From 2021 to 2030, the global automotive wheel market is predicted to increase at a 6.1 percent CAGR, reaching around US$ 76.89 billion.
The automotive industry is expected to reach USD 76.89 Billion by 2030, according to a new report published by Grand View Research, Inc., titled, “Automotive Wheels Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016 – 2025”.
Automotive wheels are essential components of conventional and luxury automobiles.
They provide traction and stability to the vehicle. These wheels are manufactured from various materials such as aluminum, steel, magnesium, etc.
The global automotive industry is projected to witness significant growth during the forecast period owing to increasing demand for passenger cars and commercial vehicles. The increasing number of accidents due to poor road conditions has led to increased demand for safety features in luxury automobiles and others.
This has resulted in the growing adoption of alloy wheels across the globe. Moreover, the rising demand for luxury vehicles is also driving the demand for alloy wheels.
In 2020, the universal automotive wheel market was estimated to be worth $42.5 billion. The automotive industry has grown significantly because of the growing demand for luxury automobiles, sports, and passengers. Public needs are changing, therefore giving rise to a huge increase in the production of vehicles for performance analysis.
The need for automotive wheels is being driven by developing performance-based vehicles, such as premium cars. The wheels also constitute an essential role in automobile analysis methods, which is projected to skyrocket the growth of the automotive wheel market in this region.
Additionally, due to government-mandated automotive industry criteria, manufacturers of various automobiles are adopting a greater number of carbon- and aluminum-based wheels. Furthermore, the current material consumes significantly less energy during manufacturing and results in a flawless wheel-shaped with more defined and keen body lines, which simplifies component replacement. Alternatively, alloy wheels dominate the vehicle wheel industry due to their elasticity, corrosion resistance, and mass.
Additionally, as hybridized electric automobile models become more prevalent, the demand for vehicle-specific wheels has increased.
5 challenges of the Automotive Wheel market
1) High initial investment: Alloy wheels have a high initial manufacturing cost compared with standard or cast iron wheels
2) No standardized quality control standards: The production process used for manufacturing alloy wheels results in higher variability in its performance characteristics. This leads to large fluctuations in price, making them expensive.
3) Limited availability for mass customization: Due to highly complex design, customization cannot be easily achieved, limiting their application.
4) Excessive weight: These alloys weigh twice of conventional ones.
5) In some cases, poor durability: Alloy wheels lose their strength over time, whereas conventional wheels do not suffer any loss in their properties.
Nevertheless, aluminum topped the worldwide automotive wheel market in 2020, with the greatest share of the market. This is due to increased requests for lightweight autos designed to maximize fuel economy. Aluminum wheels are likely to boost the automotive market, as key automobile manufacturers use them to improve vehicle dynamics.
Commercial vehicles are expected to be the most opportunistic sector during the projection period. Demand for luxurious passenger automobiles that provide comfort increases globally as people’s expendable cash and purchasing power increase.
The intense competition in the automotive market has increased dramatically in recent years, compelling manufacturers to adopt new technologies in the production of vehicles. Due to the expanding transportation industry, global revenue growth is expected to be boosted by increased passenger automobiles and commercial vehicles in developing and developed regions. As an outcome, the increase in automobile manufacturing is expected to enhance the automotive wheel market’s growth in the coming years.
