Global All-wheel drive(AWD)and 4-wheel drive(4WD) Market 2024-2030

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    The 2024 Update coming soon Published Date - October 2021 Number Of Pages - 94  

    ALL-WHEEL DRIVE(AWD)AND 4-WHEEL DRIVE(4WD) MARKET

     

    KEY FINDINGS

    1. In Japan, 43 out of the top 45 best-selling vehicles, offer 4WD at least as an option. E-4WD is getting increasingly popular on higher variants of hybrid vehicles 
    2. The US is the single largest market for AWD globally, followed by China and Europe
    3. The rise of intelligent AWD and E-AWD is the biggest trend fuelled by the growth of compact and mid-size SUV/crossovers
    4. In Europe, less penetration of AWD/4WD cars in major automobile markets such as Germany, the,e UK and France has resulted in rather modest numbers of AWD in the entire Europe region
    5. 4×4 adoption in India is among the lowest compared to major markets as the budget models sub $15k dominate the top sellers category

     

    OEM`S IMPROVEMENT IN THEIR ALL WHEEL DRIVE SYSTEM

    Toyota’s newly developed 4WD system has a front and rear variable driving force system enabled by a multi-plate clutch. It transfers the new engine’s power to all four wheels with minimal loss. Toyota also started offering E-AWD for the first time in the US market on the Toyota Prius Sedan. The E-AWD doesn`t require a center differential or other torque-splitting device, like front to rear driveshaft.

     

    It has an independent electric, motor (without magnet) to power the rear wheels from 0 to 10 kph,  up to 43 mph. It can also sense when AWD is not required.

     

    ALL-WHEEL DRIVE(AWD)AND 4-WHEEL DRIVE(4WD) MARKET

     

    Audi`s new and improved Quattro, wheel-selective torque control enhances handling by ensuring additional traction across each axle through individual-wheel braking, whereas on the 2020 RS7, drive forces are distributed to the front and rear axles in a 40:60 ratio via the mechanical center differential.

     

    In 2019 Q5 The Q5 55 TFSI, the all-wheel drive with ultra technology is used in combination with an electric motor. The all-wheel-drive system’s intelligent control also works predictively i.e. always looking ahead via sensors and the continuous actuation as per data collected on driving dynamics and driver behavior.

     

    Mercedes`s new 4MATIC can send from 0 to 100% of the engine’s torque to the front or rear axle. A transfer case with a multi-disc clutch can vary the torque distribution as per road conditions.

     

     All-wheel drive(AWD)and 4-wheel drive(4WD) Market

    Cadillac introduced a new twin-clutch design AWD in the US market on the 2017 XT5. The AWD system is capable of transferring up to 100% of available torque to either the front or rear axle. On the rear axle, the electronically controlled differential can provide up to 100% of available torque to either wheel.

     

    4-WHEEL DRIVE(4WD) MARKET SEGMENTATION

     

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    AWD MARKET DYNAMICS

     

    SI No Timeline Company/Country Developments
    1 December 2021 GKN Driveline GKN Driveline has launched an Advanced Research Centre in the UK to develop next-generation eDrive Systems for future EVs in the country. The center is expected to produce a pipeline for automotive electrification innovation
    2 October 2021 BorgWarner BorgWarner will be supplying its P3 Hybrid Module to one of the major OEMs in Europe. It will be used in FWD & AWD of the SUV lineup of the OEM. This module contains the motor, power electronics, gears and water cooling all integrated within one unit.
    3 2021 Japan The 4WD volume is higher in Japan than in any other region as the 4×4 adoption is common among mini-vehicles and MPVs too
    4 2021 US More than half of the 4WD/AWD new cars registered every year are from the US. High sales of SUVs and Pickup trucks are the major factors boosting this segment.

     

    To up its technological game, Tata Motors intends to introduce four-wheel drive in its upcoming all-electric SUVs, which will sit above the Nexon EV lineup. None of its internal combustion engine SUVs currently available offer 4WD, a feature offered by Mahindra and other competitors in the market. Recently, Maruti Suzuki added all-wheel drive to its Grand Vitara mid-size SUV.

     

    4-WHEEL DRIVE(4WD) MARKET SIZE AND FORECAST

     

    SUVs/Crossovers/light pickups accounted for 36% of global light vehicle production in 2018 or ~29 Million vehicles. AWD/4WD was offered on less than 40% of all SUVs sold.

     

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    US ALL-WHEEL DRIVE MARKET

    In the US among the top-7 models, 6 of them come with AWD technology and Chevrolet Equinox has a 4-WD variant. As many as 17 models out of the top 30 feature either AWD or 4-WD.

     

    Among EVs, the rise in several sales in Tesla models has propelled the AWD numbers, as except for 1 variant in Model 3 all the other models come with AWD ffeaturesas standard.

     

    EUROPE ALL-WHEEL DRIVE MARKET

    The percentage of adoption of 4WD or AWD in the new car registrations in the region is as low as ~22%. Countries such as Switzerland, Norway & Sweden have close to 50% penetration, whereas the major countries Germany, France, UK and others are around 20%.   

     

    INDIA ALL WHEEL DRIVE MARKET

    The upcoming SUV launches in the pipeline, such as Toyota RAV4, and Skoda Kamiq, will increase the penetration of AWD in the region. With the entry of MG IC & EV models and Kia models the AWD. Mahindra Thar is the cheapest 4×4 vehicle in the country.

     

    JAPAN ALL WHEEL DRIVE MARKET

    In December 2020, for the first time Nissan introduced the AWD variant in the Note EV model, its Gasoline variant became the top-selling Nissan model in the country.

     

    The new Note is equipped with dual electric motors at the front and rear delivering power to each wheel. Note that e-Power offers linear acceleration that is unique to the 100% electric motor-driven system.

     

    Borg Warner will supply the transfer cases for Nissan’s SUV and pick-up models. These transfer cases offer various operating ranges including 2-WD, 4-WD (high) & 4-WD (low).

     

    NEW PRODUCT LAUNCH

    • VW launched its new electric SUV in the US as the ID.4 AWD Pro, an all-wheel-drive model. In the US, Volkswagen introduced the ID. 
    • 4, its first brand-new car built on its new MEB platform, but it was only available in a “First Edition” variant with a rear-wheel-drive powertrain choice.
    • As promised, the German automaker is finally introducing its new all-wheel-drive ID.4 AWD Pro, an updated version of the electric SUV, to the US.
    • With the introduction of the new Volkswagen ID.4 AWD electric SUV, Americans will have yet another incentive to adopt environmentally friendly transportation.
    • The ID.4 AWD offers performance with two electric motors, a maximum of 295 horsepower, and a predicted 0-60 mph time for the AWD Pro model of 5.7 seconds.
    • In addition to superior traction, the new version of the vehicle also has faster acceleration, and higher towing capacity, and the new electric motor only slightly reduces the range of the electric SUV, which now has a range of between 240 and 249 miles on a single charge, depending on the version.
    • The ID.4 AWD Pro can accelerate from a standstill to 60 mph in an estimated 5.7 seconds thanks to its instantaneous torque.

     

    When using a braked trailer, the towing capability increases to 2,700 pounds, up from 2,200 pounds for the rear-wheel-drive 1st Edition model. A tow hitch and an electrically heated windscreen are standard on the ID.

     

    4 AWD. The 82 kWh battery pack, roomy interior, and IQ of the rear-wheel-drive ID.4 are all present in the AWD version. Driver software is called Driver assistance technologies.

     

    Up to four new SUVs from Tata Motors were introduced with AWD. Comparing the thinking of Tata Motors now to that of just a few years ago when it comes to product positioning, there has been a significant change.

     

    Tata Motors was right to note that there wasn’t a sizable market for 4×4 or AWD SUVs; with only 2 to 3 percent of SUV buyers willing to pay more for a four-wheel-drive variant of their SUV, and with most SUVs now being pavement-prawlers, Tata Motors also had to justify their choice to launch the current-generation Safari with FWD rather than 4×4 or even RWD.

     

    Sticking with FWD allowed the Safari to be more reasonably priced to purchase, more car-like to drive in terms of dynamics, and, aside from a small group of enthusiasts who took their SUVs outdoors, the buyers who flocked to buy Safaris had nothing but praise for their SUVs when they were driven around in the city or on the highway. 

     

    For individuals who live in remote areas, four-wheel drive or all-wheel drive may be a requirement, but it also makes it possible for novice off-road fans to get their start in the sport. 

     

    Consider the influence the new Mahindra Thar has had on the off-roading scene. It boasts 4×4 and an automated gearbox for ease.

     

    RECENT TRENDS IN THE GLOBAL AWD MARKET

     

    SI No Timeline Company Developments
    1 December 2021 Magna International Magna has developed a new all-electric powertrain and it is expected to be featured in a new entrant vehicle in 2022. The complete system is comprised of two electric motors, inverters, and gearboxes. It is a complete powertrain with an AWD option
    2 July 2021 Hyundai Transys Hyundai Transys introduced an EV AWD disconnector system. This device will be used for the EV system’s reducer, disconnecting or connecting motors. This helps in disconnecting the secondary axle from the AWD system when not necessary
    3 June 2021 American Axle & Manufacturing American Axle & Manufacturing installed a new production line at its Three Rivers Manufacturing Facility (TRMF) in Michigan to expand automotive axle production capacity. The $40.6-million investment It produces various automotive driveline products, including front and rear axles and EcoTrac disconnecting all-wheel-drive systems
    4 January 2021 Hyundai-WIA HYUNDAI-WIA developed South Korea’s ‘Integrated Coolant Distribution Supply Module’, a thermal management system for electric vehicles that integrates EV driveline and battery parts.

     

    RECENT PRODUCT DEVELOPMENT AND INNOVATION

     

    Based on the new Ranger ute, the second-generation Ford Everest SUV will feature a tough ladder-frame chassis, a dependable four-wheel-drive system, and potent diesel engines. It adopts the F-150’s front fascia, just like the new Ranger, and the top-tier model comes with a potent turbo-diesel V6.

     

    The Jeep Wrangler, Land Rover Defender, and even the Toyota LandCruiser are among the targets of the Ineos Grenadier. Both gasoline and diesel engines will be available for the large SUV, with the former producing about 212kW/450Nm from a 3.0-liter inline six and the latter about 185kW/550Nm. An eight-speed automatic transmission will be mated to both, and a permanent four-wheel-drive system and three locking differentials will be available for when the going gets tough.

     

    Entegra Coach is the smoothest ride in a Class B vehicle to date. It is built on the Sprinter 4X4 Premium Mercedes-Benz chassis with on-demand four-wheel drive and equipped with E-Z Drive. Despite being luxurious, it has a standard 48V 210 amp hour smart lithium battery and 200 watts of roof-mounted solar panels, so it can handle your off-grid adventures. 

     

    4-WHEEL DRIVE(4WD) MARKET COMPETITIVE LANDSCAPE

     

    SI No Timeline Company Developments
    1 Q3-2021 BorgWarner Q3 Sales of BorgWarner witnessed a ~7% decrease in sales compared to the same period in 2020 and ended at $3.4B. However, the sales after 9 months in 2021 were $ 11.1B with a 79% increase Y-o-Y
    2 Q3-2021 Magna International In the 3rd Quarter of 2021, Magna International’s revenue dropped by 13% to $ 7.9B compared to the same period in 2020. After 9 months in 2021, the overall revenue was $27.1B up by 22% 
    3 H1-2021 GKN Automotive After 6 months in 2021, the revenue generated from GKN Automotive was $2.6B. All Wheel Drive segment accounted for 24% of the overall revenue 
    4 H1-2021 ZF Friedrichshafen In H1-2021 the sales revenue of ZF increased by 43% compared to this period in 2020.

     

    There are 9 major tier-1 AWD /4WD suppliers globally. Among sub-component suppliers, Continental is the leading provider of control units whereas Eaton is among the biggest differential providers.

     

    BorgWarner, Dana, and American Axle are among the leaders in the North American market whereas JTEKT is the leader in the Japanese market.

     

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    As Vehicle electrification is a prominent trend globally,  Borg Warner optimized the latest generation of its all-wheel drive (AWD) coupling with a compact brushless direct current (BLDC) motor and highly integrated electronics. It also includes an integrated electronic control unit (ECU) which reduces cost and improves packaging.

     

    South Korea-based Hyundai- WIA supplied AWD on various Hyundai and KIA models.

     

    With the growing demand for electric drive modules:

     

    • BorgWarner is supplying its GenV AWD coupling to the German auto manufacturer BMW. AWD coupling employs a hydraulic actuator to apply variable force to the clutch package using hydraulic pressure and a working piston.
    • BorgWarner’s electric drive module entered serial production in Jan 2019. The fully integrated drive module (iDM) also includes developed power electronics which can be integrated either at the front or the rear axle of passenger cars and light commercial vehicles depending on the architecture and the application
    • DANA is supplying its Spicer AdvanTEK M180 all-wheel-drive axle to the new, Volkswagen Crafter 4 Motion panel van. It is also supplying  Spicer SmartConnect disconnecting all-wheel-drive (AWD) systems for the global 2019 Ford Edge. 
    • Jaguar’s first all-electric production vehicle, the I-PACE, features American Axle & Manufacturing’s all-wheel-drive front and rear e-Drive units.

     

    4-WHEEL DRIVE(4WD) MARKET REPORT WILL ANSWER THE FOLLOWING QUESTIONS

    1.   Market Size and Forecast of global AWD and 4WD market (Volume and Value)
    2.   Market Trends, risks, drivers, and opportunities in the global all-wheel drive market
    3.   Market share of AWD manufacturers in the US,Europe, and China
    4.   Growth strategy and expansion plans of AWD manufacturers 
    5.   OE-supplier alignment in the global all-wheel drive market
    Sl no  Topic 
    Market Segmentation 
    Scope of the report 
    Abbreviations 
    Research Methodology 
    Executive Summary 
    Introduction 
    Insights from Industry stakeholders 
    Cost breakdown of Product by sub-components and average profit margin 
    Disruptive Innovation in the Industry 
    10  Technology Trends in the Industry 
    11  Consumer trends in the industry 
    12  Recent Production Milestones 
    13  Component Manufacturing in the US, EU, and China 
    14  Market Segmentation, Dynamics, and Forecast by Geography, 2024-2030
    15  Market Segmentation, Dynamics, and Forecast by Product Type, 2024-2030
    16  Market Segmentation, Dynamics, and Forecast by Application, 2024-2030
    17  Market Segmentation, Dynamics, and Forecast by End-use, 2024-2030
    18  Product installation rate by OEM, 2023
    19  Incline/Decline in Average B-2-B selling price in the past 5 years 
    20  Competition from substitute products 
    21  Gross margin and average profitability of suppliers 
    22  New product development in the past 12 months 
    23  M&A in the past 12 months 
    24  Growth strategy of leading players 
    25  Market share of vendors, 2023
    26  Company Profiles 
    27  Unmet needs and opportunities for new suppliers 
    28  Conclusion 
    29  Appendix 
     
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