According to Vision Research Reports, the global automotive alloy wheels market value is projected to reach of around US$ 24.3 Bn by 2027, expanding at a CAGR of 6% during the forecast period 2020 to 2027.
Alloy wheels are slowly replacing steel wheels, as they offer better heat dissipation, performance, and are lightweight. The global automotive alloy wheels market is mature in developed countries and is at the nascent stage in developing countries. Economic growth witnessed in Asia Pacific, Latin America, and Middle East & Africa is projected to boost the demand for mobility among the population, which in turn is estimated to propel the global automotive alloy wheels market.
Expansion of Automotive Alloy Wheels Market
Cast and forged alloy wheels are preferred in SUVs over steel wheels. Increasing penetration of SUVs witnessed in the last five years indicate a potential market for alloy wheels. SUVs have been early adopters of alloy wheels due to better off road handling capabilities, improved steering, and reduced unsprung weight of the vehicle. Electric vehicles are gaining popularity globally. Electric vehicles must be lightweight to offset the weight of the battery. Consequently, a rise in sales of electric vehicles is projected to boost the sales of alloy wheels. Moreover, rise in car ownership among youth consumers is driving the demand for aesthetically appealing wheels such as alloy wheels.
Drivers of Automotive Alloy Wheels Market
- Increase in stringency of emission norms is estimated to drive the demand for lightweight components such as alloy wheels. Alloy wheels are lighter than steel wheels and help achieve better fuel economy. Automakers are adopting the automotive alloy wheel to improve fuel efficiency of the vehicle and lower emissions.
- Light weighting is imperative for electric vehicles. Rise in sales of electric vehicles is anticipated to boost the demand for alloy wheels.
- Rise in disposable income of consumers and revival of the global economy are boosting the demand for alloy wheels. Alloy wheels can be fabricated into intricate styles and complex shapes, thereby prompting wheel manufacturers to develop esthetically appealing wheels. Rising competition among automakers has led to increased focus on esthetic appeal of the vehicle. Alloy wheels have evolved from being a mere mechanical component to an attractive feature that promotes the brand of the vehicle. Increased emphasis by automakers to improve vehicle esthetics is projected to drive the automotive alloy wheels market.
Challenges for Automotive Alloy Wheels Market
- Alloy wheels are expensive and several car manufacturers use steel wheels as standard fitments in budget cars. Latin America and Middle East & Africa are price sensitive markets and alloy wheels have low preference primarily in the aftermarket. The high price of alloy wheels is a major factor restraining the market.
The global automotive alloy wheels market has been segmented based OEM, aftermarket, and region
- Based on OEM, the market has been classified into commercial vehicle and passenger vehicle. The passenger vehicle segment dominated the global automotive alloy wheels market in 2019. Sport Utility Vehicles (SUVs) were a preferred choice of consumers, globally, accounting for 57,495 units of total 166,846 passenger vehicles sold in 2019, globally. Passenger vehicles are majorly purchased to fulfill consumers’ requirement for transportation, while commercial vehicles are utilized for construction, mining, logistics and other purposes. Globally, passenger vehicles dominated vehicle sales in 2019, recording Y-o-Y growth in number of passenger vehicles sold. Furthermore, alloy wheels are adopted by automakers to reduce vehicle weight and increase fuel-efficiency of their vehicles. All these factors are boosting the passenger vehicle segment of the global automotive alloy wheels market.
- Based on aftermarket, the passenger vehicle segment is anticipated to hold a leading share during the forecast period, owing to rising customization and replacements post-crash. The lifespan of alloy wheels is similar to that of the vehicle itself; hence, the aftermarket segment accounted for a minor share of the global automotive wheels market. However, maintenance and repairs of vehicles involved in a crash attributed to the increase in market share. Furthermore, rise in number of on road passenger and commercial vehicles in the near future is anticipated to propel the aftermarket segment of the global automotive alloy wheels market during the forecast period.
Regional Analysis
- In terms of region, Europe held a significant share of the global automotive alloy wheels market in 2019, owing to high production of vehicles in the region and rising demand for premium and luxury vehicles among developing countries of the region. The availability of major component manufacturers and presence of major OEMs in the region are key factors attributed to the notable share held by Asia Pacific of the global automotive alloy wheels market. Furthermore, consistent demand for passenger as well as consumer vehicles, which is attributed to an increase in the penetration of vehicles in Asia Pacific, is a prominent factor propelling the automotive alloy wheels in the region. Asia Pacific is witnessing a robust increase in penetration of passenger vehicles. Automakers are increasingly adopting alloy wheels to enhance vehicle esthetics and attract consumers in order to increase vehicle sales. Furthermore, China and Japan are leading in research and developments activities to improve vehicle performance. Vehicles require robust and lightweight vehicle components to enhance vehicle economy. This can be achieved through the adoption of alloy wheels. All these factors are propelling the automotive alloy wheels market in Asia Pacific.
- Proximity to North America, which is home to several major automakers and aftermarket players, has made Latin America a favorable region for investment for several car manufacturers from other regions and investors alike Moreover, major OEMs are collaborating with these manufacturers to provide alloy wheels to automakers. All these factors are likely to drive the automotive alloy wheels market in Latin America
- Key players operating in the global automotive alloy wheels market include
- BBS Alloy Wheels
- ARCONIC
- BORBET GmbH
- Enkei
- CITIC Dicastal Wheel Manufacturing Co.
- Foshan Nanhai Zhongnan Aluminum Wheel Co., Ltd.
- MHT Luxury Wheels
- Fuel Off-Road Wheels
- RONAL GROUP
- MAXION Wheels
- TSW Wheels
- Superior Industries International, Inc.
- WHEELPROS LLC.
Market Segmentation
- Automotive Alloy Wheels Market, by OEM
- Commercial Vehicle
- Passenger Vehicle
- Minicompact
- Supermini
- Compact
- Mid-size
- Executive
- Luxury
- MPV
- SUV
- Sport Car
- Automotive Alloy Wheels Market, by Aftermarket
- Commercial Vehicle
- Passenger Vehicle
- Minicompact
- Supermini
- Compact
- Mid-size
- Executive
- Luxury
- MPV
- SUV
- Sport Car
- Automotive Alloy Wheels Market, by Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Key Questions Answered in this Report on Automotive Alloy Wheels Market
- How much revenue will the automotive alloy wheels market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2027?
- What are the impact factors and there effects on the market for automotive alloy wheels market
- What regions currently contribute the maximum share to the overall automotive alloy wheels market?
- What are the indicators expected to drive the automotive alloy wheels market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies by key stakeholders in the automotive alloy wheels market to expand their geographic presence?
- What are the major advancements witnessed in the automotive alloy wheels market?
- How regulatory norms affected the market for automotive alloy wheels market?
This report answers these questions and more about the automotive alloy wheels market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their businesses.
Research Methodology
This TMR report on the automotive alloy wheels market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the automotive alloy wheels market is supported by an assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by the key players, researchers of the automotive alloy wheels market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the automotive alloy wheels market, with both a bottom-up and top-down approach.
This detailed assessment of the automotive alloy wheels market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the automotive alloy wheels market is set to grow are based on carefully vetted primary and secondary sources.
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