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Demand For Sports And Luxury Cars And Enhanced Power Efficiency And Automotive Solutions: A Comprehensive Guide To Top Limited Slip Differential Manufacturers

June 26, 2024 | Automotive & Transportation

A Limited Slip Differential (LSD) is a differential gear train that enables two output shafts to rotate at varying speeds. However, this device reduces the maximum difference between these shafts. An LSD finds major use in sports cars and other high-performance vehicles as they avoid wheelspin under hard acceleration or while turning a corner at high speed. One of the major advantages of this device is that it enhances the power efficiency of a vehicle, boosts traction control, and offers better turning performance. It also improves a driver’s ability to control the vehicle.


Many automakers are increasing their production of sports cars as the number of people participating in recreational activities, such as car racing is growing every year. For instance, LOTUS, a British carmaker, announced that it had manufactured a record 2,200 sports cars in the first half of 2023. Moreover, an increasing number of customers are opting for vehicles that offer efficient performance to enhance their overall driving experience. These factors are expected to fuel the demand for limited slip differentials.


Fortune Business Insights has stated that the market for limited slip differential is predicted to be valued at USD 9.23 billion by 2030, recording a CAGR of 12.39% during the forecast period of 2023-2030. The market stood at USD 3.76 billion in 2022 and USD 4.08 billion in 2023. One of the major trends helping this industry grow is the increasing investments by key limited slip differential manufacturers in their research & development programs to develop electronic limited slip differentials. Top limited slip differentials manufacturers are launching electronic differentials equipped with innovative technologies to increase their flexibility while operating in on-road and off-road driving environments. Such differentials can also offer the required comfort and stability while driving, thereby enhancing the driver’s experience.