All-Wheel Drive Market Research Report Information By Type (Manual AWD and Automatic AWD), By Vehicle Type (Passenger Car and Commercial Car), By Propulsion (Internal Combustion Engine (ICE) Vehicle, Electric Vehicle, Battery Electric Vehicle (BEV), Hybrid Electric Vehicle, and Plug-In Hybrid Electric Vehicles (PHEVs)), By Application (On-Road, and Off-Road) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) – Global Industry Size, Share, Growth, Trends and Forecast To 2032

All-Wheel Drive Market Overview:

The All-Wheel Drive Market size was valued at USD 23.61 billion in 2023. The all-wheel drive industry is projected to grow from USD 25.45 billion in 2024 to USD 43.16 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.82% during the forecast period (2024 - 2032). The increasing demand for driving dynamics such as traction and control in the vehicles by the consumers and growing demand for all-wheel drive equipped vehicles from Asia-Pacific and European regions are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

All-Wheel Drive Market Trends

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  Increasing demand for improved vehicle safety is driving the market growth

  
  

Market CAGR for all-wheel drive is driven by the increased cases of various road accidents have led to a greater demand for all-wheel drive systems to ensure safety- as the number of road accidents has increased lately, and there are a lot of fatalities associated with the road accidents and a large number of people so far with injuries the demand for the all-wheel drive system is expected to grow well in the coming years, especially for the extreme type of road conditions across the world. The system's popularity has increased in recent years and will continue to grow well over the forecast period.

According to the WHO Global Status Report on Road Safety, more than 1.24 million deaths occurred due to road accidents in 2010 globally. The increasing rate of accidents has incentivized countries to implement stringent vehicle safety norms. The European Union and the U.S. government are leaders in terms of vehicle safety norms. As a result, OEMs are introducing vehicles with in-built safety features that control vehicle stability and safety and enhance driving dynamics. The AWD systems, as compared to RWD or FWD systems, add to the vehicle stability with better traction providing the capability to the automobile. Thus, in developed regions such as Europe and North America, the demand for these multi-wheel drive systems is on the rise, however, in emerging markets such as Asia-Pacific and the rest of the world, this growth is steady given the lack of any such safety regulations.

Moreover, increased reduction of all-wheel drive systems in vehicles with extreme terrain conditions- At various places across the globe where the winters are extremely harsh, or the roads are covered with snow apart from that other road that does not have a plain surface has led to an increase in the demand for the all-wheel drive system in the vehicles to ensure the lesser number of accidents and safety of the passengers as well as the drivers. These vehicles are adopted on a large scale on lands with a lot of snow and mud, driving the all-wheel drive market revenue over the forecast period.

Technological advancements across the global market for AWD vehicles are expected to set the tone for market growth. Several technologies across the current market landscape have transformed modern-day vehicles into power-efficient, automated, and secured machines- a trend likely to propel the all-wheel drive vehicle market during the assessment period. Although the demand for conventional part-time 4x4 transmission is likely to remain high, with added advancements in technology, all-wheel drive will likely emerge as a 'must-have' feature in vehicles. For instance, the newly developed traction control system technology has played an imperative role in improving the performance of automotive vehicles and driver safety.

All-Wheel Drive Market Segment Insights:

All-Wheel Drive Type Insights

The All-Wheel Drive Market segmentation, based on type, includes manual AWD and automatic AWD. The manual AWD segment dominated the market, accounting for major market revenue over the forecast period. This is attributed to increased demand for sports vehicles that use manual all-wheel drive.

All-Wheel Drive Vehicle Type Insights

The All-Wheel Drive Market segmentation, based on vehicle type, includes passenger cars and commercial cars. The passenger car category generated the most income over the forecast period. This is due to technological advancements and increasing demand for a safe driving system for all climatic and road conditions.

All-Wheel Drive Propulsion Insights

The All-Wheel Drive Market segmentation, based on Propulsion, includes internal combustion engine (ICE) vehicles, electric vehicles, battery electric vehicles (BEV), hybrid electric vehicles, and plug-in hybrid electric vehicles (PHEVs). The battery electric vehicle (BEV) category generated the most income over the forecast period. This is due to increased passenger safety regulations, the straightforward design of EV AWD systems, and the need for higher performance drive demand for AWD systems in BEVs.

All-Wheel Drive Application Insights

The All-Wheel Drive Market segmentation, based on application, includes on-road and off-road. The on-road category generated the most income over the forecast period as many different vehicles like sports vehicles and racing cars are available on-road.

Figure 1: All-Wheel Drive Market, by Application, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

All-Wheel Drive Regional Insights

By Region, the study delivers market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American all-wheel drive market area will dominate this market, owing to advanced technologies, the trend of moving vehicle operations from complicated mechanical systems to electronically controlled systems has become viable and is now playing a critical role in uplifting the automotive industry, which boosts market growth in this region. Further, the US all-wheel drive market held the largest market share, and the Canada all-wheel drive market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: All-Wheel Drive Market Share by Region 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe all-wheel drive market accounts for the second-largest market share due to players in the automotive industry who are continuously focused on developing and enhancing each part related to the AWD system. Further, the German all-wheel drive market held the largest market share, and the UK all-wheel drive market was the fastest-growing market in the European region.

The Asia-Pacific all-wheel drive market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the increased demand for such all-wheel drive vehicles has increased the requirement for all-wheel drive systems in this region. Moreover, China all-wheel drive market held the largest market share, and the Indian all-wheel drive market was the fastest-growing market in the Asia-Pacific region.

All-Wheel Drive Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the All-Wheel Drive market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The all-wheel drive industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers’ use in the global all-wheel drive industry to benefit clients and increase the market sector. Major players in the all-wheel drive market, including American Axle & Manufacturing, Inc., GKN Plc, Dana Incorporated, Continental AG, AB Volvo, BorgWarner Inc., JTEKT Corporation, Honda Motor Company Ltd., and others, are attempting to increase market demand by supporting in research and development operations.

JTEKT Corp is an equipment company that manufactures and sells power steering systems. The company designs, develops, and markets automotive components, bearings, and machine tools. The company's product offerings include steering systems, bearings, chassis-related parts, unit products and precision machinery, gear skiving centers, and self-manufacturing control systems, among others. It offers products and services in automotive, railway, aerospace, construction machinery, steel, aviation, agricultural machinery, and wind power generation sectors in Asia Pacific, South America, North America, Europe, and other regions. In July 2021, JTEKT Corporation developed a Hub Unit that applies a seal with reduced friction torque that exhibits high sealing performance even in extremely cold regions. Through this product, we will contribute to realizing a low-carbon society in Japan and the global market, including icy areas.

Nissan Motor Co., Ltd. manufactures and distributes automobiles and related parts. The Company produces luxury cars, sports cars, commercial vehicles, and more. Nissan Motor markets its products Worldwide. In February 2022, Nissan Motor Co., Ltd. and Nissan Motorsports International were developing the Nissan Z GT500 based on the Nissan Z, the all-new sports car representing more than 50 years of ongoing passion.

Key Companies in the All-Wheel Drive market include

• GKN PLC (UK)


• American Axle & Manufacturing Inc. (US)


• Magna International Inc. (Canada)


• BorgWarner Inc. (US)


• ZF Friedrichshafen AG (Germany)


• Continental AG (Germany)


• Dana Limited (US)


• JTEKT Corporation (Japan)


• Oerlikon (Italy)


• Eaton (Ireland)

All-Wheel Drive Industry Developments

February 2022: Continental AG tires launched new cross-contact ax6 tires for SUVs in India. New continental cross-contact ax6 all-terrain SUV tires offer excellent durability, low noise, and shorter braking distance on wet roads, as the company claims.

February 2022: Continental plans to significantly expand its capacities in Brazil with an investment of 25 million euros (more than 160 million Brazilian Real).Response to Continental's continuous growth in the South American market. The new facilities and machinery production is tentatively scheduled for early 2024.

February 2020: Chrysler upgraded the Pacifica model with an All-wheel drive. With this update, Chrysler joins Toyota as the only brand to offer all-wheel drive, helping counter the shift to SUVs.

All-Wheel Drive Market Segmentation:

All-Wheel Drive Type Outlook

• Manual AWD


• Automatic AWD

All-Wheel Drive Vehicle Type Outlook

• Passenger Car


• Commercial Car

All-Wheel Drive Propulsion Outlook

• Internal Combustion Engine (ICE) Vehicle


• Electric Vehicle


• Battery Electric Vehicle (BEV)


• Hybrid Electric Vehicle


• Plug-In Hybrid Electric Vehicles (PHEVs)

All-Wheel Drive Application Outlook

• On-Road


• Off-Road

All-Wheel Drive Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America