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Four-Wheel Drive Vehicles Market Trends

ID: MRFR//4376-HCR | 100 Pages | Author: Sejal Akre| April 2024

Four-Wheel Drive Vehicles Market Overview: 

The Global Four-Wheel Drive Vehicles Market Size was valued at USD 14.51 billion in 2023. The market industry is projected to grow from USD 15.38 Billion in 2024 to USD 24.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.98% during the forecast period (2024 - 2032).

Four-Wheel Drive Vehicles Market

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Four-Wheel Drive Vehicles Market Trends

  • Increasing demand for improved vehicle safety is driving the market growth

Market CAGR for four-wheel drive vehicles is driven by the increased cases of various road accidents have led to a greater demand for four-wheel drive vehicles systems to ensure safety- as the number of road accidents has increased lately, and there are a lot of fatalities associated with the road accidents and a large number of people so far with injuries the demand for the Four-Wheel Drive Vehicles system is expected to grow well in the coming years, especially for the extreme type of road conditions across the world. The system's popularity has increased in recent years and will continue to grow well over the forecast period.

The increasing rate of accidents has incentivized countries to implement stringent vehicle safety norms. The European Union and the U.S. government are leaders in terms of vehicle safety norms. As a result, OEMs are introducing vehicles with in-built safety features that control vehicle stability and safety and enhance driving dynamics. The 4WD systems, as compared to RWD or FWD systems, add to the vehicle stability with better traction providing the capability to the automobile. Thus, in developed regions such as Europe and North America, the demand for these four-wheel drive vehicle systems is on the rise, however, in emerging markets such as Asia-Pacific and the rest of the world, this growth is steady given the lack of such safety regulations.

Moreover, increased reduction of Four-Wheel Drive Vehicles systems in vehicles with extreme terrain conditions- At various places across the globe where the winters are extremely harsh, or the roads are covered with snow apart from that other road that does not have plain surface has led to an increase in the demand for the four-wheel drive vehicles system in the vehicles to ensure the lesser number of accidents and safety of the passengers as well as the drivers. These vehicles are adopted on a large scale on lands with a lot of snow and mud, driving the four-wheel drive vehicles market revenue over the forecast period.

Technological advancements across the global market for four-wheel drive vehicles are expected to set the tone for market growth. Several technologies across the current market landscape have transformed modern-day vehicles into power-efficient, automated, and secured machines- a trend likely to propel the Four-Wheel Drive Vehicles vehicle market during the assessment period. Although the demand for conventional part-time 4x4 transmission will likely remain high, with added technological advancements, four-wheel drive vehicles will likely emerge as a 'must-have' feature. For instance, the newly developed traction control system technology has played a huge role in enhancing the performance of automotive vehicles and driver safety.

Four-Wheel Drive Vehicles Market Segment Insights:

Product Type Insights

The global four-wheel drive vehicles market segmentation, based on product type, includes standard 4WD and premium 4WD. The standard 4WD segment dominated the market, accounting for 35% of market revenue (XX Billion). In developing economies, category growth is driven by the steady growth of the light vehicle. This growth of light vehicles in emerging economies is expected to account for the majority of the share in overall automobile sales, leading to market growth. However, premium 4WD is the fastest-growing category owing to the growing research and development in premium 4WD.

End-User Insights

The global four-wheel wheel drive vehicles market segmentation, based on end-user, includes road racing, heavy trucks, and construction equipment. The construction equipment category generated the most income (70.4%) due to the growing demand for goods and increased construction and infrastructure development. However, heavy trucks are the fastest-growing category owing to the four-wheel wheel drive system's better stability with traction and control over rough terrains.

Four-Wheel Drive Vehicles Application Insights

The global four-wheel drive vehicles market segmentation, based on application, includes HCV and SUVs. The HCV category generated the most income over the forecast period. This is due to the rising demand for transportation services. However, SUV is the fastest-growing category due to improved economic conditions across developing and developed countries.

February 2022: Continental AG tires launched new cross-contact ax6 tires for SUVs in India. New continental cross-contact ax6 all-terrain SUV tires offer excellent durability, low noise, and shorter braking distance on wet roads, as the company claims.

Figure 1: Global Four-Wheel Drive Vehicles Market By Application Insights 2022 (%)

Global Four-Wheel Drive Vehicles Market By Application Insights 2022

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Four-Wheel Drive Vehicles Regional Insights

By Region, the study delivers market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American four-wheel drive vehicles market area will dominate owing to a rise in spending capacity, increasing consumer preferences for their vehicle, and economical models introduced by automotive manufacturers will boost the market growth in this region. Further, the US four-wheel drive vehicles market held the largest market share, and the Canadian four-wheel drive vehicles market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: Global Four-Wheel Drive Vehicles Market Share By Region 2022 (%)

Global Four-Wheel Drive Vehicles Market Share By Region 2022

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's four-wheel drive vehicles market accounts for the second-largest market share due to improving macroeconomic conditions and increasing vehicle production in the region. Further, the German four-wheel drive vehicles market held the largest market share, and the UK four-wheel drive vehicles market was the fastest-growing market in the European region.

The Asia-Pacific four-wheel drive vehicles market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to rising demand for automobiles and related activities, particularly in China and India. Moreover, China's four-wheel drive vehicles market held the largest market share, and the Indian four-wheel drive vehicles market was the fastest-growing market in the Asia-Pacific region.

Four-Wheel Drive Vehicles Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the four-wheel drive vehicles market grow even more. Market participants are also undertaking multiple strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The four-wheel drive vehicles industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the global four-wheel drive vehicles industry to benefit clients and increase the market sector. Major players in the four-wheel drive vehicles market, including Daimler AG (Germany), Mitsubishi Motors Corporation (Japan), BMW (Germany), Toyota Motor Corporation (Japan), Ford Motor Company (U.S.), and others, are attempting to increase market demand by supporting in research and development operations.

BorgWarner Inc is a provider of automotive industry components and parts. It manufactures and supplies technologies and solutions for internal combustion, hybrid and electric vehicle products for light vehicles, medium and heavy-duty vehicles, and off-highway applications. The company's product portfolio includes turbochargers, emission and thermal systems, transmission components and systems, timing devices and chains, all-wheel drive torque transfer systems and rotating electrical devices. It markets products to original equipment manufacturers of light vehicles, including passenger cars, sport-utility vehicles, vans, and light trucks, and other OEMs of commercial vehicles and off-highway vehicles. In March 2022, BorgWarner Inc. signed a supply contract with Hyundai. Under the contract, BorgWarner Inc. will supply an integrated drive module (iDM) for Hyundai's upcoming A-segment electric vehicle production.

Magna International Inc is a mobility technology firm that offers modular solutions for system and part and full-vehicle assembly. The firm sells its products to original equipment manufacturers of cars and light trucks. It undertakes the design, engineering, testing and manufacture of automotive systems, seating systems, closure systems, body and chassis systems, vision systems, electronic systems, exterior systems, powertrain systems, roof systems, hybrid and electric vehicles/systems, and complete vehicle engineering and contract manufacturing. In October 2020, Magna International Inc. signed its first EV component manufacturing deal with an EV startup Fisker Inc. The California-based EV startup will utilize Magna's automotive components to build its Ocean SUV.

Key Companies in the Four-Wheel Drive Vehicles market include

  • Daimler AG (Germany)

  • Mitsubishi Motors Corporation (Japan)

  • BMW (Germany)

  • Toyota Motor Corporation (Japan)

  • Ford Motor Company (U.S.)

  • Groupe Renault (France)

  • Tata Motors Limited (India)

  • Hyundai Motor Company (South Korea)

  • Volkswagen AG (Germany)

  • Volvo (Sweden)

  • Fiat S.p.A (Italy)

  • Nissan Motor Company Ltd (Japan)

  • Honda Motor Company, Ltd. (Japan)

Four-Wheel Drive Vehicles Industry Developments

February 2022: Continental plans to significantly enhance its capabilities in Brazil with an asset of 25 million euros. Response to Continental's continuous growth in the South American market. The new facilities and machinery production is tentatively scheduled for early 2024.

July 2021: JTEKT Corporation developed a Hub Unit that applies a seal with reduced friction torque that exhibits high sealing performance even in extremely cold regions. Through this product, we will contribute to realizing a low-carbon society in Japan and the global market, including icy areas.

Four-Wheel Drive Vehicles Market Segmentation:

Four-Wheel Drive Vehicles Product Type Outlook

  • Standard 4WD

  • Premium 4WD

Four-Wheel Drive Vehicles End-User Outlook

  • Road Racing

  • Heavy Trucks

  • Construction Equipment

Four-Wheel Drive Vehicles Application Outlook

  • HCV

  • SUV

Four-Wheel Drive Vehicles Regional Outlook

  • North America

    • US

    • Canada

  • Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Australia

    • Rest of Asia-Pacific

  • Rest of the World

    • Middle East

    • Africa

    • Latin America

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