MOUNTAIN VIEW, Calif. (June 26, 2014) — Growing consumer demand for vehicle stability, safety and enhanced driving dynamics is fueling the adoption of all-wheel drive (AWD) systems, according to Frost & Sullivan research.
AWD systems enable the secondary axles to engage before slippage occurs and ensure the active distribution of torque between axles when turning corners, thus lending the vehicle optimal power and stability on the road. On-demand AWD also improves fuel-efficiency, allowing vehicle OEMs to counter the impact of soaring fuel prices on market growth, the company said.
AWD vehicles accounted for $11.7 billion in sales in 2013 and are forecast to grow to nearly $15 billion in 2020.
Market penetration of AWD systems is likely to be nominal over the forecast period—increasing from 32 percent in 2013 to 37 percent in 2020, according to Frost. On-demand and combination AWD systems are expected to contribute 45 to 50 percent of total revenue and hold a market share of 50 to 52 percent in 2020.