The global torque vectoring market is worth around USD 11.45 billion in 2024 and is expected to reach around USD 41.22 billion by 2034, representing a healthy CAGR of 13.67% during the forecast period from 2024 to 2034.
The global torque vectoring market size is projected to be worth around USD 41.22 billion by 2034 from USD 11.45 billion in 2024, at a CAGR of 13.67% from 2024 to 2034. The growing sales of electric vehicles around the world has driven the growth of torque vectoring market.
The Asia Pacific torque vectoring market size was exhibited at USD 3.42 billion in 2023 and is projected to be worth around USD 14.01 billion by 2034, poised to grow at a CAGR of 13.67% from 2024 to 2034.
Asia Pacific held the largest share of the torque vectoring market in 2023. This region consists of a highly developed automotive industry with numerous companies such as Toyota, Nissan, Hyundai, Mitsubishi, Mazda, Tata, Mahindra, Honda, Subaru, and some others that increase the demand for torque vectoring systems. The rising demand for sports cars in countries such as India, Japan, China, South Korea, Thailand, and some others has increased the applications of passive torque vectoring systems. Also, the growing trend of electric vehicles (EVs) to combat environmental problems and increasing fuel prices has boosted the torque vectoring market growth.
Asia Pacific consists of various market players in torque vectoring, such as Jtekt Corporation, Mitsubishi Motors Corporation, Aisin Seiki Co., and some others that are constantly engaged in developing high-quality torque vectoring systems for different vehicles. Also, these companies are adopting several strategies, such as partnerships, acquisitions, collaborations, launches, and business expansions.
North America is expected to grow with the highest CAGR during the forecast period. The developments in the EV industry due to increasing people's awareness along with government initiatives to adopt electric vehicles have increased the demand for torque vectoring systems. Also, the rising technological advancements in the automotive sector have propelled industrial growth. Also, the rising interest of people in long drives in hilly areas and terrains has increased the demand for AWD cars, which in turn increased the application of torque vectoring systems in this region.
Moreover, the presence of various automotive giants such as Ford, Tesla, Rivian, GM, and some others has increased the applications of torque vectoring systems. This region comprises several local torque vectoring companies, such as American Axle, BorgWarner, Timken, Dana, and others, that constantly manufacture torque vectoring systems for different vehicles in North America. This, in turn, is expected to propel the growth of the torque vectoring market.
The torque vectoring market is a developing industry in the automotive sector. This industry deals in the development and distribution of torque vectoring systems around the world. The torque vectoring industry manufactures various clutch actuation systems, including hydraulic clutch and electronic clutch. This market is generally driven by the rising trend of luxurious cars along with technological advancements in the automotive industries.
This industry uses different types of technology, including Active Torque Vectoring System (ATVS) and Passive Torque Vectoring System (PTVS). This industry designs torque vectoring systems for several types of vehicles: light commercial vehicles, heavy commercial vehicles, and passenger cars. This market is anticipated to grow significantly with the developments in the automotive industry.
How is AI helping the Torque Vectoring Industry?
The automotive industry has developed significantly due to the advancements in modern technologies. The advancements in AI technologies have a major impact on shaping the landscape of the automotive industry. Nowadays, torque vectoring companies are using AI in their systems to improve the driving experience of vehicles. The application of AI in torque vectoring helps to manage torque output for enhanced handling and smooth acceleration during the cornering of vehicles. Thus, advancements in artificial intelligence technology are expected to help the torque vectoring market positively.
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| Report Coverage | Details |
| Market Size by 2034 | USD 41.22 Billion |
| Market Size in 2023 | USD 10.07 Billion |
| Market Size in 2024 | USD 11.45 Billion |
| Market Growth Rate from 2024 to 2034 | CAGR of 13.67% |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Period | 2024 to 2034 |
| Segments Covered | Clutch Actuation Type, Vehicle Type, Propulsion, Technology, and Regions |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
The rising trend of sports cars among people
The automotive industry is growing rapidly with the rising demand for sports cars around the world. The demand for sports car has increased due to several advantages such as eye-catching looks, advanced technology, enhanced driving performance, status and elegance and some others. These cars are becoming popular among enthusiast drivers due to fantastic driving experience along with arrangements of numerous racing events across the world.
Most sports cars use torque vectoring systems to improve drivability and enhance braking. Thus, with the growing trend of sports cars, the demand for torque vectoring systems has increased, which in turn drives the growth of the torque vectoring market during the forecast period.
Expensive and limited usability
The torque vectoring industry experiences several problems in day-to-day operations. The prices of torque vectoring systems are very high, and the maintenance and service charges are also costly, which limits the use of these systems. Moreover, the application of a torque vectoring system is only required for off-roading and track-driving purposes. Thus, the high cost, along with limited applications of torque vectoring systems.
Advancements in autonomous vehicles
The torque vectoring market is experiencing significant growth due to numerous developments in the automotive landscape. Currently, autonomous vehicle manufacturers such as Tesla, Ford, General Motors, Toyota, and some others have started using torque vectoring systems in autonomous vehicles for several advantages. The use of torque vectoring systems in modern autonomous vehicles helps enhance stability, improve maneuverability and handling, improve steering response, and others. Thus, the rising advancements in autonomous vehicles are expected to create ample growth opportunities for the market players in the years to come.
The hydraulic clutch segment held the dominant share of the market in 2023. The growing demand for lighter-weight materials in cars, along with the enhanced adaptability of hydraulic clutches, boosts the market growth. Also, the rising application of hydraulic clutches in modern vehicles, which allow for easier pedal press, is likely to proliferate market development. Moreover, the increasing use of hydraulic clutch in sports cars to allow the torque vectoring system to increase the speed of the wheels is expected to drive the growth of the torque vectoring market during the forecast period.
The electronic clutch segment is anticipated to grow with a significant CAGR during the forecast period. The rising trend of automatic vehicles among people increases the demand for electronic clutches. Also, the increasing application of electronic clutches in luxury cars to provide several advantages, such as precise control, quick response, smooth engagement, and others, has contributed significantly to market growth. Moreover, the development of electronic clutches that support torque vectoring to enhance maneuverability and vehicle handling boosts torque vectoring market growth.
The passive torque vectoring system (PTVS) segment dominated the market in 2023. The use of vehicle braking system for adjusting torque in every wheel during turning has increased the demand for passive torque vectoring. Also, the rising application of passive torque vectoring due to its higher potential to adjust acceleration levels has propelled the market growth. Moreover, the upsurge in demand for passive torque vectoring in EV industry to enhance vehicle performance and driving range has accelerated the market growth.
The active torque vectoring system (ATVS) segment is likely to grow with the highest CAGR during the forecast period. The rising demand for active torque vectoring technology to provide power to every wheel in a vehicle and improve handling and traction has driven market growth. Also, the growing application of ATV technology for distributing equal power to each wheel is likely to propel industrial growth. Moreover, the increasing use of active torque vectoring technology in SUVs to improve their performance and braking is expected to boost the market growth in a positive way.
The all-wheel drive/four-wheel drive (AWD/4WD) segment held the dominant share of the market in 2023. The growing demand for SUVs among middle-aged people due to their off-roading capabilities has boosted the torque vectoring market growth. Also, the increasing demand for all-wheel drive/four-wheel drive (AWD/4WD) vehicles due to improved stability, better traction, and enhanced towing capacity is likely to propel the market growth. Moreover, there are numerous advantages of torque vectoring systems in AWD/4WD vehicles, such as superior handling, better acceleration, and increased fuel efficiency.
The rear wheel drive (RWD) segment is expected to grow with the highest CAGR during the forecast period. The rising demand for rear-wheel-drive cars for drifting capabilities has increased the demand for torque vectoring systems. Also, the growing application of torque vectoring systems in RWD vehicles to improve handling and stability has propelled market growth to some extent. Moreover, the increasing use of passive torque vectoring systems in RWD cars to maintain traction on slippery surfaces and bad weather conditions is beneficial.
The passenger car segment dominated the torque vectoring market in 2023. The rising production and sales of passenger cars around the world has increased the demand for torque vectoring systems. Also, the increasing applications of active torque vectoring systems in small electric cars to improve the overall stability is likely to boost the market growth. Moreover, the growing use of torque vectoring systems in passenger cars to improve mileage has further benefited the market.
The light commercial vehicles segment is expected to grow with the highest CAGR during the forecast period. The growing demand for LCVs to transport goods in shorter distances has increased the demand for torque vectoring systems. Also, the rising application of torque vectoring system in LCVs to enhance driving experience during bad weather conditions drives the market growth. Moreover, the increasing use of torque vectoring systems in LCVs for several applications such as lane changing, stability and traction control is likely to contribute to the torque vectoring market growth.
Segments Covered in the Report
By Clutch Actuation Type
By Vehicle Type
By Propulsion
By Technology
By Geography
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