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All-Wheel Drive System Market Size, Share & Industry Analysis, By Type (Automatic AWD, Manual AWD), By Vehicle Type (Passenger cars, Light Commercial Vehicle, High Commercial Vehicle) and Regional Forecast, 2024-2032

Region :Global | Report ID: FBI101909 | Status : Ongoing



The increasing demand for driving dynamics such as traction and control in the vehicles by the consumers is likely to boost the all-wheel-drive market during the forecast period. The all-wheel-drive and four-wheel-drive system improves the stability of the vehicle with increased fuel efficiency and power. The growing demand for AWD equipped vehicle from Asia-Pacific and European regions are anticipated to fuel the demand for the all-wheel-drive system market. The developed countries have a significant adoption rate of the all-wheel-drive system as well as the developing countries.

The all-wheel-drive system transmits the power to all-wheels of the vehicle to improve the control and traction of the vehicle. The growing adoption of AWD equipped sports utility vehicles with enhanced driving dynamics such as traction and control over the extreme terrain conditions will propel the growth of the all-wheel-drive system market. The increasing production of the AWD equipped passenger cars will fuel the growth of the market over the forecast period.

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Key Market Driver -

The increasing demand for the driving dynamics by the consumers will drive the market over the forecast period.

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Key Market Restraint -

The high cost related with all-wheel-drive system will hamper the growth of the market.

The expensive cost of the all-wheel-drive system will be a restraint for the market’s growth. The maintenance cost of the all-wheel-drive system is high, and this will hamper the growth of the all-wheel-drive system market.

Key Players Covered in the Automotive All Wheel Drive System Market:

Some of the major companies that are present in the automotive all-wheel-drive system market include ZF Friedrichshafen AG ( Germany), Continental AG ( Germany), JTKT Corporation (Japan), and Borg Warner Inc. (U.S.), among others.

The automotive all-wheel-drive system market is segmented into type, vehicle type, and region. Based on the type, the market has been segmented into automatic and manual all-wheel-drive. The automatic all-wheel-drive type is anticipated to dominate the market over the forecast period. The manual all-wheel-drive system will show lucrative growth over the forecast period. By vehicle type, the market has been segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger car segment is expected to dominate the market over the forecast period owing to the increased production of passenger cars equipped with the AWD system and growing demand for the enhanced driving dynamics by the consumers. The light and heavy commercial vehicles are expected to show good growth in the all-wheel-drive system market over the forecast period owing to the better stability with traction and control over the rough terrains by the AWD system.

Regional Analysis:

The global market has been segmented into the four major regions of North America, Europe, Asia Pacific, and Rest of the world. The European Region and the North America region have a high adoption rate of the all-wheel-drive-drive market, and as a result of this, they hold the largest market share. These regions are also anticipated to grow profitable over the forecast period. The increased use of AWD SUVs from these regions has supported the growth of the market.

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The Asia-Pacific region is anticipated to show growth over the forecast period. The increased production and sales of the passenger cars from this region are expected to propel the growth of the all-wheel-drive system market. The better comfort, traction, and control offered by the all-wheel-drive system over the extreme terrains of this region are likely to boost the demand for the all-wheel-drive system from this region.




By Type

  • Automatic AWD

  • Manual AWD

By Vehicle Type

  • Passenger cars

  • Light Commercial Vehicle

  • High Commercial Vehicle

By Geography

  • North America (USA, Canada, and Mexico)

  • Europe (Germany, U.K, France, Italy, and Rest of Europe)

  • Asia Pacific (China, India, Japan, South Korea and Rest of Asia Pacific)

  • Rest of the world

Key Industry Developments:

  • August 2017: Continental AG introduced dual New Wheel Concept for elelctric vehicles between axle and wheel of the vehicle. This will solve the problem of the bad braking performance.

  • Ongoing
  • 2023
  • 2019-2022

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