Nov 15, 2019 (AB Digital via COMTEX) -- Market Insight
The global all-wheel-drive market is assessed to register a 7.83% CAGR during the forecast period 2018–2023. At this time, the market can grow to USD 36,572.3 million by 2023, reveals Market Research Future in its detailed report. Other than this, the market study further focuses on segments, drivers, and competitive analysis of the entire market to give a peek into the future market demography.
Market Drivers & Trends
The market for all-wheel drive is proliferating due to its increased usage in electric vehicles SUVs, CUVs, luxury sedans, and high-end sports vehicles to encounter the demand for improving stability, control, safety and improving the driving experience. As road accidents are increasing, there is has been initiatives in creating immense awareness for vehicle safety and stability and thus has increased the popularity of all-wheel drive. In the case of point, as per the National Safety Council, in 2017, around 40,100 people were killed in road accidents, which was recorded to be an increase by 6% in comparison to the data recorded in 2015.
At the same time, features such as improving traction, vehicle handling, driving comfort, drivetrain efficiency, and decreasing the heat loss of the engine are also counted among the factors for the growth of the market. The all-wheel-drive has also gained much populace on enhancing the performance and safety of the vehicles in all-terrain conditions. Therefore, the demand for higher vehicle stability in off terrain, mud, sand, snowy roadways, and extreme road conditions along with the applications in agriculture, construction, and mining is anticipated to drive the global all-wheel-drive market during the assessment period.
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On the other hand, governments throughout the world are also forming rigid rules regarding vehicle safety, which will eventually surge the need for all-wheel-drive systems in all the vehicles. In this, several major automotive component manufacturers are highly investing in the development of the all-wheel drive. The study includes that, Dana Limited introduced a new product, ‘Spicer smart connect,’ in March 2018, which was a disconnecting AWD system that delivered the best-in-class efficiency by reducing oil churning and gear and bearing friction. Therefore, the continuously rising number of road accidents in all the regions of the world has resulted in the intensifying awareness about vehicle stability and driving dynamics among the end-users. Such a condition has anticipated shifting the impact of stability and enhanced driving dynamics from moderate to high on the global all-wheel-drive market during the assessment period.
On the flip side, the factor of the high cost of the all-wheel-drive system presently has a straight impact on the demand for these systems in several price-sensitive countries in Asia-Pacific and the Middle-East & Africa. However, the rising spending capacity and the increasing product development activities are anticipated to lessen the impact of high cost of the system on the adoption of AWD systems in the automobile industry during the market’s growth period.
The segmental analysis of the global all-wheel-drive market has been conducted based on type, propulsion, application, and vehicle type.
Among the type segment: Manual AWD and automatic AWD are the segments. Among these, the manual AWD segment is likely to lead the all-wheel-drive market due to rise in demand for SUV and crossover utility vehicles (CUV). These vehicle systems comprise over a lesser number of components, which results in a low manufacturing cost, as compared to other available alternatives.
Among the propulsion segment: ICE Vehicle and electric vehicle are the segments. Among these, the electrical vehicle segment is further bifurcated among Plug-in Hybrid Electric Vehicle (PHEV) Battery Electric Vehicle (BEV), and Hybrid Electric Vehicle (HEV).
Among the application: On-Road and off-road are the segments.
Among the vehicle type: Passenger Vehicle and commercial vehicle are the segments.
North America, Europe, Asia-Pacific, and the Rest of the World are the key regions that are studied while the regional analysis of the global all-wheel-drive market is done.
Among these, North America is likely to grab the largest share in the global all-wheel-drive market during the assessment period with approximately 35% share, after Europe and Asia-Pacific, with attaining the shares of 33% and 26%, respectively. In the North American region, the US was the largest market in 2017, as it was valued at USD 6,519.3 million. The growth in the all-wheel-drive market in North America is mainly attributed to the increase in the applications of AWD vehicles in forestry, agriculture, and varied terrains. With this, the surge in demand for vehicle stability and torque distribution is also a reason for its expansion in the North American region.
It is estimated that the Asia-Pacific region would be the fastest-growing region for the market’s evolution during the assessment period. The growth of the market is mainly owing to the surged consumption and production of vehicles, both passenger and commercial.