It seems like fewer and fewer vehicles are coming with a 2-speed transfer case anymore. Do you think the traditional 2-speed transfer case is a dying breed? What will replace it? Or will it just continue to shrink to only a handful of models that offer it?  

It's just going to be a handful of models that still offer it. I hope Jeep kills off the Compass and Patriot, and focuses on REAL off-road vehicles with true 2-speed transfer cases. But there's no question there's fewer and fewer models that offer it.  

with all of the fuel restrictions and smog laws that are sure to be implemented in the coming years i think that we are unfortunately looking at a dying breed. So few auto manufacturers are still offering them that i think it will become an expense that they can no longer afford.

however, the 4x4 aftermarket is more than ready to handle such an occurance with multiple purpose built cases available and there are still scads of used 2-speed t-cases in scrap yards that are sure to be viable swap candidates. basically, it will become a little bit more difficult for new vehicles owners to obtain but 2-speed t-cases will live on even after the auto manufacturers cease including them in production.  

Transfer cases with high and low range will continue to be offered in trucks and utility vehicles that are meant to really go off-road.  I believe we'll see more shifting options, such as electric solenoid shifter, but the 2-speed T-case isn't dead.  

I'll agree about them probably and eventually only being offered in certain vehicles. I think they'll wind up being like the manual transmission. It'll probably only be offered as a special order item eventually and not readily available on the dealer "ready line" on their lots. Who knows, maybe the auto industry might surprise us and come up with something to replace it that could be more reliable, cheaper, and more durable.

I know that thought is a little far fetched with today's production values. But, use the old mechanical c-4 auto trannies for example. Yes, todays trannies are sometimes more capable, in terms of handling more power from stock, but you almost couldn't kill that old trans if you shot it. It was a rock solid trans that was well more than proven, versus today's trannies, where some of them go out and die just by looking at them funny.

The t-case won't completely disapear, because demand is still too high, but the automakers are going to start shaving weight if they can't get the engines more effient and that will probably be one of the first things to go. Haven't you guys noticed the demise of solid front axles in production vehicles already? Even the Class 7-8 trucks are getting ready to rid themselves of the solid front axles (it's a VERY neat setup that i saw @ the MidAmerica Truck Show). The industry (in general) is weeding out the t-case just like they did with the axles. It's only a matter of time in my opinion...  

Actually, with the announcement of the Wrangler EV, I think we could see per-wheel electric motors in the not-too-distant future. I actually think this is pretty cool, since it would theoretically give you an infinitely-variable low range, and per-wheel traction control.

Now...how well such a setup would fare out on the trail remains to be seen, as well as what would you do if the control computer takes a dump.