According to Vision Research Reports, the global automotive steel wheels market value is projected to reach US$ 13.4 Bn by 2027, expanding at a CAGR of 3% during the forecast period 2020 to 2027.
The can be attributed to the increase in production of heavy commercial vehicles and rise in usage of vehicle on off-road conditions. Moreover, expansion of automotive steel wheels market can be ascribed to the rise in urbanization in conjunction with increased construction, road infrastructure developments, and mining activities. Furthermore, an increase in the demand for mobility and transport is projected to boost the sale of passenger and commercial vehicles, which is likely to propel the market.
Expansion of Automotive Steel Wheels Market
Demand for steel wheels is rising, as they are more affordable than their counterpart, i.e. alloy wheels. A steel wheel does not crack under intense loading or while driven on rough terrain. Furthermore, a dent or deformation of the steel wheel can be easily rectified by hammering the material. This makes the steel wheel highly suitable for driving on rugged or uneven terrain. Therefore, steel wheels are majorly adopted in commercial vehicle and passenger vehicle. Developments aimed at improving the performance of steel wheels, including weight reduction and invention of new coatings for enhancing corrosion resistance, are anticipated to propel the automotive steel wheels market globally. Furthermore, expansion of the manufacturing sector coupled with rapid infrastructure development, increasing logistics activities, and rising mining activities in order to cater to the increasing demand for raw material is driving demand for commercial vehicle worldwide, and these vehicles are a major market for steel wheels.
Development by key players and advancements in technology and materials used during the manufacturing of steel wheels are likely to propel the market during the forecast period. For instance, the steel wheel coating technology developed by EverSteel wheels extends life of wheels up to 5 years. This type of coating is sought by consumers to prolong the life of steel wheels of their vehicle. Based on OEM, the global automotive steel wheels market has been segmented into passenger vehicle and commercial vehicle. The passenger vehicle segment dominated the global automotive steel wheels market in 2019.
Passenger vehicles are majorly purchased to fulfil consumers’ requirement for transportation, while commercial vehicle are utilized for construction, mining, logistics, and other purposes. This fuels the demand for more affordable and durable type of wheels, suitable for heavy duty and off-road and driving in more rugged conditions. This, in turn, is boosting the global automotive steel wheels market.
Based on OEM, the passenger vehicle segment held a leading share of the automotive steel wheels market. Automotive steel wheels are utilized as standard fitments in budget cars and as fitment on rear/ non-driving wheels to lower the cost of the car. Steel wheels are still prevalent as rear wheels in developing countries.
Based on aftermarket, Middle East & Africa has high number of used vehicles on road, which use steel wheels even on vehicles fitted where the standard fitment is alloy wheels. Demand for steel wheels in the aftermarket is considerably high, owing to the high need for replacement due to wear & tear in used vehicles and commercial vehicles. Increase in average age of vehicles, globally, is projected to boost the demand for steel wheels in the aftermarket during the forecast period.
In terms of region, the global automotive steel wheels market has been segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America. Asia Pacific dominated the market for 2019 owing to high production of vehicle in the region and rising demand for vehicle from developing countries including Malaysia, Thailand, and the Philippines. The market in Europe and North America is anticipated to expand at a sluggish pace attributed to increased penetration of alloy wheels in the region. OEM manufacturers in the region are focused on the design and development of diverse alloy wheels. The market in Latin America and Middle East & Africa is projected to expand at a steady pace attributed to a rise in sales of used vehicle in Brazil, Argentina, Kenya, and Tanzania.
Key Questions Answered in this Report on Automotive Steel Wheels Market
This report answers these questions and more about the automotive steel wheels market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
This VRR report on the automotive steel 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 steel 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 steel 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 steel wheels market, with both a bottom-up and top-down approach.
This detailed assessment of the automotive steel 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 steel wheels market is estimated to expand are based on carefully vetted primary and secondary sources.