Global Torque Vectoring Market Growth, Share, Size, Trends and Forecast (2025 - 2031)

• 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.

The Global Torque Vectoring Market is poised for substantial growth from 2024 to 2030, driven by various factors including the increasing adoption of electric vehicles, advancements in automotive technology, and the demand for enhanced vehicle performance and safety. This market is segmented by Electric Vehicle Type into Battery Electric Vehicles (BEV) and Hybrid Electric Vehicles (HEV), reflecting the growing popularity of electrified powertrains in the automotive industry. Torque vectoring systems play a crucial role in optimizing the performance and efficiency of electric vehicles, enhancing traction, stability, and overall driving dynamics.

Additionally, the market is segmented by Clutch Actuation Type into Hydraulic and Electronic systems. Hydraulic torque vectoring systems utilize hydraulic actuators to distribute torque between the wheels, while electronic systems rely on electronically controlled clutches for torque distribution. Both technologies offer unique advantages in terms of responsiveness, precision, and control flexibility, catering to different vehicle applications and driving preferences. The choice between hydraulic and electronic clutch actuation depends on factors such as cost, performance requirements, and integration with vehicle dynamics control systems.

Furthermore, the market segmentation includes Propulsion types such as Front-Wheel Drive (FWD), Rear-Wheel Drive (RWD), and All-Wheel Drive/Four-Wheel Drive (AWD/4WD). Each propulsion configuration presents distinct challenges and opportunities for torque vectoring implementation, with AWD/4WD vehicles often benefiting the most from torque vectoring technology due to their inherently better traction and stability characteristics. Torque vectoring systems can enhance the performance and handling of FWD, RWD, and AWD/4WD vehicles by dynamically adjusting torque distribution to individual wheels based on driving conditions and vehicle dynamics.

Moreover, the market is segmented by Technology into Active Torque Vectoring System (ATVS) and Passive Torque Vectoring System (PTVS). Active torque vectoring systems actively adjust torque distribution between the wheels to optimize vehicle dynamics in real-time, while passive torque vectoring systems utilize mechanical or differential-based solutions to achieve similar outcomes. Both technologies offer advantages in terms of performance, cost, and complexity, catering to different vehicle segments and customer preferences. As automotive technology continues to evolve, torque vectoring systems are expected to play a crucial role in enhancing vehicle performance, safety, and driving experience across various vehicle types and propulsion systems.

Global Torque Vectoring Market Analysis

In this report, the global torque vectoring market has been segmented by electric vehicle type, clutch actuation type, propulsion, technology, vehicle type and geography.

Global Torque Vectoring Market, Segmentation by Geography

In this report, the Global Torque Vectoring Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.

Global Torque Vectoring Market Share (%), by Geographical Region, 2024

North America and Europe stand out as leading markets for torque vectoring systems due to their well-established automotive industries and high levels of technological innovation. In these regions, consumers often prioritize high-performance vehicles equipped with advanced safety and driving assistance features, which include torque vectoring systems. The robust demand for such vehicles, coupled with the presence of leading automotive manufacturers and suppliers, fosters a favorable environment for the adoption and proliferation of torque vectoring technology. Moreover, stringent safety regulations and a strong consumer focus on vehicle performance further drive the market for torque vectoring systems in North America and Europe.

In the Asia Pacific region, rapid urbanization, infrastructure development, and increasing disposable incomes are fueling the demand for passenger cars equipped with advanced safety and driving assistance features, including torque vectoring systems. As urban populations grow and cities become more congested, there is a heightened emphasis on vehicle safety and maneuverability. This trend, combined with the increasing affordability of advanced automotive technologies, drives the adoption of torque vectoring systems in passenger cars across the Asia Pacific region. Additionally, the presence of emerging markets with significant automotive production capacities, such as China and India, further contributes to the growth of the torque vectoring market in Asia Pacific.

Emerging economies in the Middle East, Africa, and Latin America are experiencing a surge in vehicle ownership rates and infrastructure investments, which presents opportunities for torque vectoring technology suppliers to expand their market presence. As these regions undergo rapid urbanization and industrialization, there is a growing demand for vehicles equipped with advanced safety features to address traffic congestion and enhance road safety. Moreover, government initiatives aimed at improving transportation infrastructure and promoting vehicle safety contribute to the favorable market conditions for torque vectoring systems in the Middle East, Africa, and Latin America.

This report provides an in depth analysis of various factors that impact the dynamics of Global Torque Vectoring Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Rising Demand for Enhanced Vehicle Performance
• Growing Adoption of Electric Vehicles (EVs)
• Advancements in Automotive Technology

• Regulatory Emphasis on Vehicle Safety:Stringent safety regulations and consumer demand for safer vehicles are compelling automakers to integrate advanced safety systems, such as torque vectoring, into modern vehicles. These regulations mandate the inclusion of safety features aimed at reducing accidents, injuries, and fatalities on the roads. Torque vectoring systems offer significant safety benefits by enhancing vehicle stability, especially during dynamic driving maneuvers or adverse road conditions. By actively adjusting torque distribution between the wheels, torque vectoring systems can mitigate the risk of skidding or loss of control, thereby improving overall safety performance and reducing the likelihood of accidents.
  The integration of torque vectoring systems into vehicles aligns with consumer expectations for enhanced safety features in their vehicles. Modern consumers prioritize vehicle safety when making purchasing decisions, often seeking out vehicles equipped with advanced driver assistance systems and active safety technologies. Torque vectoring systems contribute to improved vehicle handling and stability, providing drivers with greater confidence and control behind the wheel. As safety becomes an increasingly important consideration for consumers, automakers are under pressure to incorporate innovative safety technologies like torque vectoring into their vehicle lineup to meet market demands and differentiate their products.
  Furthermore, torque vectoring systems offer benefits beyond safety, including improved driving dynamics and performance. By optimizing torque distribution to individual wheels, these systems enhance traction, cornering ability, and overall vehicle agility. This not only enhances the driving experience but also contributes to vehicle efficiency and performance. As automotive technology continues to advance, torque vectoring systems are expected to play a crucial role in shaping the future of vehicle safety and performance, driving innovation in the automotive industry and meeting the evolving needs and expectations of consumers worldwide.

Restraints

• Cost Implications
• Integration Challenges
• Complexity and Maintenance Requirements

• Market Fragmentation and Standardization:The absence of standardized torque vectoring technologies and varying implementation approaches across automakers pose challenges to the market, potentially leading to fragmentation and interoperability issues. Unlike more established automotive technologies, such as ABS or ESC, torque vectoring lacks universal standards or protocols governing its implementation. As a result, different automakers may employ proprietary torque vectoring systems with unique operating principles, control algorithms, and hardware configurations. This lack of standardization can create compatibility issues between vehicles equipped with different torque vectoring systems, hindering interoperability and complicating aftermarket upgrades or modifications.
  Moreover, the absence of standardized torque vectoring technologies can lead to market fragmentation, as consumers may face difficulties in comparing and evaluating different systems across vehicle models and manufacturers. Without clear benchmarks or performance standards, consumers may struggle to assess the effectiveness, reliability, and value proposition of torque vectoring systems offered by different automakers. This lack of transparency and consistency may impede consumer confidence in the technology and slow down adoption rates, particularly among mainstream vehicle buyers who prioritize ease of use and reliability in their purchasing decisions.
  To address these challenges, industry stakeholders, including automakers, suppliers, and regulatory bodies, may need to collaborate on developing common standards and guidelines for torque vectoring technology. Standardization efforts could encompass aspects such as system architecture, performance metrics, testing methodologies, and interoperability requirements to ensure consistency and compatibility across different torque vectoring systems. By establishing clear standards and protocols, the automotive industry can promote greater transparency, interoperability, and consumer confidence in torque vectoring technology, fostering its wider adoption and integration into future vehicle platforms.

Opportunities

• Global Torque Vectoring Market
• Rise of Electric and Hybrid Vehicles
• Integration with Advanced Driver Assistance Systems (ADAS)

• Expansion into Emerging Markets:As emerging economies experience economic growth and urbanization, the demand for automobiles is on the rise, presenting a significant opportunity for torque vectoring technology. With rising incomes and increasing consumer aspirations, there is a growing preference for vehicles equipped with advanced safety and performance features. Torque vectoring systems offer benefits such as improved vehicle stability, enhanced cornering capabilities, and better traction control, which align well with the expectations of consumers in emerging markets seeking safer and more technologically advanced vehicles.
  Moreover, the expansion of infrastructure in emerging economies, including road networks and transportation facilities, creates an environment conducive to the adoption of torque vectoring technology. As urban areas expand and traffic congestion becomes more prevalent, consumers are looking for vehicles that offer superior handling and maneuverability. Torque vectoring systems not only enhance driving dynamics but also contribute to overall vehicle safety, which is particularly important in densely populated urban environments where road safety is a concern.
  By tailoring torque vectoring technology to suit the specific needs and preferences of consumers in emerging markets, automotive manufacturers can gain a competitive edge and capitalize on the growing demand for advanced vehicle features. This may involve adapting torque vectoring systems to different driving conditions, road surfaces, and vehicle types prevalent in these regions. By addressing the unique requirements of emerging market consumers and offering innovative solutions that improve driving experience and safety, automakers can position themselves as leaders in these rapidly growing automotive markets.

Key players in Global Torque Vectoring Market include:

• GKN
• American Axle
• Dana
• Borgwarner
• Eaton
• ZF
• JTEKT
• Magna
• Bosch
• Univance
• Schaeffler
• Timken
• Ricardo
• Oerlikon Graziano
• Mitsubishi Heavy Industries
• Haldex
• Continental
• Drako
• Prodrive

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis