Intelligent All-Wheel Drive System Market witnessing substantial growth, with a projected value of USD 7.5 billion at a CAGR of 7.8% | study


The growing demand for luxury and high-performance vehicles equipped with advanced all-wheel drive systems is a key factor fueling the growth of the global intelligent all-wheel drive system market. Furthermore, the increasing adoption of electric vehicles is expected to drive the demand in the future.

New York, April 20, 2023 (GLOBE NEWSWIRE) — 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 in 2022, growing at a CAGR of 7.8% during the forecast period from 2022 to 2032.

The demand for advanced vehicles is driving the market for intelligent all-wheel drive systems.  The rapid advancement of fresh technology will cause certain structural changes in the automobile industry. The growing need for enhanced vehicle performance, particularly in adverse weather, is driving this market. Furthermore, customers are becoming more aware of safety in the cars while buying them, and they are willing to pay extra for these safety features, this factor will encourage the manufacturers to produce this intelligent all-wheel drive system for their vehicles.


Intelligent All-Wheel Drive System Market

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Key Takeaway:

  • By Product Type, in 2022, front-wheel drive by default was dominated by product type.
  • By Vehicle Type, the SUV segment dominated the largest market share in Vehicle Type Analysis
  • In 2022, the North America region dominated the market with the highest revenue share of 42%.
  • APAC is anticipated to have the highest CAGR among all the regions.

Factors affecting the growth of the Intelligent All-Wheel Drive System Market

There are several factors that can have an impact on the growth of the intelligent all-wheel drive system industry. Some of these factors include:

  • Technological developments: The expansion of the Intelligent AWD System sector depends on technological developments. Modifications in sensor technology, and software engineering, can improve the effectiveness of Intelligent AWD Systems, creating a more efficient and accurate.
  • Cost: The price of Intelligent AWD systems might have an impact on the sector’s expansion. Vehicle manufacturers are more likely to use the technology as it gets more affordable and more available to them. Also, as the price of the technology lowers, people can buy it more easily, driving up demand for the technology.

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Top Trends in Global Intelligent All-Wheel Drive System Market

  • 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. It is now easier than ever for people to connect and access information via the Internet.
  • 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. In order for ADAS and autonomous driving technologies to operate properly, these systems have to be able to give accurate and reliable data on dynamic systems. AWD systems can improve fuel efficiency by optimizing power distribution to the wheels and can also reduce emissions by allowing vehicles to operate more efficiently in different driving conditions.

Market Growth

The rising demand for cars with cutting-edge safety and driver-assistance systems is one of the major factors influencing market expansion. Intelligent AWD systems may improve a vehicle’s stabilization and grip control, enhancing both its overall performance and security. The market for intelligent AWD systems is anticipated to rise as more consumers set a greater priority on safety when making vehicle selections. The rising demand for crossover and sports vehicles is another factor boosting market expansion.

Regional Analysis

The North American region dominated the market with the largest revenue share of 42%. Due to increasing consumer demand for AWD systems in the US and Canada as well as strict government fuel efficiency regulations. Europe accounted for a substantial portion of the worldwide market in 2022 due to increased customer desire for enhanced security features and advanced driver assistance systems (ADAS), as well as rigorous government laws regulating carbon emissions. In this area, revenues from intelligent AWD system automobiles have increased in recent years.

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Scope of the Report

Report Attribute Details
Market Value (2022) USD 3.6 Billion
Market Size (2032) USD 7.5 Billion
CAGR (from 2023 to 2032) 7.8%
North America Revenue Share 42%
Historic Period 2016 to 2022
Base Year 2022
Forecast Year 2023 to 2032

Market Drivers

AWD systems are becoming increasingly popular owing to increase market demand for higher vehicle performance, customer consciousness of safety features in vehicles, and the rising requirements for EVs. Users are willing to pay more for cars with AWD systems, which provide better handling and traction, especially in poor weather or risky driving situations.

Market Restraints

  • More costly – It costs more at the time of initial purchase. Due to its complication compared to a two-wheel drive, AWD is more expensive to maintain. If there is a problem with the vehicle, users who are purchasing a used automobile without a guarantee may have to pay a significant sum.
  • Poor fuel efficiency – Most AWD systems have extremely low fuel efficiency in addition to the extra cost when buying the car. AWD cars use four to ten percent more fuel than their two-wheel-drive counterparts because they are heavier and require the engine to transfer power to all wheels.

Market Opportunities

One of the main factors driving development in the global intelligent all-wheel drive system market is the rising popularity of luxury and high-performance cars, many of which have cutting-edge all-wheel drive systems. Moreover, as the use of electric cars rises, the need for intelligent all-wheel drive systems is predicted to rise as well, as these systems may improve the efficiency and range of electric vehicles. The usage of advanced driver assistance systems (ADAS) and autonomous driving technologies is expected to increase the demand for intelligent all-wheel drive systems since these systems can provide the reliable and precise vehicle data essential to these technologies’ correct operation.

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Report Segmentation of the Intelligent All-Wheel Drive System Market

Product Type Insight

The front wheels of a car are powered by the engine using a technique known as front-wheel drive. In comparison to rear-wheel drive systems, where the situation is the opposite, it. With four-wheel drive cars, the engine and gearbox are often positioned transversely in the front of the vehicle, powering the front two wheels, which then propel the vehicle forward separately. Rear-wheel drive is the practice of driving a vehicle’s rear wheels in order to propel it forward. The car’s front wheels may move since they get the lowest amount of power.

Vehicle Type Insight

Sedans, SUVs, sports cars, and other vehicle types are included in this segment. In 2022, the SUV sector was the largest revenue contributor across the field. In order to improve driving characteristics and increase safety by preventing understeer and oversteer situations, SUVs typically use sophisticated all-wheel drive systems. Moreover, these systems enhance driving dynamics by providing more accurate torque distribution across all wheels for improved grip conditions. Also, the system constantly checks the wheel speed sensors to ensure that they are all rotating at the appropriate speeds as required by the tires for the best performance under different driving conditions.

Recent Development of the Intelligent All-Wheel Drive System Market

  • In 2021- The Launch of the new Generation 5 all-wheel drive technology from Borgwarner Inc. is anticipated in 2021.The new innovation aim to supply greater traction and torque transfer, high fuel effectiveness, and minimum pollution.
  • In 2021- The latest PowerLine 8-speed automatic gearbox for vehicles offer in 2021, As per the ZF Friedrichshafen AG. The innovative transmission, which has an intelligent all-wheel drive system, is essential for operation and traction on a wide range of terrain.

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Market Segmentation

Based on the 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

By Geography

  • 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

Competitive Landscape

The two market leaders, who together held a large market share, were BorgWarner Inc. and Continental AG. These businesses are well-known in the automotive sector and have made significant R&D investments in order to create cutting-edge intelligent AWD systems. Companies competed on the basis of product innovation, technical improvements, and price tactics in the highly competitive market for intelligent AWD systems. Because of the increasing demand for high-performance automobiles and developments in automotive technology, the market is expected to massively expand over the coming years. Some of the major players include:

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

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