Enjoy complimentary customisation on priority with our Enterprise License!
.The automotive multi wheel drive systems market size is forecast to increase by USD 30.97 billion, at a CAGR of 6.11% between 2023 and 2028. The growth of the market depends on several factors such as the advantages associated with multi-wheel drive systems, the benefits associated with the electrification of automotive multi-wheel drive systems, and the availability of multiple terrain profiles with four-wheel drive systems
For More Highlights About this Automotive Multi Wheel Drive Systems Market Report, Download Free Sample
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving Automotive Multi Wheel Drive Systems market growth is the advantages associated with multi-wheel drive systems. On-road accidents and collisions can occur due to internal or external factors, which result in severe injuries or loss of life. In addition, studies indicate that wet and slippery roads are the major reasons for road crashes, with over 73% of collisions taking place under such conditions.
Moreover, when a vehicle loses traction on a slippery road, the driver loses control of the vehicle, which mostly leads to collisions. In addition, the four-wheel drive system plays a vital role in such conditions by allowing all four wheels to have the maximum traction. Furthermore, this reduces the probability of a vehicle losing control on slippery roads. Hence, such factors are driving market growth during the forecast period.
A key factor shaping Automotive Multi Wheel Drive Systems market growth is the growing demand for SUVs and pickup trucks. Automakers have named performance sedans as high-performance engines coupled with four-wheel drive, which brings a new level of dynamics to the vehicle. In addition, sedans are expected to witness an increased implementation of electric axles, which eliminate the use of a heavy propeller shaft in a multi-wheel drive system.
Moreover, the system uses an electric motor placed on the rear wheel to convert the vehicle into a hybrid multi-wheel drive mode. Furthermore, BorgWarner Inc. and Magna International Inc., which are some of the suppliers of multi-wheel-drive systems, are developing custom-made, on-demand multi-wheel drive systems that can be integrated into sedans that are big in dimensions. Hence, such factors are driving the market growth during the forecast period.
The incorporation of a multi-wheel drive system increases overall vehicle cost is one of the key challenges hindering Automotive Multi Wheel Drive Systems market growth. The development and production of automotive multi-wheel drive systems include the use of advanced materials, parts, and components. In addition, the basic setup involves differentials, transfer cases, rear-drive shafts, rear axles, and advanced electronics.
Moreover, some of the advanced functionalities, including torque vectoring systems and limited-slip differentials, are used in the premium and luxury segments of SUVs and sedans. In addition, the growing preference for SUVs and crossovers drives the demand for four-wheel drive systems. Furthermore, the high cost incurred by such advanced four-wheel drive or I-AWD systems makes it difficult for OEMs to install them in small and compact SUVs. Hence, such factors are hindering Automotive Multi Wheel Drive Systems market growth during the forecast period.
The Automotive Multi Wheel Drive Systems market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the Automotive Multi Wheel Drive Systems market forecast report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Axle and Manufacturing Holdings Inc: The company offers automotive multi wheel drive systems such as VecTrac which is a unique technology that consists of an RDM that provides AWD function in a front wheel drive architecture.
The Automotive Multi Wheel Drive Systems market growth analysis report also includes detailed analyses of the competitive landscape of the market and information about 12 market companies, including:
Qualitative and quantitative market research and growth analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The Automotive Multi Wheel Drive Systems market research report offers extensive research analysis on the market, with a categorization based on Type, including manual and automatic. It further segments the market by Vehicle Type, encompassing passenger car and commercial vehicle. Additionally, the market trends report provides Region segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America.
By Type
The manual segment is estimated to witness significant growth during the forecast period. A manual segment enables the driver to manually engage or disengage the multi-wheel drive functionality. In addition, this system is often available in off-road vehicles, some SUVs, and trucks. In this, the driver can choose between two-wheel drive and four-wheel drive modes. Furthermore, a manual automotive multi-wheel drive system includes a transfer case that houses the gears and mechanisms between two-wheel drive and four-wheel drive modes.
Get a glance at the market contribution of various segments. Download the PDF Sample
The manual segment was the largest segment and was valued at USD 59.19 billion in 2018. Moreover, another feature of the manual automotive multi-wheel drive system is that it gains traction from off-road enthusiasts and professionals who need precise control over the vehicle's power distribution. In addition, the manual automotive multi-wheel drive system offers enhanced versatility even in rugged terrain, coupled with rising passenger safety, which is driving its demand. Hence, such factors are fuelling the growth of this segment, which in turn drives the market growth during the forecast period.
For more insights on the market share of various regions, Download PDF Sample now!
APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The increase in the sales volume of SUV and pickup trucks in emerging economies, including China, Malaysia, Indonesia, India, and others, is one of the major factors that drive the market growth of four-wheel drive vehicles in the region. In addition, the market for compact and mid-size SUVs has been showing steady sales growth in India, Korea, and China, which further drives the demand for SUVs in APAC. Moreover, improving economic conditions and other socioeconomic factors, such as cheap labor, growing automotive manufacturing plants, and changing consumer preference for large and spacious vehicles, are other factors that propel the market growth of utility vehicles. Hence, such factors are driving the market growth in APAC during the forecast period.
The Automotive Multi Wheel Drive Systems market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest market trends and analysis and growth opportunities from 2018 to 2028.
Automotive Multi Wheel Drive Systems Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.11% |
Market Growth 2024-2028 |
USD 30.97 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.75 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 44% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Axle and Manufacturing Holdings Inc., BorgWarner Inc., Dana Inc., Ford Motor Co., GKN Automotive Ltd., Honda Motor Co. Ltd., Magna International Inc., Mitsubishi Motors Corp., Porsche Automobil Holding SE, Renault SAS, Toyota Motor Corp., and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this Automotive Multi Wheel Drive Systems market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.