Torque Vectoring Market Report Scope & Overview:

The Torque Vectoring Market Size was valued at USD 10.5 Billion in 2023. It is expected to grow to USD 28.5 Billion by 2032 and grow at a CAGR of 11.7% over the forecast period of 2024-2032.

Torque vectoring systems improved with AI and IoT will revolutionize the way well-balanced vehicles are controlled allowing more effective and real-time adaptation to variable driving conditions. AI algorithms can consistently monitor and study the dynamics of driving by using real-time data from a wide array of sensors (wheel speed, steering separation, road surface traction, etc.). Using this data, the system can change how torque is distributed among wheels in real-time, providing optimal traction and stability as needed. For example, when a car is going through a turn, AI torque vectoring can send more torque to the outer wheels to suppress understeer, thus allowing better and safer cornering. Such a high level of responsiveness is particularly useful in autonomous and connected vehicles, where advanced control systems must operate on the fly while maintaining the most ideal handling without a driver.

In 2023, global investment in generative and operational AI technologies surged, reflecting a 56% increase in AI-related regulations within the U.S. alone. These advances in AI directly impact autonomous vehicles by providing robust control systems that streamline vehicle maneuverability and adaptability in real-time, particularly critical for navigating urban and complex driving environments.

In addition, the rising focus on safety regulations by consumers as well as authorities are anticipated to increase the demand for torque vectoring in vehicles. Such systems illustrated stability by transferring torque to an individual wheel, which enables the car to accommodate better road conditions and handling. Torque vectoring has a positive impact on on-road safety, particularly in less-than-ideal conditions (think wet or icy surfaces), as it helps reduce the likelihood of skidding and provides for stable cornering. By using the system to control what the torque is, the system allows more traction when needed and no oversteer and understeer both are common accident causes made worse with acceleration. This greater emphasis on higher safety has attracted global attention, with stricter government safety standards and consumer vehicle safety being prioritized in buying decisions.

To support road safety initiatives and reduce traffic-related fatalities, the U.S. Department of Transportation (USDOT) has implemented significant measures under the National Roadway Safety Strategy. In line with the Bipartisan Infrastructure Law, the USDOT and the National Highway Traffic Safety Administration (NHTSA) have mandated that by 2029, all new passenger vehicles must be equipped with Automatic Emergency Braking (AEB). AEB technology is designed to prevent collisions by detecting obstacles and automatically applying brakes if the driver does not respond in time.

Torque Vectoring Market Dynamics

Drivers

• The rise of electric and autonomous vehicles drives the market growth.

Electric and autonomous vehicles are among the biggest drivers for the torque vectoring market, as the stability and control torque vectoring provides are a strong benefit to both those vehicle types. Torque vectoring is something that electric vehicles (EVs) can do easily since each motor can operate independently, permitting specific wheel torque distribution. This level of precision allows for better handling, greater traction, and more efficient operation, tackling one of the biggest issues facing an EV battery and range management. In EVs especially, torque vectoring also helps smooth out power delivery and enhance cornering stability, which makes for an attractive performance-driving package to consumers with a new-found taste of performance in electric cars

Torque vectoring is implemented as a means of retaining vehicle control when driver input is not possible, especially for autonomous vehicles dependent upon advanced sensor systems and algorithms. It allows self-driving vehicles to react in real time for grip and stability, an important safety factor in extreme weather. As the world heads toward electrification and advances in autonomous driving, torque vectoring is considered more and more a fundamental element of next-generation vehicles. This trend is only expected to push the market further, as automation enhances the safety, performance, and energy efficiency of an EV or autonomous vehicle.

The Stated Policies Scenario (STEPS), this figure is projected to triple to over 43 million by 2030, accounting for 40% of total LDV sales. This growth is driven by a range of supportive policies, such as fuel economy standards and incentives for zero-emission vehicles across major markets like China, the United States, and Europe.

Restraint

• Complex integration requirements may hamper the market growth.

The application of torque vectoring technology to vehicles is quite complicated and comes with several challenges. This technology depends heavily on high-performing electronic control systems, sensors and actuators working together in real-time to modulate power across each wheel. For cars that rely on a conventional drivetrain, implementing good torque vectoring means significant retrofitting and it also adds complexity and cost to production. And since the torque split has to be carefully controlled using complex software algorithms, it adds complexity for integrating the hybrid-electric technology. This requires extensive coordination between manufacturers' design and test teams to ensure the technology operates in concert with other stability control, braking, and traction control features packaged in the same vehicle. This extends their time to market significantly, thus increasing R&D costs.

Torque Vectoring Market Segmentation Overview

By Vehicle Type

Passenger Cars held the largest market share around 64% in 2023. Torque vectoring becomes ever more important for passenger vehicles, especially high-performance and electric ones which can now take advantage of this greater stability. As the demand for increased safety, better handling, and improved driving performance rises among consumers, torque vectoring offers greater rewards by instantaneously distributing power to each wheel, increasing cornering stability, and helping to prevent skidding. Moreover, given that much of the automotive industry is switching gears to fully electric and hybrid cars that follow the natural electric drive system principle of direct axle wheel torque control by electric motors, the passenger car sector is a more direct match for this technology. The integration of torque vectoring into passenger vehicles follows the wider trend of manufacturers stuffing more and more advanced driver assistance systems (ADAS) and other performance enhancers into the mid-to-high-end segments of passenger vehicles.

By Propulsion

AWD/4WD propulsion held the largest market share around 58.00% in 2023. The AWD/4WD segment is primarily driven by the demand for technology that provides better traction control, handling, and stability in different terrains and driving conditions. This isn’t just between the front and rear axle, but across the wheels on the same axle too, and for SUVs and off-roaders, this feature can take off-road performance to an entirely new level when it comes to power distribution via the torque vectoring systems.

Moreover, the movement toward electrification in the automotive sector has also increased the strategic importance of torque vectoring in AWD/4WD designs, allowing for enhanced energy efficiency and enhanced performance of electric and hybrid vehicles. This, coupled with a growing consumer propensity toward higher safety, performance, and off-road capabilities, is driving the market demand for torque vectoring integration in AWD/4WD vehicles, which is increasingly becoming a standard feature. 

By EV Type

In 2023, the BEV EV type segment occupied the highest market share of 70.5% of the global market revenue. More than any other growing trend and technology helping the future domestic use of electric vehicles, the pivot of the automotive industry toward electrification has done wonders for establishing torque vectoring. Moreover, BEVs are powered exclusively by electricity, so the torque vectoring case for a BEV is different. Because of the design of their electric motor layout, BEVs also allow for more precise control over torque routing between the wheels. This accuracy is extremely important for vehicle control and safety, two prerequisites for consumer adoption and market expansion. BEVs have ideal torque vectoring potential in not just making traction control more effective, but also smoothing acceleration and giving sharper turn-in characteristics.

Torque Vectoring Market Regional Analysis

Asia Pacific region held the highest market share around 45% in 2023. This is owing to the fast-growing growth of the automotive sector, the proven need for superior vehicle technologies, and high investment in electric & hybrid vehicle manufacturing plants. The automotive-technological giants are China, Japan, and South Korea, with major car-manufacturing brands like Toyota, Honda, and Hyundai, applying the newest technologies including torque vectoring to their vehicles. The worldwide demand for torque vectoring systems which are accelerating, particularly in electric vehicle (EV) production and adoption in China. EVs, being run by an electric motor, are inherently good candidates for this tech since power delivery to each wheel can be precisely balanced. Increasing government policies: In addition, certain government policies, such as stricter fuel efficiency standards and higher dependency of passenger vehicle safety in your community, further push for the adoption of torque vectoring in passenger vehicles in the region. The area also boasts a high density of manufacturing facilities and suppliers that facilitate lower-cost production and research, advances. Hence, Asia Pacific emerges out to be the leading market of torque vectoring for high adoption and innovation, accounting for the highest share of the market.

 Key Players in Torque Vectoring Market

• GKN Automotive Ltd. (Twinster Torque Vectoring, ETM-8 Torque Vectoring Module)

• BorgWarner Inc. (Active M Differential, DualTronic Torque Transfer System)

• ZF Friedrichshafen AG (Active Rear Axle Drive, ZF Torque Vectoring System)

• Eaton Corporation (Eaton e-Diff, TVL Torque Vectoring Limited Slip Differential)

• JTEKT Corporation (Super LSD, Torsen Differential)

• Continental AG (Torque Vectoring All-Wheel Drive System, Electronic Limited Slip Differential)

• American Axle & Manufacturing, Inc. (TracRite ELSD, Quantum Drive Torque Vectoring)

• Dana Incorporated (Ultimate Torque Vectoring System, Dana AdvanTEK eDifferential)

• Ricardo plc (Twin Motor eAxle, Torque Vectoring Module)

• Mitsubishi Electric Corporation (Electric Control Differential, Integrated Torque Vectoring Unit)

• AVL List GmbH (AVL Twin Motor Drive, Torque Splitter Technology)

• Bosch Mobility Solutions (Active Steering System, ESP with Torque Vectoring)

• Magna International Inc. (Active Rear Drive System, Magna Driveline Torque Vectoring)

• Schaeffler Group (eDifferential, Torque Vectoring Electric Drive)

• Groupe PSA (4x4 Hybrid Torque Vectoring, Electric Rear Axle Drive)

• Honda Motor Co., Ltd. (Super Handling-All Wheel Drive, i-VTM4)

• Toyota Motor Corporation (Dynamic Torque Vectoring AWD, E-Four Torque Vectoring System)

• BMW AG (xDrive with Torque Vectoring, Active M Differential)

• Audi AG (Quattro with Sport Differential, Torque Split AWD System)

• Volkswagen AG (4MOTION with R-Performance Torque Vectoring, Haldex AWD System) 

Recent Development:

• In 2023, GKN Automotive revealed its latest torque vectoring system that uses electric motors to improve EV handling and dynamics. The system is part of their ongoing work to satisfy the increasing demand for better stability and safety in particular road conditions with EVs.

• In 2023, ZF Friedrichshafen, unveiled a highly advanced torque vectoring solution for electric and hybrid vehicles. As electrification changes the automotive landscape, optimizing energy-savings efficiency will be crucial and this solution aims to enhance vehicle performance at the same time. The system seamlessly integrates with ZF’s AWD platforms, making it a key part of both conventional and electrified vehicles.​

• In 2022, BorgWarner launched advanced electric motor tech to deliver improved traction and handling. It is a system intended for use with hybrid and electric vehicles, where the ability to apportion torque across the axle is critical for both driving dynamics and stability under low grip conditions.