The global automotive alloy wheel market size was valued at USD 22.05 billion in 2022. It is projected to reach USD 52.6 billion by 2031, growing at a CAGR of 8.2% during the forecast period (2023–2031).
A road wheel is a critical component of a vehicle's suspension system, bearing both the static and dynamic loads incurred during regular operation. Cars can't function without wheels, so it stands to reason that as global car production rises, so will the market for automotive alloy wheels. The automotive alloy wheels market is expanding due to the rising demand for lightweight vehicles and the increasing popularity of electric cars. To stay ahead of the competition and develop market-changing alloy solutions, companies that supply wheels for automobiles are spending vast sums on research.
|Market Size||USD 52.6 billion by 2031|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
The automotive alloy wheels market is seeing widespread adoption of several technologies and services. For instance, Fintek, a leader in super finishing techniques, has developed proficiency in using automated systems for treating and polishing alloy wheel surfaces. However, there are many approaches to maintaining alloy wheels. Automotive alloy wheels surface finishers are increasingly investing in vibratory polishing and grinding systems made in Germany because of the efficiency and versatility they bring to the complex manufacturing processes in which they are used. They're ramping up their efforts to create systems that act on all sides of the alloy wheel and their equipment that can control abrasive effects. The automotive alloy wheels market is fueled partly by the development of increasingly sophisticated polishing systems.
There has been a worldwide demand for fuel-efficient vehicles due to the automotive industry's growing penchant for lightweight materials and its newfound emphasis on efficiency. Compared to steel, aluminum alloys excel in their resistance to rust and corrosion. Therefore, not only is it more portable, but it also lasts longer, which is a boon to the customers monetarily. In addition, as consumers' purchasing power and urbanization rise, they are increasingly prioritizing comfort and style in their vehicle purchases. This factor is anticipated to be a driving force in the expansion of this market over the projected time frame.
Steel is typically less expensive than aluminum, but both metals' prices can fluctuate widely depending on factors like global supply and demand, iron and bauxite ore availability, and fuel costs. The Earth's crust contains more aluminum than any other metal. The high price is mainly attributable to the large amount of energy needed for the extraction process. Due to their design and construction, these wheels are more complex to produce than standard steel wheels. That's why you'll pay a premium for alloy wheels instead of steel ones. Steel wheels may be less expensive to repair than alloy wheels in the event of damage. As a result, the price of goods and services may be a factor that slows market expansion.
Over the past decade, automobile manufacturers have been forced to adopt new technologies due to the escalating competition in the manufacturing sector. Sales of truck alloy wheels increased by at least 30%. As a result, vehicle sales have increased, and so has the deal of these types of wheels. Revenue growth in the global market is predicted to be aided by increased sales and production of all vehicle types in developing and developed countries due to rising mobility and investment in the transportation sector.
The global automotive alloy wheel market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America is the most significant shareholder in the global automotive alloy wheel market and is expected to grow during the forecast period. There has been a boom in international trade because of rising incomes in countries like the United States and Canada. The market for automotive wheel rims is expected to expand rapidly in North America in the coming years. Car manufacturers are increasingly using alloy wheels to improve the visual appeal of their vehicles and entice buyers. Market leaders in the automotive alloy wheel industry, such as Euromax Wheel, MHT Luxury Wheels, Status Wheels, Inc., Wheel Pros, LLC, and Fuel Off-Road Wheels, all have a strong presence in North America, which should lead to significant growth in the region over the forecast period.
Europe is expected to grow during the forecast period. Due to the high concentration of automakers in Europe, the continent is expected to account for a sizable portion of the worldwide automotive alloy wheel market. As a result of heavy spending on R&D and innovation in the automotive sector, the European market for automotive alloy wheels is predicted to expand significantly over the forecast period.
Due to the high volume of auto parts exported from the region, analysts predict that Asia Pacific will be the fastest-growing market for automotive alloy wheels. To promote domestic production, create jobs, and advance the 'Make in India Strategy,' the Indian government, for instance, recently announced a five-year extension of the anti-dumping duty on aluminum alloy wheels imported from China, the Republic of Korea, and Thailand. Additionally, research and development efforts to enhance vehicle performance are being spearheaded by China and Japan. Alloy wheels are one method of accomplishing this goal. All of these factors are driving the automotive alloy wheels market in the Asia-Pacific region.
As the LAMEA region continues to develop into an established manufacturing and sales hub for the automotive industry, the automotive alloy wheel market in the region is projected to grow at a healthy rate. Investments for lightweight vehicles in Latin America totaled over USD 17.7 billion, as reported by Ernst & Young Global Limited and corroborating sources such as the CIA World Factbook and LMC Automotive. A further improvement in the design and quality of lightweight vehicles would be a boon to demand in the coming years, and this is where alloy wheels come in.
The global automotive alloy wheel market is segmented by type, wheel size, and sales channel.
Based on type, the global market is bifurcated into polished alloy wheels, two-toned alloy wheels, and others.
The polished alloy wheel segment is the highest contributor to the market and is expected to grow during the forecast period. The wheels on a polished alloy car are finished in a polishing process instead of plating. Mercedes-designers Benz believes that two-tone wheel finishes will become increasingly popular because they give vehicles a more premium look. The market is competitive and varied because of the participation of major players in the ecosystem. The growth of the global automotive alloy wheel market is anticipated to be fueled by the expansion of digital transformation initiatives across various sectors.
Based on wheel size, the global market is bifurcated into compact (13–16 inches), mid-size (17–21 inches), and large (21 inches and above).
The compact segment is the highest contributor to the market and is expected to grow during the forecast period. Only a select few vehicles, including the Toyota Tank, Passo, Voxy, Roomy, Nissan Note, and Suzuki Solio, come with wheels with a 14-inch rim diameter. SUVs and pickup trucks predominate among the top 30 selling cars in the United States, so it stands to reason that their wheels are more significant than those found on sedans and hatchbacks. Vehicles with 14-inch wheel diameters are standard in Europe. The Volkswagen Polo and the Fiat 500 are the only cars with such small wheels.
Based on the sales channel, the global market is bifurcated into OEM and aftermarket.
The OEM segment is the highest contributor to the market and is expected to grow during the forecast period. The expansion of the market is anticipated to be spurred by the OEMs' efforts to create ever-improved products, such as wheels that are highly resistant to corrosion and strain. As the forecast period progresses, aftermarket sales are anticipated to rise partly due to an increase in the number of vehicles that opt for aftermarket wheels instead of factory-installed ones. Commercial vehicles are used for construction, mining, logistics, and other purposes, while passenger vehicles are primarily purchased to meet consumers' demand for transportation. As a bonus, automakers have started using alloy wheels to reduce vehicle heft to improve gas mileage. As a result of these factors, the automotive alloy wheels market for passenger vehicles is growing at a rapid rate worldwide.