LONDON, December 1, 2015 /PRNewswire/ --
The global light vehicle all-wheel drive (AWD) market is expected to outpace the rest of the market, with a 2015-2030 compound annual growth rate (CAGR) of 4.5% compared to a global total industry volume (TIV) CAGR of 2.6%, according to just-auto's QUBE automotive research service.
The ever-growing popularity of crossovers and SUVs - particularly the growing number of B- and C-segment SUVs and crossovers in OEMs' portfolios - has brought an increase in the global demand for AWD systems.
Additionally, just-auto's QUBE analysts state that AWD has moved beyond a niche requirement in traditional passenger cars in certain markets (for example the North American "snowbelt") to become a mainstream option in more temperate climes, demonstrated by BMW's recent decision to offer xDrive variants of its cars in the UK market.
In all markets, AWD is expected to post stronger growth than the market's outright production volume. For example, even in North America - with its well-established AWD market - the TIV CAGR in the period is forecast to be a meagre 0.9%, compared to a much healthier AWD growth of 1.8%. Growth is also predicted for South Korea and Japan, where export substitution will result in negative TIV CAGRs for the period, with AWD CAGR forecast to be 2.3% in both cases.
just-auto's QUBE analysts expect the Chinese market to post the healthiest AWD market growth. An AWD CAGR of 8.9% will see the country gaining ground on North America as the world's largest AWD market by 2030, with AWD volume of nearly 7 million compared to North America's forecast 7.6 million. For comparison, China ranks as the third largest AWD market, behind North America and West Europe, in 2015.
About just-auto and QUBE
just-auto.com exists to provide news, analysis and market intelligence to support the automotive industry. We are driven by a passion for an industry with a global turnover of €3 trillion that directly and indirectly supports 60 million jobs. We offer an independent voice with a global remit, championing automotive best practice wherever we find it.
In 2011 just-auto launched QUBE, the automotive database for the auto industry. Supported by a team of experienced automotive analysts, QUBE serves the automotive supply chain, providing them with OEM and supplier automotive competitive analysis, component sector forecasts, and automotive technology intelligence.
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SOURCE just-auto and QUBE