Market Size of Automotive All-wheel-drive Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| CAGR | > 7.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Automotive All-Wheel Drive Market Analysis
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.
- The passenger car sales decreased in 2021 to around 2.39 million units due to the Covid-19 pandemic; as the situation usually gets, the passenger car sales have risen to 2.72 million units.
The 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.
- In June 2022, Hyundai India plans to launch its all-new AWD electric car Hyundai Ioniq 5 in mid of August 2022.
Improvements 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.
Automotive All-Wheel Drive Industry Segmentation
An all-wheel drive vehicle is one with a powertrain capable of providing power to all its wheels, whether full-time or on-demand. The most common forms of all-wheel drive are 44, Reflecting two axles with both wheels capable of being powered.
The automotive all-wheel-drive market has been segmented by Vehicle Type, Propulsion Type, System Type, and Geography. By vehicle type, the market is segmented into passenger cars and commercial vehicles. The market is segmented by propulsion type into ICE and electric vehicles. By system type, the market is segmented into manual AWD and automatic AWD. By geography type, the market is segmented into North America, Europe, Asia-pacific, and the rest of the world.
The report covers the market volume (Units) and revenue (USD Billion) for all the above segments.
| Vehicle Type | |
| Passenger Cars | |
| Commercial Vehicles |
| Propulsion Type | |
| ICE Vehicle | |
| Electric Vehicle |
| System Type | |
| Manual AWD | |
| Automatic AWD |
| Geography | |||||||
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Automotive All-wheel-drive Market Size Summary
The automotive all-wheel-drive (AWD) market is poised for significant growth, driven by advancements in AWD technology and its integration into the expanding electric vehicle sector. The market experienced a downturn due to the COVID-19 pandemic, which led to reduced vehicle production and sales globally. However, as economic activities resumed, the market regained momentum. The increasing demand for improved safety, stability, and drive control features has expanded the adoption of AWD systems beyond high-end vehicles to include small passenger cars and hybrid electric vehicles. This trend is particularly pronounced in regions like North America and Europe, where cold weather conditions drive the need for enhanced on-road drivability. The Asia-Pacific region, with its booming luxury vehicle market, is expected to witness the fastest growth in AWD adoption.
The market is characterized by the presence of several key players, including BorgWarner Inc., Toyota Motor Corporation, and Nissan Motor Co. Ltd, who are actively investing in innovative technologies to maintain a competitive edge. The shift from complex mechanical systems to electronically controlled systems has been a significant trend, enhancing AWD performance and fuel economy. The growing popularity of SUVs, which often come equipped with AWD systems, is contributing to market expansion. Additionally, the deployment of AWD in electrified powertrain vehicles, such as hybrid and battery-electric cars, is anticipated to further drive market growth. Companies are also focusing on developing affordable AWD options to capture a broader customer base, as seen with the introduction of models like the Mahindra Thar in India.
Automotive All-wheel-drive Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Vehicle Type
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2.1.1 Passenger Cars
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2.1.2 Commercial Vehicles
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2.2 Propulsion Type
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2.2.1 ICE Vehicle
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2.2.2 Electric Vehicle
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2.3 System Type
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2.3.1 Manual AWD
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2.3.2 Automatic AWD
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2.4 Geography
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2.4.1 North America
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2.4.1.1 United States
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2.4.1.2 Canada
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2.4.1.3 Rest of North America
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2.4.2 Europe
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2.4.2.1 Germany
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2.4.2.2 United Kingdom
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2.4.2.3 France
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2.4.2.4 Russia
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2.4.2.5 Rest of Europe
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2.4.3 Asia-Pacific
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2.4.3.1 India
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2.4.3.2 China
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2.4.3.3 Japan
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2.4.3.4 South Korea
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2.4.3.5 Rest of Asia-Pacific
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2.4.4 Rest of the World
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2.4.4.1 Middle-East and Africa
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2.4.4.2 South America
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Automotive All-wheel-drive Market Size FAQs
What is the current Automotive All-wheel-drive Market size?
The Automotive All-wheel-drive Market is projected to register a CAGR of greater than 7.5% during the forecast period (2024-2029)
Who are the key players in Automotive All-wheel-drive Market?
BorgWarner Inc., Toyota Motor Corporation, JTEKT Corporation, Nissan Motor Co., Ltd. and Continental AG are the major companies operating in the Automotive All-wheel-drive Market.
