All Wheel Drive Market worth $53.8 billion by 2027 - Exclusive Report by MarketsandMarkets™

CHICAGO, July 13, 2022 /PRNewswire/ -- According to the new market research report "All Wheel Drive Market by System (Automatic, Manual), Vehicle Type (Passenger & Commercial Vehicle), EV Type (BEV, PHEV), Component (Power Transfer Unit, Differential, Propeller Shaft, Transfer Case, Final Drive Unit) and Region - Global Forecast to 2027", published by MarketsandMarkets™, the global All Wheel Drive Market size is projected to reach USD  53.8 billion by 2027, from an estimated value of USD  35.9 billion in 2022, at a CAGR of 8.4%.

Browse in-depth TOC on "All Wheel Drive Market"
205 – Tables
47 – Figures         
209 – Pages

Download PDF Brochure: https://www.marketsandmarkets.com/pdfdownloadNew.asp?id= 9918277

The growth is influenced by factors such as growth in the demand for AWD vehicles such as SUVs, MUVs& premium cars, strengthening emission norms and growing awareness of vehicle safety are considered to be the largest drivers of the All Wheel Drive Market. The rapid urbanization and growing standard of living are expected to lead to the demand for high-end vehicles such as AWD vehicles and hence are expected to propel the demand for AWD systems during the forecast period.

The automatic AWD segment is expected to register the highest growth rate of 8.6% from 2022 to 2027

Factors such as growth in demand for SUVs, MUVs and high end premium cars due to demand for enhanced safety and comfort is contributing to the growth of AWD market. The share of SUVs to total sales of passenger vehicles has risen due to their advantages such as large passenger capacity, better comfort, bigger luggage capacity, ease of handling and higher ground clearance. Automatic AWD is expected to witness faster growth than manual AWD by system type. Automatic AWD system is more fuel-efficient, can optimize engagement of AWD without driver intervention and, have better performance.

Moreover, newer crossovers of SUVs and mid-capacity passenger cars such as MUVs have also seen growth in adoption of automatic AWD systems. For example, the Toyota Hyryder Urbancruiser is one of the few recently launched automatic AWD MUV in Asia pacific which has been well received by customers. Premium high-end car manufacturers such as Subaru Corporation, Mitsubishi Motors Ltd, BMW Motors, Ferrari, etc prefer AWD systems as 2WD or FWD drivetrains cannot effectively transfer torque and lead to poor vehicle handling. For instance, BMW M4 which is available in both rear-wheel drive(RWD) and AWD variants, takes 0.6 seconds less to reach 60 MPH than RWD variant.

The automatic AWD penetration is comparatively lower in Heavy Commercial Vehicles(HCV), due to higher costs. Still leading HCV manufacturers such as Volvo have launched specialty HCVs that have automatic AWD systems. Leading commercial vehicle drivetrain manufacturer Hyliion Holdings is developing a cost-effective electric AWD system that can compete with RWD HCV drivetrain.

Asia Pacific is expected to emerge as the largest market for automatic AWD as more and more AWD manufacturers are localizing their manufacturing operations in the region. Manufacturers such as Subaru which already have a significant share in Japan are developing various AWD system with advanced performance. Various safety standards with advanced safety features is also expected to drive the adoption of AWD in countries such as China, Japan, South Korea etc. Further, North America has a higher penetration of automatic AWD systems comparatively than Asia Pacific and Europe.

The EV segment is expected to improve its market share during the forecast period

The sales of EVs are projected to grow at a CAGR of 33-35% during the forecast period as compared to ICE vehicles at 1.5-2%. The share of EV sales in some regions will be higher, with EVs reaching 40%-50% of sales in 2025 in Europe. China, one of the largest EV markets, is anticipated to account for more than 35-40% of EV sales to ICE sales in 2025. The North American market is forecast to pick up from 2023 and will likely have a 27-30% share in regional total vehicle sales in 2025.

As of 2022, most EVs are FWD and few of them have RWD systems. Due to their higher prices and smaller range they were limited to urban spaces. But the scenario is changing and more and more EVs are being launched with preinstalled AWD systems. One of the key reasons is the installation of an AWD system on EV is more sophisticated than on ICE. The 2WD EV can be converted to an AWD EV with just an addition of an extra motor on the drive axle. Further advanced differential technologies such as torque vectoring systems have demonstrated their ability to improve the EV performance with no or little impact on the range. The AWD system is also known to improve maneuverability and the comfort of driving. Hence, a large number of EV manufacturers have launched AWD EVs such as Volkswagen ID.4, Hyundai Ioniq 5, Ford Mustang Mach-E, Jaguar I-Pace and Audi e-Tron.

As of 2022, PHEV has a higher travel range and more flexibility than BEV. Moreover, the AWD PHEV improves all year and all-weather operability. Hence, even though the penetration of the AWD system is higher in BEV, the penetration is expected to grow significantly in PHEVs as well.

Asia Pacific is expected to be the fastest growth market for EV AWD market with China being the major hub. Growing market share of premium and luxury EVs such as Tesla, Audi etc. is expected to be a major driving factor for AWD market.

Request FREE Sample Report: https://www.marketsandmarkets.com/requestsampleNew.asp?id= 9918277  

The Asia Pacific is estimated to be the largest market

The all wheel market in the Asia-Pacific has witnessed significant year-on-year growth. Asia-Pacific is the largest automobile and automobile component manufacturer and hosts manufacturing plants of leading automobile manufacturers such as Honda Motor Co., Ltd (Japan), Tata Motors Ltd( India), Toyota Motor Corporation(Japan), BYD Motors (China), Mitsubishi Motor Corporation (Japan) and, Subaru corporation (Japan). The Asia Pacific region produced 55%-57% and 50-55% share of total EV and ICE vehicles produced globally. The growth of AWD vehicles in Asia Pacific can be attributed to the growth of SUVs in the region. Factors such as the growing need for premium vehicles in China, India, Japan and South Korea, due to the growth of the disposable income along with the rising the purchasing power of the population are boosting the growth of the SUV market in the forecast period. Additionally, China, India, Japan, and South Korea are host to leading AWD system manufacturers such as  ZF Friedrichshafen AG(India), Continental AG(China and India), BorgWarner Inc. (China, Japan and South Korea) and Jtekt Corporation(Japan). The localization of leading AWD system manufacturers is projected to reduce the cost difference between non-AWD and AWD premium vehicles.

Key Market Players

The globally established players lead the All Wheel Drive Market. These are - ZF Friedrichshafen AG (Germany), Continental AG (Germany), Magna International Inc. (Canada), BorgWarner Inc. (US), and JTEKT Corporation (Japan).

Browse Related Reports:

Automotive Differential Market by Type (Open, Locking, LSD, ELSD, Torque Vectoring), Drive Type (FWD, RWD, AWD/4WD), ICE & Hybrid Vehicle, Off-Highway (Construction & Mining, Ag Tractor, Forklift), Component Aftermarket and Region - Global Forecast to 2025

Torque Vectoring Market for Automotive by Vehicle type (PC and LCV), Technology (ATVS and PTVS), Propulsion (AWD/4WD, FWD, RWD), EV Type (BEV and HEV), Clutch Actuation Type (Hydraulic and Electronic), and Region - Global Forecast to 2025

About MarketsandMarkets™ 

MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies' revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.

Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the "Growth Engagement Model – GEM". The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write "Attack, avoid and defend" strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.

MarketsandMarkets's flagship competitive intelligence and market research platform, "Knowledge Store" connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.

Contact:
Mr. Aashish Mehra
MarketsandMarkets™ INC.
630 Dundee Road
Suite 430
Northbrook, IL 60062
USA: +1-888-600-6441
Email: [email protected]
Research Insight: https://www.marketsandmarkets.com/ResearchInsight/automotive-multi-wheel-drive-systems-market.asp
Visit Our Website: https://www.marketsandmarkets.com
Content Source: https://www.marketsandmarkets.com/PressReleases/automotive-multi-wheel-drive-systems.asp

Logo: https://mma.prnewswire.com/media/660509/MarketsandMarkets_Logo.jpg

SOURCE MarketsandMarkets