Torque Vectoring Market Size

Torque Vectoring Market Overview

The Torque Vectoring Market size was valued at USD 10260 Billion in 2023. The Torque Vectoring industry is projected to grow from USD 11624.58 Billion in 2024 to USD 31474 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 13.26% during the forecast period (2024 - 2032). The 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.
Figure1: Torque Vectoring Market, 2024 - 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Furthermore, increasing sales of electric vehicles is likely to drive the market throughout the forecast year. Torque 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.

Torque Vectoring Market Driver

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  Increase in Demand for Premium Vehicles and SUVS

  
  

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.

Torque Vectoring Market Wheel Drive Segment Insights:

Torque Vectoring Wheel Drive Insights

Based on wheel drive, the 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 held the majority share in 2022, contributing around ~ 44.2% to the market revenue. All-wheel drive cars are where torque vectoring differentials are most common. In a simple torque vectoring differential, the front and back wheels torque are altered. This means that the front wheels often only receive a certain amount of the engine torque, while the rear wheels receive the remainder. To enhance vehicle performance, the differential has the ability to distribute additional torque between the front and back wheels as needed. For instance, a car might typically distribute 90% of its torque to the front wheels and 10% to the back. 

The difference adjusts the distribution to 50/50 as appropriate. With this revised distribution, the torque is distributed among the four wheels more evenly. The traction of the vehicle is increased through more evenly distributed torque. There are also torque vectoring differentials that are more sophisticated. These differentials are constructed on the fundamental torque transmission between the front and back wheels. They increase the capacity to distribute torque among different wheels. This offers a way to enhance handling qualities even more successfully. Each wheel is monitored separately by the differential, which also distributes available torque according to the circumstances.

Figure2: Torque Vectoring Market, by Wheel Drive, 2024 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Torque Vectoring Market Technology Segment Insights:

Torque Vectoring Technology Insights

Depending on the technology, the market has been segmented into Active Torque Vectoring System and Passive Torque Vectoring System. The Passive Torque Vectoring System segment held the majority share in 2022 contributing around ~ 57.6% to the market revenue. Vehicle yaw is produced by passive torque vectoring systems using individual brake torque distribution. Because a braking difference is produced, passive torque vectoring is frequently referred to as "differential braking". For the Formula One McLaren Mercedes, a mechanical variant of this feature was introduced in 1997. 

However, the practice was outlawed following complaints from rivals. Electronics are used in more recent systems to detect the steering angle and yaw rate. The brake pressure for each wheel is managed using this information. The benefit of passive torque vectoring (TV) is a straightforward implementation because, if the vehicle has ESC, just the control software needs to be modified. Because no new components are required, the weight remains constant and only the price is raised. Thus, passive torque vectoring system segment dominated the Torque Vectoring Market.

Torque Vectoring Market Propulsion Segment Insights:

Torque Vectoring Propulsion Insights

Depending on the Propulsion, the market has been segmented into Battery Electric Vehicle, Hybrid Electric Vehicle, and Plug-in Hybrid Electric Vehicles. The Battery Electric Vehicle (BEV) segment held the majority share in 2022 contributing around ~ 55.6% to the market revenue. One advantage of having several physical phenomena portrayed in a single simulation model is that early in the design cycle, subsystem targets can be translated from overall vehicle performance criteria. Powertrains must be sized to match the desired dynamic behaviour for battery electric vehicles with torque vectoring to manage performance requirements. 

The goal torque and power needed for the motors can be evaluated as the first component. The components of the Electrification Library (battery and motors) are flexible enough to include efficiency maps and thermal effects with various levels of detail. The motors are set up with the most basic loss model and a constant efficiency of 90%. Thus, this technological idea aims to enhance vehicle dynamics while also enhancing steering response and handling.

Torque Vectoring Market Vehicle Type Segment Insights:

Torque Vectoring Vehicle Type Insights

Depending on the vehicle type, the market has been segmented into Passenger Car and Commercial Vehicles. The Passenger Car segment held the majority share in 2022 contributing around ~ 65.3% to the market revenue. In order to improve the driver's comfort and safety, torque vectoring is being used in passenger automobiles more and more. This system enhances a car's ability to maintain grip on rough terrain or when turning quickly. When one wheel starts to slip, the differential reduces the torque to that wheel, while enhancing power to the opposing wheel, letting the car to maintain stability. Most all-wheel-drive (AWD) systems and expensive automobiles use torque vectoring. 

The way a car handles is essentially governed by its mechanical features, such as the center of gravity, mass, tires, and chassis kinematics. The selection of these passive characteristics, however, cannot be optimum in all driving circumstances; as a result, a car may understeer or spin out of control. One possible technique of influencing unwanted yaw dynamics is to slow down individual wheels, which is normally handled by the ESP system. Wheel braking isn't always the greatest choice, though. especially when, as it does in motorsport, every nanosecond counts. This is where torque vectoring comes into play. It can both accelerate and decelerate individual wheels, and by evenly distributing the torque, it makes sure that turns may be made safely and faster.

Torque Vectoring Market Application Segment Insights:

Torque Vectoring Application Insights

Based on application, the torque vectoring market has segmented into On-road and Off-road. The On-road segment held the majority share in 2022 contributing around ~ 74.5% to the market revenue. The distinction between brake-based and mechanical torque vectoring on a racetrack. The brake-based system won't just be less reliable and constant; they also have a propensity to overheat after vigorous use, which increases the wear on the brakes. A good torque vectoring system may also significantly improve a car's handling on a non-track surface; in the best models, the driver can really feel the system in action as it transfers power from side to side to propel them through the corners. Nevertheless, torque vectoring can use the same hardware to significantly increase off-road capability as well as benefit sports cars and hatchbacks.

Torque Vectoring Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and Rest of the World. In terms of revenue, Asia-Pacific held the largest share of 42.7% in the Torque Vectoring market in 2022 and is expected to maintain its dominance during the forecast period. With growing demand for electric automobiles in Asia-Pacific, the automotive sector has experienced tremendous growth. Battery electric cars, often known as all-electric vehicles or E.V.s, use batteries to store the electrical energy that powers them. The Asia-Pacific torque vectoring market is dominated by China. The torque vectoring market in Asia-Pacific is probably growing the quickest in China. 

The dominant position of the market is attributed to the expanding infrastructure, commercial, and industrial expansions in developing nations like China and Japan. Due to its extensive manufacturing sector and the large firms that outsource their production operations to China, China leads the Asia-Pacific region in terms of exports. Government rules governing vehicle emissions and rising consumer demand for fuel-efficient, high-performing, and low-emission automobiles are some of the factors influencing the sales of electric vehicles. This system deployed in automobiles enables the enhancement of safety systems in terms of driving by avoiding crashes, adopting cruise control, anti-locking of brakes, automation in lighting, pedestrian crash avoidance mitigation (PCAM), and many others. These factors will result in market growth for the Asia-Pacific region.

Figure3: Torque Vectoring Market Size By Region 2024 & 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

The automotive industry sector is significantly shaped by the expanding North American population and the majority of people moving to urban regions in search of better job opportunities and living standards. Because everyone is moving towards sophisticated safety vehicles with modern torque vectoring systems ensuring maximum safety and efficiency, the use of torque vectoring systems is increasing in urbanized regions, which helps the market expand.

Automotive industries exist in nations like Germany, the UK, France, and Spain, which together make up a sizeable portion of the European automotive market. The market is dominated by OEMs from countries like Germany (BMW AG), Germany (Daimler AG), Italy (Fiat), and France (PSA/Peugeot-Citroen). Germany is predicted to rule Europe due to the market's need for torque vectoring and the country's significant manufacturers and strong demands. Electric motors generate significant levels of torque, particularly at low revs, which makes them potentially very suitable for heavy-duty applications.

The Middle East and African markets for torque vectoring are dominated by Saudi Arabia. The expanding infrastructure, commerce, and demand for luxury automobiles in emerging countries such as Saudi Arabia and the United Arab Emirates are credited with the market's supremacy. Due to the enormous demand, Saudi Arabia dominates the Middle East and Africa. In South America, electronic technologies called advanced driver assistance systems (ADAS) are installed in cars to help drivers or self-driving cars. By preventing crashes through the use of cruise control, anti-lock brakes, automated lighting, pedestrian crash avoidance mitigation (PCAM), and many other driving safety features, this system installed in cars makes it possible to improve safety systems. This aids South America's expansion.

Torque Vectoring Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Torque Vectoring market is highly competitive and dominated by established, pure-play vendors. Over 10 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Torque Vectoring market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Robert Bosch GmbH, Continental AG, Magna International Inc., Mitsubishi Motors Corporation, Schaeffler AG , BorgWarner Inc, GKN PLC, ZF Friedrichshafen AG, American Axle & Manufacturing, Inc, Dana Limited, and JTEKT Corporation. Robert Bosch has steadily expanded its software development expertise and product connectivity for the past ten years. The company focuses on automotive fuel injection products. The company strategizes to undertake partnerships and collaborations, especially in promising areas such as connectivity. It has already worked with several companies in the automotive industries and a range of R&D and has joined strategic alliances. The company also focuses on achieving sustainable growth through strategic acquisitions.

The Torque Vectoring Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Torque Vectoring market include

• Robert Bosch GmbH


• Continental AG


• Magna International Inc.


• Mitsubishi Motors Corporation


• Schaeffler AG


• BorgWarner Inc


• GKN PLC


• ZF Friedrichshafen AG


• American Axle & Manufacturing, Inc


• Dana Limited


• JTEKT Corporation

Torque Vectoring Industry Developments

• In February 2023, American Axle & Manufacturing Holdings, Inc. announced agreements with NIO and Mercedes to develop high-performance hybrid-electric systems and electric vehicle components with large players. This P3 system layout, with the electric motor on the rear axle, optimizes the weight distribution and increases the total output torque compared to a transmission-mounted electric motor (P2 hybrid).


• In October 2022, Magna's 48-volt hybrid dual-clutch transmission has debuted on the Jeep Renegade and Compass e-Hybrid, Tipo, and Fiat 500 X.


• In December 2021, Magna has developed the EtelligentReach, the latest innovation that debuted in a new entrant vehicle in 2022. The system includes vehicle dynamics controllers with a disconnect system that increases efficiency and reduces CO2 emission and longitudinal torque vectoring function.

Torque Vectoring Market Segmentation:

Torque Vectoring Wheel Drive Outlook

• Front Wheel Drive (FWD)


• Rear Wheel Drive (RWD)


• Rear Wheel Drive (RWD)

Torque Vectoring Technology Outlook

• Active Torque Vectoring System


• Passive Torque Vectoring System

Torque Vectoring Propulsion Outlook

• Battery Electric Vehicle (BEV)


• Hybrid Electric Vehicles (HEVs)


• Plug-in Hybrid Electric Vehicles (PHEVs)

Torque Vectoring Vehicle Type Outlook

• Passenger Cars


• Commercial Vehicles

Torque Vectoring Application Outlook

• On-road


• Off-road

Torque Vectoring Regional Outlook