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Technavio’s market research analyst predicts the global intelligent all-wheel drive (IAWD) system market to grow at a CAGR of around 29% between 2016 and 2020. Factors such as the increasing sales of SUVs, customer perception and OEMs promoting increased safety and convenience and a decrease in fuel prices will propel the installation of IAWD systems in vehicles. The growing preference for bigger cars and reduction in vehicle purchase tax are likely to boost the market for SUVs, crossovers, and sedans, which will subsequently increase the demand for AWD systems. IAWD system aids in increasing convenience while driving through unfavorable roads. The system also collects information through sensors that track wheel steering angle, and wheel speed, yaw rate and automatically detects the kind of road. It engages 2WD in normal driving conditions and automatically shifts to AWD based on the road conditions. The IAWD system also enhances the vehicle’s off-road performance by mechanically varying the torque to all wheels and by maintaining traction.