The all wheel drive market provides enhanced traction and vehicle stability across different terrains. It enables uniform distribution of engine power to all the wheels thereby improving vehicle handling during acceleration, braking and cornering on wet, dry and slippery surfaces as compared to conventional two wheel drive systems. The rising sales of luxury, performance and SUV vehicles globally has boosted the demand for all wheel drive transmissions. The Global All Wheel Drive Market is estimated to be valued at US$ 65.27 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the All Wheel Drive Market Demand are AB Volvo, American Axle & Manufacturing, Inc., BorgWarner Inc., Continental AG, Dana Incorporated, GKN Plc, Honda Motor Company Ltd., JTEKT Corporation, Magna International Inc., Nissan Motor Co., Ltd., Tesla, Inc., Valeo SA, ZF Friedrichshafen AG. These players are focusing on developing advanced all wheel drive systems with features such as real-time torque distribution, enhanced traction and integrated electric motor technology.
The growing demand for luxury, performance and SUV vehicles globally is positively impacting the all wheel drive market. The enhanced traction and stability capabilities of all wheel drive systems make vehicles suitable for rough terrains and extreme weather conditions thereby increasing SUV sales. Additionally, strict emission norms are encouraging auto manufacturers to offer mild hybrid and plug-in hybrid electric vehicles with all wheel drive configurations to improve fuel efficiency.
Technological advancements such as automatic torque vectoring, real-time torque distribution, integrated electric motor technology and vehicle dynamic control algorithms are enhancing the performance capabilities of all wheel drive systems. For instance, Tesla uses dual electric motor technology for its all wheel drive vehicles to achieve optimal power distribution. similarly, ZF developed an intelligent all wheel drive system with electro-mechanical torque vectoring for sports vehicles.
Market Trends
The introduction of automatic torque vectoring technology enables intelligent distribution of power between the left and right wheels of the same axle thereby improving agility, handling and safety. This trend is gaining traction in performance and premium passenger vehicles. Additionally, the Integrated Starter Generator (ISG) technology enables the use of a compact electric motor along with the all wheel drive configuration to boost fuel efficiency in hybrid vehicles.
Another key trend is the development of dynamic torque vectoring all wheel drive systems integrated with vehicle stability control algorithms. This provides optimal traction and stability under different dynamic driving conditions. Such advanced systems are increasingly being used in luxury SUVs, performance cars and electric vehicles.
Market Opportunities
The emerging preference for leisure vehicles and SUVs among global consumers for everyday commute and weekend getaways is creating opportunities for all wheel drive systems in the mid-size passenger vehicle segment. Furthermore, stringent safety and emission regulations will accelerate automakers to offer electrified all wheel drive configurations in commercial vehicles as well over the coming years. Lastly, the increasing sales of performance sports cars particularly in Asia Pacific and Europe is expected to drive innovations in lightweight all wheel drive components with higher power density.
Impact of COVID-19 on All Wheel Drive Market growth
The COVID-19 pandemic impacted the sales and production of automobiles across the globe including the all-wheel drive market. Factory shutdowns disrupted global supply chains and reduced vehicle production in 2020. As the pandemic spread, consumer spending declined sharply. People delayed the purchase of new vehicles including SUVs and trucks which use AWD for better traction and stability in different terrains. This affected demand for all-wheel drive systems in original equipment.
However, as restrictions eased in 2021, automakers ramped up production to meet pent-up demand. SUV sales picked up in major markets as people preferred personal mobility over public transport due to safety concerns. Vehicle demand and all-wheel drive system sales are recovering steadily but supply chain issues continue to challenge full production. Automakers are optimistic about long term growth on increased preference for SUVs, crossovers and pickup trucks with enhanced traction and handling benefits of AWD systems. They are focusing on technologies to reduce component costs and complexity for OEMs.
Geographical regions with high All Wheel Drive Market concentration
North America has traditionally been one of the largest markets for all-wheel drive vehicles due to popularity of SUVs and crossovers in the United States and Canada. With harsh winters and off-road conditions in some regions, AWD provides better traction and control. According to various estimates, the US accounted for over 30% of the global AWD market value in the last few years driven by sales of Ford and GM trucks and Jeep SUVs which use advanced AWD systems.
Fastest growing region in All Wheel Drive Market
The Asia Pacific region has seen strong growth in AWD vehicle sales led by China, Japan and India. With increasing disposable incomes, more consumers are opting for larger SUVs and sophisticated crossovers from brands like Toyota and Hyundai. Severe winter conditions in northern China and India's focus on developing high-performance indigenous vehicles are driving demands. Furthermore, countries like Malaysia, Indonesia and Thailand see growing popularity of AWD for off-road performance. Asia Pacific is projected to become the fastest growing regional market during the forecast period.
Get more insights on All Wheel Drive Market
The Global Automotive All Wheel Drive Market Research Report - Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2026 gives an evaluation of the market developments based on historical studies and comprehensive research respectively.
The market segments are also provided with an in-depth outlook of the competitive landscape and a listing of the profiled key players.The comprehensive value chain analysis of the market will assist in attaining better product differentiation, along with detailed understanding of the core competency of each activity involved.
The market attractiveness analysis provided in the report aptly measures the potential value of the market providing business strategists with the latest growth opportunities.The report classifies the market into different segments based on vehicle type and system type.
These segments are studied in detail incorporating the market estimates and forecasts at regional and country level.
The segment analysis is useful in understanding the growth areas and probable opportunities of the market.Final Report will cover the impact of COVID-19 on this industry.Browse the complete Global Automotive All Wheel Drive Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2026 @ https://www.decisiondatabases.com/ip/16721-automotive-all-wheel-drive-market-reportThe report also covers the complete competitive landscape of the global Automotive All Wheel Drive market with company profiles of key players such as:American Axle ManufacturingBorgwarner Inc.Continental AGDana Holding CorporationEaton Corporation PLCGKN PLCJtekt CorporationMagna International Inc.Oerlikon Inc.ZF Friedrichshafen AGA detailed description of each has been included, with information in terms of H.Q, future capacities, key mergers & acquisitions, financial overview, partnerships, collaborations, new product launches, new product developments and other latest industrial developments.SEGMENTATIONS IN THE REPORT:By Vehicle Type :Passenger CarsLight Commercial VehicleHeavy Commercial VehicleBy System Type:Automatic AWD SystemsManual AWD SystemsBy Geography:North America (NA)Europe (EU)Asia Pacific (APAC)Rest of the World (RoW)Download Free Sample Report of Global Automotive All Wheel Drive Market @ https://www.decisiondatabases.com/contact/download-sample-16721The Global Automotive All Wheel Drive Market has been exhibited in detail in the following chapters –Chapter 1 Automotive All Wheel Drive Market PrefaceChapter 2 Executive SummaryChapter 3 Automotive All Wheel Drive Industry AnalysisChapter 4 Automotive All Wheel Drive Market Value Chain AnalysisChapter 5 Automotive All Wheel Drive Market Analysis By Vehicle TypeChapter 6 Automotive All Wheel Drive Market Analysis By System TypeChapter 7 Automotive All Wheel Drive Market Analysis By GeographyChapter 8 Competitive Landscape Of Automotive All Wheel Drive CompaniesChapter 9 Company Profiles Of Automotive All Wheel Drive IndustryPurchase the complete Global Automotive All Wheel Drive Market Research Report @ https://www.decisiondatabases.com/contact/buy-now-16721Other Reports by DecisionDatabases.com:Global Solid State Drive Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2026Global Variable Frequency Drive Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2026Global Harmonic Drive Market Research Report – Industry Analysis, Size, Share, Growth, Trends and Forecast Till 2026About-Us:DecisionDatabases.com is a global business research reports provider, enriching decision makers and strategists with qualitative statistics.
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