Torque Vectoring Market Size, Share, Growth, and Industry Analysis by Type (Hydraulic Clutch, Electronic Clutch), by Application (Light Commercial Vehicles, Heavy Commercial Vehicles, Passenger Car), and Regional Insights and Forecast to 2033

Last Updated: 26 June 2025
SKU ID: 28249018

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TORQUE VECTORING MARKET OVERVIEW

The global torque vectoring market was valued at USD 13.2 billion in 2024 and is expected to grow to USD 16.13 billion in 2025, reaching USD 80 billion by 2033, with a projected CAGR of 22.17% during the forecast period 2025-2033.

Torque vectoring is a system that uses progressive electronics and mechanical constituents to fluctuate the amount of torque sent to every wheel of a vehicle. Torque vectoring is a technology used in automobiles to allocate torque to individual wheels in a way that augments vehicle steadiness, control, and handling. It plays a dynamic role in improving the motivating experience, mainly in presentation and all-wheel-drive automobiles. Torque vectoring systems allow for more exact handling by supplying power to the wheels with the utmost traction, improving cornering, acceleration, and whole motivating dynamics.  Torque vectoring is a technology executed in vehicles, precisely in high-performance or all-wheel-drive vehicles, to progress steadiness, managing, and cornering presentation. It functions by independently regulating the torque circulated to each wheel or axle of the automobile.  Furthermore, there is a mounting prospect for aftermarket torque vectoring systems, motivated by enthusiasts and the motorsports industry, pursuing to retrofit or upgrade existing vehicles for boosted presentation and care on the street and footpath.

Participants are fixing their efforts on encouraging R&D. Technological development are supporting the regional market growth. Companies need to stay updated with varying market trends and develop products that meet rising consumer needs. Companies coming up with advanced technological solutions for firming their positions.

COVID-19 IMPACT

Pandemic Hampered The Market Due To Unexpected Disruption In The Sector

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic expressively interrupted the worldwide torque vectoring market, chiefly due to supply chain disruptions and reduced automotive making. Factory closures, labour scarcities, and logistical challenges during lockdowns hindered the improvement and delivery of torque vectoring systems. Automotive producers faced deteriorating revenues, leading to deferred investments in progressive vehicle technologies, comprising torque vectoring.

LATEST TRENDS

Use Of Innovative Products To Boost The Market Growth

Technological upgrading and improvement will further enhance the presentation of the product, allowing it to obtain a varied range of requests in the market. Technological advancement will improve performance and propel the market growth. Technological development with high demand are increasingly setting a force to increase the productivity. Some players focus on product improvement to meet consumer requirements and likings. Continuous improvement in manufacturing of products is anticipated to stimulate product demand.

Global-Torque-Vectoring-Market-Share,-By-Type,-2033

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TORQUE VECTORING MARKET SEGMENTATION

By Type

According to type, the market can be segmented into Hydraulic Clutch, Electronic Clutch

  • Hydraulic Clutch: Hydraulic clutch-based torque vectoring systems use hydraulic mechanisms to control torque distribution. These systems are commonly employed in vehicles with traditional internal combustion engines (ICE) and some hybrid models.
  • Electronic Clutch: Electronic clutch-based torque vectoring systems depend on electronically organised actuators to accomplish torque distribution. This type is particularly prevalent in modern electric vehicles (EVs) and high-tech hybrid models.

By Application

According to application, the market can be segmented into Light Commercial Vehicles, Heavy Commercial Vehicles, Passenger Car

  • Light Commercial Vehicles: Torque vectoring in LCVs is progressively implemented to augment steadiness, traction, and load-handling abilities. These automobiles are regularly used for urban delivery, logistics, and utility purposes, where manoeuvrability and protection are critical.
  • Heavy Commercial Vehicles: In HCVs, torque vectoring is mainly used to progress care, decrease wear and tear, and improve motivating dynamics for long-haul and industrial uses.
  • Passenger Car: Passenger cars signify the major sector for torque vectoring systems, motivated by demand for presentation, care, and progressive motivating features.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Rising Demand For Performance and Luxury Vehicle To Boost The Market Growth

The increasing demand for performance-oriented and luxury automobiles is a major feature motivating the torque vectoring market. Sports car producers and superior vehicle brands are progressively implementing torque vectoring technology to augment vehicle handling, cornering, and acceleration. Customers are keen to pay a premium for automobiles that deal greater motivating performance, and torque vectoring delivers a vital performance edge, particularly in high-end models.

Technological Advancement and Innovation To Upsurge The Market

Technological advancements and innovation activate unique revenue augmenting opportunity which will upsurge the torque vectoring market growth. Growing investment in research and development activities and growing awareness about benefits are expected to deliver profitable opportunities for the market. The growing fame of electric vehicles (EVs) expressively contributes to the torque vectoring market. EVs characteristically feature electric motors that can self-reliantly control power delivery to each wheel, creating it stress-free to implement torque vectoring. Torque vectoring progresses the presentation of EVs by enhancing torque distribution, augmenting cornering, firmness, and acceleration.

Restraining Factor

High Cost To Hamper The Market Growth

Major barriers to widespread adoption of torque vectoring is the high cost associated with its integration. Torque vectoring systems encompass progressive components, such as active differences, electronic control units, radars, and mechanical systems all of which can surge the complete making cost of vehicles. As a result, torque vectoring is mainly found in higher-end models, creating it less available for mass-market or economical vehicles. The high cost of this technology remains a key limitation, controlling its adoption in affordable vehicle sectors.

Opportunity

Growing Consumer Focus on Safety To Create Opportunity in the Market

Safety is a major concern for customers, and automakers are constantly looking for ways to develop vehicle stability and control. Torque vectoring augments vehicle care by decreasing the probability of understeering, over steering, and loss of traction, particularly in slippery or rough circumstances. It benefits to allocate torque to the wheels with the most traction, upholding ideal control during adverse driving scenarios. As safety features become more critical to customers, torque vectoring’s role in augmenting vehicle protection which will motivate its implementation.

Challenge

Limited Consumer Awareness Could Be a Major Challenge

While torque vectoring deals substantial performance and care benefits, many customers are unaware of its benefits. Unlike more commonly understood features such as airbags or anti-lock brake pedal, torque vectoring is a moderately innovative technology to most vehicle purchasers. Lack of consumer instruction about the benefits of torque vectoring could limit demand, mainly in sectors where cost-sensitive purchasers may not prioritize progressive motivating technologies. Effective marketing and customer education are vital to surge awareness and motivate the demand for automobiles furnished with torque vectoring.

TORQUE VECTORING MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East and Africa.

  • North America

The North American market for torque vectoring is determined by the high demand for luxury, performance, and electric automobiles. With the growing emphasis on improving vehicle safety, performance, and fuel efficacy, automakers in the region are embracing torque vectoring in a widespread range of models which is likely to increase the torque vectoring market share.

  • Asia

The Asia Pacific region is witnessing speedy improvement in the torque vectoring market, focussed by mounting consumer demand for high-performance vehicles. The occurrence of key automotive producers in the region, combined with government initiatives to encourage electric mobility, is also motivating the market development.

  • Europe

Europe is one of the significant markets for torque vectoring technology, with automakers leading the method in the implementation of this technology in luxury and performance models.

KEY INDUSTRY PLAYERS

Key Players Focus On Partnerships To Gain Competitive Advantage

The key players are dynamically contributing in strategic events that are aimed at maintaining strong market position and increasing market share by merger, partnerships and others. Key players are motivated to introduce new innovative products. They are spending severely on research and development in order to arise with more new technology so that they can maintain and improve their existing market. The market changes are dynamic such as market expansion, partnership and merger. The collective efforts of these major players expressively impact the competitive landscape and future path of the market.

List of Torque Vectoring Companies

  • GKN Automotive Limited (U.K.)
  • American Axle & Manufacturing, Inc. (U.S.)
  • Bosch Ltd (Germany)
  • Dana Incorporated (U.S.)
  • BorgWarner (U.S.)
  • Eaton Corporation (Ireland)

INDUSTRIAL DEVELOPMENT

March 2022: American Axle & Manufacturing, Inc. garnered substantial attention after earning the valued General Motors Overdrive Award, which acknowledged the company's outstanding achievements in sustainability, modernization, connectivity, cost efficiency, inauguration efficiency, and safety standards. This honour not only secure their dedication to excellence but also formed opportunities for future collaborations and partnerships. Such appreciation aids as a key driver in augmenting the company's brand value and reputation in the market.

REPORT COVERAGE

The report provides scrutiny and information according to market sectors. Business overview, financial overview, product portfolio, new project launch, recent development enquiry are the factors included in the profile. The report incorporates completely examined and appraised evidence of the noticeable players and their position in the market by methods for various descriptive tools. The report covers national and regional level market size and forecast. The report gives businesses the facility to research new prospect in many areas. The report shows to be an operational tool that players can use to gain a competitive superiority over their opponents and ensure lasting achievement in the market.

Torque Vectoring Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 13.2 Billion in 2024

Market Size Value By

US$ 80 Billion by 2033

Growth Rate

CAGR of 22.17% from 2025to2033

Forecast Period

2025-2033

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • Hydraulic Clutch
  • Electronic Clutch

By Application

  • Light Commercial Vehicles
  • Heavy Commercial Vehicles
  • Passenger Car

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