All Wheel Drive Market Projected to reach $53.8 billion by 2027

The report "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", 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%.

Browse 205 market data Tables and 47 Figures spread through 209 Pages and in-depth TOC on "All Wheel Drive Market"

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The growth is influenced by factors such as growth in the demand for AWD vehicles such as SUVs, MUVs& premium cars, strengthening emission norms and growing awareness of vehicle safety are considered to be the largest drivers of the all wheel drive market. The rapid urbanization and growing standard of living are expected to lead to the demand for high-end vehicles such as AWD vehicles and hence are expected to propel the demand for AWD systems during the forecast period.

The automatic AWD segment is expected to register the highest growth rate of 8.6% from 2022 to 2027

Factors such as growth in demand for SUVs, MUVs and high end premium cars due to demand for enhanced safety and comfort is contributing to the growth of AWD market. The share of SUVs to total sales of passenger vehicles has risen due to their advantages such as large passenger capacity, better comfort, bigger luggage capacity, ease of handling and higher ground clearance. Automatic AWD is expected to witness faster growth than manual AWD by system type. Automatic AWD system is more fuel-efficient, can optimize engagement of AWD without driver intervention and, have better performance.

The EV segment is expected to improve its market share during the forecast period

The sales of EVs are projected to grow at a CAGR of 33-35% during the forecast period as compared to ICE vehicles at 1.5-2%. The share of EV sales in some regions will be higher, with EVs reaching 40%-50% of sales in 2025 in Europe. China, one of the largest EV markets, is anticipated to account for more than 35-40% of EV sales to ICE sales in 2025. The North American market is forecast to pick up from 2023 and will likely have a 27-30% share in regional total vehicle sales in 2025.

The Asia Pacific is estimated to be the largest market

The all wheel market in the Asia-Pacific has witnessed significant year-on-year growth. Asia-Pacific is the largest automobile and automobile component manufacturer and hosts manufacturing plants of leading automobile manufacturers such as Honda Motor Co., Ltd (Japan), Tata Motors Ltd( India), Toyota Motor Corporation(Japan), BYD Motors (China), Mitsubishi Motor Corporation (Japan) and, Subaru corporation (Japan). The Asia Pacific region produced 55%-57% and 50-55% share of total EV and ICE vehicles produced globally. The growth of AWD vehicles in Asia Pacific can be attributed to the growth of SUVs in the region. Factors such as the growing need for premium vehicles in China, India, Japan and South Korea, due to the growth of the disposable income along with the rising the purchasing power of the population are boosting the growth of the SUV market in the forecast period. Additionally, China, India, Japan, and South Korea are host to leading AWD system manufacturers such as ZF Friedrichshafen AG(India), Continental AG(China and India), BorgWarner Inc. (China, Japan and South Korea) and Jtekt Corporation(Japan). The localization of leading AWD system manufacturers is projected to reduce the cost difference between non-AWD and AWD premium vehicles.

Key Market Players

The globally established players lead the all wheel drive market. These are - ZF Friedrichshafen AG (Germany), Continental AG (Germany), Magna International Inc. (Canada), BorgWarner Inc. (US), and JTEKT Corporation (Japan).

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This release was published on openPR.