vectoring systems, particularly those based on differentials, combine an open differential with a set of multi-plate clutches positioned on either side of the vehicle. These systems employ sensors to monitor wheel speed and vehicle yaw (the angle of rotation about the vertical axis). When a vehicle encounters a corner or low-traction surface, the system electronically engages the clutch packs to adjust the torque applied to each wheel. This precise adjustment enhances traction and stability, allowing the vehicle to navigate challenging conditions more effectively.

How the Increasing Adoption of Electric Vehicles and the Low Maintenance Costs of EVs Surge the Growth of Torque Vectoring Market?

The increasing adoption of electric vehicles (EVs) has prompted the growth of the torque vectoring market. As the demand for EVs rises, so does the need for advanced torque vectoring systems. Torque vectoring technology plays a crucial role in optimizing the performance of EVs by precisely controlling the distribution of torque to individual wheels. This is particularly important for EVs, which generate significant torque from electric motors and require sophisticated systems to manage this power effectively. The advantages of EVs, such as lower maintenance costs, improved energy efficiency, and reduced environmental impact, further fuel the demand for these systems.

Additionally, the growing popularity of luxury vehicles is contributing to market expansion. Consumers increasingly seek vehicles that offer enhanced convenience, comfort, safety, and advanced connectivity features. Rising incomes across regions like Europe, North America, Asia, and the Middle East are driving demand for high-end automobiles. This demand is attracting new entrants to the market and prompting established automakers to launch innovative products.

Urbanization and economic development in Asia-Pacific countries are also influencing the torque vectoring market. As urban populations grow and incomes rise, there is a marked shift towards stylish, feature-rich vehicles, including 5-seater SUVs. This trend is further supported by the increasing adoption of AWD and 4WD systems, which offer superior handling and performance in diverse driving conditions.

Regulatory pressures are another significant driver for the torque vectoring market. Governments worldwide are implementing stringent emission standards and fuel economy regulations to combat climate change and reduce vehicle greenhouse gas emissions. For example, the European Union’s Euro 6 norms and Corporate Average Fuel Economy (CAFE) regulations mandate stricter emission thresholds and fuel efficiency improvements. Torque vectoring systems help automakers meet these regulations by optimizing power allocation and minimizing energy wastage, thus supporting compliance with environmental standards.

Furthermore, technological advancements in automotive powertrains, safety systems, and driving dynamics are fostering increased adoption of torque vectoring technology. Consumers’ growing expectations for advanced vehicle performance and safety features are driving the demand for AWD and 4WD vehicles equipped with sophisticated torque vectoring systems. These systems enhance vehicle stability and handling, meeting the evolving preferences of end users.

How the Growing Popularity of Mobility Services and Declining Vehicle Ownership Hinder the Growth of Torque Vectoring Market?

The increasing trend toward mobility services and declining vehicle ownership hamper the growth of torque vector systems. As advancements in infrastructure and IT enable greater connectivity and the rise of shared mobility solutions, consumers are increasingly opting for practical and cost-effective transportation options rather than traditional car ownership. This shift towards mobility services, such as ride-sharing and car-sharing, alters the conventional vehicle ownership model and may dampen demand for individual vehicle features like torque vectoring systems.

In addition, the high cost and complexity associated with torque vectoring systems pose a substantial barrier to widespread adoption. These systems require advanced components such as clutches, differentials, sensors, controllers, and electric motors, contributing to elevated manufacturing and installation expenses. The integration of these components adds weight and occupies valuable space within vehicles, potentially affecting their aerodynamic properties and overall fuel efficiency. Furthermore, torque vectoring systems necessitate regular maintenance and calibration, which can increase operational costs for vehicle owners and may affect the system’s overall appeal in the mass-market segments.

The added weight from components like sensors and electronically controlled differentials can impact vehicle handling, performance, and fuel economy. Automakers face the challenge of incorporating these systems without compromising vehicle design and efficiency. Improper use of torque vectoring systems can also lead to increased energy consumption and reduced fuel efficiency, which could counteract the technology’s intended benefits.

Durability and maintenance are other critical concerns. The complex mechanical and electronic components of torque vectoring systems require regular upkeep to ensure long-term reliability and customer satisfaction. The complexity of these systems can make diagnosis and repair more challenging, potentially increasing maintenance costs for car owners.

Moreover, lack of widespread consumer awareness and understanding of the benefits of torque vectoring systems. Many consumers may perceive torque vectoring as a feature exclusive to high-performance vehicles or not fully appreciate its advantages in everyday driving scenarios. To enhance adoption across a broader range of vehicle types, there is a need for increased consumer education about the benefits of torque vectoring and its applicability to various driving conditions.

Category-Wise Acumens

How does the Improvement of Vehicle Performance, Safety, and Comfort Surge the Growth of the Passenger Car Segment?

The passenger car segment is witnessing significant growth in the torque vectoring market. Passenger cars, designed primarily for transporting individuals rather than goods, increasingly integrate advanced torque vectoring systems. These systems enhance vehicle performance, safety, and driver comfort. Passenger automobiles, including premium and sports cars, often feature high-performance and complex torque vectoring systems, making them a key market player.

Torque vectoring technology improves a vehicle’s ability to maintain traction and stability under challenging conditions. It operates by distributing torque to individual wheels based on their grip levels. For instance, when one-wheel experiences slip, the system reduces torque to that wheel and redirects power to the opposite wheel, thereby maintaining vehicle stability and control. This capability is particularly beneficial in all-wheel-drive (AWD) systems and is commonly found in high-end and luxury vehicles, which demand superior handling and performance.

As the demand for enhanced driving experiences grows, the adoption of torque vectoring systems in passenger cars continues to rise. These systems are increasingly incorporated into both everyday vehicles and high-performance models, reflecting a broader trend toward improving vehicle dynamics and driver safety. This growing emphasis on advanced technology in passenger cars underscores the significant expansion of the torque vectoring market within this segment.

How the Improvement in Vehicle Handling and Stability Foster the Growth of Passive Torque System (PTVS) Segment?

The passive torque vectoring system (PTVS) is emerging as the leading segment in the Torque vectoring market owing to its effective and economical approach to enhancing vehicle handling and stability. This technology optimizes vehicle dynamics by selectively applying braking force to specific wheels, which improves control during turns and on challenging terrain. Unlike active torque vectoring systems, which rely on additional components such as electronically controlled differentials or motors for torque management, passive torque vectoring utilizes the vehicle’s existing braking system. This method is based on the principle of applying braking force to the inner wheels during a turn, allowing the outer wheels to spin more freely. This adjustment generates a yaw moment that counteracts understeer, helping the vehicle maintain its intended path through a bend and enhancing overall stability.

The system’s inherent simplicity and cost-efficiency compared to more complex active systems. The implementation of passive torque vectoring is relatively straightforward, particularly for vehicles already equipped with Electronic Stability Control (ESC). By modifying existing control software, manufacturers can integrate passive torque vectoring without needing additional hardware. This approach helps maintain the vehicle’s weight while keeping costs low, making it an attractive option for many automakers.

Passive torque vectoring technology has a historical backdrop dating back to its introduction in 1997 with the Formula One McLaren Mercedes, although it initially faced regulatory challenges. Over time, advancements in technology have led to the integration of electronic sensors that monitor steering angles and yaw rates, enabling precise brake pressure adjustments for each wheel. The benefits of passive torque vectoring extend beyond cost and complexity; it significantly enhances vehicle stability and traction. This is particularly valuable for vehicles that carry heavy loads or navigate difficult terrains, where maintaining control and stability is crucial. Overall, the passive torque vectoring system’s blend of simplicity, effectiveness, and cost-efficiency continues to solidify its position as the dominant force in the torque vectoring market.

How the Improving Vehicle Traction and Stability Across Diverse Challenges Surge the Growth of All-Wheel Drive and Four-Wheel Drive Segment?

The All-Wheel Drive (AWD) and Four-Wheel Drive (4WD) segment has firmly established itself as the leader in the torque vectoring market, segment’s dominance is largely attributed to the significant advantages offered by AWD and 4WD systems when combined with advanced torque vectoring technologies. The systems are engineered to distribute the power to all the four-wheel vehicles to enhance the vehicle traction and stability across the diverse and challenging driving conditions such as snow, and mud.

The effectiveness of torque vectoring in AWD and 4WD vehicles is amplified by their ability to manage power distribution between the front and rear wheels. This capability allows the front wheels to receive a designated amount of engine torque, while the rear wheels can receive the remainder, optimizing vehicle performance. By adjusting torque distribution as needed, these systems improve handling and stability, providing a smoother and safer driving experience.

Unlike Front-Wheel Drive (FWD) or Rear-Wheel Drive (RWD) systems focus on torque distribution between the front or rear wheels, AWD and 4WD systems implement torque vectoring across all four wheels. This comprehensive approach enables precise control and adjustment, addressing complex driving dynamics more effectively. The integration of torque vectoring into AWD and 4WD systems supports superior traction and stability, beneficial in demanding conditions.

The segment’s market dominance is its advanced performance features, which enhance vehicle handling, stability, and overall driving satisfaction. AWD and 4WD vehicles equipped with sophisticated torque vectoring differentials are highly valued for their ability to deliver optimal performance in various driving scenarios. As such, the AWD/4WD segment continues to lead the torque vectoring market, driven by its superior technological capabilities and its crucial role in improving vehicle performance and safety.

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Country/Region-wise Acumens

How do the Robust Automotive Industry and High Popularity of Torque Vectoring Technologies Foster the Growth of the Torque Vectoring Market in Europe?

Europe is expected to dominate the dominating region in the torque vectoring market, driven by its robust automotive industry and substantial investments in research and development. The continent’s prominence in this market is largely attributable to its key automotive players, including Germany, the UK, France, and Spain, who collectively represent a significant portion of the European automotive sector. Germany, in particular, is poised to lead the European market due to its strong automotive manufacturing base and high demand for sophisticated torque vectoring technologies. The country’s significant investment in automotive innovation and its leading position in the global automotive industry further solidify its role in the market.

The presence of leading automobile manufacturers such as Volkswagen, BMW, Mercedes-Benz, and Audi in the region contributes to the torque vectoring market. These companies are renowned for their high-end and premium vehicles, which frequently incorporate advanced torque vectoring systems. The continent’s rigorous vehicle safety and emission regulations also play a crucial role in driving the adoption of these systems, as manufacturers strive to meet stringent standards while enhancing vehicle performance and safety.

Electric vehicles are becoming increasingly prevalent in Europe, contributing to the market’s growth. Electric motors are known for generating substantial torque, especially at low speeds, making them particularly well-suited for applications requiring advanced torque vectoring capabilities. As a result, the European torque vectoring market is expected to continue its substantial expansion during the forecast period, driven by ongoing advancements in automotive technology and a strong emphasis on vehicle performance and regulatory compliance.

How Increasing Demand for Electric Vehicles and Rapid Expansion of Infrastructure in Region Surge the Growth of Torque Vectoring Market During the Forecast Period?

Asia Pacific is anticipated to witness the fastest growth in the Torque Vectoring Market during the forecast period owing to the burgeoning demand for electric vehicles (EVs) in the Asia-Pacific region has catalyzed significant growth in the automotive sector, with China emerging as the dominant force in the torque vectoring market. The rapid expansion of infrastructure, coupled with commercial and industrial advancements in developing nations such as China and Japan, has propelled China to the forefront of the Asia-Pacific torque vectoring market. This prominence is driven by China’s extensive manufacturing capabilities and its role as a major outsourcing hub for large firms, positioning it as a key player in regional exports.

Government regulations focused on reducing vehicle emissions and the rising consumer preference for fuel-efficient, high-performance, and low-emission vehicles are critical drivers. Torque vectoring systems, which enhance vehicle safety and performance through features like crash avoidance, cruise control, anti-lock braking, automated lighting, and pedestrian crash mitigation, are increasingly in demand. These advancements support the growing automotive sector by improving driving safety and efficiency, further stimulating market expansion.

The Asia-Pacific region’s rapid urbanization, industrialization, and economic development have significantly increased demand for automobiles, making it the fastest-growing market for torque vectoring systems. With substantial investments in electric vehicle technology and infrastructure, countries such as China, India, Japan, and South Korea are leading the charge in advancing and promoting EVs. Additionally, nations like China, Japan, Vietnam, and Indonesia have implemented various emission control measures aligned with Euro emission standards, reinforcing their commitment to cleaner, more sustainable transportation solutions. These combined efforts underscore the Asia-Pacific region’s substantial potential for growth in the electric vehicle and torque vectoring markets.

How the Technological Advancements in Automotive Sector and Environmental Initiatives Propel the Growth of Torque Vectoring Market in North America?

North America is projected to show lucrative growth in the torque vectoring market during the forecast period driven by significant technological advancements in the automotive sector. The growth in this market is notably fueled by the increasing sales of electric vehicles (EVs) across the United States and Canada. Environmental initiatives and revised fuel economy standards have accelerated the adoption of EVs in the region, further supporting the expansion of torque vectoring systems.

The presence of major automotive original equipment manufacturers (OEMs) in the U.S., coupled with a robust infrastructure and supportive EV policies, provides a solid foundation for market growth. The automotive sector in North America is also influenced by demographic shifts, including the expanding population and the trend of urbanization, as individuals migrate to cities for better employment opportunities and improved living standards.

This urban migration increases the demand for advanced safety features and high-performance vehicles, which in turn drives the adoption of sophisticated torque vectoring systems. These systems enhance vehicle safety and efficiency, aligning with the preferences of modern consumers who prioritize advanced automotive technologies. As a result, the torque vectoring market in North America is experiencing significant growth, driven by both technological innovation and evolving consumer needs in an increasingly urbanized environment.

Competitive Landscape

The torque vectoring market is highly competitive, with both OEMs and Tier 1 suppliers investing heavily in research and development to gain a competitive advantage. As the technology matures and becomes more affordable, its adoption is expected to increase across various vehicle segments.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the torque vectoring market include

• GKN
• American Axle
• Dana
• BorgWarner
• ZF Friedrichshafen AG (ZF)
• JTEKT
• Magna International (Magna)
• Eaton Corporation
• Bosch
• Univance
• Schaeffler
• Timken
• Ricardo
• Oerlikon Graziano

Latest Developments

• In August 2023, Lamborghini unveiled the Lamborghini Lanzador, a two-door crossover concept that operates solely on electricity, the brand’s first electric car. According to the manufacturer’s chief technical officer, the Lamborghini Lanzador shown at Monterey Car Week could include outstanding torque vectoring technology.
• In November 2023, Hyundai and Kia announced the launch of a new electric vehicle (EV) drive system. The Uni Wheel, created by a Korean couple, provides a solution for conserving space and energy while enhancing torque vectoring.
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