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The global automotive wheel rims market size was USD 19.18 billion in 2019 and is projected to reach USD 33.33 billion by 2027, exhibiting a CAGR of 8.2% during the forecast period.
The wheel is a round block made of durable and hard material. A round hole is drilled in the middle and the bearing for the shaft is placed through the hole. On this basis, torque generates momentum and the wheel turns to its axis. The rim is the outer edge of the wheel and holds the tire firmly in its slots. The wheel rim is strong enough to withstand the weight of the vehicle and the force caused by the operation. The material used for manufacturing wheels has become a complex design, such as steel, non-ferrous alloy aluminum, and magnesium.
Conventional vehicles contribute majorly to air pollution globally. Governments of various countries have imposed stringent emission norms to curb rising air pollution. For example, in 2020, the European Union pledged to reduce carbon emissions by 20% compared to 1990 greenhouse gas emissions. The government of India implemented BS-VI norms from April 2020, this is expected to reduce the rising air pollution in the country.
Impact of COVID-19 Pandemic: Declined Automotive Sales and Production to Disturb Market
The COVID-19 pandemic has had a rapid and severe impact on the global automotive industry. The lockdown in various countries interrupted cross border trades and also led to the lockdown in various countries has interrupted cross border trades and disrupted automotive manufacturing plants. The prolonged lockdown has resulted in the declined sale of passenger cars and commercial vehicles. This in turn has affected the global production of wheel rims. In recent times, after various governments lifted the nationwide lockdown, it has been observed that there has been a rise in the sales of passenger cars as people are focused on using personal vehicles instead of public transportation to avoid the spread of the virus. Rising sales of passenger cars and commercial vehicles are expected to boost the demand for wheel rims during the pandemic.
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Adoption of Noise-reducing Wheel is a Positive Trend in the Market
In recent years, there has been a huge sale of conventional and electric vehicles. Vehicle owners are inclined towards noiseless and emission-free vehicles. This has encouraged various automakers to develop advanced technologies that would be more silent and environmental-friendly. In past years, there has been a lot of noise inside the car’s cabin due to tire cavity noise. Automakers continue to seek new ways to reduce the internal noise levels of their vehicles by developing advanced noise-reducing wheels.
Tire air cavity noise is the noise generated in the compartment due to the resonance of the hollow cavity inside the tire when the tire is running on an uneven road surface. This phenomenon is a factor that causes road noise. Some manufacturers solve this problem by using sound-absorbing foam inside the tire to eliminate cavity noise. This development by manufacturers has helped to reduce internal cabin noise.
Thin, lightweight plastic Helmholtz resonators are also installed in newly cut grooves on the wheel hub to balance the strength of centrifugal force and assembly.
Rising Adoption of Lightweight Materials to Fuel Market Growth
The incorporation of automotive lightweight materials reduces the weight and improves the fuel efficiency of the vehicle. In recent years, the automotive sector has faced various challenges pertaining to rising emission levels globally. The inherent relationship between fuel consumption and vehicle weight has enabled manufacturers to use lightweight components and meet the emission requirements. Automotive lightweight materials include aluminum, high-strength steel, engineering plastics, and composite materials. These advanced lightweight materials have equal strength compared to conventional components. For example, in 2016, BMW launched its technologically advanced 2017 i3 model, which consists of a carbon fiber polymer body. This carbon fiber polymer body helped the company to increase the battery capacity of the vehicle to 33kWh.
Rising Production of Vehicles to Drive the Market Growth
According to the Organization Internationale des Constructeurs d’Automobiles (OICA), the automotive sector is expected to reach 100 million units in 2019. Key original equipment manufacturers (OEMs) are focusing on regulating the unstable demand and supply pattern. Manufacturers are inclined towards developing technologically advanced components in order to meet the emission standards. These factors are expected to fuel demand, in turn, drive the key market during the forecast period. The increasing population and disposable income of consumers are expected to increase the demand for advanced vehicles during the forecast period. For example, Ford and General Motors hold 25% of global vehicle production which in turn makes North America one of the largest vehicle manufacturers.
Fluctuating Raw Material Prices to Restrain Market Growth
The increasing price volatility of raw materials for tires, wheels, and rubber products can impede the market in the forthcoming years. In recent years, the production of automobile wheels and various materials has increased considerably. The supply of raw materials (such as magnesium, steel, aluminum, etc.) that makeup auto parts have been fluctuating. Excessive raw materials used in the manufacture of automobile wheels cause their shrinkage. For example, fluctuations in the price of raw materials in the production of electric car batteries can hinder the market growth.
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Alloy Segment Held the Largest Share Owing to its Lightweight Property
By material type, the market is segmented into alloy, steel, and carbon fiber. The alloy wheel segment is expected to hold the largest automotive wheel rims market share during the forecast period. The wheel rim directly affects the braking system of the vehicle. Aluminum alloy wheels are becoming more and more popular due to their appearance, and they are also lighter than steel wheels. Aluminum is a heat conductor and can dissipate heat from tires and brakes more effectively than steel wheels. Alloy wheels account for about 41% of the market share in 2019 due to their lightweight structure. Aluminum wheels are made of cast aluminum or forged aluminum to reduce cracking under extreme load/pressure.
The carbon fiber segment is expected to hold the second-largest position in the market over the forecast period. The heavyweight of the vehicle consumes more fuel and in turn hampers the growth of the market. Key original equipment manufacturers (OEMs) such as Mercedes and BMW have focused on adopting lightweight carbon fiber reinforced plastic (CFRP) wheel rims in the majority of luxury and high-end vehicles to curb the excess fuel consumption in vehicles. For example, in January 2017 Mitsubishi Rayon acquired SGL Carbon Fiber LLC in order to strengthen its position in the North American market of automotive wheel rims.
OEM Segment to Dominate the Market over the Forecast Period
The end-use market of original equipment manufacturers is expected to dominate the market's revenue share during the forecast period, which is mainly due to installation during the car assembly process. The low replacement rate and a large amount of expertise required for installation have led to the concentration of sales of automobile wheels to OEMs. Increased investment by industry players to upgrade their manufacturing facilities and technology will support the expansion of the field. Industry participants are emphasizing their focus on the aftermarket to meet the customizable requirements of car owners. Multiple choices of design, size, and surface treatment can meet the needs of consumers. At the same time, combined with online software (such as wheel configurator) to monitor the beauty of the vehicle will be beneficial to market growth.
Passenger Car Segment to Grow at a Faster Pace owing to Rising Production of Passenger Vehicles
The passenger car segment is expected to dominate the market of automotive wheel rims during the forecast period. Passenger cars account for the largest share of total automobile production. Additionally, the rising innovations by key OEMs to improve the driving quality and efficiency of passenger cars will promote the automotive wheel market in this segment. The increase in disposable income of consumers, especially in developing countries such as China, India, and Mexico, is fueling the demand for the automotive wheel rim market in the passenger car sector. Additionally, rising investment by the government to promote the adoption of electric vehicles is also boosting the demand for passenger cars. For example, in 2019, the Indian government launched the national electric mobility mission plan 2020 to encourage local manufacturers. Under this program, the government announced more than 130 billion for demand incentive investment, and 18 billion for R&D investment, this would reduce the manufacturing cost of electric vehicles and increase the sale during the forecast period.
Asia Pacific Automotive Wheel Rims Market Size, 2019 (USD Billion)
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Based on the region, the automotive wheel rims market is segmented into North America, Europe, Asia Pacific, Europe, and Rest of the World. Due to the growth of automobile production in countries such as China and India, the Asia-Pacific region leads to the development of the automotive wheel market. In the next five years, automobile production in these countries is expected to grow at a compound annual growth rate of over 11.1%. The increase in car production has in turn increased the demand for wheels in the region. Due to the reduction in low- and middle-conscious countries and disposable income, in low- and middle-income countries, the adoption of car rims is less observed, which may reduce the scope of the global car rim market. Due to its use in the commercial sector and the growing automotive sector, Europe has made a huge contribution to the global automotive rims market. As the disposable income in the U.S and Canada increases, North America is expected to have the largest market share in the global automotive rim market.
Maxion Wheels is Anticipated to be the Leading Player in the Market
Key players in the global market of automotive wheel rims include Maxion Wheels, Steel Strip Wheels, and Ronal Group among others. Maxion Wheels is a major player in the market as it manufactures advanced wheels for passenger cars and commercial vehicles. Increasing partnerships with key players to manufacture cost-effective and technologically advanced wheels all over the globe has strengthened its market position. Due to multiple strategic partnerships and investments, Maxion wheels is expected to occupy a larger market share.
An Infographic Representation of Automotive Wheel Rims Market
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The automotive wheel rims market research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report delivers an in-depth market analysis of several factors that have contributed to its growth over recent years.
Value (USD Billion) & Volume (Thousand Units)
By Material Type
By Sales Channel Type
By Vehicle Type
Fortune Business Insights says that the global market size for automotive wheel rims was USD 19.18 billion in 2019 and is projected to reach USD 33.33 billion by 2027.
In 2019, the Asia Pacific market value stood at USD 10.00 billion.
Registering a CAGR of 8.2%, the market will exhibit good growth in the forecast period (2020-2027).
The material type segment is expected to be the leading segment in this market during the forecast period.
The rising production of passenger and commercial vehicles is a key factor driving the growth of the market.
Maxion Wheel, Steel strip wheels ltd., and Ronal Group are the major players in the global market.
Asia Pacific held the largest share in the market in 2019.
Rising adoption of noise reduction wheels is expected to drive the market.
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