(MENAFN- PR Newswire) DUBLIN, Feb. 15, 2024 /PRNewswire/ --
The
"All Wheel Drive Global Market Report 2024" has been added to
ResearchAndMarkets's offering.
The all wheel drive market size is set to grow from $36.51 billion in 2023 to $39.57 billion in 2024 at a compound annual growth rate (CAGR) of 8.4%. The growth observed in the historic period can be attributed to several factors, including the demand for improved traction, requirements for off-road capability, concerns related to safety and stability, preferences for luxury and premium vehicles, and the expansion of the sports utility vehicle (SUV) segment. These factors collectively contributed to the adoption and popularity of all-wheel drive (AWD) systems in various vehicle categories.
The market will further grow to $52.55 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing demand for electric and hybrid vehicles, advancements in vehicle connectivity, a trend towards urbanization and compact all-wheel drive (AWD) vehicles, adherence to regulatory emissions standards, and the integration of AWD in autonomous vehicles.
Additionally, major trends in the forecast period include the implementation of dynamic torque vectoring systems, the incorporation of smart connectivity with over-the-air updates, the adoption of weight reduction technologies, collaborations for autonomous vehicle integration, and a focus on global market penetration in emerging economies. These trends are expected to shape the landscape of the AWD market in the coming years.
An escalation in the demand for electric vehicles is anticipated to be a driving force behind the growth of the all-wheel drive (AWD) market in the coming years. Electric vehicles, reliant on electric motors and large traction battery packs rather than internal combustion engines, benefit from AWD systems that improve traction and stability, enabling them to navigate diverse road and environmental conditions more effectively.
The advancement of fuel-efficient vehicles is forecasted to drive the expansion of the all-wheel-drive market moving forward. Fuel-efficient vehicles denote vehicles capable of traveling longer distances on a single gallon of fuel or exhibiting improved conversion of chemical energy from fuel to kinetic energy needed for movement. All-wheel-drive systems contribute to enhanced vehicle handling and stability, reducing the requirement for sudden braking and acceleration, ultimately leading to better fuel efficiency. As an illustration, as per regulations from the National Highway Traffic Safety Administration (NHTSA), all car models produced by 2026 must ensure a minimum range of 40 miles per gallon.
These new standards aim to enhance fuel efficiency by 8% for model years 2024-2025 and an annual increase of 10% for model year 2026. Consequently, these regulations are projected to augment the estimated fleetwide average by nearly 10 miles per gallon for model year 2026 compared to model year 2021, thereby stimulating the rise in fuel-efficient vehicles and fostering the expansion of the all-wheel-drive market.
The comparative higher weight and increased fuel usage associated with all-wheel drive (AWD) systems, as opposed to front-wheel or rear-wheel drive setups, present a notable restraint in the all-wheel-drive market's progression in the forthcoming years. The added weight and fuel consumption of AWD systems, in contrast to lighter and more fuel-efficient drive configurations, serve as a deterrent to the widespread adoption of AWD, as consumers often prioritize fuel efficiency and reduced vehicle weight over the advantages offered by all-wheel drive.
Key companies in the all-wheel-drive market are dedicated to developing sophisticated systems such as intelligent all-wheel drive (AWD) systems, aiming to appeal to performance-driven consumers and secure a competitive advantage within the market landscape. Intelligent AWD systems represent advanced drivetrain technologies integrated into vehicles to intelligently distribute power among all four wheels in real-time, optimizing performance and control.
The all-wheel drive market consists of sales of part-time AWD systems, full-time AWD systems, and torque vectoring AWD. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
Two main types of all-wheel drive systems are automatic all-wheel drive (AWD) and manual all-wheel drive (AWD). In automatic AWD, power is automatically distributed to all four wheels based on the vehicle's needs, without requiring driver intervention. This system enhances traction and stability, especially on slippery surfaces such as snow and ice, and helps prevent the vehicle from getting stuck in challenging conditions such as mud or sand. Key components of all-wheel drive systems include the differential, transfer case, propeller shaft, power transfer unit, and final drive unit. These systems find applications in various vehicle types, including battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).
Report Scope
Markets Covered:
By Type: Automatic All-Wheel Drive (AWD); Manual All-Wheel Drive (AWD) By Component: Differential; Transfer Case; Propeller Shaft; Power Transfer Unit; Final Drive Unit By Application: Battery Electric Vehicles (BEV); Plug-In Hybrid Electric Vehicle (PHEV)
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments
Companies Profiled
Volkswagen Toyota Motor Corporation Daimler Ford Motor Company General Motors Company Honda Motor Company Ltd. Tesla Inc. Nissan Motor Co. Ltd. Kia Corporation AB Volvo Renault Group ZF Friedrichshafen Continental Magna International Inc. Subaru Corporation Valeo SA Mitsubishi Motors Corporation Mahindra Electric Mobility Ltd. Schaeffler AG BorgWarner Inc. JTEKT Corporation Dana Incorporated Peugeot S.A. NSK Ltd GKN PLC American Axle And Manufacturing Inc. OC Oerlikon Corporation AG Aston Martin Lagonda Global Holdings plc AVL List
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