USD 14.6 billion
Traction Control System Market Size, Share, and Growth Analysis
Traction Control System Market By Application (Passenger Vehicles, Commercial Vehicles), By System Type (Mechanical Traction Control, Electronic Traction Control), By Component (Sensors, Actuators), By Vehicle Type (Luxury Cars, Economy Cars), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG45M2024 |
Region:
Global |
Published Date: May, 2025
Pages:
180
|Tables:
92
|Figures:
69
Format -
Traction Control System Market Insights
Global Traction Control System Market size was valued at USD 14.6 billion in 2023 and is poised to grow from USD 15.61 billion in 2024 to USD 26.62 billion by 2032, growing at a CAGR of 6.9% during the forecast period (2025-2032).
Growing automotive production, rising emphasis on vehicle safety, high demand for electric vehicles (EVs), increasing sales of luxury vehicles, and imposition of stringent safety regulations in emerging countries are helping bolster the demand for traction control systems.
The global surge in automotive manufacturing, especially in emerging economies, directly boosts demand for traction control systems. Stringent road safety regulations and mandatory implementation of advanced driver assistance systems (ADAS) in many countries are also favoring traction control system market growth. The transition toward electric and hybrid vehicles is creating new demand for advanced traction systems. Luxury and premium vehicles typically integrate cutting-edge safety and performance systems as standard offerings, including traction control thereby increase in their sales also drives revenue generation.
On the contrary, high costs of advanced safety systems, technical challenges in retrofitting and integration with old vehicles, maintenance complexity and high repair costs, and lack of standardization in developing countries are predicted to hamper the global traction control system market penetration in the long run.
How Can AI Change the Future of Traction Control?
Artificial Intelligence (AI) and machine learning are transforming traction control by enabling predictive, rather than reactive, interventions. Modern TCS systems can analyze real-time data—such as weather conditions, driver behavior, road gradient, and load distribution—to forecast traction loss and adjust torque accordingly. Predictive algorithms allow smarter braking and acceleration, improving safety and performance, especially on slippery or uneven terrain. These intelligent systems are particularly useful in electric and autonomous vehicles where precise control is critical. This trend is driving collaborations between automakers and tech companies, accelerating innovation and opening new avenues for advanced traction technologies across vehicle segments.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
On-premises
Fastest Growth
Cloud
Growth Rate
6.9% CAGR
Global Traction Control System Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Traction Control System Market Segments Analysis
Global Traction Control System Market is segmented by Application, System Type, Component, Vehicle Type and region. Based on Application, the market is segmented into Passenger Vehicles, Commercial Vehicles, Motorcycles and Construction Equipment. Based on System Type, the market is segmented into Mechanical Traction Control, Electronic Traction Control and Hydraulic Traction Control. Based on Component, the market is segmented into Sensors, Actuators, Control Modules and Transmission Systems. Based on Vehicle Type, the market is segmented into Luxury Cars, Economy Cars, SUVs and Trucks. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Which Type of Traction Control System is Highly Sought-after?
The electronic traction control segment is forecasted to lead the global traction control system market revenue going forward. High precision and responsiveness offered by electronic traction control systems is helping bolster the dominance of this segment. Its compatibility with ABS, ESC, and other smart systems ensures its leading role across most vehicle segments globally.
Meanwhile, the demand for hydraulic traction control systems is slated to rise at an impressive CAGR going forward. Growing adoption of hydraulic traction control systems in heavy-duty vehicles, off-road applications, and construction machinery is creating new opportunities.
Which Component of Traction Control System is Sold Most?
The control modules segment is slated to hold the highest traction control system market share in the future. The role of control modules as central intelligence for real-time decision-making in traction control operations makes it the most dominant segment. Their integration with advanced driver assistance systems (ADAS), ABS, and ESC makes them critical in modern vehicles
On the other hand, the demand for sensors is slated to rise at a robust pace as per this traction control system market forecast. Growing demand for real-time, high-precision vehicle data is expected to bolster the sales of traction control sensors in the long run. Technological advancements in sensor miniaturization, accuracy, and durability are fueling rapid growth.
Global Traction Control System Market By Deployment
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Traction Control System Market Regional Insights
Why are Sales of Traction Control Systems High in Asia Pacific?
The presence of an established automotive manufacturing industry and rising road safety awareness are expected to help Asia Pacific dominate traction control system demand on a global level. Imposition of stringent vehicle safety regulations and increasing consumer demand for vehicles with advanced safety systems are also cementing the dominance of this region. Urbanization, expanding road networks, and rising disposable income are secondary factors that are expected to indirectly favor the adoption of traction control systems in the future.
Traction Control System Market in Japan
Presence of a strong domestic automotive manufacturing industry backed by major automakers such as Toyota, Honda, and Nissan helps Japan emerge as a mature market for traction control system. The Japanese government mandates electronic stability control in new vehicles, ensuring comprehensive traction control system coverage. Japan’s narrow, often wet roads and dense urban traffic highlight the importance of traction and stability control. Ongoing R&D, particularly in predictive algorithms and sensor fusion, positions Japan as a key innovation hub for traction control system technologies.
Traction Control System Market in South Korea
Advanced automotive manufacturing, strong exports, and growing domestic safety standards characterize the traction control system demand in South Korea. Hyundai, Kia, and Genesis are leading automotive companies in the country focusing on integrating traction control systems and other safety solutions. South Korea’s mountainous terrain and seasonal weather increase demand for enhanced traction systems. Consumer expectations for technology-rich vehicles drive traction control system adoption in both domestic and export models.
Will Investing in Europe Offer Good Returns for Market Players?
Stringent safety regulations, high automotive safety awareness, and strong adoption of ADAS technologies make Europe an attractive market for traction control system providers. German, French, and Scandinavian automakers are focusing on integration advanced safety solutions in all their vehicles to comply with European Union’s safety mandates. High EV penetration and luxury car production are also slated to bring in more revenue for traction control system companies operating in this region.
Traction Control System Market in United Kingdom
Rapidly rising sales of luxury vehicles and the presence of a safety-conscious consumer base are primarily influencing traction control system demand. Automakers such as Jaguar, Bentley, and Land Rover emphasize TCS integration in both luxury and off-road models. Emphasis on compliance with EU safety mandates and growing EV adoption are also expected to steadily drive the demand for traction control systems in the United Kingdom through 2032 and beyond.
Traction Control System Market in Germany
Strict EU safety mandates, world-class OEMs, and a performance-focused car culture are making Germany a highly rewarding market for traction control system providers. The presence of leading automakers such as BMW, Mercedes-Benz, and Volkswagen and their high emphasis on building luxury vehicles are helping bolster the demand for sophisticated traction control systems. The country’s autobahn network and winter driving conditions underscore the importance of stable handling and road grip. Germany's combination of regulatory strength, consumer demand, and technical expertise cements its dominance in Europe.
Traction Control System Market in France
Presence of leading automakers such as Renault, Peugeot, and Citroën is helping steadily drive the demand for traction control systems in France. Urban driving and wet weather conditions across regions like Normandy and Brittany are also forecasted to create new opportunities for traction control system providers. France's push toward environmental sustainability and smart cities supports tech-driven mobility solutions, which also drives adoption of traction control systems.
How are Sales of Traction Control Systems Performing in North America?
High vehicle ownership, presence of safety-conscious consumers, and robust enforcement of automotive safety regulations are helping promote adoption of traction control systems in North America. Surging demand for SUVs, pickups, and premium vehicles in the region is also expected to bolster the adoption of traction control systems. Growing EV adoption and autonomous vehicle R&D are also forecasted to create new opportunities for traction control system companies in the long run.
Traction Control System Market in United States
The National Highway Traffic Safety Administration (NHTSA) mandates electronic stability control in all vehicles in the United States, which also promotes the adoption of traction control system as well. High SUV and pickup sales, extreme weather in several states, and growing electric vehicle (EV) adoption are other factors that are expected to boost revenue generation in the country. Ford and Bosch North America are leading innovators focusing on revolutionizing automotive safety systems.
Traction Control System Market in Canada
Strict automotive safety regulations, winter weather conditions, and strong vehicle ownership rates are boosting the adoption of traction control systems in Canada. Harsh winters and icy roads make traction control critical for safe driving, especially in provinces like Ontario and Quebec. Prioritization of safety and vehicle reliability by consumers and increasing cross-border technology integration are also offering new business scope for market players in the long run.
Global Traction Control System Market By Region
- Largest
- Fastest
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Traction Control System Market Dynamics
Traction Control System Market Drivers
Increased Awareness of Road Safety in Developing Nations
- Growing prevalence of traffic accidents in developing countries such as India, Brazil, and Indonesia has led to increased awareness regarding vehicular safety. Governments, NGOs, and auto manufacturers are actively investing in road safety campaigns, crash testing, and public education. This awareness has resulted in the prioritization of safety features such as traction control systems in vehicles by consumers.
Technological Advancements in Sensor and Control Systems
- Innovation in sensors, microcontrollers, and software algorithms is improving the performance, reliability, and cost-effectiveness of traction control systems. Advanced gyroscopic sensors, wheel speed detectors, and real-time analytics enable faster detection of wheel slippage and more precise torque modulation. These advancements allow TCS to function seamlessly in various road and weather conditions, enhancing overall vehicle control. Hence, making technological advancements crucial to the global traction control system market outlook in the future.
Traction Control System Market Restraints
Maintenance Complexity and Repair Costs
- Traction control systems are often made up of sophisticated electronics, sensors, and control units that can be costly and complex to maintain or repair. Long wait times or high expenses for diagnosis and repairs in developing countries with limited access to certified service centers or trained technicians could reduce customer trust in these offerings. Additionally, aftermarket availability of TCS components is limited, making repairs more expensive than conventional braking systems. These issues can influence buyers to opt for simpler vehicles without traction control systems.
Lack of Standardization in Emerging Markets
- Vehicle safety regulations are not uniformly enforced in mutliple emerging countries, and standards vary widely across manufacturers. This lack of regulatory standardization results in inconsistent adoption of traction control systems. Without legal mandates, OEMs often skip non-essential safety features to reduce vehicle costs. Additionally, limited consumer awareness and low demand for safety-enhanced vehicles further hinder the adoption of traction control system going forward.
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Traction Control System Market Competitive Landscape
Traction control system providers should focus on creating solutions for autonomous and electric vehicles to stay relevant in the future. Targeting countries with high sales of luxury vehicles is a key strategy for companies looking to boost their revenue as per this global traction control system market analysis.
Use of advanced technologies such as AI and machine learning are providing immense scope of innovation for traction control system companies. Here’s a startup that is expected to have a significant impact on the traction control system industry.
- Wayve: This United Kingdom-based startup is pioneering autonomous driving technology through its Embodied AI platform. This system enables vehicles to learn and adapt to complex driving environments using real-world data. The 2017-founded company is integrating advanced traction control with adaptive learning to enhance vehicle stability and safety across diverse conditions. In May 2024, Wayve secured $1.05 billion in a Series C funding round led by SoftBank. Nvidia and Microsoft were other investors for this round. The new capital is expected to help accelerate the development of Wayve’s technology.
Top Player’s Company Profiles
- Robert Bosch GmbH (Germany)
- Continental AG (Germany)
- Denso Corporation (Japan)
- ZF Friedrichshafen AG (Germany)
- Autoliv Inc. (Sweden)
- Hitachi Astemo, Ltd. (Japan)
- Knorr-Bremse AG (Germany)
- ADVICS Co., Ltd. (Japan)
- BorgWarner Inc. (USA)
- Aisin Corporation (Japan)
- Eaton Corporation PLC (Ireland)
- Hyundai Mobis Co., Ltd. (South Korea)
- Mitsubishi Electric Corporation (Japan)
- Infineon Technologies AG (Germany)
- Sensata Technologies Holding PLC (USA)
- Nidec Corporation (Japan)
- WABCO Holdings Inc. (USA)
- Toyota Motor Corporation (Japan)
- Honda Motor Co., Ltd. (Japan)
- Magna International Inc. (Canada)
Recent Developments in Traction Control System Market
- In January 2025, Ather, an Indian electric two-wheeler manufacturer announced the launch of its new Ather 450 2025 models. The lineup includes Ather 450, Ather 450X, and Ather 450 Apex variants that come with upgraded features such as a multi-mode traction control system and regenerative braking.
- In December 2024, Kawasaki, a renowned Japanese motorcycle manufacturer announced the launch of Z650RS 2025 model in the Indian market. The vehicle priced at ex-showroom INR 7.2 lakhs comes with Kawasaki Traction Control System and a 649-cc liquid cooled engine generating 67 bhp controlled by a 6-speed transmission.
- In May 2024, Suzuki, a leading Japanese automaker announced the launch of a limited Jimny 5-door Heritage edition in the Australian market. The Made-in-India vehicle features an electronic traction control system along with other safety features with the limited-edition cosmetic enhancements. Only 500 units of the limited-edition variant were made available in the country.
Traction Control System Key Market Trends
- Compact System Designs for EVs and Small Vehicles: As electric and compact vehicles gain popularity, TCS components are being redesigned to be lighter, smaller, and more energy efficient. Traditional traction control systems were often bulky and power-intensive, but newer iterations use miniaturized sensors, integrated ECUs, and optimized software for seamless control. This traction control system market trend aligns with broader automotive goals of efficiency, sustainability, and electrification.
- Integration with Advanced Driver-Assistance Systems (ADAS): Seamless integration of traction control system with broader ADAS platforms, including lane-keeping assist, adaptive cruise control, and electronic stability control (ESC) is expected to be highly popular in the future. Rising emphasis on designing unified control units that process sensor data to optimize traction, braking, and steering in real-time is also making this an indispensable traction control system industry trend for the long run.
Traction Control System Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, growing emphasis on improving vehicle safety and rising automotive production are slated to primarily drive the demand for traction control systems going forward. However, maintenance complexity and lack of standardization are expected to slow down the adoption of traction control system technology in the future. Asia Pacific is forecasted to emerge as the leading market for traction control system providers owing to automotive manufacturing industry and rising road safety awareness. Integration with ADAS and development of compact designs for EVs are slated to be key trends driving the traction control system sector across the forecast period.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 14.6 billion |
| Market size value in 2032 | USD 26.62 billion |
| Growth Rate | 6.9% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Traction Control System Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Traction Control System Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Traction Control System Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Traction Control System Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Traction Control System Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Traction Control System Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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