PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1127423
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1127423
All wheel drive Market size was valued at USD 33,865.8 Million in 2021, growing at a CAGR of 8.7% from 2022 to 2028.
All four wheels of a vehicle with an automotive multi-wheel drive, commonly known as an all-wheel drive (AWD), receive the same amount of torque from the engine. It covers automobiles with four wheels or more, such as SUVs, trucks, commercial lorries, and high-end cars. In two-wheel drive cars, the engine often has the ability to power either the front wheels or the back wheels at any one time. In contrast, all four wheels of a vehicle work together in an all-wheel or multi-wheel drive system to improve traction and handling in clement weather. They are also said to be the best for arid terrains like sand, snow, ice, mud, and off-road because these drives keep the car from skidding and aid in propulsion.
Global demand for all-wheel drive systems is being driven by rising demand for SUVs, luxury vehicles, and increased vehicle safety, stability, and driving dynamics. The manufacturing of all-wheel drive systems faces significant obstacles from environmental standards and high fuel consumption.
According to the WHO Global Status Report on Traffic Safety, more than 1.24 million people perished in road accidents around the world in 2010. The rising accident rate has prompted nations to establish tough car safety standards. The European Union and the US government are at the forefront of automotive safety standards. As a result, OEMs are introducing vehicles with integrated safety technologies that control the vehicle's stability and safety while also enhancing driving dynamics. All-wheel drive (AWD) systems, as opposed to RWD or FWD systems, aid in the stability of the vehicle by enhancing its capabilities through increased traction. As a result, industrialized countries like Europe and North America are seeing an increase in demand for these multi-wheel drive systems.
The North American and European regions are anticipating a potential demand for AWD in the future because of advancements in AWD capabilities and the cold weather. In the Asia-Pacific area, demand for luxury cars has exploded, and during the forecast period, it is anticipated to do so at the fastest rate of any vehicle category. The enhanced drive control, stability, and safety are a few of the aspects that could speed up the market's growth. The introduction of these systems into compact passenger cars and hybrid electric vehicles has increased demand worldwide. Previously, these systems were only available in high-end cars.
The Global All wheel drive Market is segmented on the basis of System Type, Passenger Vehicle, Component, and Region.
The market is divided into two categories based on passenger vehicles: Passenger cars, Commercial Vehicle. AWD systems were only common in high-end (luxury) passenger cars and SUVs because of their higher cost. The AWD drive system was developed by manufacturers as a result of technological improvements and rising consumer demand for a safe drive system for all weather and road conditions. It is affordable and can be used with any type of vehicle.
The global market for All wheel drive comprises a number of both international and local producers, making it a fairly competitive sectors in the world. In June 2022, Hyundai India announced the launch of its all-new AWD electric car Hyundai Ioniq 5 in mid of August 2022. Moreover, In March 2022, BorgWarner signed a supply contract with Hyundai to supply an integrated drive module (iDM) for Hyundai's upcoming A-segment electric vehicle production.
The scope of this report covers the market by its major segments, which include as follows: