The global torque vectoring market is characterized by the presence of many global, regional, and local vendors. The regional market is highly competitive, with all the players continually competing to gain a larger market share. The vendors compete based on reliability, cost, and product quality. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. BorgWarner Inc, Robert Bosch GmbH, Dana Limited, and Magna International Inc. are some of the key players operating in the global market. These companies compete in terms of availability, quality, price, and technology. They consider acquisition as a key strategy in the global torque vectoring market. Although the international players dominate the market, regional and local players with small market shares also have a significant presence.
Furthermore, the companies follow organic and inorganic strategies to strengthen their presence in the global market. They are focusing on product development and expansion to expand their product portfolio and enhance their customer relationships. Additionally, the companies are investing in the development of new and advanced systems with more safety measurements.
Threat of New Entrants
The global torque vectoring market is capital-intensive, and the level of technical expertise required for product development and manufacturing is high. The presence of well-known automotive components companies, such as BorgWarner Inc, Robert Bosch GmbH, Dana Limited, and Magna International Inc, with their strong brand image, make it difficult for the new entrants to create brand value and achieve economies of scale. Moreover, established torque vectoring manufacturers have vast distribution networks and geographic reach, giving them a competitive advantage. Furthermore, the established market players are venturing into new regions through strategic partnerships and joint ventures with local suppliers to increase their market share, reducing the potential profit margins for new entrants. Thus, the threat of new entrants in the global torque vectoring market is expected to be low during the forecast period.
Bargaining Power of Suppliers
Torque vectoring system manufacturers procure both raw materials and additives from suppliers. The raw materials required for manufacturing tires include steel, plastic, and sensors. Several steel suppliers are operating in the global market. Established torque vectoring procures these raw materials in high quantities, which reduces the bargaining power of suppliers to a certain extent. However, torque vectoring companies cannot easily switch suppliers due to the risks involved in the timely delivery of the required quantity and quality of materials from new suppliers. Hence, these manufacturers tend to have long-term contracts with their suppliers. Thus, the bargaining power of suppliers in the global torque vectoring market is expected to be moderate during the forecast period.
Threat of Substitutes
The torque vectoring system has no direct substitute. However, the conventional differential system is used in the vehicle, which cannot control the torque. Torque vectoring systems are mostly installed in luxury, commercial, and electric cars. Hence, the threat of substitutes is expected to be low in the global torque vectoring system market during the forecast period.
Bargaining Power of Buyers
The concentration of buyers is high, as the product is used in various vehicle applications. The buyers prefer purchasing from existing torque vectoring system providers due to the potential risks associated with the product quality and replacement services of new torque vectoring system manufacturers, making the impact of brand identity moderate. However, the switching costs for the buyers are low.
Many automotive OEMs tend to have strategic contracts with torque vectoring system manufacturing companies, enabling them to purchase the product in large quantities and gain high bargaining power. Thus, the overall bargaining power of buyers in the global torque vectoring system market is expected to be moderate during the study period.
Intensity of Rivalry
The intensity of rivalry in the torque vectoring system market is high as the torque vectoring system companies are developing innovative designs to improve the product's operational efficiency. Moreover, market players strategically invest in research & development to offer advanced products. The global market is dominated by top players, such as BorgWarner Inc, Robert Bosch GmbH, Dana Limited, and Magna International Inc. These players continuously compete to increase their respective market shares, while the rest have an intense rivalry, owing to their presence in the unorganized aftermarket.
Thus, moderate market competition, high industry growth, and high product innovation contribute to the high intensity of rivalry in the global torque vectoring system market during the forecast period.
