Torque Vectoring Market

Market Overview

The global torque vectoring market was valued at USD 8.25 billion in 2023. It is estimated to reach USD 47.25 billion by 2032, growing at a CAGR of 21.4% during the forecast period (2024–2032). The world is witnessing a paradigm shift towards electric vehicles from the conventional ICE ones owing to rising environmental concerns. This rise in the adoption of electric vehicles is estimated to drive the torque vectoring market as these vehicles require advanced torque vectoring systems to manage the torque generated by the electric motors. Moreover, a rise in regulations on fuel efficiency is expected to offer market growth opportunities as torque vectoring systems contribute to fuel efficiency by optimizing power distribution and reducing energy losses during vehicle operation.

Torque vectoring is a technology implemented in automobiles, specifically in high-performance or all-wheel-drive vehicles, to improve stability, handling, and cornering performance. It operates by autonomously regulating the torque (rotational force) distributed to each wheel or axle of the vehicle. Torque vectoring systems can be categorized into active and passive variants based on how torque is transferred. Torque vectoring systems can also be classified based on the type of driving wheels, including rear-wheel drive, front-wheel drive, or all-wheel drive.

Torque vectoring systems are extensively employed in passenger automobiles, commercial vehicles, and off-road vehicles and can be driven by diesel, petrol, CNG, or electric engines. Torque vectoring systems enhance vehicle control when encountering dynamic driving scenarios, such as high-speed cornering or traversing slippery surfaces. They improve the vehicle's stability and agility, offering drivers superior control and assurance in diverse driving circumstances.

Market Dynamics

Global Torque Vectoring Market Drivers:

Rising Adoption of Electric Vehicles

The rising popularity of electric vehicles (EVs) is a key driver for the growth of the torque vectoring market. These vehicles require modern torque vectoring systems to control the torque their electric motors produce effectively. Compared to traditional vehicles, electric vehicles provide numerous advantages, including reduced maintenance expenses, increased energy efficiency, and diminished environmental footprint.

Torque vectoring systems optimize the performance and mobility of electric cars by autonomously and accurately allocating torque to individual wheels. Moreover, as per the International Energy Agency (IEA), the electric vehicle industry is seeing rapid and significant expansion, with sales surpassing 10 million in 2022. In 2022, the proportion of newly sold electric cars reached 14%, a significant increase from approximately 9.0% in 2021 and less than 5% in 2020. Similarly, global expenditure on electric vehicles surpassed USD 425 billion in 2022, marking a 50% increase compared to the previous year. Therefore, the widespread acceptance and use of electric vehicles will propel global market expansion.

Global Torque Vectoring Market Restraint:

High Cost and Complexity

The primary obstacle for the torque vectoring market is the high cost and complex nature of torque vectoring systems, which restrict their acceptance within the mass-market segments. Torque vectoring systems necessitate advanced components, including clutches, differentials, sensors, controllers, and electric motors, resulting in elevated car manufacturing and installation expenses. Moreover, torque vectoring systems provide additional mass and occupy valuable volume within the cars, potentially compromising their aerodynamic properties and fuel economy. Torque vectoring systems necessitate periodic maintenance and calibration, resulting in higher vehicle operational expenses.

Global Torque Vectoring Market Opportunities:

Regulatory Pressure for Fuel Efficiency

Global governments are enacting strict regulations to mitigate vehicle greenhouse gas emissions and minimize their ecological footprint. These restrictions frequently require automakers to enhance their vehicle fleets' fuel efficiency progressively. Many countries have implemented Corporate Average Fuel Economy (CAFE) regulations, which mandate that automakers attain a specified minimum average fuel efficiency across all vehicle models. Non-compliance with these criteria may lead to penalties or fines.

Moreover, the European Union (EU) has enforced rigorous emission rules, such as the Euro 6 norms for passenger cars and light commercial vehicles. These regulations establish stringent thresholds for car nitrogen oxide (NOx) emissions and particulate matter (PM). Torque vectoring systems enhance fuel efficiency by optimizing power allocation and minimizing energy wastage during vehicle operation, assisting automakers in achieving emission reduction objectives. Therefore, these regulations create opportunities for the growth of the market.

Regional Analysis

Europe Dominates the Global Market

Based on region, the global torque vectoring market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa.

Europe is the most significant global torque vectoring market shareholder and is expected to expand substantially during the forecast period. Europe dominates the torque vectoring systems market because it concentrates on top-tier automobile manufacturers, including Volkswagen, BMW, Mercedes-Benz, and Audi. These manufacturers specialize in producing high-end and premium vehicles equipped with innovative torque vectoring systems. Europe is the primary global manufacturer of motor vehicles, with the automotive industry contributing more than 7% of the European Union's GDP. In 2019, the ACEA reported a car ownership rate of 569 vehicles per 1,000 individuals in Europe. The market expansion may be attributed to several key factors, including well-established manufacturing and distribution networks, technical advancements, favorable government regulations, and the presence of internationally renowned vehicle manufacturers.

Furthermore, battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are progressively gaining traction in the EU market. The number of new electric car registrations has consistently risen from 600 in 2010 to approximately 1.74 million in 2021, representing 18% of all new registrations. In 2022, the proportion of newly registered electric passenger cars reached over 22%, indicating a steady growth in these numbers. In 2022, Battery Electric Vehicles (BEVs) comprised 12.2% of all newly registered vehicles, while Plug-in Hybrid Electric Vehicles (PHEVs) accounted for 9.4%. Europe also has strict regulations and standards for vehicle safety and pollution, promoting the adoption of torque vectoring systems.

The Asia-Pacific region has experienced significant urbanization, industrialization, and economic expansion, leading to an increased demand for automobiles. Consequently, it has become the fastest-growing market for torque vectoring systems. The Asia-Pacific region has significant potential for electric vehicles, given its inclusion in major burgeoning markets like China, India, Japan, and South Korea. These countries are making substantial investments in advancing and endorsing electric vehicles.

Moreover, nations including China, Japan, Vietnam, and Indonesia have adopted diverse emission control measures that align with the Euro emission control standards. In 2016, the Indian Government declared its intention to skip the Bharat Stage V emission regulations and implement the Bharat Stage VI emission standards by 2020. In 2020, the Supreme Court rendered a verdict prohibiting the sale and registration of automobiles adhering to BS-IV standards in the country starting from April 1, 2020. Consequently, the torque vectoring market in India is anticipated to have significant expansion. Therefore, all of these factors collectively contribute to the growth of the Asia-Pacific torque vectoring market.

Segmental Analysis

The global torque vectoring market is segmented by vehicle type, propulsion type, clutch actuation type, EV type, and technology.

Based on vehicle type, the global torque vectoring market is bifurcated into passenger cars and light commercial vehicles. 

The passenger cars segment held the highest revenue share. Passenger automobiles, also known as "cars," are motor vehicles primarily designed for transporting persons rather than products or cargo. Typically, these vehicles have seating capacities ranging from one to multiple passengers and are fitted with amenities such as climate control, entertainment systems, comfortable seating, and safety measures. The market is primarily dominated by the passenger cars segment, which consists of the highest quantity of vehicles utilizing torque vectoring systems. The passenger automobile market encompasses premium and sports cars requiring high-performance and complex torque vectoring systems.

Based on propulsion type, the global torque vectoring market is bifurcated into rear-wheel drive (RWD), front-wheel drive (FWD), and all-wheel drive/four-wheel drive (AWD/4WD). 

The AWD/4WD segment dominates the global market. All-wheel drive (AWD) and four-wheel drive (4WD) are powertrain systems employed in cars to distribute power to all four wheels simultaneously, resulting in enhanced traction and control, especially in challenging driving circumstances like snow, mud, or rugged terrain. The AWD/4WD segment dominates the market due to its superior traction, stability, and performance compared to the RWD and FWD divisions. Including the AWD/4WD segment allows for torque vectoring systems to function on all wheels, as opposed to the front or rear wheels.

Based on clutch actuation type, the global torque vectoring market is bifurcated into electric and hydraulic. 

The hydraulic segment held the largest market share. The hydraulic segment employs hydraulic fluid to activate the clutches, which can result in problems such as leakage, contamination, and corrosion. Hydraulic clutch actuation is a vehicle technique to activate and deactivate the clutch system. A hydraulic clutch system utilizes hydraulic fluid to transfer force from the clutch pedal to the clutch release mechanism, usually a slave cylinder.

Depressing the clutch pedal generates hydraulic pressure, which then causes the slave cylinder to move. This action results in the disengagement of the clutch, thereby disconnecting the engine from the transmission and enabling the shifting of gears. The hydraulic pressure is relieved, and the clutch engages upon the release of the pedal, reestablishing power transmission to the wheels by reconnecting the engine and transmission.

Based on EV type, the global torque vectoring market is bifurcated into BEV and HEV.

BEV is an acronym that stands for Battery Electric Vehicle. An electric battery exclusively powers an electric vehicle (EV) of this kind without an internal combustion engine. Battery Electric Vehicles (BEVs) only utilize the stored electrical energy in their batteries to move the vehicle and operate its electrical systems. Electric vehicles do not emit tailpipe emissions and are considered ecologically benign substitutes for conventional gasoline or diesel automobiles. BEVs, or Battery Electric Vehicles, encompass notable models such as the Tesla Model S, Nissan Leaf, and Chevrolet Bolt EV.

Based on technology, the global torque vectoring market is bifurcated into active torque vectoring system (ATVS) and passive torque vectoring system (PTVS). 

The passive torque vectoring system (PTVS) segment dominates the global market. Passive torque vectoring is an automotive engineering technology that enhances vehicle handling and stability by strategically providing braking force to specific wheels to achieve the required vehicle dynamics. Passive torque vectoring, in contrast to active torque vectoring systems, does not need any extra components, such as electronically controlled differentials or motors, to transfer torque between wheels actively. Instead, it only depends on the vehicle's existing braking system.

Passive torque vectoring allows the outside wheels to spin more freely while applying braking force to the inner wheels, which are closer to the center of the bend, as the car approaches a bend. A yaw moment is a useful tool in the fight against understeer, which is the car's propensity to go straight through a turn. It achieves this by rotating the vehicle around its vertical axis.

Recent Developments

· August 2023- Lamborghini introduced the Lamborghini Lanzador, a two-door crossover concept that runs entirely on electricity, marking the brand's inaugural electric vehicle. According to the manufacturer's chief technical officer, the Lamborghini Lanzador unveiled at Monterey Car Week may introduce an impressive torque vectoring technology.

· November 2023- Hyundai and Kia introduced a new electric vehicle (EV) drive system. The unique Uni Wheel developed by a Korean couple offers a solution to conserve space and energy while improving torque vectoring.