Electric on-Demand All-Wheel Drive System Market: Introduction
- Rise in integration of AWD in electric vehicles is likely to drive the global electric on-demand all-wheel drive system market. The front and rear wheels of an electric all-wheel drive (AWD) vehicle are powered by an electric motor. The front and rear wheels may or may not be operated by the same motor. Two motors, one for each axle, can be used in vehicle configuration to divide the torque among all four wheels.
Key Drivers of Electric on-Demand All-Wheel Drive System Market
- Rising demand for superior ride handling and traction control is expected to drive the demand for electric on-demand AWD. All-wheel drive systems save energy when vehicle is operating on low load. AWD systems offer better power distribution at the wheels by using two or more motors improves power efficiency. Tesla Model S utilizes two motors to provide AWD. The rear motor is employed for acceleration, while the front motor is used for cruising. Consequently, it offers enhanced ride experience and an efficient drive.
- Ongoing technological advancements in EV battery and a surge in the demand for battery have increased the production of EV batteries in large volumes. New battery technologies have lowered the cost of EV batteries in the last decade. This has led to a decrease in electric vehicle ownership cost, as EV batteries are one of the most expensive parts of an electric vehicle. For instance, in 2010, the price of an EV battery was around US$ 1,100 per kWh, which reduced to around US$ 137 in 2020 per kWh. This price is even low in China, i.e. US$ 100 per kWh. This is due to reduction of manufacturing costs of EV batteries, reduced cathode material prices, and greater volumes of production. Therefore, the preference for electric vehicles is increasing, resulting in higher sales volume. Increased adoption of EV performance enhancing technologies such as electric on-demand AWD system coupled with increased trends toward electric vehicles is driving the global electric on-demand all-wheel drive system market.
Electric on-Demand All-Wheel Drive System Market: COVID Impact
- In 2020, the production and sales of new vehicles had come to a halt worldwide, as the whole automotive ecosystem had been disrupted due to the outbreak of COVID 19. Automakers and OEM players had to wait until lockdowns were lifted to resume production, which affected their businesses. Hence, vehicle manufacturers had to adjust the production volume. The automotive industry is highly capital-intensive and relies on frequent financing to continue operations. Thus, the production suspension during the initial months of the outbreak and lower demand had an unprecedented impact on EV manufacturers in the initial months of the pandemic.
- Manufacturing units around the world were shut down in first half on 2020 and vehicle sales have taken a huge hit. However, the majority of the automakers resumed vehicle production with limited production and necessary measures. Conditions improved in the latter months; however, overall EV manufacturers did not suffer much as demand for zero emission vehicles increased during the latter months of 2020. This led to an overall increase in demand for electric vehicles in the market.
- Therefore, an increase in demand for electric vehicles globally is likely to fuel the electric on-demand all-wheel drive system market in 2021
Asia Pacific to account for prominent share of global electric on-demand all-wheel drive system market
- In terms of region, the global electric on-demand all-wheel drive system market can be segmented into North America, Europe, Latin America, Asia Pacific, and Middle East & Africa
- Asia Pacific dominated the global electric on-demand all-wheel drive system market. China being the world’s largest EV producer and user has a dominance in the EV industry in Asia Pacific. The Government of China has taken steps such as subsidies for EV buyers, compulsory laws by which all vehicle manufacturers need to manufacture EV’s per number of vehicles manufactured, large support to installation of EV charging points across major cities, and regulations against excessive polluting vehicles.
- The EV market in Japan and South Korea has also been expanding for the last few years. Their governments have supported the rise in demand for EVs by installing EV charging stations, enacting stringent emission norms, setting up deadlines for shifting to full or hybrid EVs from ICE vehicles, etc. Additionally, India is likely to witness a boost in the demand for EVs during the forecast period. All these factors showcase the increased demand and production of electric vehicles during forecast period in Asia Pacific. Therefore, Asia Pacific is likely to hold a major share of the global electric on-demand all-wheel drive system market.
Key Players Operating in Electric on-Demand All-Wheel Drive System Market
The global electric on-demand all-wheel drive system market is concentrated owing to the presence of top manufacturers. A few key players operating in the global electric on-demand all-wheel drive system market are:
- AB Volvo
- Audi AG
- Dr.-Ing. h. c. F. and Porsche AG
- GKN Automotive Ltd.
- Honda Motor Company Ltd.
- Nissan Motor Co., Ltd.
- Robert Bosch GmbH
- Tesla Inc.
- Toyota Motor
Global Electric on-Demand All-Wheel Drive System Market: Research Scope
Global Electric on-Demand All-Wheel Drive System Market, by Vehicle Type
- Passenger Vehicle
- Commercial Vehicles
Global Electric on-Demand All-Wheel Drive System Market, by Electric Vehicle Type
- Battery Electric Vehicles
- Hybrid Electric Vehicles
- Plug-in Hybrid Electric Vehicles
Global Electric on-Demand All-Wheel Drive System Market, by System Type
- Manual All-Wheel Drive
- Automatic All-Wheel Drive
Global Electric on-Demand All-Wheel Drive System Market, by Region
- North America
- Nordic Countries
- Russia & CIS
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
- Insights and Tools based on data-driven research
- Actionable Results to meet all the business priorities
- Strategic Frameworks to boost the growth journey
The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.
Below is a snapshot of these quadrants.
1. Customer Experience Map
The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.
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The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.
4. Strategic Frameworks
The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.
The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
9. What are some of the value-grab opportunities in various segments?
10. What will be the barrier to entry for new players in the market?
Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.