Global All Wheel Drive Market Size, Share, and COVID-19 Impact Analysis By Type (Automatic All Wheel Drive, Manual All Wheel Drive), By Application (Battery Electric Vehicle (BEV), Plug-in Hybrid Electric Vehicles (PHEV)), By Component (Differential, Transfer Case, Propeller Shaft, Power Transfer Unit, Final Drive Unit), By Region (North America, Europe, Asia Pacific, Middle East & Africa, and South America) Analysis and Forecast 2021 – 2030

Industry: Automotive & Transportation


The Global All-Wheel Drive Market Size was valued at USD 35 billion in 2021 and is expected to reach USD 54 billion in 2030 at a CAGR of 9% from 2021 to 2030.


All Wheel Drive Market

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The rising industrialization of many emerging nations throughout the world is one of the key factors that will support the market's growth during the forecast period. The market is anticipated to expand strongly over the course of the projected period as a result of the poor per capita income of people in various underdeveloped and developing countries. The market has developed well as a result of the rise in demand for SUVs and CUVs in recent years. In both rich and developing economies around the world, there has been a high demand for expensive cars.


Due to the surge in demand for high performance and low carbon emissions, the automotive industry is anticipated to gain from technical advancement and the development of many cutting-edge combustion modes, including homogeneous charge compression ignition (HCCI). Advancements in electric vehicle technology are also anticipated to increase the production of electric cars (EVs) globally due to the strong demand for automobiles throughout the forecast period. Thus, it is anticipated that the all-wheel drive car industry will expand globally.


Driving Factors

The market for all-wheel drive systems is anticipated to increase in the upcoming years because to a growth in the required forced ability and control in various types of cars. The market for all-wheel drive systems is anticipated to increase significantly in the upcoming years due to rising consumer demands for increased vehicle safety and improved driving experiences.


Road accidents are one of the main worries, which has increased demand for all-wheel drive systems in many kinds of cars. In the upcoming years, the market expansion will be driven by the level of stability and safety offered by these cars. The governments of many different countries have passed strict laws and regulations to improve vehicle safety, and this is anticipated to increase demand for all-wheel drive systems in the upcoming years.


To give greater features in the all-wheel drive systems, the original equipment manufacturers have started spending a lot of money on research and development. In recent years, consumers' spending power has increased as well, which is especially beneficial to dual-income households and the regional economic development.


Global All Wheel Drive Market Report Coverage

Report CoverageDetails
Base Year:2021
Market Size in 2021:USD 35 Billion
Forecast Period:2021 - 2030
Forecast Period CAGR 2021 - 2030 :9%
2030 Value Projection:USD 54 Billion
Historical Data for:2017 - 2020
No. of Pages:210
Tables, Charts & Figures:119
Segments covered:By Type, By Application, By Component, By Region
Companies covered::AB Volvo, GKN Plc, BorgWarner Inc., Honda Motor Company Ltd., Tesla, Inc., Magna International, Inc., ZF Friedrichshafen AG, Continental AG, JTEKT Corporation, Eaton, Dana Limited, American Axle & Manufacturing Inc., Oerlikon.

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Restraining Factors

All traditional driving technologies will be quite expensive because they are so old-fashioned. There are several ranges offered in the market depending on the components used and the system type. The cost of the car increased as a result of the employment of all these parts. Similar to the cost of buying these kinds of automobiles, these vehicles require expensive maintenance. These cars' tyres don't perform as well as those of other cars in terms of performance. In the upcoming years, all of these factors will prove to be a significant obstacle to the market's expansion.


Regions like North America and Europe are experiencing exceptionally harsh weather conditions, which might include snowfall and periods of torrential rain. The slick roadways make it impossible to drive safely. All-wheel drive systems can be used to combat all of these unfavourable conditions, but because fewer people are aware that this type of technology is available, market expansion will be gradual.


Covid 19 Impact

The all-wheel-drive market was badly impacted by COVID 19, which had an impact on the whole automobile sector. Many automakers were compelled to restrict production at their factories as a result of the disruption brought on by the pandemic. As a result, different AWD suppliers were forced to scale back manufacturing in specific locations and focus heavily on alternatives and countermeasures in order to lessen the damage.


However, the market is once more becoming ready as the tight restrictions loosen over time. Innovative market participants have proactively begun implementing online lead generation techniques. This endeavour to interact with potential customers via digital channels turns out to be a game-changer for the market's expansion. Following the lifting of the lockdown in various nations, the product demand increased.



The global all wheel drive market is segmented into type, application, component and region.


Global All Wheel Drive Market, By Type

Both manual and automatic all wheel drive systems offer greater traction, stability, torque, steering, and weight distribution. Sensors on the drivetrain in automatic all wheel drive quickly engage the rear shaft when a high powertrain is required. However, it does have an additional multi-plate clutch that facilitates conversion from 2WD to AWD.

Due mostly to safety laws, extreme weather, and consumer demand for safety features, the market for all-wheel drive systems is expanding in Europe and North America. The shortcomings of manual All wheel Drive systems, such as excessive fuel consumption and high maintenance costs, have been largely solved by the development of intelligent All wheel Drive or disconnect and decoupling AWD systems. As a result, it is anticipated that automated All wheel Drive systems will outsell manual All wheel Drive systems in terms of market share. The RoW region, which includes a number of developing nations like Brazil and South Africa, is being driven by factors including rising purchasing power, rising consumer demand for safety features, and poor road conditions.


Global Wheel Drive Market, By Application

EVs with batteries held the largest market share in 2021, according on application type. An increase in the integration of all-wheel drive into electric vehicles is anticipated to drive the global market for electric on-demand all-wheel drive systems. An electric all-wheel drive vehicle's front and rear wheels are propelled by an electric motor. The front and rear wheels might or might not be driven by the same motor. Two motors can be used in a vehicle configuration, one for each axle, to transmit torque to all four wheels. Due to growing customer demand and continued battery technology advancements, EV battery output has increased dramatically.

New battery technologies have lowered the cost of EV batteries during the past ten years. This has led to a decrease in the cost of owning an electric vehicle because EV batteries are one of the most expensive parts of an electric automobile. In 2010, the price of an EV battery, for instance, was over US$ 1,100 per kWh, but in 2020, the price was only about US$ 137 per kWh.


Global Wheel Drive Market, By Component

Based on component, differential type holds the largest market share. The differential, a collection of gears, is located in the centre of the axles. The fundamental purpose of a differential in a car is to transfer engine torque to the tyres. such that several tyres on the same axle can rotate at different speeds at once. Differentials serve a variety of purposes in various drivetrain systems. Rear-wheel drive cars rotate the tyres at different speeds only while the car is turning. AWD and 4WD cars, on the other hand, always have differentials working and can supply split torque as needed.


Global All Wheel Drive Market, By Region

Due to increased use of this system in various terrains for forestry and agricultural, North American region will have the biggest market share in the upcoming years. Historically, this region has controlled the market. The market for all-wheel drive will expand in the North American region over the next several years due to variables including torque distribution and vehicle stability.


All Wheel Drive Market

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The European region now holds around 35% of the market share due to the rising demand for opulent autonomous vehicles. As the demand for low-emission vehicles has also climbed in the European region, the market will continue to expand strongly. In the upcoming years, the market will expand at a compound yearly growth rate of around 26% due to rising spending power among consumers in the Asia Pacific region.


Recent Developments in Global All Wheel Drive Market

  • January 2021: The all-wheel drive Kia K5 was introduced by Kia Motors, a South Korean automaker, and is well-equipped with all the required equipment.
  • February 2022: For global automakers, Magna is the biggest independent manufacturer of 4WD/AWD systems. In India, Continental AG tyres unveiled new cross-contact ax6 tyres for SUVs.


List of Key Market Players

  • AB Volvo
  • GKN Plc
  • BorgWarner Inc.
  • Honda Motor Company Ltd.
  • Tesla, Inc.
  • Magna International, Inc.
  • ZF Friedrichshafen AG
  • Continental AG
  • JTEKT Corporation
  • Eaton
  • Dana Limited
  • American Axle & Manufacturing Inc.
  • Oerlikon



By Type

  • Automatic All Wheel Drive
  • Manual All Wheel Drive

By Application

  • Battery Electric Vehicle (BEV)
  • Plug-in Hybrid Electric Vehicles (PHEV)

By Component

  • Differential
  • Transfer Case
  • Propeller Shaft
  • Power Transfer Unit
  • Final Drive Unit


By Region:

North America

  • North America, by Country
    • U.S.
    • Canada
    • Mexico
  • North America, by Type
  • North America, by Application
  • North America, by Component


  • Europe, by Country
    • Germany
    • Russia
    • U.K.
    • France
    • Italy
    • Spain
    • The Netherlands
    • Rest of Europe 
  • Europe, by Type
  • Europe, by Application
  • Europe, by Component

Asia Pacific

  • Asia Pacific, by Country
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Indonesia
    • Rest of Asia Pacific 
  • Asia Pacific, by Type
  • Asia Pacific, by Application
  • Asia Pacific, by Component

Middle East & Africa

  • Middle East & Africa, by Country 
    • UAE
    • Saudi Arabia
    • Qatar
    • South Africa
    • Rest of Middle East & Africa
  • Middle East & Africa, by Type
  • Middle East & Africa, by Application
  • Middle East & Africa, by Component

South America

  • South America, by Country 
    • Brazil
    • Argentina
    • Colombia
    • Rest of South America
  • South America, by Type
  • South America, by Application
  • South America, by Component

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