Global Intelligent All-Wheel Drive System Market, By Product Type (Front Wheel Drive by Default, Rear Wheel Drive by Default, and Other Product Types), By Vehicle Type, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

The Global Intelligent All-Wheel Drive System Market size is expected to be worth around USD 7.5 Billion by 2032, From USD 3.6 Billion by 2023, growing at a CAGR of 7.80% during the forecast period from 2023 to 2032.

Automobiles with an automated power distribution system that can distribute power to all four wheels of the vehicle for better grip and handling are called intelligent all-wheel drive systems. The growing need for enhanced vehicle performance, particularly in adverse weather and challenging terrain, is driving this industry ahead. The rapid advancement of new technology will cause certain structural changes in the automobile industry.

Driving Factors

An increase in the popularity of SUVs and crossovers: These cars are among the most common to have sophisticated all-wheel drive (AWD) systems. The need for sophisticated AWD systems is rising along with the demand for these cars.

Growing consumer knowledge of safety features: Customers are becoming more aware of safety features in cars, particularly AWD systems. Because of this, many customers are prepared to spend extra on safety concerns.

Restraining Factors

There are also several key restraints such as more expensive, and low fuel efficiency.

More expensive: AWD is more expensive to purchase and maintain than a two-wheel drive, and buyers may have to pay a hefty amount if there is any problem with the vehicle.

Low fuel efficiency– AWD vehicles have significantly low fuel efficiency due to their heavier weight and larger engine, consuming 4 to 10 % more fuel than two-wheel-drive vehicles.

Growth Opportunities

The increasing adoption of premium and high-performance automobiles, many of which include cutting-edge all-wheel drive systems is one of the key factors fueling growth in the worldwide intelligent all-wheel drive system market.

Also, the demand for intelligent all-wheel drive systems is anticipated to increase as electric vehicle usage increases since these systems may help increase the economy and range of electric vehicles. As advanced driver assistance systems (ADAS), and autonomous driving technologies become more common, the demand for intelligent all-wheel drive systems will increase. These systems can provide accurate and reliable vehicle data that allows these technologies to function properly.

Latest Trends

Rising Adoption of EV: The adoption of electric vehicles is increasing as a consequence of rising environmental awareness and attempts to encourage environment-conscious transportation. With the advent of the internet, it has been easier than ever to access knowledge and connect with others.

Connectivity with advanced driver assistance systems and automated driving technologies: Intelligent all-wheel drive integration with ADAS and automated driving technologies is becoming more prevalent. For ADAS and autonomous driving technologies to operate properly, these systems have to be able to give accurate and reliable data on dynamic systems.

Product Type Analysis

The Front front-wheel drive by Default Segment Accounted for the Largest Revenue Share in the Intelligent All-Wheel Drive System Market.

A system known as front-wheel drive by default, or FWD for short, uses engine power to move an automobile’s front wheels. It differs from rear-wheel drive systems where the opposite is the case. With four-wheel drive vehicles, the engine and transmission are often placed crosswise at the front of the car, providing power to the front two wheels, which then move the car forward on their own. Rear-wheel drive refers to providing the rear wheels the engine power, which drives the car forward. The front wheels of the car may move since they get minimum power.

Vehicle Type Analysis

The SUV segment is dominated by the largest market share in the Intelligent All-Wheel Drive System market

This market can be classified into sedans, SUVs, sports cars, and other types. In terms of share of revenue, the SUV segment dominated the entire market in 2022. SUVs usually employ intelligent all-wheel drive systems to enhance driving features and boost safety by avoiding understeer and oversteer conditions.

Furthermore, by offering more precise torque allocation across all wheels for better grip, these systems increase driving dynamics. The system also continually monitors the wheel speed sensors to make sure that they are all revolving at the proper rates as needed by the tires for the greatest performance under various driving circumstances, such as high-speed cornering on dry roads, accordingly.

Key Market Segments:

Based on Product Type

• Front Wheel Drive by Default
• Four-Wheel Drive by Default
• Rear Wheel Drive by Default
• Other Product Types

Based on Vehicle Type

• SUV
• Sedan
• Sports Car
• Other Vehicle Types

COVID-19 Impact Analysis

The global auto industry has seen a significant impact from the COVID-19 pandemic, which also affected the market for intelligent all-wheel drive systems. The pandemic disrupted supply chains, led to production shutdowns, and decreased demand for vehicles. This has resulted in a decline in sales.

Due to the pandemic, there has been a shortage of raw materials and suspension of manufacturing operations, leading to a decrease in production and supply of vehicles equipped with intelligent all-wheel drive systems. Furthermore, travel restrictions and lockdowns in various countries have further reduced consumer demand for automobiles, leading to decreased sales volumes.

The market for intelligent all-wheel drive systems is rapidly regaining its pre-COVID levels, and over the forecast period, an increase in growth is expected, led by the economic recovery in most developing countries. The highly contagious nature and frequent suspensions of public transport systems led to a demand for Intelligent Wheel Drive System products.

Regional Analysis

The North American region dominated the market with the largest revenue share of 42%. The area is anticipated to maintain its dominance throughout the projected period because of rising customer demand for AWD systems across the US and Canada as well as strict government fuel efficiency rules.

Due to growing consumer preference for high-security features and advanced driver assistance systems (ADAS) as well as strict government regulations regarding carbon emissions, Europe accounted for a significant percentage of the global market in 2022. Over the recent years, revenues of intelligent AWD system cars have increased in this region.

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Market Share & Key Players Analysis:

BorgWarner Inc. holds a large market share and is one of the industry’s top competitors in intelligent all-wheel drive systems. ZF Friedrichshafen AG and GKN plc are also key players in the sector, providing a wide range of all-wheel drive systems for a variety of uses, including hybrid and electric vehicle options.

Top Key Players in the Automotive Engine Oil Market

• ZF Friedrichshafen
• Continental
• Magna International
• BorgWarner
• Jtekt Corporation
• American Axle Manufacturing
• Eaton Corporation
• GKN
• Dana Holding Corporation
• Orelikon
• Ford
• Other Key Players

Recent Developments:

• In 2021- The introduction of the new Generation 5 all-wheel drive technology from Borgwarner Inc. is scheduled for 2021. The innovation goal is to supply greater traction and torque transfer, higher fuel effectiveness, and low pollution.
• In 2021- The new PowerLine 8-speed automatic gearbox for vehicles will be on offer in 2021, according to ZF Friedrichshafen AG. With its intelligent all-wheel drive system, the advanced transmission is essential for operation and traction on a broad range of terrain.

Report Scope: