Based on MarketsandMarkets analysis, the Automotive Wheel Market is projected to grow at a CAGR of 5.52% from 2017 to 2025. The market for automotive wheels is estimated to be USD 32.87 billion in 2017 and is projected to reach USD 50.54 billion by 2025.The increasing vehicle production and demand for improved vehicle dynamics are the key factors driving the automotive wheel market. Also, the rising demand for fuel efficiency is pushing original equipment manufacturers to switch to lightweight materials. This upcoming trend is supporting the growth of automotive wheels.
OEMs and Tier-1 manufacturers are extensively investing in R&D activities to develop new technologies to gain traction in the business landscape. The key objective of these technologies is the reduction of vehicle weight, which helps to improve fuel efficiency and vehicle dynamics. For instance, carbon fiber, which is 20% stronger and 20% lighter as compared to the available alloys, is the new material used for making wheels.
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The alloy wheel segment is estimated to hold the largest share in the global automotive wheel market. The market growth in this segment can be attributed to the improved vehicle dynamics with lightweight alloy wheels as compared to the steel wheels.
The passenger vehicle is projected to be the fastest-growing segment of the automotive wheel market. This segment is estimated to have the highest growth potential in the automotive wheel market across the globe. According to OICA, the passenger car sales around the globe increased from 55.6 million units in 2010 to 66.3 million units in 2015. According to the same publication, the passenger car sales was ~73% of the total vehicle sales in 2015.
Automotive Wheel Market drivers
- Improved vehicle dynamics and increased demand for lightweight materials
- Growing vehicle production
Automotive Wheel Market Restraints
- Decline in enthusiast segment – millennial effect
- Volatility in raw material prices
Automotive Wheel Market opportunities
- Advanced materials and new compositions in wheels
Automotive Wheel Market challenges
- Engineering barriers
- Large unorganized aftermarket for wheels
- Maintaining a balance between performance, cost, and weight.
The key market players are Iochpe-Maxion (Brazil), Superior Industries International (US), Accuride Corporation (US), Steel Strips Wheels (India), Hitachi Metals (Japan), Enkei (Japan), Citic Dicastal (China), Zhejiang Wanfeng Auto Wheel (China), Borbet (Germany), Mangels Industrial (Brazil), and Mefro Wheels (Germany).
- Will the carbon fiber wheels be feasible in the near or distant future?
- What will be the implications in the existing supplier chain?
- Will new companies in the automotive wheels disrupt the old matured companies?