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The global high performance wheels market size was USD 22.38 billion in 2019 and is projected to reach USD 32.92 billion by 2027, exhibiting a CAGR of 8.2% during the forecast period.
High performance wheels are those which have a very less probability of galvanic corrosion, are light in weight, compact, and offer better braking, as compared to other wheels. They can reduce unsprung weight, thereby lowering the uncomfortable vibrations of vehicles. The heavyweight of the vehicle results in a low fuel economy and higher emissions. Conventional vehicles account for the major share of air pollution globally. Governments in 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%, as 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. Along with the smooth performance, these wheels are also used to enhance the appearance of the vehicle. The increasing sales of luxury vehicles in countries such the U.K., Germany, and the U.S.A. owing to the inclination of consumers towards safe and fuel-efficient vehicles is expected to fuel the demand for high-end wheels over the forecast period.
A Decline in Automotive Sales to Affect Growth amid COVID-19 Pandemic
The COVID-19 pandemic has had a serious impact on the global automotive industry. The severe lockdown announced in various countries stopped the cross-border trade and resulted in the closure of automobile companies to avoid the spread of the virus. The prolonged lockdown has also led to a decline in the sale of passenger cars. Disruptions in cross-border trades and closure of manufacturing companies have resulted in increasing raw material prices and this has affected the production of high performance wheels globally. At present, it is observed that the majority of consumers are inclining towards using private vehicles instead of public transportation to avoid the spread of the coronavirus and to maintain social distancing. Besides, increasing sales of passenger cars are anticipated to fuel the demand for high performance wheels amid this pandemic.
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Increasing Adoption of Advanced & Lightweight Materials is a Positive Trend for Market Growth
In recent years, there have been rapid innovations and developments in the automotive industry. Key OEMs are focusing on equipping lightweight components in vehicles in order to curb vehicular emissions and to avoid the excess burning of fuel. The rising inclination of consumers towards lightweight and fuel-efficient vehicles is also one of the reasons which have encouraged the manufacturers to develop advanced components, such as carbon fiber, magnesium, and aluminum materials in the vehicles. It is observed that the usage of carbon fiber wheels has increased in luxury vehicles. For example, in September 2019, Ford Mustang announced to install carbon fiber wheels in its 2020 Shelby GT500.
Stringent Emission Norms by Governments to Drive Growth
The automotive sector accounts for one of the major shares of rising air pollution globally. Increasing greenhouse gas emissions from vehicles cause severe damage to the environment and the human race. Various governments across the globe have imposed stringent emission norms on the development of environment-friendly vehicles and components such as lightweight and high performance wheels for automobiles. In order to meet the mandates imposed by governments, various key players are focusing on manufacturing vehicles that will cause less damage to the environment, as compared to the conventional internal combustion engine (ICE) vehicles.
Rising Sale of Luxury Cars to Accelerate Growth Worldwide
High-end wheels are majorly installed in luxury cars as they offer a great look and are light in weight. The rising sales of luxury cars amid the increasing customer preference towards safe and eco-friendly vehicles is expected to drive the market over the forecast period. In recent times, there has been a high inclination of consumers towards vehicles equipped with technologically advanced safety features. These features are majorly installed in high-end and luxury vehicles.
Fluctuating Prices of Raw Material to Restrain Growth
High fluctuation is observed in the prices of raw materials for making wheels, rubbers, and tires. In recent years, there has been a huge inclination of consumers towards lightweight and decent design of wheels. The increasing demand from consumers and the lack of availability of high-end components such as aluminum and magnesium would restrain the growth of the high performance wheels market. Continuous maintenance of these wheels is also another factor that may impact growth.
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Aluminum Segment to Dominate Backed by Their Ability to Provide Précised Braking
By material type, the global market is segmented into aluminum, steel, magnesium (mag wheels), and carbon fiber. The aluminum segment is expected to dominate the market over the forecast period. Aluminum wheels are highly durable and stronger, unlike magnesium wheels. They are also cost-effective and have less complicated designs, as compared to mag and carbon fiber wheels. Also, these wheels are high heat conductors and provide precise braking. They are becoming more popular owing to their decent appearance and lightweight nature.
The magnesium segment is anticipated to hold the second-largest position in the market. Mag wheels are majorly used in motorsports as the strength to weight ratio offered by these wheels is much précised, as compared to other wheels. For example, in October 2017, technologically advanced die-cast magnesium wheels were launched by Dymag Group for F1 racing cars. Lightweight, corrosion resistance, and heat dissipation properties of these wheels is also another factor which is set to help in maintaining the second largest position of this segment in the market. The high cost of carbon fiber wheels is expected to fuel the demand for aluminum and magnesium wheels in the coming years.
Aftermarket Segment to Dominate Stoked by High Demand for Aluminum and Mag Wheels
Based on the sales channel, the market is segmented into OEM and aftermarket. High-end wheels have a decent average life because of its corrosion-less and sturdy nature. The increasing demand for the mag and aluminum wheels owing to their fancy look and unorganized aftermarket price of advanced components globally is set to aid in the dominance of the aftermarket segment. Aftermarket components may or may not stick to the safety mandates imposed by governments. It may dent the revenue of organized aftermarket, but can improve the revenue of the automotive aftermarket high performance wheels. The unorganized key aftermarket players provide high-end wheels at a much economical cost, along with the customization according to the customers’ needs.
The OEM segment is expected to show good growth in the market. It is set to remain in the second position stoked by the rising focus of key OEMs to develop advanced wheels at an economical cost.
Mid-level Segment to Grow Rapidly Owing to Rising Sales and Production
Based on vehicle type, the market is segmented into top-end luxury, mid-level luxury, and others. The mid-level segment is anticipated to dominate the market in the near future. This growth is attributable to the increasing advancements in the automotive sector. It is further resulting in luxury vehicles to become safer and greener. Prolonged international travel bans amid the COVID-19 pandemic have changed the buying preference of consumers. In recent times, most of them are inclining towards buying mid-level luxury vehicles as they provide the highest level of safety, fuel efficiency, and cost-effectiveness, as compared to top-end luxury vehicles. For example, according to the Society of Indian Automobile Manufacturers (SIAM), 20,000 units of luxury cars were sold in India in 2017 which was a 16% growth, as compared to 2016 sales.
Europe High Performance Wheels Market Size, 2019 (USD Billion)
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Based on the region, the high performance wheels market is segmented into North America, Europe, Asia Pacific, Europe, and the rest of the world. Europe is anticipated to dominate the market throughout the forthcoming years. The presence of major key players in this region, the early adoption of advanced technologies, and the rising inclination of consumers towards luxury vehicles are expected to bolster growth in this region. The competitive luxury vehicle market and government emission standards are also set to aid growth in Europe. For example, in April 2019, the European Commission announced to implement Regulation (EC) 443/2009 from 1st January 2020 to reduce vehicular emissions.
Asia Pacific holds the second-largest position in the market. The rising sales and production in this region and the increasing disposable incomes of consumers are the prime reasons for the fastest growth of this region. North America is expected to show good growth in the market owing to the stringent safety and emission norms. Key players in this region are focusing on the manufacturing of wheels that are light in weight and would help to enhance the fuel efficiency of vehicles.
Maxion Wheels to Lead Fueled by its Adoption of Partnership Strategy to Develop Novel Products
Key players in the global market 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. The increasing partnerships with key players to manufacture cost-effective and technologically advanced wheels all over the globe have strengthened its position. Due to multiple strategic partnerships and investments, Maxion Wheels is expected to occupy a larger market share.
However, Iochpe-Maxion, ESE Carbon, and Alcoa Wheels have also retained their positions in the market. These companies significantly control Asia-Pacific. This is expected to affect the global market, as these players are set to boost technology innovation in the field of autonomous vehicles during the forecast period.
An Infographic Representation of High Performance Wheels Market
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The high-performance wheels 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, it 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
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