GLOBAL ALL-WHEEL DRIVE(AWD)AND 4-WHEEL DRIVE(4WD) MARKET
KEY FINDINGS
- In Japan, 43 out of top 45 best-selling vehicles, offer 4WD atleast as an option. E-4WD is getting increasingly popular on higher variants of hybrid vehicles
- US is the single largest market for AWD globally, followed by China and Europe
- The rise of intelligent AWD and E-AWD is the biggest trend fuelled by growth of compact and mid-size SUV/crossovers
- In Europe, less penetration of AWD/4WD cars in major automobile markets such as Germany, UK and France have resulted in rather modest numbers of AWD in the entire Europe region
- 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 power of the new engine to all four wheels with minimal loss. Toyota also started offering E-AWD for the first time in US market on 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.
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 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 front or rear axle. A transfer case with a multi-disc clutch can vary the torque distribution as per road condition.
Cadillac introduced a new twin clutch design AWD in the US market on 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 wheels.
MARKET SEGMENTATION
GLOBAL AWD MARKET DYNAMICS
| SI No | Timeline | Company/Country | Developments |
|---|---|---|---|
| 1 | December 2021 | GKN Driveline | GKN Driveline has launched Advanced Research Centre in the UK in order to develop next-generation eDrive Systems for future EVs in the country. The centre 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 any other regions as the 4×4 adoption is common among mini-vehicles and MPVs too |
| 4 | 2021 | US | More than half of the 4WD/AWD new car registered every year is from the US. High sales of SUVs and Pick-up trucks are the major factors boosting this segment |
In order 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.
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.
US ALL WHEEL DRIVE MARKET
In US among 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 top 30 feature either AWD or 4-WD.
Among EVs, the rise in number of sales in Tesla models has propelled the AWD numbers, as except for 1 variant in Model 3 all the other models come with AWD feature as 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 a 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
With the upcoming SUV launches in the pipeline, such as Toyota RAV4, 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 has introduced AWD variant in Note EV model, its Gasoline variant is the top selling Nissan model in the country.
The new Note is equipped with dual electric motors at front and rear delivering power to each wheel. Note 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 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, 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 called Driver assistance technologies.
Up to four new SUVs from Tata Motors 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 really 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 AWD option |
| 2 | July 2021 | Hyundai Transys | Hyundai Transys introduced an EV AWD disconnector system. This device will be used to the EV system’s reducer, disconnecting or connecting motors. This helps in disconnecting the secondary axle from 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 in order 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 vehicle 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.
COMPETITIVE LANDSCAPE
| SI No | Timeline | Company | Developments |
|---|---|---|---|
| 1 | Q3-2021 | BorgWarner | Q3 Sales of BorgWarner witnessed ~7% decrease in sales compared to the same period in 2020 and ended at $3.4B. However, the sales after 9 months in 2021 was $ 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 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, American Axle are among the leaders in the North american market whereas JTEKT is the leader in the Japanese market.
As Vehicle electrification is a prominent trend globally, Borg Warner optimized its 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 growing demand for electric drive module:
- 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
COMPANY PROFILES
- GKN Driveline Plc
- BorgWarner
- Magna International
- ZF Friedrichshafen AG
- JTEKT Corporation
- Dana Incorporated
- American Axle & Manufacturing, Inc
- Linamar Corporation
- HYUNDAI-WIA
THIS REPORT WILL ANSWER THE FOLLOWING QUESTIONS
- Market Size and Forecast of global AWD and 4WD market (Volume and Value)
- Market Trends,risks, drivers and opportunities in global all wheel drive market
- Market share of AWD manufacturers in US,Europe and China
- Growth strategy and expansion plans of AWD manufacturers
- OE-supplier alignment in global all wheel drive market
