LONDON--(EON: Enhanced Online News)--The global intelligent all-wheel drive (IAWD) system market is expected to grow at a CAGR of approximately 29% during the period 2016-2020, according to Technavio’s latest market research.
“The recovering US economy, decrease in fuel prices, easy availability of credit, decrease in unemployment rate, and the subsequent increase in demand for bigger cars like SUVs and crossovers are some of the main factors driving the market for intelligent all-wheel drive systems”
In this research report, Technavio covers the outlook and growth prospects of the global IAWD system market for 2016-2020. The market is further categorized into SUVs and sedans as the two main segments based on body type. With crossovers considered as SUVs in this study, the SUV segment accounted for over 91% of the market share in 2015.
“The recovering US economy, decrease in fuel prices, easy availability of credit, decrease in unemployment rate, and the subsequent increase in demand for bigger cars like SUVs and crossovers are some of the main factors driving the market for intelligent all-wheel drive systems,” says Praveen Kumar, a lead powertrain research expert from Technavio.
Technavio’s automotive research analysts segment the global IAWD system market into the following regions:
In 2015, with a market share of over 46%, the Americas emerged as the market leader in the global IAWD systems market, followed by APAC with 29% and EMEA with 25%.
Americas: recovery of the US economy to boost growth
The IAWD system market in the Americas is expected to grow at a CAGR of over 35% during the forecast period, due to numerous factors such as economic well-being and availability of easy credit. Moreover, in bid to increase fuel efficiency, OEMs have been undertaking various product innovations and launch activities to promote SUVs and crossovers. Chevrolet Tahoe, GMC Yukon, Nissan Rogue, and Jeep Cherokee were the newly launched vehicles into the SUV and crossover segment in 2015. The growing popularity of the SUV and crossover segment will shift consumer buying preference from sedans to SUVs or crossovers. The increase in the sales of SUVs and crossovers will drive the market for IAWD system in the Americas.
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EMEA: rise in the sales of SUVs to drive market growth
Europe is the largest market for IAWD systems with SUVs accounting for a large part of the market share in 2015. The European passenger car market increased from 6% in 2014 to about 9% in 2015. The rise in the sales of SUVs is a major market driver for new car sales in Europe.
The automotive industry in Europe has been progressing toward an increasingly active approach to safety. The focus is no longer on simply protecting drivers during and after an incident on the road. Multiple driver assistance technologies are being developed that intend to prevent crashes from happening. Coupled with this, the growing demand for SUVs in Europe is essentially driving the market for IAWD systems in the region. The IAWD system market in EMEA, is expected to grow at a CAGR of over 26% during the forecast period.
APAC: China accounts for the largest market share in the global IAWD system market
The IAWD system market in APAC is expected to grow at a CAGR of 19% during the forecast period. Increasing preference for SUVs and crossovers in China is driving the market for IAWD systems in APAC. In 2015, China had the largest share in the global IAWD system market accounting for close to 78% of the market share, followed by Japan with over 21%, and India with 0.83%.
Chinese customers prefer SUVs with smaller engines and mid-sized crossovers as they offer better fuel efficiency and sufficient interior space. Moreover, crossovers and SUVs manufactured by domestic automakers offer less expensive vehicles compared with their foreign counterparts.
The top vendors in the global IAWD system market as highlighted in this market research analysis are:
- ZF Friedrichshafen
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