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Analysis of the North American All-wheel Drive Systems Market

  • January 2014
  • 75 pages
  • Frost & Sullivan
Report ID: 2003746

Summary

Table of Contents

50% of 2020 Sales Potential Expected to be Held by Detroit 3

With increases in fuel prices and dynamic consumer needs, the market for all-wheel drive (AWD) systems for passenger vehicles is challenged on various fronts. To counteract market challenges, regional original equipment manufacturers (OEMs) adopt various strategies regarding their driveline portfolios for specific vehicle segments. This study is based on secondary and primary research data collected from suppliers of AWD systems and OEMs operating in the North American market. Also covered are market trends and OEM preferences of various technology options. The base year of this study is 2013 and forecasts run from 2014–2020 for all vehicle segments. At the end of the study, key conclusions, future outlooks, and predictions are provided.

Executive Summary—Key Findings

Ford and General Motors (GM) will capture more than X% of the all-wheel drive (AWD) market by 2020.

OEM Level
• Apart from the Detroit 3 OEMs, Toyota and Honda hold the major market share for AWD systems in North America.
• Volkswagen and Toyota are expected to be leaders in the electric all-wheel drive (eAWD) systems market, with Volkswagen accounting for over XeAWD vehicles, and Toyota over X by 2020.

Supplier Level
• Magna and JTEKT hold the largest market share; this is expected to continue up to 2020.
• OEM-supplier relationships are expected to play a vital role for driveline system volumes up to 2020.

Legislation
• Stringent emission-related regulations may push eAWD technology toward quicker adaptation due its potential to improve fuel economy by X%.

Technology
• Rightsizing the driveline and disconnect driveline systems are expected to be the future of conventional AWD technology.
• The on-demand and combination AWD segment is expected to be the most dominant, with a share of approximately X– % in 2020, increasing from X% as of 2013.
• Fuel efficiency and hybridization benefits are key drivers for eAWD systems. To be offered by volume and premium OEMs, the cost depends on functionality levels.

Executive Summary—Key Conclusions and Future Outlook

Market Status
2013: The on-demand and combination AWD market is in a growth phase and is expected to mature by 2018.
The AWD market accounts for over X% of the market, at over $X billion. On-demand and combination AWD is currently the dominant type, with about X% share among AWD systems.
Future – 2020: The market penetration of AWD systems is expected to be about X– %. The on-demand and combination type is expected to remain dominant, at X– % share among AWD systems.

Competition
2013: All major suppliers see the potential and the benefits of rightsizing, and are actively supporting OEMs.
Future – 2020: Much closer collaboration between suppliers and OEMs will optimize the size of the driveline.

Solutions
2013: Interest persists in developing eAWD solution, which gives the advantage of an AWD with easier integration and hybridization potential.
Future – 2020: With further penetration of electric vehicles (EVs) and hybrid electric vehicles (HEVs), eAWD is also expected to find more widespread implementations in North America.

Technology
2013: The on-demand and combination AWD system is the dominant AWD technology in the market today.
Cost of the disconnect system is the major factor holding back most OEMs.
OEMs are currently focused on parasitic loss reduction and cost reduction.
Future – 2020: The on-demand and combination AWD systems are likely continue to be the dominant AWD technology.
Electric AWD technology is expected to be in the growth stage as OEMs try to meet stringent emission norms.

Key Questions this Study Will Answer

What is the preferred driveline technology for the various OEM groups selling passenger vehicles in North America?
How are suppliers differentiating themselves in the consolidated driveline systems supplier base?
How do fuel economy and the standard implementation of electronic stability control (ESC) influence AWD trends in North America?
Among full-time, part-time, and on-demand and combination AWD, which technology will grow in the mid- and long-terms?
Which OEMs are likely to lead the way with eAWD in North America?

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