Automotive Wheel Market Analysis

Automotive Wheel Market Analysis

Aluminum material demand accounted for around 55% of the automotive wheel market share in 2019 due to its lightweight structure. Aluminum wheels are either made from cast or forged aluminum to reduce the cracking in the event of extreme loads/pressure. Casting and forging are the two processes used to manufacture aluminum wheels and are available in bare-metal finishes, which eliminate paint requirement.

The easy availability of commodity materials coupled with the resistance to corrosion will provide strong growth prospects in the market. Amendments in regulatory policies to promote fuel-efficient vehicle part manufacturing have increased the demand for lightweight wheels over steel alternatives. Additionally, attributes including lightweight, better heat conductivity, and anti-corrosive properties will enhance the aluminum material demand.

High performance wheels market size is estimated to witness growth rate of over 6.5% through 2026. Shifting focus towards vehicle customization to improve acceleration, brake system, and aesthetic appearance is influencing the demand for high-performance wheels. These wheels offer high strength and lightweight mainly used in premium sport and luxury cars.

Industry participants are emphasizing their focus on the aftermarket to cater to the customizable requirements of the vehicle owners. Multiple choices of design, sizes, and finishes to suffice the consumer requirements in conjunction with the online software, such as wheel configurator, for having an oversight of the vehicle aesthetics will favor the market growth.

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OEMs end-use is expected to dominate the market share by 2026 impelled by its installation during vehicle assemble. Low replacement rates and significant expertise requirement for installations have led to the significant concentration of automotive wheel sales to OEMs. Increasing investments from market players to upgrade their manufacturing facilities and technology to fuel the industry expansion.

The light commercial vehicles captured more than 20% of the automotive wheel market share in 2019 on account of increasing transportation and logistics activities.  The advent of the hub & spoke model in emerging nations provided a lucrative opportunity for vehicles. Escalating requirements for large vehicle fleets propelled by consolidation and agreements in the logistics sector to increase economies of scale have positively driven the demand for commercial vehicles. Furthermore, requirement for frequent wheel change as compared to PCVs owing to high usage is predicted to increase the wheel penetration rate in commercial vehicles.

Asia Pacific automotive wheel market revenue is anticipated to observe substantial gains from 2020 to 2026. High urbanization rate coupled with increasing spending power of citizens from economies including China, India, Thailand, and Indonesia is poised to augment the regional market penetration. The availability of low-cost workforce and support for automotive manufacturing activities is fostering the wheels demand. Moreover, presence of major automobile OEMs including, Mazda, Suzuki, Honda, Ford, Hyundai Kia, Renault Nissan, General Motors, Toyota, and VW Group will offer lucrative market growth opportunities.