North America Torque Vectoring Market – Industry Trends and Forecast to 2029

North America Torque Vectoring Market, By Component (Hardware and Services),  Technology (Active Torque Vectoring System (ATVS) and Passive Torque Vectoring System (PTVS)), Clutch Actuation Type (Electric and Hydraulic),  Driving Wheel Type (Rear-Wheel Drive (RWD), Front-Wheel Drive (FWD), and All-Wheel Drive/Four-Wheel Drive (AWD/4WD)), Vehicle Type (Passenger Cars, Commercial Vehicles, and Off Road Vehicle), Propulsion Type (Diesel/Petrol/CNG and Electric Vehicle) – Industry Trends and Forecast to 2029

Market Analysis and Size

Manufacturers of automotive industries are continuously trying to find out ways to increase the precision of work, enhanced services and to work with growing technology. Implementation of torque vectoring systems in vehicles can provide enhanced safety features and better car performance which allows the consumers to enjoy the comforts of automobiles. The torque vectoring systems market is growing due to advancement in technology factors such as intelligent torque vectoring approach for ADAS vehicles, emergence of EV’s and its torque vectoring system and increase in population & rapid urbanization is boosting the adoption of these technologies.

The heaving adoption of torque vectoring system in off road vehicles, intelligent torque vectoring approach for ADAS vehicles and upsurge in demand for luxury and performance vehicles in the automotive industries are expected to boost the market growth. High cost associated with implementing torque vectoring/AWD/4WD systems is expected to restrain the North America torque vectoring market.

Data Bridge Market Research analyses that the torque vectoring market is expected to reach the value of USD 7,208.29 million by 2029. “Hardware" accounts for the largest product component segment in the torque vectoring market due to growing demand for hardware components which are an essential component which are used in torque vectoring systems. These components are used to ensure the safety and provide decent stability for the vehicle. The Torque vectoring market report also covers pricing analysis, patent analysis, and technological advancements in depth.           

Market Definition

Torque vectoring solutions are most important and crucial systems which ensure safety and help in improving the car’s performance. These systems basically provide or distribute torque between the wheels which allows the vehicle to effectively turn over a bend or curve. Torque vectoring is a holistic, predictive approach to vehicle dynamics using a combination of hardware and electronic systems. It provides the most suitable distribution of torque to a wheel at any point based on the driver’s intentions and the driving conditions. There are basically two types of torque vectoring solutions which are prominently used, one is brake-based torque vectoring and the other one is electric-based torque vectoring. 

Torque Vectoring Market Dynamics

This section deals with understanding the market drivers, opportunities, restraints and challenges. All of this is discussed in detail as below:

Drivers

• Increase in population and rapid urbanization

Over a decade, industrialization and urbanization have played a significant role in the emergence and growth of the automotive industry. The growing North America population and the majority of the population shifting towards urban areas for a better opportunity and better living standards plays a vital role in shaping the automotive industry sector.

This growing tread of torque vectoring systems in urbanized areas boosts the market growth as all consumers are shifting towards advanced safety vehicles with advanced torque vectoring systems ensuring max safety and efficiency. Thereby rapid urbanization, population, the emergence of mobility as a service (MaaS) technologies, and change in consumer behavior pattern is forcing the major players to develop vehicles with advanced torque vectoring systems for the consumer to gain the market, leading to growth in North America torque vectoring market across all regions of the globe.

Opportunities

• Emergence of EVs and its torque vectoring system

The automotive industry has shown enormous growth due to the rising demand for luxurious electric vehicles. All-electric vehicles (E.V.s) are called battery electric vehicles that use a battery to store the electrical energy that powers the vehicles. Some of the factors driving the sales of electric vehicles include stringent government regulations towards vehicle emissions and increasing demand for fuel-efficient, high performance, and low emission vehicles. This adds to the adoption of electric vehicles as all-electric vehicles as zero-emission, which effectively minimizes carbon emission.

Automakers of all-electric vehicles are integrating innovative systems such as torque vectoring systems that make vehicles fuel-efficient and increase the safety of the vehicles. Also, the rise in the demand for low-emission vehicles is boosting their adoption. Thus, the demand for electric vehicles is also expected to drive the demand for its torque vectoring systems and its market. 

• Intelligent torque vectoring approach for ADAS vehicles

Advanced driver-assistance systems (ADAS) are electronic systems implanted in automobiles to assist driving vehicles or self-driving cars. This system uses sensors such as radars and cameras for analysis and takes automatic action based on the vehicle's surroundings. This system implemented in automobiles enables the enhancement of safety systems in terms of driving by avoiding collisions, adopting cruise control, anti-locking of brakes, automation in lighting, pedestrian crash avoidance mitigation (PCAM), and many others.

Adopting ADAS technologies in the automotive industry directly relates to the growth of the torque vectoring market. Consumers will prefer safety & advanced features such as self-driving capabilities and advanced security features. This boosts the adoption of torque vectoring systems and market growth across all regions of the globe.

Challenges/Restraints

• High cost associated with implementing torque vectoring/AWD/4WD systems

Torque vectoring solutions are the most crucial systems which ensure safety and help in improving the car's performance. These systems distribute torque between the wheels, allowing the vehicle to bend or curve effectively. Two types are prominently used brake-based torque vectoring and the other is electric-based torque vectoring. Pricing of both the system are different Electron-based torque vectoring is slightly more expensive than the other with a difference of USD 1,000 to USD 2,000, due to the usage of more electronic components and electromagnetic principle.

Considering the stats mentioned above, the costs associated with the implementation and maintenance of the torque vectoring systems are expensive due to the performance, several parts used, and safety features they offer; this is expected to restraint the growth of the torque vectoring market, as currently these technologies are used in luxury and performance cars.

• Heaving adoption of torque vectoring systems in off-road vehicles

An off-highway vehicle (O.H.V.) or an off-road vehicle is designed specifically for off-road use in rough terrains. These vehicles are specifically developed for consumers who prefer off-road vehicles for accessibility in their area of residence or recreational purposes. Some of these vehicles can be driven on the road, but most consumers use O.H.V.s to recreate places that regular vehicles cannot go.

With the consumer's growth in the adoption of off-highway vehicles (O.H.V.) or off-road vehicles due to growing recreational and touring activities, advancement in off-road vehicle technology, and increasing usage of off-road vehicles in military operations and activities. This heaving adoption of off-highway vehicles (O.H.V.) or an off-road vehicle by the consumer will fuel the growth in torque vectoring systems technologies as it is an essential component and will offer a lucrative opportunity for its growth in the North America torque vectoring market.

• Hampered supply of semiconductor equipment limits torque vectoring system

There might be various reasons for the limited supply of torque vectoring systems, as torque vectoring systems use the most advanced control system and electronic gadgets. Currently, the prominent reason for the limited supply of torque vectoring systems in vehicles is due to the crisis in the semiconductor industry, as there is an acute shortage of auto chips and gadgets, which the auto industry is getting affected.

This limited supply for vehicles due to the semiconductor chip and controller's shortage directly correlates with the sales and availability of new torque vectoring systems. Moreover, it also affects the maintenance and repair work of the old vehicles. Thereby hampered supply of semiconductor equipment such as chips controllers’ limits torque vectoring system manufacturing, which may pose challenges to the growth of the North America torque vectoring market across the region.  

Post COVID-19 Impact on Torque Vectoring Market

COVID-19 created a major impact on the torque vectoring market as almost every country has opted for the shutdown for every production facility except the ones dealing in producing the essential goods. The government has taken some strict actions such as the shutdown of production and sale of non-essential goods, blocked international trade, and many more to prevent the spread of COVID-19. The only business which is dealing in this pandemic situation is the essential services that are allowed to open and run the processes.

Due to the outbreak of the pandemic caused by the virus, many small sectors were closed down and on the other hand some sectors decided to cut off some of the employees which resulted in a major unemployment. Torque vectoring are also used in the automotive industries. Due to the outbreak of a pandemic, the demand for such products has gone down to an extent especially for the medical sector, healthcare, pharmaceutical, groceries, e-commerce, and various other sectors. But the unexpected demand, along with limited production capacities and supply chain interruptions is continuing to cause difficulties in all of these industries.

Manufacturers are making various strategic decisions to bounce back post-COVID-19. The players are conducting multiple research and development activities to improve the technology involved in the torque vectoring. With this, the companies will bring advanced and accurate controllers to the market. In addition, the use of torque vectoring by government authorities in heavy vehicles has led to the market's growth.

Recent Developments

• In May 2022, Eaton announced that the company has participated in Goldman Sachs Industrials and Materials Conference. This will help the company to get showcased in a big platform and attract customers by offering better power management products and services and accelerate the revenue growth.
• In March 2022, American Axle & Manufacturing, Inc. announced that the company has been recognised as Overdrive Award winner by General Motors for sustainability, innovation, relationships, total enterprise cost, launch excellence and safety. This recognition will help the company to grab the opportunity of partnership or collaboration with other companies and organization which creates a brand value for the company in the market.

North America Torque Vectoring Market Scope

The torque vectoring market is segmented on the basis of component, technology, clutch actuation type, driving wheel type, vehicle type, and propulsion type. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications. 

Component

• Hardware
• Services

On the basis of component, North America torque vectoring market has been segmented into hardware and services.

Technology

• Active Torque Vectoring System (ATVS)
• Passive Torque Vectoring System (PTVS)

On the basis of technology, North America torque vectoring market has been segmented into active torque vectoring system (ATVS) and passive torque vectoring system (PTVS).

Clutch Actuation Type

• Electric
• Hydraulic

On the basis of clutch actuation type, North America torque vectoring market has been segmented into electric and hydraulic.

Driving Wheel Type

• Rear-Wheel Drive (Rwd)
• Front-Wheel Drive (Fwd)
• All-Wheel Drive/Four-Wheel Drive (Awd/4wd)

On the basis of driving wheel type, North America torque vectoring market has been segmented into rear-wheel drive (RWD), and front-wheel drive (FWD), all-wheel drive/four-wheel drive (AWD/4WD).

Vehicle Type

• Passenger cars
• Commercial vehicles
• Off road vehicle

On the basis of vehicle type, North America torque vectoring market has been segmented into passenger cars, commercial vehicles, and off road vehicle.

Propulsion Type

• Diesel/Petrol/CNG
• Electric Vehicle

On the basis of propulsion type, the North America torque vectoring market has been segmented into diesel/petrol/CNG and electric vehicle.

Torque vectoring Market Regional Analysis/Insights

The torque vectoring market is analysed and market size insights and trends are provided by component, technology, clutch actuation type, driving wheel type, vehicle type, and propulsion type as referenced above.

The countries covered in the torque vectoring market report are U.S., Canada and Mexico in North America.

The U.S. dominates the torque vectoring market due to the rising infrastructure, commercial, and industrial developments in the country.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North America brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Torque vectoring Market Share Analysis

The torque vectoring market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, North America presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to torque vectoring market.

Some of the major players operating in the torque vectoring market are BorgWarner Inc., Eaton, American Axle & Manufacturing, Inc., Dana Limited, JTEKT Corporation, Magna International Inc., Robert Bosch GmbH, UNIVANCE CORPORATION,  Hewland Engineering Ltd, Continental AG, Modelon, GKN Automotive Limited, Drako Motors, Inc., MITSUBISHI MOTORS CORPORATION, Haldex, Schaeffler AG, THE TIMKEN COMPANY, Linamar Corporation, Ricardo, ZF Friedrichshafen AGamong others.