Asia Pacific Limited Slip Differential Market: Industry Analysis and Forecast (2024-2030)

Asia Pacific Limited Slip Differential Market Definition:

 

The Limited Slip Differential is a device that is used to limit the amount of wheelspin when the driven wheels lose grip when power is applied it helps in the situation where one wheel begins to slip, and the slipping or non-contacting wheel receives the majority of the power and maintain directional stability. It increases a car’s power and speed by utilizing engine power more efficiently and provides an improved driving experience.

 

Further, the Asia Pacific Limited Slip Differential market is segmented by Type, distribution channel, application, and geography. Based on type, the Asia Pacific Limited Slip Differential market is segmented under Mechanical LSD and Electronic LSD.  Based on the distribution channel, the market is segmented under the channels of Aftermarket and Original equipment market. Based on application, the market is segmented under the channels of SUV & Pickup Trucks and Sedan and Hatchback.  By geography, the market covers the major countries in the Asia Pacific i.e., India, China, Japan, Australia, and the Rest of Asia Pacific For each segment, the market sizing and forecasts have been done based on value (in USD Million/Billion).

 

 

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Asia Pacific Limited Slip Differential Market Dynamics:

 

The rise in demand for electric vehicles will boost the limited-slip differential market

 

Rapid Urbanization, government initiatives, technological innovations, and a rise in consumer disposable income are the major factor propelling the overall growth of the market. The region contributes about 55-60% of the vehicle production across the globe. The demand for limited-slip differential will increase with the increase in vehicle production. For example, India is aggressively promoting the adoption of Electric Vehicles. The country aims to switch 30% of private cars and 70% of commercial vehicles to EVs by the year 2030. These initiatives will attract investment in the automotive manufacturing value chain and will positively impact the limited-slip differential market because it is utilized in both electric vehicles and Internal Combustion Engines.

 

The automotive industry in the Asia Pacific has experienced healthy growth over the years due to high development prospects in all segments of the vehicle industry. To keep up with the growing demand, several automakers have started investing heavily in various segments of the industry. For example, Aisin Seiki has built the Toyota Prius which has recorded the highest sales in China. Apart from these several countries have also made significant investments in India through the PLI scheme this will encourage industries to make fresh investments for the global supply chain of the differential markets. As a result, the growing number of automotive industries along with the growing adoption of Limited Slip Differential in it are expected to boost the regional market growth throughout the forecast period.

 

Asia Pacific Limited Slip Differential Market Segment Analysis:

 

By type, the limited-slip differential market is divided into mechanical limited-slip differential and electronic limited-slip differential. The mechanical Limited Slip Differential segment held the largest market share and is expected to remain the same during the forecast period. Because of its wide range of applications, it is the most common type of differential it limits the slip of the wheel with the least traction. The use of electronic limited-slip differential is growing faster because mechanical differentials are expensive to develop and the growing demand for E-Vehicles will boost the market growth.

 

 

COVID-19 Impact on Asia Pacific Limited Slip Differential Market

 

The pandemic negatively impacted the industry all across the globe due to which the world economy has a slowdown in 2020 and continued till the first quarter of 2021India’s auto component industry saw a cumulative revenue decline of 3% in the year 2021 and the global shortage of semiconductors also weighed on production. Imports from the Asia Pacific declined by 9% and the industry is hoping that the government PLI and other policies focused on export compositeness and increasing localization will further reduce the trade gap. The outbreak shifts consumer demand to large EVs with better performance will boost the market growth for electronic limited-slip differential. China is more likely to see a quick recovery and strong growth in the EV market. The governments in the region are investing in charging infrastructure as part of their economic stimulus program

 

Recent Development in Asia Pacific Region Limited Slip Differential Market

 

• In August 2021 Toyota launches a new land Cruiser 300 with new technologies enabling the driver to drive on any type of road in the world.
• Eaton’s Vehicle Group has launched an extensive lineup of specialized differentials for electrified vehicles including automatic limited-slip, automatic locking, and electronic selectable locking differential.
• In February 2022, the Indian government has received an investment proposal of 45,016 crores from 20 automotive companies under the PLI Auto scheme.

 

Asia Pacific Limited Slip Differential Market Key Players Insights:

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the Asia Pacific Limited Slip Differential Market to the stakeholders in the industry. The report provides trends that are most dominant in the Asia Pacific Limited Slip Differential Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Asia Pacific Limited Slip Differential Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Asia Pacific Limited Slip Differential Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Asia Pacific Limited Slip Differential Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Asia Pacific Limited Slip Differential Market.

 

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the Asia Pacific Limited Slip Differential Market. The report also analyses if the Asia Pacific Limited Slip Differential Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Asia Pacific Limited Slip Differential Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Asia Pacific Limited Slip Differential Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Asia Pacific Limited Slip Differential Market is aided by legal factors.

 

Asia Pacific Limited Slip Differential Market Scope:

Asia Pacific Limited Slip Differential Market
Market Size in 2023	USD 2.66 Bn.
Market Size in 2030	USD 5.89 Bn.
CAGR (2024-2030)	12%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By  Type Mechanical LSD Electronic LSD
	By   Application SUV & Pickup Trucks Sedan & Hatchback
Country Scope	China India  Japan  South Korea Australia  ASEAN Rest of APAC

 

Asia Pacific Limited Slip Differential Market Key Players: 

• Tata Motors
• Ford
• Mahindra & Mahindra Ltd
• Nissan
• FAW-Volkswagen
• Toyota
• Great Wall Motors
• JTEKT
• GKN