Global Intelligent All-Wheel Drive System Market 2016-2020

Overview of the global intelligent all-wheel drive (IAWD) system market

Technavio’s market research analyst predicts the global intelligent all-wheel drive (IAWD) system market to grow at a CAGR of around 29% between 2016 and 2020. Factors such as the increasing sales of SUVs, customer perception and OEMs promoting increased safety and convenience and a decrease in fuel prices will propel the installation of IAWD systems in vehicles. The growing preference for bigger cars and reduction in vehicle purchase tax are likely to boost the market for SUVs, crossovers, and sedans, which will subsequently increase the demand for AWD systems. IAWD system aids in increasing convenience while driving through unfavorable roads. The system also collects information through sensors that track wheel steering angle, and wheel speed, yaw rate and automatically detects the kind of road. It engages 2WD in normal driving conditions and automatically shifts to AWD based on the road conditions. The IAWD system also enhances the vehicle’s off-road performance by mechanically varying the torque to all wheels and by maintaining traction.

OEMs are rapidly replacing huge mechanical parts with electrical and electronic components to decrease the impact of AWD on fuel economy and reduce maintenance. The department of transportation in the US has imposed strict regulations such as corporate average fuel economy (CAFE) standards on several automotive OEMs to increase the fuel economy of their commercial and personal vehicles. Such conditions have propelled the manufacturers to replace driveshaft and mechanical differentials with electric drive axles. These axles make use of electric power to run the rear wheels, subsequently reducing fuel consumption.

Competitive landscape and key vendors

The global IAWD market is extremely competitive with a presence of a limited number of well-established vendors. The top players in the market are growing their customer base and increasing their investments in research activities. Also, the competitive scenario in the market is expected to intensify with advances in technology and government regulations. Most of the improvements in the IAWD market is anticipated to take place by 2017 owing to the increase in the number of SUV models launched by OEMs.

Leading vendors in the market are -

• Magna
• GKN
• BorgWarner
• ZF Friedrichshafen

Segmentation by body type and analysis of the IAWD systems

• Sedan
• SUV

The SUV segment accounts for the highest penetration of IAWD systems. IAWD systems assist to maintain speed while accelerating over slippery roads. SUVs have prices on par with luxury sedans and their premium segment cars primarily focus on affluent customers, which makes the installation of IAWD systems comfortably accommodated in SUVs. Several OEMs are increasingly equipping their luxury and ultra-luxury models with IAWD systems to exploit the rapidly growing demand for SUVs. The increasing preference for higher passenger seating position, greater interior space, better ground clearance, surged towing, and off-roading capabilities drive the market for SUVs equipped with IAWD systems.

Geographical segmentation and analysis of the IAWD systems

• Americas
• APAC
• EMEA

The Americas dominated the global market during 2015 and is anticipated to maintain its lead during the forecast period. The increased preference for larger and spacious cars with towing and off-roading capabilities will offer a boost to the market for SUVs and crossovers in the region. OEMs are undertaking various product innovations and launch activities to promote SUVs and crossovers, which has increased their sales in the region. OEMs are also introducing IAWD systems into the mid-size variants of light trucks and crossovers to boost their revenues and attract customers.

 Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global IAWD systems?
• What are the key market trends impacting the growth of the global IAWD systems?
• What are the challenges to market growth?
• Who are the key vendors in the global IAWD systems?
• What are the market opportunities and threats faced by the vendors in the global IAWD systems?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global IAWD systems?

Technavio also offers customization on reports based on specific client requirement.

Related reports:

• Global Automotive Multi-wheel Drive Market 2015-2019
• Global Automotive Drivetrain Market 2015-2019