US Torque Vectoring Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2035)
US Torque Vectoring Market: by Type (Active Torque Vectoring, Passive Torque Vectoring), Application (Automotive, Aerospace, Off-Highway Vehicles, Defense, Railways, Others), Distribution Channels (OEM, Aftermarket), Technology (Hardware, Software), Organization Size (Small, Medium, Large) and By US Historical & Forecast Period (2020-2035) Comprehensive Study 2025
Last Updated: 23-07-2025 | Format: PDF | Report ID:1151 | Author: Alice
US Torque Vectoring Market Size, Share, and Forecast (2020-2035)
The US torque vectoring market is a dynamic segment within the automotive and industrial landscape. Defined as the integration of advanced systems to independently control and distribute torque to a vehicle’s wheels, torque vectoring enhances vehicle stability, traction, and handling. The increasing adoption of electric and all-wheel-drive systems has spurred demand for torque vectoring across various sectors, including automotive, aerospace, defense, and off-highway vehicles. By 2025, the market size is estimated at USD 1,070 Million, with projections reaching USD 3,640 Million by 2035, reflecting a CAGR of 12.9%. Industry developments are influenced by innovations in software and hardware solutions, regulatory standards on vehicle safety, and the drive for higher efficiency. Key players are making significant investments in R&D, while partnerships and product launches continue to shape the competitive landscape in the US market.
Latest Market Dynamics
Key Drivers
Growing demand for vehicle safety and dynamic control, exemplified by ZF Friedrichshafen's launch of integrated torque vectoring solutions in 2024, is propelling market growth as manufacturers address strict safety standards.
Rising adoption of electric vehicles is driving torque vectoring integration, with Tesla and Ford advancing EV-specific vectoring systems for improved traction and efficiency in their 2025 models.
Key Trends
Combining hardware and software control algorithms is an accelerating trend, as seen with Bosch introducing hybrid torque vectoring modules, blending real-time software management with robust mechanical actuation.
Automotive OEM partnerships with technology firms to fast-track vectoring integration, highlighted by the 2025 partnership between GM and Magna International for next-gen AWD EV torque vectoring platforms.
Key Opportunities
Expansion in off-highway and defense vehicles presents strong growth opportunities, with Dana Incorporated recently securing contracts to deliver torque vectoring systems to military vehicle fleets.
Aftermarket retrofitting for older vehicle models, where BorgWarner launched modular torque vectoring upgrade kits aimed at the performance car enthusiast segment in early 2025.
Key Challenges
Complexity of integrating torque vectoring systems with existing vehicle ECUs is a major concern, as noted by GKN Automotive which is developing simplified integration protocols for automakers.
Cost barriers for mid-market and small manufacturers, with JTEKT Corporation highlighting the need for cost-effective solutions in its 2025 investor update.
Key Restraints
High initial costs and resource-intensive R&D are restraining broad adoption, particularly in low-cost vehicle segments, as acknowledged by American Axle & Manufacturing.
Limited technical expertise and standardization challenges in integrating software-driven vectoring solutions within legacy platforms, as highlighted in Continental AG's latest technical report.
Active torque vectoring dominates the US market with 48% share in 2025, reflecting growing integration in premium and electric vehicles due to superior handling benefits. Passive torque vectoring commands 27%, primarily used in traditional vehicles requiring less complex systems. Electric torque vectoring, fueled by the EV boom, adds another 13%. Hydraulic and mechanical systems, while valued for specialized and legacy use cases, represent 8% and 3% respectively. The remaining 1% is covered by nascent or niche technologies, indicating ongoing innovations but limited market penetration at present.
US Torque Vectoring Market Share by Application, 2025
Automotive applications account for the largest market share at 62% in 2025, driven by the widespread adoption in passenger and commercial vehicles, especially in the premium and EV segments. Aerospace follows with 15%, reflecting specialized uses in aircraft control systems. Off-highway vehicles hold 10%, mainly in agriculture and construction. Defense and railways contribute 7% and 3% respectively, supported by government procurement and infrastructure modernization initiatives. The 'Others' category includes niche industrial and robotics applications, representing 3%.
US Torque Vectoring Market Revenue (USD Million), 2020-2035
The US torque vectoring market revenue is expected to grow steadily from USD 790 Million in 2020 to approximately USD 1,070 Million in 2025, and further to USD 3,640 Million by 2035. This remarkable growth is attributed to technological advancements, increased vehicle electrification, and new applications in off-highway and defense sectors. Key market players are investing in comprehensive upgrade programs, resulting in expanding market reach and revenue streams across different segments and regions.
US Torque Vectoring Market YoY (%) Growth, 2020-2035
The year-over-year growth of the US torque vectoring market reflects a compound surge, peaking at 13.4% in 2025 as innovation and adoption rise in core sectors, especially automotive. The pace sustains above 12% into 2030 as new vectoring solutions launch across commercial and specialty vehicles. By 2035, growth normalizes around 11%, indicating a maturing, technology-driven market where expansion is increasingly tied to software advancements and integration into next-generation vehicle platforms.
The Midwest region leads the US torque vectoring market in 2025 with 34% share, hosting major automotive manufacturing hubs and supplier networks. The South accounts for 27%, propelled by EV production sites and Tier 1 suppliers. The West, benefiting from technology-driven adoption and innovation clusters, holds 25%. The Northeast represents 14%, with significant demand in defense and specialized vehicle applications. This regional split highlights the nationwide dynamics underpinning the torque vectoring market's growth.
GKN Automotive maintains the leading position in 2025 with a 19% market share, leveraging advanced portfolio innovations and established OEM relationships. Bosch and ZF Friedrichshafen follow with 15% and 13% respectively, underpinned by integrated vectoring solutions and global supply strength. BorgWarner, Dana Incorporated, and Continental AG collectively contribute 27%, indicating a concentrated but competitive market. Other players, including emerging specialists and regional suppliers, represent the remaining 26%, reflecting ongoing industry diversity and consolidation trends.
OEMs remain the primary buyers, accounting for 57% of total market purchases in 2025, driven by direct integration into new vehicle platforms. Aftermarket buyers, including performance enthusiasts and retrofitting companies, account for 23%, while distributors and retailers together hold 15%. E-commerce and others contribute an additional 5%, highlighting the diversification in procurement channels. This buyer distribution reflects the market's evolution toward both original equipment and specialized upgrade pathways.
June 2024: ZF Friedrichshafen announced a new partnership with a leading EV maker to supply advanced torque vectoring systems for next-generation electric SUVs.
July 2024: GKN Automotive launched a simplified torque vectoring module focused on cost-effective integration for mainstream vehicle brands.
August 2024: Tesla revealed its proprietary software-based torque vectoring for the new Model X Plaid, offering improved traction and dynamic performance.
September 2024: Magna International and GM entered a strategic alliance to co-develop torque vectoring solutions for upcoming electric AWD trucks.
October 2024: BorgWarner introduced a modular aftermarket torque vectoring kit targeting performance-focused vehicle owners and retrofitters.
Frequently Asked Questions
About the Author
Alice
Senior Research Consultant
Alice is a Senior Research Consultant specializing in market research, industry analysis, and business consulting across Automotive & Transportation. Alice brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Alice has helped organizations translate data into actionable growth strategies.
