Global All Wheel Drive Market to Reach $53.8 Billion by 2027 at a CAGR of 8.4%
DUBLIN, Aug. 10, 2022 /PRNewswire/ -- The "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" report has been added to ResearchAndMarkets.com's offering.
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%. The growth is influenced by factors such as industrialization and growth per capita income in developing countries.
Passenger Car segment is projected to be the largest market by 2027, owing to high demand and growing car ownership than commercial vehicles, which presents considerable growth opportunities for all wheel drive manufacturers
The passenger cars such as high-end (premium) passenger cars and SUVs have seen rise in their share to total vehicle sales. The concerns about vehicle stability and safety have led to buyer based demand. Among the various types of passenger cars, small trucks are more popular in North America, which has highest penetration of AWD systems as compared to other regions. Since the Asia Pacific has a significant car-ownership growth rate, the demand for the all wheel drive passenger car is expected to grow during the forecast period.
Automatic AWD segment is expected to be the fastest-growing segment throughout the forecast period owing to sophisticated handling and better drive experience, by system
Advantages such as better traction, stability, torque, steering, and even distribution of weight are projected to make the Automatic AWD segment the fastest-growing segment. Developed countries are expected to increase their adoption of Automatic AWD in passenger cars faster as compared to emerging countries because of the regulations and the higher costs associated with adopting Automatic AWD. Also, Automatic AWD systems are best suited for high-end sports cars and the US as well as Europe is the largest market for premium vehicles, hence, the demand for Automatic AWD systems in the region is projected to grow during the forecast period.
BEV segment to hold the largest market share during the forecast period due to growing concern of vehicle safety of EVs
Passenger safety regulations, the need for higher performance and ease of installation of AWD systems on BEVs are driving demand for AWD systems in BEVs. Moreover, BEVs are already equipped with complex electrical systems which reduce costs incurred on sensors and computers. The use of regenerative braking through all wheel drive systems can also improve the range of the EV. Developments in AWD technologies are further expected to drive the market.
Asia Pacific market is expected to hold the largest market share by 2027
The automobile industry in the Asia-Pacific has witnessed significant year-on-year growth. As the region is the leading automobile producer in the world and with its strong domestic demand it is expected to lead the all wheel drive market. The region has the largest road network and has been experiencing rapid urbanization. Further, the national government have also announced initiatives toward the development of fuel-efficient transportation. Additionally, Asian countries are at the forefront of the adoption of fuel efficienct vehicles, which is expected to make the region a leading market for all wheel drive market.
Premium Insights
- Rising Demand for SUVs and Need for Improved Vehicle Safety, Stability, & Enhanced Driving Dynamics Expected to Drive Market
- Commercial Vehicle Segment Projected to Witness Fastest Growth During Forecast Period (USD Million)
- Automatic Segment Projected to Lead Market from 2022 to 2027 (USD Million)
- Differential Segment to Lead During Forecast Period (USD Million)
- Asia-Pacific Projected to Lead Market During Forecast Period (USD Million)
Market Dynamics
Drivers
- Increasing Global Demand for SUVs
- Unfavorable Terrain for Safe Driving
- Increasing Demand for Improved Vehicle Safety, Stability, and Enhanced Driving Dynamics
Restraints
- Stringent Fuel Economy Standards
- High Cost of AWD System
Opportunities
- Automatic AWD
Challenges
- Lack of Awareness About AWD Among Consumers in Emerging Economies
Key Topics Covered:
1 Introduction
2 Research Methodology
3 Executive Summary
4 Premium Insights
5 Market Overview
6 All Wheel Drive System Market, by System Type
7 All Wheel Drive Market, by Vehicle Type
8 Electric Vehicle All Wheel Drive Market, by Type
9 All Wheel Drive Market, by Component
10 All Wheel Drive Market, by Differential Type
11 All Wheel Drive Torque Vectoring System Market, by Type
12 All Wheel Drive Market, by Region
13 Recommendations
14 Competitive Landscape
15 Company Profiles
16 Appendix
Companies Mentioned
- Additional Companies/Players
- American Axle & Manufacturing Inc.
- Borgwarner Inc.
- Continental Ag
- Dana Holding Corporation
- Eaton Corporation plc
- Gkn plc
- Haldex
- Honda Motor Co. Ltd
- Jtekt Corporation
- Magna International Inc.
- Meritor, Inc
- Mitsubishi Motors Corporation
- Robert Bosch GmbH
- Subaru Corporation
- Zf Friedrichshafen Ag
For more information about this report visit https://www.researchandmarkets.com/r/eneyin
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SOURCE Research and Markets
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