Technavio Says IAWD systems are Largely Found on Imported Light Trucks

Renewable energy


Technavio, a tech-focused market research firm, has published a new report on the global intelligent all-wheel drive system market, which is expected to grow at a CAGR of close to 29% during the forecast period 2016-2020.

Based on geographical segmentation, Technavio market researchers categorize the market into the following key regions: The Americas, APAC, and EMEA.









                            Source: Technavio

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 IAWD system market in the Americas: The recent increase in the sales of SUVs and crossovers will drive the market for IAWD system in the Americas.

According to Abhay Sinha, a lead analyst at Technavio, specializing in research on powertrain, “IAWD systems are largely found on imported light trucks. OEMs are increasingly introducing IAWD systems into the mid-size variants of light trucks and crossovers to boost their sales and attract customers.”

Moreover, most of the light-trucks being rear wheel drives do not require complicated changes in their chassis for installing an IAWD system.

IAWD system market in APAC: Increasing preference for SUVs and crossovers in China is driving the market for IAWD system in APAC. 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, thus, reducing the switching cost for the Chinese customers.

IAWD system market in EMEA: The automotive industry in Europe has been moving towards an active approach to safety. Multiple driver assistance technologies are being developed that intend to prevent crashes from happening. Along with this, the growing demand for SUVs in Europe is essentially driving the market for IAWD systems in the region.

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The top leading vendors operating in the global IAWD system market are:

  • Magna
  • GKN
  • BorgWarner
  • ZF Friedrichshafen

A more detailed analysis is available in the Technavio report titled, ‘Global IAWD System Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.

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