Global All Wheel Drive Market Size By Component (Power Transfer Unit, Propeller Shaft), By Vehicle Type (Commercial Vehicle, Passenger Vehicle), By EV Type (Plug-In Hybrid Electric Vehicle (PHEV), Battery Electric Vehicles (BEV)), By Geographic Scope And Forecast

All Wheel Drive Market Size And Forecast

All Wheel Drive Market size was valued at USD 33.1 Billion in 2021 and is projected to reach USD 67.8 Billion by 2030, growing at a CAGR of 8.28% from 2023 to 2030.

Global demand for all-wheel drive systems is being driven by rising demand for SUVs, luxury vehicles, and increased vehicle safety, stability, and driving dynamics. For producers of all-wheel drive systems, the environmental requirements and excessive fuel consumption present significant obstacles. The Global All Wheel Drive Market report provides a holistic evaluation of the market. The report offers a comprehensive analysis of key segments, trends, drivers, restraints, competitive landscape, and factors that are playing a substantial role in the market.

Global All Wheel Drive Market Definition

The term “all-wheel drive” (AWD) describes a system where the engine of an automobile distributes power to all four wheels. AWD, as its name suggests, distributes power to each wheel to assist keep your car moving more steadily on slick, icy roads than a car with front-wheel drive or rear-wheel drive. There are actually two different types of AWD systems. One method, known as “full-time AWD,” allows an automobile to simultaneously power all four wheels. All of the tires can receive electricity from the second system, although this only happens when it is necessary. It operates mostly in two-wheel drive mode. The latter technology is known as “part-time AWD” for this reason.

Both full-time and part-time AWD systems often function without the driver’s input. Instead of two wheels, all four receive torque through a series of axles and spin at various speeds at the same time. People who live in places with frequently snowy and rainy weather really enjoy AWD vehicles. AWD systems are safer and provide drivers more control because they provide extra traction on slick roadways. Additionally, acceleration may be simpler due to less slippage and equal traction distribution across all four tires. You seldom ever get anxious when your car suddenly slips because it can travel steadily. Additionally, it is well-liked in high-performance automobiles due to its superior traction control.

Global All Wheel Drive Market Overview

The rising demand for increased driving dynamics, stability, and safety for vehicles is pushing up the market. The WHO Global Status Report on Traffic Safety estimates that The lives of almost 1.3 million people are cut short annually as a result of traffic accidents. There are an additional 20 to 50 million people who sustain non-fatal injuries, many of whom go on to develop disabilities. Countries have been motivated to enact strict car safety regulations by the rising accident incidence.

In terms of automobile safety regulations, the European Union and the US government are at the forefront. As a result, OEMs are releasing cars with built-in safety technologies that manage the stability and safety of the car as well as improve driving dynamics. When opposed to RWD or FWD systems, all-wheel drive (AWD) systems contribute to the vehicle’s stability by giving it more capabilities through improved traction.

The all-wheel-drive system’s high price as compared to 4WD and 2WD is limiting the market growth. The cost of an all-wheel drive system is higher than that of a vehicle with a traditional two-wheel drive (FWD or RWD drive system). Depending on the kind of systems and components used, the price of the AWD and 4×4 systems can range from $1,000 to $4,000. Because it raises the entire cost of the car, this restricts the market for the technology. The initial cost of the vehicle is significant, despite the fact that cars with AWD or 4WD systems have superior resale values.

However, rising opportunities from rising demand for automatic AWD system is propelling the market growth. The automatic AWD system functions as a hybrid of all existing systems, including manual and 2WD AWD. The modern AWD-Disconnect system has several functions, such as determining whether AWD is necessary, determining the steering angle needed to distribute torque to the front and rear wheels separately, employing electronic power steering to better determine the angle, and so on. The system created by Honda Motor Company enhances vehicle stability, can adapt to driver input, and can deliver greater performance. Additionally, it combines individually controlled torque distribution to the left and right rear wheels with front-rear torque distribution control. According to the driving conditions, this results in the effortless distribution of the ideal amount of torque to all four wheels.

Global All Wheel Drive MarketSegmentation Analysis

The Global All Wheel Drive Market is Segmented on the basis of Component, Vehicle Type, EV Type, And Geography.

All Wheel Drive Market, By Component

• Power Transfer Unit
• Propeller Shaft
• Final Drive Unit
• Differential
• Transfer Case

Based on Component, the market is segmented into Power Transfer Unit, Propeller Shaft, Final Drive Unit, Differential, and Transfer Case. The Differentials segment, which currently has the biggest market share, is anticipated to grow at the fastest rate over the projection period. When traction is limited, automatic all-wheel drive cars use a differential to increase traction. More power is automatically applied to the wheels where there is no slippage as the wheels start to slip. There is no mechanism for the driver to change from an all-wheel drive to any other drive mode. However, compared to 4WD, FWD, or RWD systems, this technology offers significantly inferior fuel efficiency. As a result, there is a detaching AWD system that activates or deactivates the AWD system to solve this issue.

Due to its operations that lead to overheating, the differential experiences continuous wear and tear. Recent advancements in design enable greater performance even in high-performance environments. As an advanced electronic differential, the Torque Vectoring Differential (TVD) controls the torque distribution to each individual wheel, minimizing power loss and overheating.

All Wheel Drive Market, By Vehicle Type

• Commercial Vehicle
• Passenger Vehicle

Based on Vehicle Type, the market is segmented into Commercial Vehicle and Passenger Vehicle. The market is dominated by the passenger car sector. AWD systems were only common in high-end (luxury) passenger cars and SUVs because of their higher cost. But as technology has advanced and consumer demand for a safe drive system for all climatic and tire situations has grown, manufacturers have been encouraged to produce the AWD drive system, which is affordable and can be offered across all vehicle segments. AWD systems for passenger cars and small utility vehicles have begun to be introduced globally by OEMs in response to this “buyer-driven demand” without significantly increasing the price of the vehicle.

All Wheel Drive Market, By EV Type

• Plug-in Hybrid Electric Vehicle (PHEV)
• Battery Electric Vehicles (BEV)

Based on EV Type, the market is segmented into Plug-in Hybrid Electric Vehicle (PHEV) and Battery Electric Vehicles (BEV). During the anticipated period, Battery Electric Vehicles (BEV) will hold the biggest market share. The demand for AWD systems in BEVS is being fueled by elements including tightening laws on passenger safety, the simplicity of EV AWD systems, and the necessity for greater performance. Additionally, BEVs have advanced computer systems and sensors, which lower the expense of auxiliary electronics systems. Batteries are the most expensive part of an electric vehicle, therefore putting a second motor up front to provide all-wheel drive is expected to lower the cost of an all-wheel-drive BEVS.

All Wheel Drive Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Based on Regional Analysis, the Global All Wheel Drive Market is classified into North America, Europe, Asia Pacific, Rest of the World. The biggest market share is held by Asia-Pacific. One of the world’s largest industrial and manufacturing regions is the Asia-Pacific region. In 2021, the region’s two largest manufacturing nations, China and India, contributed 7.1% and 2.3%, respectively, of the total national revenues to the automotive sector. China and India have two of the largest road networks in the world. According to the Road Chronicle, China and India constructed roads at a daily rate of 47 km and 29 km, respectively, in 2019. Sports utility vehicles (SUVs) are the most popular automobiles in China and India, whilst sedans and MUVs (Multi Utility Vehicles) are preferred in Japan and South Korea.

The increased demand for such All Wheel Drive vehicles has increased the requirement for all-wheel drive systems. Additionally, there are initiatives to enhance fuel-efficient transportation, according to the national government. Furthermore, Asian countries are setting the bar for the adoption of fuel-efficient vehicles, which is anticipated to push the region to the top of the All Wheel Drive Market.

Key Players

The “Global All Wheel Drive Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are American Axle & Manufacturing, Inc., GKN Plc, Dana Incorporated, Continental AG, AB Volvo, BorgWarner Inc., JTEKT Corporation, Honda Motor Company Ltd., Magna International Inc., Nissan Motor Co., Ltd., Tesla, Inc.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis.

Key Developments

• In March 2022 Hyundai and BorgWarner Inc. agreed to a supply deal. According to the agreement, BorgWarner Inc. will provide an integrated drive module (IDM) for Hyundai’s planned A-segment electric vehicle manufacturing.
• In November 2021 The manufacturing and assembly of 3-in-1 electric drive technology for REE Automotive Ltd. were disclosed by American Axle & Manufacturing Inc. Full volume manufacture of the electric drive units is anticipated to begin in 2024 and will be produced at American Axle & Manufacturing Inc.’s Advanced Technology and Development Center in Detroit.
• In October 2020 Magna International Inc. agreed to manufacture its first EV component for an EV start-up. The Ocean SUV will be constructed by Fisker Inc., an electric vehicle company based in California, using Magna’s automotive components.
• In June 2020 A contract was inked by JTEKT Corporation and Plug and Play LLC, a well-known worldwide innovation platform, to collaborate on fostering startups alongside major international corporations.

Ace Matrix Analysis

The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.

Market Attractiveness

The image of market attractiveness provided would further help to get information about the region that is majorly leading in the Global All Wheel Drive Market. We cover the major impacting factors that are responsible for driving the industry growth in the given region.

Porter’s Five Forces

The image provided would further help to get information about Porter’s five forces framework providing a blueprint for understanding the behavior of competitors and a player’s strategic positioning in the respective industry. Porter’s five forces model can be used to assess the competitive landscape in the Global All Wheel Drive Market, gauge the attractiveness of a certain sector, and assess investment possibilities.

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