| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 7.50 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Automotive All-Wheel Drive Market Analysis
The Automotive All-wheel-drive Market is expected to register a CAGR of greater than 7.5% during the forecast period.
The COVID-19 pandemic has negatively impacted the market as lockdowns and shutdowns of manufacturing facilities of significant OEMs resulted in decreased production and sales of cars across the globe. However, the market has regained momentum as economic activities resume and vehicle production also rises worldwide.
- The passenger car sales decreased in 2021 to around 2.39 million units due to the Covid-19 pandemic; as the situation usually gets, the passenger car sales have risen to 2.72 million units.
The developments and improvements in the all-wheel-drive (AWD) system and its penetration into the growing electric vehicles market are the significant factors that are anticipated to propel the growth of the market studied during the forecast period.
- In June 2022, Hyundai India plans to launch its all-new AWD electric car Hyundai Ioniq 5 in mid of August 2022.
Improvements in the AWD capabilities and the cold weather condition are driving factors for the North American and European regions to anticipate a potential demand for AWD in the future. The market for luxury vehicles has boomed in the Asia-Pacific region. It is expected to continue to increase at the highest pace among all vehicle categories during the forecast period.
Improved safety, stability, and drive control are some of the factors which may accelerate the growth of the market studied. Earlier, these systems were available only in high-end cars, but the introduction of small passenger cars and hybrid electric vehicles has increased global demand.
Emerging players in the automotive industry continuously focus on developing and improving each part associated with the AWD system to enhance the AWD performance and fuel economy further.
Automotive All-Wheel Drive Market Trends
The Increasing Demand for Sports Utility Vehicles
Factors such as sportier handling and increased grip and traction with all-wheel drive have resulted in the demand for passenger cars, especially SUVs, compared to sedans and crossovers.
The growth in SUV sales has been consistently increasing during 2018-2022 due to the improving economic conditions across both the developing and developed countries. More than 65% of the SUVs on the road are currently installed with all-wheel drive powertrain systems. For instance,
- The volume of SUVs volume, reaching 200 million units in 2019. SUVs represented some 29.6 million global car sales a year later; In 2020, electric SUVs added another 1.1 million units.
Safe on-road drivability in winter or any hazardous climatic conditions is a significant factor driving people to choose passenger cars installed with all-wheel drive type powertrain systems, especially in North America and Europe. Also, all-wheel drive is anticipated to be deployed at a considerable rate in electrified powertrain cars, such as hybrid, plug-in hybrid, and battery-electric vehicles. For instance,
- Tesla Inc., one of the prominent manufacturers of electric vehicles in the world, has started shifting from rear-wheel drive with one motor at the back to all-wheel drive, where two electric motors drive each axle. Tesla's models have already begun to opt for the latter feature.
Thus, all-wheel drive is anticipated to experience growth from the ICE cars sector and the growing hybrid electric cars during the forecast period.
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The Growing Demand for AWD in Asia-Pacific
The Asia-Pacific region has always been on top in terms of car production and sales compared to other areas. For instance,
- In 2021, over 21 million passenger cars were sold in China, making it the largest market in the Asia-Pacific region. Japan was the second biggest market in the area, with over 3.6 million unit sales in 2021.
With advanced technologies, the trend of shifting vehicle operations from complex mechanical systems to electronically controlled systems has become possible and is now playing a vital role in uplifting the automotive industry. AWD is one such system that has experienced the above trend significantly over the past five years. Most of the OEM car makers have now launched an affordable AWD Suv in a market that will target the majority of customers. For instance,
- In March 2022, The Mahindra Thar is currently the most affordable 4x4 car available in the Indian market, with a base price of Rs 13.17 lakh that goes all the way up to Rs 15.53 lakh (both prices, ex-showroom).
Players in the automotive industry continuously focus on developing and improving each part associated with the AWD system to enhance the AWD performance and fuel economy further. For instance,
- In January 2020, Japanese automobile manufacturer Nissan revealed a high-power, twin-motor all-wheel-control test car equipped with new technologies being developed for the company's next generation of EVs.
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Automotive All-Wheel Drive Industry Overview
The automotive all-wheel-drive market is dominated by several players, such as BorgWarner Inc., Toyota Motor Corporation, Eaton Corporation PLC, Continental AG, Haldex Group, JTEKT Corporation, Dana Incorporated, Nissan Motor Co. Ltd, and Magna International Inc. These companies are expanding their business by new innovative technologies so that they can have the edge over their competitors.
- In February 2022, Continental AG tires launched new cross-contact ax6 tires for SUVs in India. New continental cross-contact ax6 all-terrain SUV tires offer excellent durability, low noise, and shorter braking distance on wet roads, as the company claims.
- In February, 2022, Nissan Motor Co., Ltd., and Nissan Motorsports International are developing the Nissan Z GT500 based on the Nissan Z, the all-new sports car that represents more than 50 years of ongoing passion and
- In February 2020, Chrysler upgraded the Pacifica model with an All-wheel drive. With this update, Chrysler joins Toyota as the only brand to offer all-wheel drive, helping counter the shift to SUVs.
Automotive All-Wheel Drive Market Leaders
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BorgWarner Inc.
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Toyota Motor Corporation
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JTEKT Corporation
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Nissan Motor Co., Ltd.
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Continental AG
- *Disclaimer: Major Players sorted in no particular order
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Automotive All-Wheel Drive Market News
- In February 2022, Santroll Electric Auto and Santroll Automotive Components announced that they had signed an Equity Transfer Agreement (ETA) under which BorgWarner will acquire Santroll Automotive Components, a carve-out of Santroll's eMotor business, for up to Yen1.4 billion, comprised of a closing payment of Yen1.1 billion and an earnout of up to Yen 0.3 billion. The transaction will be funded primarily with existing cash balances.
- In July 2021, JTEKT Corporation developed a Hub Unit that applies a seal with reduced friction torque that exhibits high sealing performance even in extremely cold regions. Through this product, we will contribute to realizing a low-carbon society in Japan and the global market, including icy areas.
- In February 2022, Continental plans to significantly expand its capacities in Brazil with an investment of 25 million euros (more than 160 million Brazilian Real).Response to Continental's continuous growth in the South American market. The start of production of the new facilities and machinery is tentatively scheduled for early 2024
Automotive All-Wheel Drive Industry Segmentation
An all-wheel drive vehicle is one with a powertrain capable of providing power to all its wheels, whether full-time or on-demand. The most common forms of all-wheel drive are 44, Reflecting two axles with both wheels capable of being powered.
The automotive all-wheel-drive market has been segmented by Vehicle Type, Propulsion Type, System Type, and Geography. By vehicle type, the market is segmented into passenger cars and commercial vehicles. The market is segmented by propulsion type into ICE and electric vehicles. By system type, the market is segmented into manual AWD and automatic AWD. By geography type, the market is segmented into North America, Europe, Asia-pacific, and the rest of the world.
The report covers the market volume (Units) and revenue (USD Billion) for all the above segments.
| Vehicle Type | Passenger Cars | ||
| Commercial Vehicles | |||
| Propulsion Type | ICE Vehicle | ||
| Electric Vehicle | |||
| System Type | Manual AWD | ||
| Automatic AWD | |||
| Geography | North America | United States | |
| Canada | |||
| Rest of North America | |||
| Europe | Germany | ||
| United Kingdom | |||
| France | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | India | ||
| China | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| Rest of the World | Middle-East and Africa | ||
| South America | |||
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Automotive All-Wheel Drive Market Research FAQs
What is the current Automotive All-wheel-drive Market size?
The Automotive All-wheel-drive Market is projected to register a CAGR of greater than 7.5% during the forecast period (2025-2030)
Who are the key players in Automotive All-wheel-drive Market?
BorgWarner Inc., Toyota Motor Corporation, JTEKT Corporation, Nissan Motor Co., Ltd. and Continental AG are the major companies operating in the Automotive All-wheel-drive Market.
Which is the fastest growing region in Automotive All-wheel-drive Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Automotive All-wheel-drive Market?
In 2025, the North America accounts for the largest market share in Automotive All-wheel-drive Market.
What years does this Automotive All-wheel-drive Market cover?
The report covers the Automotive All-wheel-drive Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Automotive All-wheel-drive Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Automotive All Wheel Drive Industry Report
Statistics for the 2025 Automotive All-wheel-drive market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Automotive All-wheel-drive analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
