Automotive Wheel Market is segmented By Type (Alloy Wheels, Split Rim Wheels, Forged and Cast Wheels, Steel Wheels, Bottom Line, Others), By Material (Steel, Alloy (Aluminum, Magnesium, and Others), Carbon Fiber, Others), By Rim Size (12”-16”, 17”-19”, More Than 20”), By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, Heavy Commercial Vehicles), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Automotive Wheel Market Size
Automotive Wheel Market size was worth US$ 36,371.49 million in 2022 and is estimated at a CAGR of 7.4% within the forecast period (2024-2031).
An automotive wheel is a ring-shaped component surrounding a wheel's rim to transfer a vehicle load from the axle through the wheel to the ground and offer traction on the surface over which the wheel travels. Furthermore, wheels are pneumatically expanded structures that provide an adjustable pad that retains stun as the tire turns over rough features on a superficial level.
Automotive Wheel Market Summary
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Metrics |
Details |
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Market CAGR |
7.4% |
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Segments Covered |
By Type, By Material, By Rim Size, By Vehicle Type, and By Region |
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Report Insights Covered |
Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
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Fastest Growing Region |
Asia Pacific |
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Largest Market Share |
Asia Pacific |
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Automotive Wheel Market Growth Trends
Global growth in vehicle production drives the market share for the automotive wheel.
Global growth in vehicle production drives the market share for automotive wheel
The world has experienced significant economic growth in the last couple of decades. The growth is more pronounced in emerging markets such as China and India. Years of sustained economic growth have led to rapid urbanization and industrialization. It has created positive socio-economic outcomes that have led to the emergence of a large middle class.
The rising disposable incomes of the middle class have increased the demand for consumer products such as cars and motorcycles. The adoption of automation has allowed manufacturing industries to increase output while keeping prices low substantially. Automated quality control and minimal human intervention ensure high quality throughout production. Automation has allowed companies to mass-produce high-quality goods while keeping prices low. Once hand-made in limited quantities, cars are now mass-produced by the millions.
In order to cater to the growing demand from the middle class, automotive manufacturers have ramped up production. Companies have introduced new models and features to create attractive offerings to capture market share.
Economic growth has also created a massive demand for commercial vehicles such as trucks and buses due to growing infrastructure and public transport works. Global vehicle production growth has only increased demand for automotive components such as wheels. It has become an important driver for the global automotive wheel market.
Volatility in prices of raw materials creates a huge challenging atmosphere for the growth of automotive wheel
Different raw materials are used to produce automotive wheels, such as nickel, manganese, aluminum, iron and magnesium.
The global metals market has a diversified supply chain with component manufacturers, programmers, suppliers and distributors in various countries. Long lead times are required for the manufacturing and dispatch of wheel components. Therefore, the entire supply chain is vulnerable to external shocks.
The pricing of these metals depends on many factors, such as production amounts, type of processing required, logistics and shipping. The COVID-19 pandemic has led to a decrease in production and shipping delays. It causes an instant spike in the prices of raw materials.
Furthermore, most of these metals are actively traded on commodity exchanges. It renders them vulnerable to shocks of the market forces. An increase in raw material prices leads to an increase in the cost of automotive wheels. The cost increase is passed down the chain leading to the customer being the final payer with increased vehicle prices.
The price volatility of raw materials discourages the wider adoption of new technologies and materials in the automotive wheel industry and is a key challenge to the market's growth.
COVID-19 Impact Analysis on Automotive Wheel Market
The global automotive wheel market experienced sharp declines in 2020, owing to COVID-19's impact. Governments across the globe imposed strict lockdowns and other restrictions in early April 2020 to curb the spread of COVID-19. The automotive manufacturing facilities had to close or scale back operations significantly to comply with the government directives.
The lockdown hampered the ongoing production and created a backlog that burdened companies when the strict restrictions were partially lifted in September and October 2020. Production continued at a slower pace when compared to pre-pandemic levels.
The collapse in demand from vehicle manufacturers caused a severe disruption in the global automotive wheel market. The research and development of new technologies and the introduction of new products were delayed. Many small and medium-scale automotive wheel supply chain enterprises faced bankruptcy due to reduced demand.
China, the largest automotive market globally, emerged from lockdowns relatively early by May 2020 and global demand, therefore, showed a slight recovery by the end of 2020. However, the second pandemic wave hit North America and Europe in early 2022 and global demand remains subdued. Global demand is expected to reach pre-pandemic levels by the end of 2022.
Automotive Wheel Market Segmentation Analysis
The global automotive wheel market is segmented on type, material, rim size, vehicle type and region.
The demand for lightweight wheels with the same strength as steel wheels and good thermal stability and ductility is boosting the growth of the automotive alloy wheel market across the globe
The global automotive wheel market is segmented on type: alloy wheels, split rim wheels, forged & cast wheels, steel wheels and others. The alloy wheels dominate the market of the mentioned types. The demand for lightweight wheels with the same strength as steel wheels and good thermal stability and ductility is boosting the growth of the automotive alloy wheel market. Automotive alloy wheels are either made of magnesium or aluminum alloys or a combination of the two. Automotive alloy wheels are lightweight wheels that help a car's steering and speed.
Automotive alloy wheels reduce heat dissipation from brakes and reduce the risk of brake failure under harsh driving conditions since aluminum or magnesium alloy is a good conductor of heat. Automotive alloy wheels have complicated geometry and must meet various design requirements, including weight, style, performance and manufacturability.
Reducing the vehicle's weight has been a major concern for automakers. As a result, players in the automotive wheel market are expanding their research budgets to develop new alloy wheels. For instance, in 2019, Rio Tinto, an Anglo-Australian multinational metal firm, collaborated with researchers at Canada's Arvida Research and Development Centre (ARDC) to develop Revolution-Al, a new high-strength aluminum alloy designed for lightweight car wheels. The requirement for tougher alloys for die-cast automotive wheels that assist in lower fuel consumption is expanding
Automotive Wheel Market Geographical Share
Favorable government regulations and the escalating automotive industry are major factors driving Asia-Pacific wheels' growth aftermarket
Asia-Pacific is expected to lead the automotive wheels market in the forecast period. China and India are mostly responsible for the market expansion. China and India are mostly responsible for the market expansion. With around 60% of the world's vehicles, the region's demand for automotive will be the largest globally, owing to the world's highest population proportion and two densely populated nations, China and India.
Moreover, favorable government regulations and the escalating automotive industry are major factors driving this region's wheels' growth aftermarket. In addition, low labor costs and economic production conditions in ASEAN countries are also among a few reasons behind the aftermarket's current growth.
For instance, The Indian government has committed to play a key role in promoting EV demand and acceptance, encouraging collaborative R&D efforts and facilitating the construction of necessary infrastructure. The government has also chosen to establish a powerful EV demand-generating strategy, both in terms of scale and duration, to close the price gap between EVs and conventional IC engine vehicles.
In addition, promoting cleaner fuels, improving emission standards for vehicular pollution, putting in place standards for fuel economy performance and transitioning to electric mobility is central to successfully transitioning to a more sustainable, less emission-intensive transport system and are also projected to boost the automotive wheel market during the forecast period.
Automotive Wheel Market Companies and Competitive Landscape
The global automotive wheel market is highly competitive with local and global key players. The key players contributing to the market's growth are Ronal Group, CITIC Dicastal Co., Ltd, Superior Industries International, Inc., BORBET GmbH, Hitachi Metals, Ltd., Topy Industries, Ltd., LIZHONG GROUP, Maxion Wheels, Wheel Pros, BBS automotive GmbH and others.
The major companies are adopting several growth strategies such as product launches, acquisitions and collaborations, contributing to the global growth of the automotive wheel market.
- For instance, on February 04, 2022, Ronal Group announced developing a line for campers and caravans and manufacturing aluminum wheels for automobiles, buses and trucks.
CITIC Dicastal Co., Ltd.
Overview: CITIC Dicastal Co., Ltd. is a China-based company specializing in manufacturing and supplying aluminum wheel and chassis components. Further, the company is a subsidiary of Citic Limited
The company's business is segmented into five stages: product differentiation, opening up the OEM market, commercial pattern innovation through grouping, leaping development and diversification of industrial scale.
The company supplies its products to a comprehensive range of automotive companies, including Mercedes-Benz, Audi, VW, BWW, Renault–Nissan, Ford, Toyota, Honda and other major OEMs. Further, CITIC Dicastal Co., Ltd. has a significant supply capability in Europe and its components are used in more than half of the cars.
Product Portfolio: Forming Process-Casting Wheel: The company offers aluminum-based casting wheel manufacturing using the forming process.
Key Development
- On February 22, 2022, CITIC Dicastal Co., Ltd. started building a new US$ 191 million factory in Morocco to expand its global automotive wheel industry. The new plant's initial capacity will be five million passengers and light commercial vehicle wheels annually.
The global automotive wheel market report would provide approximately 71 market data tables, 68 figures and 212 pages
