Global Transfer Case Market – Industry Trends and Forecast to 2029

Global Transfer Case Market, By Type (All-Wheel Drive (AWD), Four-Wheel Drive (4WD)), Drive Type (Gear-Driven, Chain-Driven), Shift Type (Manual Shift on the Fly (MOSF), Electronic Shift on the Fly (ESOF)),Casing Material (Cast Iron, Cast Aluminum), Vehicle Type (Passenger Vehicles, Low Commercial Vehicles, Heavy Commercial Vehicles, Buses and Trucks, Off-Road Vehicles), Off-Highway Vehicles (Farm Tractors, Construction Equipment), Distribution Channel (OEMs, After-Market) – Industry Trends and Forecast to 2029.

Transfer Case Market Analysis and Size

OEMs are constantly releasing vehicles that incorporate intelligent-AWD technology. This technology uses sensors to track and adjust the functions of the vehicle based on the type of road. Vehicles with intelligent-AWD technology require a vehicle transfer case for synchronisation. As a result, the increasing number of AWD vehicle sales is expected to create significant growth opportunities for the vehicle transfer case market.

Data Bridge Market Research analyses that the transfer case market was valued at USD 12.03 billion in 2021 and is expected to reach the value of USD 25.79 billion by 2029, at a CAGR of 10.00% during the forecast period of 2022-2029. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.

Transfer Case Market Scope and Segmentation

Market Definition

A transfer case is a drivetrain component found in all-wheel-drive (AWD), four-wheel-drive (4WD), and other vehicles with multiple powered axles. The transfer case sends engine power from the transmission unit to the front or rear axle, depending on the situation. The power transmission operations are carried out by the transfer case via chain or gear driven. It is fitted directly to the transmission or fixed separately from the vehicle transmission system depending on the vehicle's performance requirements.

Global Transfer Case Market Dynamics

Drivers

• high penetration of SUVs and crossover vehicles in the market

Changing consumer preferences for high clearance vehicles are fuelling demand for all-wheel drive, and four-wheel-drive vehicles such as SUVs and crossovers are key factors driving demand for automotive transfer cases, thereby driving market growth. All-wheel and four-wheel impulse applications have become necessary in commercial vehicles because they aid in off-road driving and improve vehicle stability. The use of electronics and software to assist the shifting mechanism from low to high velocity has increased the function of the automotive transfer case, resulting in its use in passenger vehicles. This, in turn, is expected to drive the global growth of the transfer case market.

• Incorporation of electronic components and software to replace complex mechanical parts

The electrification of the drivetrain will be one of the most important automotive transfer case market trends during the forecast period. OEMs frequently replace complex mechanical parts with electric components to improve fuel economy, limit emissions, and reduce maintenance. The US Department of Transportation has imposed stringent regulations on automotive OEMs, such as the Corporate Average Fuel Economy (CAFÉ) standards, to improve the fuel economy of commercial and personal vehicles. These regulations are increasing drivetrain electrification, expected to drivetrain demand for transfer cases.

Opportunity

The rising demand for lightweight transfer cases, rising automotive production, and rising sales of HEVs and PHEVs are expected to provide lucrative opportunities for the transfer case market during the forecast period.

Restraints

However, rising demand for battery electric vehicles is acting as a market restraint for automotive transfer cases during the forecasted period. In contrast, high adoption and maintenance costs of vehicles equipped with AWD, as well as high power loss due to the application of transfer cases, will challenge market growth.

This transfer case market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the transfer case market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Transfer Case Market

The spread of the COVID-19 pandemic has had a negative impact on the global transfer case market, owing to commute restrictions, a negative demand outlook, and the market players' expected weak financial performance in 2020. Transfer case sales are directly related to automotive production and sales activities all over the world. Production losses are expected to increase if the countries' lockdown is extended. Global automotive production is expected to fall by 16% in 2020 compared to 2019.

Global Transfer Case Market Scope

The transfer case market is segmented on the basis of type, drive type, and shift type, casing material, vehicle type, off-highway vehicles and distribution channel. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• All-Wheel Drive (AWD)
• Four-Wheel Drive (4WD)

Drive type

• Gear driven
• Chain driven

Shift type

• Manual Shift on the Fly (MOSF)
• Electronic Shift on the Fly (ESOF)

Casing Material

• Cast Iron
• Cast Aluminium

Vehicle type

• Passenger Vehicle
• Light Commercial Vehicle
• Heavy Commercial Vehicle
• Off-Road Vehicles
• Buses and Trucks

Off-highway vehicle

• Farm Tractors
• Construction Equipment

Distribution channel

• OEM (Original Equipment Manufacturers)
• Aftermarket

Transfer Case Market Regional Analysis/Insights

The transfer case market is analysed and market size insights and trends are provided by country of type, drive type, and shift type, casing material, vehicle type, off-highway vehicles and distribution channel as referenced above.

The countries covered in the transfer case market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific is the largest market for transfer cases. The Asia-Pacific market is fuelled by a high proportion of passenger vehicles in total vehicle production as well as rising demand for Sport Utility Vehicles (SUV). The market's expansion can be attributed to the significant increase in demand for high-performance SUVs with 4WD or AWD that provide superior safety and comfort.

Europe is expected to grow the fastest, followed by the Middle East and South America, as the popularity of AWD and chain type gear drives grows among manufacturers in Germany, Italy, and the United Kingdom, among others. Germany accounts for highest of transfer case sales in the region, owing to the region's well-established automotive sector and world-class manufacturing facilities to meet the region's ever-increasing demand.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Transfer Case Market Share Analysis

The transfer case market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to transfer case market.

Some of the major players operating in the transfer case market are:

• Magna International Inc. (Canada)
• GKN plc (U.K.)
• BorgWarner Inc. (U.S.)
• American Axle & Manufacturing Inc. (U.S.)
• AISIN CORPORATION (Japan)
• Meritor Inc., (U.S.)
• Marmon Holdings, Inc. (U.S.)
• Schaeffler India Limited (India)
• Dana Limited (U.S.)
• ZF Friedrichshafen AG (Germany)
• JTEKT CORPORATION (Japan)
• Hyundai Dymos Inc. (South Korea)
• Fabco Automotive Corporation (U.S.)
• UNIVANCE CORPORATION (Japan)