Automotive All-Wheel-Drive Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The automotive all-wheel-drive market is anticipated to register a CAGR of over 7.5% during the forecast period, 2022-2027.
The COVID-19 pandemic has negatively impacted the market as lockdowns and shutdowns of manufacturing facilities of significant OEMs resulted in decreased production and sales of cars across the globe. However, the market has regained momentum as economic activities resume and vehicle production also rises worldwide.
Key HighlightsThe developments and improvements in the all-wheel-drive (AWD) system and its penetration into the growing electric vehicles market are the significant factors that are anticipated to propel the growth of the market studied during the forecast period.
Key HighlightsImprovements in the AWD capabilities and the cold weather condition are driving factors for the North American and European regions to anticipate a potential demand for AWD in the future. The market for luxury vehicles has boomed in the Asia-Pacific region. It is expected to continue to increase at the highest pace among all vehicle categories during the forecast period.
Improved safety, stability, and drive control are some of the factors which may accelerate the growth of the market studied. Earlier, these systems were available only in high-end cars, but the introduction of small passenger cars and hybrid electric vehicles has increased global demand.
Emerging players in the automotive industry continuously focus on developing and improving each part associated with the AWD system to enhance the AWD performance and fuel economy further.
Key Market TrendsThe Increasing Demand for Sports Utility VehiclesFactors such as sportier handling and increased grip and traction with all-wheel drive have resulted in the demand for passenger cars, especially SUVs, compared to sedans and crossovers.
The growth in SUV sales has been consistently increasing during 2018-2022 due to the improving economic conditions across both the developing and developed countries. More than 65% of the SUVs on the road are currently installed with all-wheel drive powertrain systems. For instance,
Safe on-road drivability in winter or any hazardous climatic conditions is a significant factor driving people to choose passenger cars installed with all-wheel drive type powertrain systems, especially in North America and Europe. Also, all-wheel drive is anticipated to be deployed at a considerable rate in electrified powertrain cars, such as hybrid, plug-in hybrid, and battery-electric vehicles. For instance,
Thus, all-wheel drive is anticipated to experience growth from the ICE cars sector and the growing hybrid electric cars during the forecast period.
The Growing Demand for AWD in Asia-PacificThe Asia-Pacific region has always been on top in terms of car production and sales compared to other areas. For instance,
With advanced technologies, the trend of shifting vehicle operations from complex mechanical systems to electronically controlled systems has become possible and is now playing a vital role in uplifting the automotive industry. AWD is one such system that has experienced the above trend significantly over the past five years. Most of the OEM car makers have now launched an affordable AWD Suv in a market that will target the majority of customers. For instance,
Players in the automotive industry continuously focus on developing and improving each part associated with the AWD system to enhance the AWD performance and fuel economy further. For instance,
The automotive all-wheel-drive market is dominated by several players, such as BorgWarner Inc., Toyota Motor Corporation, Eaton Corporation PLC, Continental AG, Haldex Group, JTEKT Corporation, Dana Incorporated, Nissan Motor Co. Ltd, and Magna International Inc. These companies are expanding their business by new innovative technologies so that they can have the edge over their competitors.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook