Torque Vectoring Market Report 2026

The torque vectoring market size has grown rapidly in recent years. It will grow from $12.48 billion in 2025 to $14.32 billion in 2026 at a compound annual growth rate (CAGR) of 14.8%. The growth in the historic period can be attributed to stricter vehicle safety standards, growth in performance-oriented passenger vehicles, rising adoption of awd systems, increasing electronic content in drivetrains, advancements in vehicle control software.

The torque vectoring market size is expected to see rapid growth in the next few years. It will grow to $25.57 billion in 2030 at a compound annual growth rate (CAGR) of 15.6%. The growth in the forecast period can be attributed to increasing penetration of electric and hybrid vehicles, rising demand for autonomous driving features, expansion of software-defined vehicles, growing investments in advanced driver assistance systems, increasing focus on vehicle efficiency and control. Major trends in the forecast period include increasing adoption of torque vectoring in electric vehicles, rising integration of software-controlled drivetrain systems, growing demand for enhanced vehicle handling and stability, expansion of awd and performance vehicle platforms, enhanced focus on active safety and driving dynamics.

The increasing fuel consumption is expected to drive the growth of the torque vectoring market going forward. Fuel consumption refers to the amount of fuel, typically measured in gallons, liters, or kilometers per liter, that a vehicle or machine uses over a certain distance or duration. Torque vectoring systems can improve fuel efficiency while enhancing performance by reducing power loss due to wheel slip and optimizing power delivery. For instance, in October 2024, according to the U.S. Energy Information Administration, a US-based federal statistical agency, global production of petroleum and other liquid fuels is projected to increase by 2 million barrels per day in 2025, up from 0.5 million b/d in 2024, with non-OPEC+ countries expected to contribute 1.4 million b/d and OPEC+ production anticipated to grow by 0.7 million b/d following this year’s voluntary cuts of 1.3 million b/d. Thus, the rising fuel consumption is driving the growth of the torque vectoring market.

Major companies in the torque vectoring market are focusing on developing innovative solutions, such as brake-free torque vectoring, to improve vehicle stability and handling by precisely distributing torque without brake intervention, reducing wear, and enhancing efficiency. Brake-free torque vectoring operates by electrically directing power to individual wheels, improving traction and stability without engaging brakes, which reduces wear and ensures smoother, more efficient vehicle control. For instance, in May 2024, BorgWarner, a US-based automotive drivetrain supplier, launched its electric Torque Vectoring and Disconnect (eTVD) system for battery electric vehicles (BEVs). The eTVD is an integrated torque management system that intelligently controls wheel torque distribution to enhance stability, traction, and dynamic performance during launch and acceleration. Unlike traditional AWD or mechanical differentials, BorgWarner’s eTVD replaces the conventional differential with a single, software-controlled unit that dynamically distributes torque to individual wheels and provides an on-demand disconnect function, reducing energy losses, brake and tire wear, and vibration while improving handling and efficiency.

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 include 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 2025. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the torque vectoring market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the torque vectoring market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, 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.

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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