Two-speed transfer case with adaptive clutch control

A transfer case (22) having an input shaft driven by a powertrain, a first output shaft (32) adapted for connection to a first driveline (12), a second output shaft (42) adapted for connection to a second driveline (14), an interaxle differential operably disposed between the input shaft and the first and second output shafts, and a torque transfer mechanism. The torque transfer mechanism includes a friction clutch assembly (90) operably disposed between the first output shaft and the second output shaft, and a clutch actuator assembly (92) for generating and applying a clutch engagement force to the friction clutch assembly. The clutch actuator assembly includes an electric motor (120), a geared reduction unit (122), and a clutch apply operator (124). A control system including vehicle sensors and a controller are provided to control actuation of the electric motor.