As one of the most important components of a four-wheel-drive vehicle, the transfer case is essential. Part of the drivetrain, it is responsible for transferring power from the engine to all four wheels, therefore it is essential. So that you can turn efficiently, the transmission is able to transfer power to both the front and back axles. If the specific vehicle’s transfer case is worn out or malfunctioning, it might cause significant problems. Failures must be identified and avoided at all costs.


infographic: Automotive Transfer Case Market, Automotive Transfer Case Market Size, Automotive Transfer Case Market Trends, Automotive Transfer Case Market Forecast, Automotive Transfer Case Market Risks, Automotive Transfer Case Market Report, Automotive Transfer Case Market Share


Vehicles could only be four-wheel or two-wheel drive until quite recently. Neither a four-wheel drive vehicle nor a two-wheel drive vehicle could be made to provide power to only one or two wheels by shifting power movements through the transfer case. In both cases, the four-wheel drive system was always in four-wheel drive mode, and the two-wheel drive system was no different. One example of a complicated powertrain system is the transfer case on AWD and 4WD cars. When you start your automobile, power comes from the engine and goes to the gearbox, which then transmits power to other components that drive the vehicle. This means that all components of the drivetrain must be operating in perfect harmony for your car to perform at its best.


However, because of the quick development of transfer cases, we now have a part-time four-wheel drive option. There is a switch that allows you to choose whether the transfer case powers one or both wheels. Essentially, this means that when you’re reversing, you may use your four-wheel drive in two-wheel drive mode.



S No Overview of Development Development Detailing Region of Development Possible Future Outcomes
1 BorgWarner to supply transfer cases for Nissan SUV and Pick-up BorgWarner has secured a contract to supply its part-time transfer cases to the Japanese car manufacturer Nissan, for production of its Navara pick-up and Paladin SUV models. US This would enhance better Technologies and Shuttle production




Different types of all-wheel and four-wheel drive combinations will require separate types of transfer cases, and each will require a different type of transfer case. So, a four-wheel drive vehicle will have the easiest transfer case. An “Active” 4WD, on the other hand, has more complicated mechanisms to switch between driving modes. In a transfer case, power is diverted from an engine’s output to the front and rear wheels via a transmission.


To ensure the automobile handles as effectively as possible, a differential will help distribute power. Some transfer cases utilise chains, while others use hydraulics, and yet others use gearing. It’s anticipated that the PHEV category will be the fastest-growing segment of the hybrid vehicle industry in the future. In terms of HEVs and PHEVs, Asia Pacific is expected to be the largest market. Transfer case is projected to have the greatest market in Asia Pacific. Passenger vehicles account for a large portion of total vehicle production in Asia Pacific, and SUV sales are on the rise.


Sales of HEVs and plug-in hybrids in the region have been boosted by strict pollution standards, fast development of charging infrastructure, and government incentives. When it comes to HEV and PHEV car sectors, some OEMs are employing a transfer case to differentiate themselves from their competition. The sales of HEVs and PHEVs have been boosted by several government programmes, as well. There are incentives for PHEV and HEV automobiles in France for example. PHEVs and HEVs are thus likely to expand significantly in the future. Battery electric vehicles do not have a transfer case for power distribution. The increasing demand for battery electric vehicles can thus hinder the growth of the transfer case market. The penetration of BEV is increasing year on year in various regions.





The Global Automotive Transfer Case Market can be segmented into following categories for further analysis.


By Vehicle Infrastructure Type

  • Light Commercial vehicle
  • Heavy Commercial Vehicle
  • Passenger Vehicles
  • Military Modernised Vehicles


By Shift Type Classification

  • Manual Shift on the Fly
  • Automatic / Electronic Shift on the Fly


By Drive Type

  • AWD
  • 4WD


By Regional Classification

  • Asia Pacific Region – APAC
  • Middle East and Gulf Region
  • Africa Region
  • North America Region
  • Europe Region
  • Latin America and Caribbean Region




The transfer case is found on vehicles with AWD or 4WD capability and is integral for allowing drivers to switch to these modes of operation. A typical transfer case is found at the rear of the transmission and powered by the transmission output shaft, operating much like a secondary transmission unit.


An automatic transfer case splits the engine’s power and sends it to all four wheels via the front and back axles in the simplest words possible AWD and 4-wheel drive cars use it as the heart of their powertrain system. Off-road vehicles may include a transfer case with one or more lower gears to handle the most difficult terrain. There has been change in the continuous optimisations. The latest transfer cases give unrivalled gear ratio versatility, and customised choice of front or rear outputs, optional integral air-engaged PTOs, and interaxle differential. They feature helical direct drive gearing, main shaft tapered bearings, magnetic drain plugs, and a wide range of yokes and flanges.

Infographic: Global Automotive Transfer Case Market, Global Automotive Transfer Case Market Size, Global Automotive Transfer Case Market Trends,  Global Automotive Transfer Case Market Forecast,  Global Automotive Transfer Case Market Risks, Global Automotive Transfer Case Market Report, Global Automotive Transfer Case Market Share

The new technology of  Transfer Cases have an extremely slim design to provide more ground clearance for high-mobility utility vehicles. On-the-fly shifting is also possible utilising a synchromesh in this transfer case. This ensures that your vehicle’s shifting is both dependable and controlled. A two-speed transfer case has also been developed for the agricultural market, with a focus on corrosion resistance. In comparison with the competition, They also try to offer more gear ratio possibilities, which enhances output torque performance, improves overdrive performance, and increases fuel efficiency.




There are two methods of delivering torque to the front output shaft, depending on how old and how well designed the transfer case is. Currently, most T-cases use a chain-driven system since chains are lighter and quieter than conventional gears In contrast, hard-core ‘wheelers favour gear-driven cases because they can handle higher torque without breaking. And unlike a chain, gears will not stretch under tremendous force.


Meritor has recently introduced new technological advancement within the transfer case developments. It has brought in the MTC 4000 Series high end transfer case profile into the market for better optimised performance and durability. Models in the MTC-4000 series are available with a wide range of PTO compatibility, including the full-power 4206-FV with PTO, full-power high speed 4208XP without a PTO, and Meritor’s EVO models which are designed for applications that cannot use the transfer case PTO and instead interface with existing split-shaft Power Take-Off assemblies.


Magna has also been developing the latest technologies in the transfer case requirements to better fit the changing automotive design and efficiency requirements. It has recently introduced the intelligent Drive eDS 48-volt high performance system. It is one the first mild-hybrid transfer cases available to automakers. Additionally, it’s a four-wheel drive system that provides CO2 savings of up to 10% and better fuel efficiency compared to a two-wheel drive system. It helps automakers meet increasingly stringent global CO2 and fuel-economy regulations.





Sl no Topic
1 Market Segmentation
2 Scope of the report
3 Abbreviations
4 Research Methodology
5 Executive Summary
6 Introduction
7 Insights from Industry stakeholders
8 Cost breakdown of Product by sub-components and average profit margin
9 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 US, EU and China
14 COVID-19 impact on overall market
15 COVID-19 impact on Production of components
16 COVID-19 impact on Point of sale
17 Market Segmentation, Dynamics and Forecast by Geography, 2021-2026
18 Market Segmentation, Dynamics and Forecast by Product Type, 2021-2026
19 Market Segmentation, Dynamics and Forecast by Application, 2021-2026
20 Market Segmentation, Dynamics and Forecast by End use, 2021-2026
21 Product installation rate by OEM, 2021
22 Incline/Decline in Average B-2-B selling price in past 5 years
23 Competition from substitute products
24 Gross margin and average profitability of suppliers
25 New product development in past 12 months
26 M&A in past 12 months
27 Growth strategy of leading players
28 Market share of vendors, 2021
29 Company Profiles
30 Unmet needs and opportunity for new suppliers
31 Conclusion
32 Appendix


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