Press release
Predicted Growth of Global All Wheel Drive Market till 2025: Market Size, CAGR, Major Drivers, and Trends
All Wheel Drive Market Size
What Is The Projected Market Size Of The Global All Wheel Drive Market And Its Growth Rate?
• The global all wheel drive market has seen strong growth and is expected to continue expanding.
• The market size will escalate from $39.57 billion in 2024 to $42.82 billion in 2025, at a CAGR of 8.2%.
• The growth is largely due to demand for enhanced traction, luxury, and premium vehicle preferences, and expansion in the SUV segment.
• The all wheel drive market size is predicted to reach $56.73 billion in 2029 at a CAGR of 7.3%.
• The growth in the forecast period is attributed to rising demand for electric and hybrid vehicles, advancements in vehicle connectivity, regulatory emissions standards, compact AWD vehicles, and autonomous vehicle integration.
What Is Driving The Growth In The All Wheel Drive Market?
Increased demand for electric vehicles is one of the significant factors driving the growth of the global all-wheel drive market. Electric vehicles, which operate on an electric motor instead of an internal combustion engine, offer improved traction and stability, helping to navigate varied road and environmental challenges effectively. For instance, Edison Electric Institute projects that the number of electric vehicles (EVs) on U.S. roads will increase from 2.4 million in 2021 to 26.4 million by 2030, providing a considerable boost to the all-wheel drive market.
Fuel efficiency mandates are also playing a crucial role in propelling the growth of the all-wheel drive market. All-wheel-drive vehicles provide better handling and stability, leading to improved fuel efficiency. For example, according to the National Highway Traffic Safety Administration, all car models manufactured in 2026 will require a range of 40 miles per gallon. This emphasis on fuel efficiency is stimulating the expansion of the all-wheel-drive market.
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Who Are The Key Players Driving All Wheel Drive Market Growth?
Major players operating in the all wheel drive market include:
• Volkswagen AG
• Toyota Motor Corporation
• Daimler AG
• Ford Motor Company
• General Motors Company
• Honda Motor Company Ltd.
• Tesla Inc.
• Nissan Motor Co. Ltd.
• Kia Corporation
• AB Volvo, Renault Group
• ZF Friedrichshafen AG
What Are The Key Trends In The All Wheel Drive Market?
Key trends influencing the market growth include:
• Dynamic torque vectoring systems
• Smart connectivity and over-the-air updates
• Weight reduction technologies
• Collaborations for autonomous vehicle integration
• Global market penetration in emerging economies
What Are The Segments Of The Global All Wheel Drive Market?
The global all wheel drive market is segmented by:
1) Type: Automatic All-Wheel Drive (AWD), Manual All-Wheel Drive (AWD)
2) Component: Differential, Transfer Case, Propeller Shaft, Power Transfer Unit, Final Drive Unit
3) Application: Battery Electric Vehicles (BEV), Plug-In Hybrid Electric Vehicle (PHEV)
Which Region Leads The All Wheel Drive Market?
North America held the largest share in the global all-wheel drive market in 2024. However, the Asia-Pacific region is expected to witness the fastest growth during the forecast period. The market report includes data on several regions, including Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
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What Is Covered In The All Wheel Drive Global Market Report?
- Market Size Analysis: Analyze the All Wheel Drive Global Market Report 2025 size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the All Wheel Drive Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall All Wheel Drive Global Market Report 2025 growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the All Wheel Drive Global Market Report 2025.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.
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