All-Wheel Drive Global Market Report 2024

All-Wheel Drive (AWD) is an automotive driving system designed to automatically distribute power between the front and rear wheels, enhancing traction and stability. This system proves advantageous in various driving conditions, offering improved handling and performance, particularly in light off-road situations and winter driving.

There are two main types of all-wheel drive such as automatic all-wheel drive and manual all-wheel drive. Automatic all-wheel drive operates without driver intervention, adjusting power distribution as needed. All-wheel drive is applicable to different propulsion types, including internal combustion engine (ICE) vehicles, electric vehicles (EV), battery electric vehicles (BEV), hybrid electric vehicles (HEV), and plug-in hybrid electric vehicles (PHEV). Components of the system include the differential, transfer case, propeller shaft, power transfer unit, and final drive unit. All-wheel drive finds application in both passenger vehicles and commercial vehicles, serving on-road and off-road purposes.

The all-wheel drive market research report is one of a series of new reports from The Business Research Company that provides all-wheel drive market statistics, including all-wheel drive industry global market size, regional shares, competitors with a all-wheel drive market share, detailed all-wheel drive market segments, market trends and opportunities, and any further data you may need to thrive in the all-wheel drive industry. This all-wheel drive market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The all-wheel drive market size has grown strongly in recent years. It will grow from $37.66 billion in 2023 to $41 billion in 2024 at a compound annual growth rate (CAGR) of 8.9%. The historic growth of All-Wheel Drive (AWD) systems can be attributed to the rising popularity of sports utility vehicles (SUVs), increasing demand for high-performance racing cars, government initiatives aimed at reducing emissions, enhanced purchasing power of consumers, and a growing demand for vehicles that offer improved safety, stability, and driving dynamics.

The all-wheel drive market size is expected to see strong growth in the next few years. It will grow to $55.45 billion in 2028 at a compound annual growth rate (CAGR) of 7.8%. The forecasted growth of All-Wheel Drive (AWD) systems can be attributed to the increasing demand for luxury cars, a rising preference for SUVs and CUVs, growing investments in data-driven technologies, an upsurge in demand for electric vehicles, and a heightened interest in automated power distribution systems. Key trends in the forecast period include the development of electric and hybrid AWD systems, the integration of advanced driver assistance systems, a rising demand for intelligent all-wheel drive systems, an increased interest in off-road applications, and the integration of AWD in autonomous vehicles.

The surge in demand for electric vehicles stands poised to be a driving force behind the expansion of the all-wheel drive (AWD) market in the foreseeable future. Electric vehicles utilize electrical energy stored in batteries or similar devices to power one or more electric motors. Notably, electric cars equipped with all-wheel drive (AWD) typically employ an electric motor situated at each wheel or axle, enabling simultaneous control of all wheels. For example, data from the International Energy Agency in September 2022 revealed a substantial uptick in electric vehicle sales, nearly doubling to 6.6 million in 2021 compared to the preceding year, thereby elevating the total number of electric vehicles in operation to 16.5 million. Consequently, the burgeoning demand for electric vehicles is steering the growth of the all-wheel drive market.

The anticipated upswing in the all-wheel drive (AWD) market is expected to be driven by an enhancement in economic conditions. Economic conditions encompass a nation's overall financial health, including metrics such as GDP growth, unemployment rates, inflation, and other pivotal indicators. For instance, according to data from USAFacts in February 2023, despite an initial downturn in GDP during the first half of 2022, the U.S. economy showcased a robust resurgence in the latter part of the year, witnessing a notable 2.6% growth in the fourth quarter. This resurgence was accompanied by a considerable reduction in the unemployment rate to 4.0% and a robust labor market. Increased consumer spending and other contributing factors underscored the overall improved economic conditions. Thus, the strides made in economic conditions are steering the growth trajectory of the all-wheel drive market.

Leading entities in the all-wheel drive (AWD) market are concentrating on the development of innovative products, specifically all-wheel drive systems tailored for the automotive industry, to address the escalating demand. These systems allocate power to all four wheels of a vehicle, augmenting traction and stability by enabling each wheel to independently receive torque, thereby enhancing performance across diverse driving conditions. As an illustration, in June 2023, Smart, a Germany-based automotive manufacturer renowned for producing compact, two-seater vehicles such as the Fortwo, introduced the Smart #1 Pulse, an updated version of the Smart #1 electric model integrated with all-wheel drive capabilities and premium enhancements. The Smart #1 Pulse distinguishes itself within the AWD market with its dual motor configuration, elevating traction to bolster safety in various driving scenarios. Featuring premium amenities such as a 360° camera, halo roof, 10-inch head-up display, and gesture-operated tailgate, the 1 Pulse not only meets the surging demand for AWD systems but also presents a compelling blend of technological sophistication and safety upgrades, contributing significantly to the progression and desirability of AWD alternatives in the automotive landscape.

Key players in the all-wheel drive (AWD) market are embracing a strategic partnership model to advance core technologies for electric vehicles, notably focusing on a unified unit encompassing drive and brake components. These strategic collaborations entail companies leveraging mutual strengths and resources to achieve shared advantages and successful outcomes. For instance, in October 2023, Continental AG, also known as Continental, a prominent Germany-based automotive parts manufacturer, forged an alliance with DeepDrive, a German entity specializing in providing drive units designed for electric vehicles. This partnership underscores an emphasis on cost-effective manufacturing and optimized design methodologies aimed at creating a compact drive-brake assembly tailored for electric vehicles. Such collaborative efforts facilitate the seamless integration of brake and drive systems, fostering modularity while reducing expenses, thereby heightening the efficiency and accessibility of all-wheel-drive systems within the electric vehicle market.

In December 2022, BorgWarner Inc., a prominent US-based automotive supplier, successfully acquired Haldex Traction Systems for an undisclosed amount. This strategic acquisition aligns with BorgWarner's continuous commitment to delivering cutting-edge powertrain solutions globally, thereby catalyzing the growth of drivetrain systems. Haldex Traction Systems, based in Sweden, is recognized for its expertise in producing and developing intelligent all-wheel drive systems.

Major companies operating in the all-wheel drive market report are Volkswagen AG, Toyota Motor Corporation, Stellantis NV, Bayerische Motoren Werke AG, Mercedes-Benz, Honda Motor Company Ltd., Ford Motor Company, Hyundai Motor Company, Tesla Inc., Nissan Motor Co. Ltd., Audi AG, Kia Motors Corporation, Volvo Group, Magna International Inc., AISIN SEIKI Co. Ltd., Land Rover, Subaru Corporation, Valeo SA, Lincoln Motor Company, Mitsubishi Motors Corporation, JTEKT Corporation, American Axle & Manufacturing Inc., OC Oerlikon, Lucid Motors Inc., Continental AG.

Asia-Pacific was the largest region in the all-wheel drive market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the all-wheel drive market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the all-wheel drive market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The all-wheel drive market consists of sales of advanced electronics, transfer cases, and front and rear differentials. 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.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

All-Wheel Drive Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on all-wheel drive market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for all-wheel drive ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The all-wheel drive market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Type: Automatic All-Wheel Drive; Manual All-Wheel Drive
• 2) By Propulsion: Internal Combustion Engine (ICE) Vehicle; Electric Vehicle; Battery Electric Vehicle (BEV); Hybrid Electric Vehicle; Plug-In Hybrid Electric Vehicle (PHEV)
• 3) By Component: Differential; Transfer Case; Propeller Shaft; Power Transfer Unit; Final Drive Unit
• 4) By Vehicle: Passenger Vehicle; Commercial Vehicle
• 5) By Application: On-Road; Off-Road
• Companies Mentioned: Volkswagen AG; Toyota Motor Corporation; Stellantis NV; Bayerische Motoren Werke AG; Mercedes-Benz
• 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 segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.