Author: Sneha Gautam, Research Analyst
16 April 2025
Enhancing Traction and safety: The most visible force behind the AWD market is arguably the perceived and frequently achieved enhancement of safety and traction, particularly in adverse weather conditions. Moreover, AWD systems deliver power to all four wheels, offering better grip on slippery road surfaces such as snow, ice, and rain. This added traction manifests in better handling, braking, and overall stability, which in turn increases driver confidence and lowers the chances of accidents. In areas where severe winters or uncontrolled weather are prevalent, this safety advantage is a significant factor in selling, prompting strong demand for AWD cars.
Technology advances enhance the performance and efficacy of All-wheel Drive Systems: The improved electronics also enable modern systems to automatically vary torque between each wheel according to driving conditions on the ground. Furthermore, that leads to better fuel efficiency and lower emissions than in earlier, more basic systems. In addition, improvements in manufacturing technology have reduced the overall price of AWD systems, making them more affordable and within reach of a broader consumer base. This added affordability has democratized the technology, enabling more consumers to purchase AWD without incurring a huge financial burden.
Lifestyle and Versatility: The evolving consumers' lifestyles also play a crucial role in creating the AWD boom. Moreover, the growing focus on outdoor activities and adventure has pushed people to demand vehicles that would support their busy lifestyles. The AWDs offer the appropriate traction and capabilities to reach hard-to-reach areas for walking, camping, skiing, etc. In addition, the perceived security and readiness provided by AWD appeal to a desire for greater autonomy and independence, which further enhances the demand for these all-purpose vehicles.
Regional Growth: All-wheel Drive is growing faster in the APAC region and is experiencing rapid economic growth, leading to an increase in disposable income and a growing demand for luxury vehicles. The presence of major automotive manufacturers and the growing demand for safety and security are driving the growth of the AWD market in Asia Pacific.
According to a new report by UnivDatos, the All-wheel Drive market is expected to reach USD Billion in 2032 by growing at a CAGR of 7.86% DURING the forecast period (2024-2032). owing to technological advancements, changing consumer preferences, and evolving industry trends. Furthermore, the growing need for improved vehicle performance and safety is also boosting market growth. Improved traction and stability are offered by all-wheel drive, making the vehicle extremely sought after in areas with harsh weather conditions like heavy rain and snow. As buyers gain greater consciousness of the safety advantages that are linked to wheel-drive vehicles, their desire for such systems has increased, helping the market to grow. For instance, in January 2025, Tata Motors re-entered the four-wheel drive SUV market with the Harrier EV, which the brand showcased at the Auto Expo 2025. Speaking to Autocar India, Vivek Srivatsa, chief commercial officer of Tata Passenger Electric Mobility, said, “It's a good time for us to do this [4WD]. For the longest time, we've been saying there's no business case, but we've seen consumers going towards heart buys again.”
According to the report, the impact of All-wheel Drive resources has been identified to be high for the Asia-Pacific area. Some of how this impact has been felt include:
Asia-Pacific is expected to grow with a significant CAGR in the forecast period (2024-2032). The rise in disposable incomes, the growing popularity of SUVs and crossovers, and increased interest in improved safety and performance in various terrains. The sales of AWD vehicles are on the rise in countries such as China, India, and Australia. The reasons are driven by the need for cars with the ability to perform well in harsh road conditions, from snow-covered mountain roads to flooded urban arteries, appealing to adventure seekers and urban residents alike. Automakers are fighting back by growing their AWD portfolios and adapting them to suit local tastes, further fueling market expansion. For instance, in 2024, the new Omoda 5 was launched in the UK. The Chinese SUV coupé has carved out a niche for itself in a very short time thanks to its appealing design and its affordable price. In addition, it offers a wide range of standard equipment - and even a surprisingly good pedestrian protection airbag. Today it's the turn of the new Omoda 5 with AWD all-wheel drive. This interesting version is designed to provide greater grip on difficult surfaces and comes with a surprise under the bonnet. The 1.6 TGDI petrol engine is boosted to 197 bhp (290 Nm of maximum torque).
Access sample report (including graphs, charts, and figures): https://univdatos.com/reports/all-wheel-drive-market?popup=report-enquiry
Market Size, Trends, & Forecast by Revenue | 2024−2032.
Market Dynamics – Leading Trends, Growth Drivers, Restraints, and Investment Opportunities
Market Segmentation – A detailed analysis By Drive Type, By Vehicle Type, By Propulsion, By Application Type, and Region
Competitive Landscape – Top Key Vendors and Other Prominent Vendors
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