Torque Vectoring Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The torque vectoring market size has grown rapidly in recent years. It will grow from $10.76 billion in 2024 to $12.63 billion in 2025 at a compound annual growth rate (CAGR) of 17.3%. The growth in the historic period can be attributed to improved traction and stability, safety enhancement, market competitiveness, consumer demand for enhanced driving dynamics, environmental and fuel efficiency concerns.

The torque vectoring market size is expected to see rapid growth in the next few years. It will grow to $22.34 billion in 2029 at a compound annual growth rate (CAGR) of 15.3%. The growth in the forecast period can be attributed to autonomous vehicle development, urban mobility solutions, regulatory compliance and safety standards, cybersecurity integration, rise of rear-wheel torque vectoring. Major trends in the forecast period include advanced sensor technologies for precise control, ai-based torque vectoring algorithms, integration with vehicle stability control, customizable driver settings, collaboration with tire manufacturers.

The upward trajectory of autonomous vehicles is anticipated to be a catalyst driving the expansion of the torque vectoring market. Autonomous vehicles, capable of operating independently without human intervention, rely on an array of sensors such as radar, lidar, and cameras to map their surroundings. Torque vectoring technology plays a pivotal role in enhancing the energy efficiency of these autonomous vehicles by mitigating power loss attributed to wheel slide and inefficiencies. Notably, insights from the Insurance Institute for Highway Safety in December 2022 projected a significant rise in autonomous vehicles on American roads, reaching an estimated 3.5 million by 2025 and further escalating to 4.5 million by 2030. Consequently, the burgeoning trend of autonomous vehicles fuels the growth of the torque vectoring market.

The escalation in fuel consumption serves as another driving force propelling the expansion of the torque vectoring market. Fuel consumption denotes the quantity of fuel utilized by a vehicle or machinery over a specific distance or time, often measured in units such as gallons, liters, or kilometers per liter. Torque vectoring systems play a pivotal role in augmenting fuel economy and performance by curbing power loss due to wheel slide and optimizing power delivery. For instance, as per the Energy Information Administration's findings in August 2022, an average of about 3.96 million b/d, equivalent to 166 million gallons, of distillate fuel oil was consumed in 2022, constituting 20% of the country's total petroleum consumption. Consequently, the escalating trend in fuel consumption significantly drives the growth of the torque vectoring market.

Major companies operating in the torque vectoring market are focusing on the development of advanced E-Powertrain technologies to enhance vehicle performance, improve energy efficiency, and provide superior handling and stability in various driving conditions. These integrated electric powertrains combine electric motors, batteries, and control systems to optimize performance and energy efficiency. For instance, in June 2022, GKN Automotive, a UK-based manufacturer of driveline components, launched a next-generation inverter as part of its modular eDrive platform. This inverter represents a significant leap in electric vehicle (EV) technology, enhancing performance and sustainability. It is compatible with both 800V and 400V systems, providing versatility across various OEM applications. The new inverter increases power output by 20% compared to its predecessor, thereby improving the overall efficiency of electric drivetrains and advancing the capabilities of torque vectoring systems in electric vehicles. This development reflects the industry's shift toward more efficient and robust technologies in response to growing demand for electric mobility solutions.

In March 2023, SAF-HOLLAND SE, a German company specializing in the design and manufacturing of chassis-related systems and components, completed the acquisition of Haldex AB. The financial details of this acquisition were not disclosed. This strategic acquisition is anticipated to foster collaboration between the two entities, aiming to develop an intelligent system that integrates axle and suspension systems with telematics. Additionally, SAF-HOLLAND SE aims to leverage its advanced products and services in connection, electrification, and autonomous driving to actively influence the transportation industry's evolution through this acquisition. Haldex AB, the Sweden-based provider of torque vectoring technology for all-wheel drive (AWD) vehicles.

Major companies operating in the torque vectoring market report are Robert Bosch GmbH, Tesla Inc., Audi AG, ZF Friedrichshafen AG, Continental AG, Magna International Inc., Eaton Corporation, Mitsubishi Motors Corporation, Schaeffler AG, BorgWarner Inc., JTEKT Corporation, Denso Corporation, Dana Incorporated, Linamar Corporation, GKN Automotive Limited, American Axle & Manufacturing Inc., Haldex Ltd., Ricardo PLC, Univance Corporation, Prodrive Holdings Ltd., Getrag B.V. & Co. KG, Koenigsegg Automotive AB, Modelon AB, Drako Motors Inc., Hofer Powertrain GmbH.

North America was the largest region in the torque vectoring market in 2024. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the torque vectoring market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the torque vectoring market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The torque vectoring market consists of revenues earned by entities by providing services such as increase traction control and improve handling systems. The market value includes the value of related goods sold by the service provider or included within the service offering. The torque vectoring market also includes sales of clutches, differentials, and electronic control units which are used in providing torque vectoring services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Torque vectoring is a technology designed to enhance steering response and handling by intelligently distributing torque among the wheels. This system, managed by a computer, regulates the amount of force delivered to each wheel by the car's engine or motors.

The primary types of clutch actuation mechanisms in torque vectoring include hydraulic clutch and electronic clutch. In a hydraulic clutch, hydraulic fluid is utilized instead of a cable to move the clutch plate. This technology is applied across various vehicle types, including light commercial vehicles, heavy commercial vehicles, and passenger cars, with different propulsion systems such as front-wheel drive (FWD), rear-wheel drive (RWD), and all-wheel drive (AWD) or four-wheel drive (4WD). Torque vectoring systems come in various technologies, such as active torque vectoring system (ATVS) and passive torque vectoring system (PTVS).

The torque vectoring market research report is one of a series of new reports that provides torque vectoring market statistics, including torque vectoring industry global market size, regional shares, competitors with a torque vectoring market share, detailed torque vectoring market segments, market trends and opportunities, and any further data you may need to thrive in the torque vectoring industry. This torque vectoring market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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