The global aluminum alloy wheels market is anticipated to expand at a CAGR of 8.5% during the forecast period of 2023 and 2031. Alloy wheels are automobile wheels made from an alloy of aluminum or magnesium. By combining metals and other substances, alloy wheels are formed. In comparison to pure metals, which are often softer and more ductile, they are typically stronger. Aluminum alloy wheels are a popular alternative for passenger cars due to their superior heat conductivity, anti-corrosion qualities, and lighter weight than steel wheels. Multiple manufacturers brand their products by etching their logos into the rim. During the projected period, demand for automotive alloy wheels is anticipated to increase due to a rise in customer purchasing power and a rise in global demand for lightweight automobiles. Due to their durability and lightweight, alloy wheels are often utilized. Moreover, aluminum alloy wheels boost the aesthetic appeal of the car. Due to the fact that the amount of carbon dioxide emitted is linked to fuel consumption and vehicle size, automakers are driven to build safer, lighter, and more environmentally friendly automobiles. Altering consumer lifestyles and a growing desire for light automobiles are expected to generate new market growth opportunities. Rapid urbanization, an increase in vehicle demand and production, and regulations pertaining to fuel efficiency are expected to continue to drive the Aluminium Alloy Wheels Market over the forecast period.
In response to consumer demand, manufacturers have prioritized solutions that are safe, luxurious, and lightweight. Among the largest opportunities in the automobile industry, lightweight materials and high-quality interiors are essential factors. This mandates that suppliers provide OEMs with solutions to help them comply with ever-tightening regulations and satisfy a growing variety of consumer preferences. According to the U.S. Department of Energy, a 10% reduction in vehicle weight can result in a 6%-8% improvement in fuel economy. The body weight of a vehicle can be decreased by 50 percent by replacing cast iron and steel components with lightweight alloys such as magnesium alloys, aluminum alloys, high-strength steel, and carbon fiber. This directly reduces the vehicle's fuel consumption. A quarter of the U.S. fleet using lightweight components and high-efficiency engines may save more than 5 billion gallons of fuel annually by 2030, according to the U.S. Department of Energy. As a result, the rising demand for lightweight cars and the accelerating pace of vehicle production is expected to create a positive trend for this market over the forecast period.
The global demand for fuel-efficient automobiles has increased considerably due to the increasing need for lightweight materials in the automobile industry and the growing emphasis on fuel efficiency. The corrosion and rust resistance of aluminum alloys distinguishes them from their corresponding steel alloys. In addition to being lightweight, this product has a longer lifespan, which is financially beneficial for the customers. In addition, as consumers' purchasing power and urbanization increase, their preferences for luxury automobiles are altering. This is expected to promote the growth of this industry throughout the foreseeable future.
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Due to the increasing competitiveness in the manufacturing industry over the past decade, automakers have been obliged to adopt new technology. As automobile sales increased, so did the need for these types of wheels. As a result of increased mobility and investment in the transportation sector, it is projected that an increase in the sales and production of all types of automobiles in developing and developed nations would contribute to the expansion of the worldwide market's revenue.
Steel and aluminum costs fluctuate based on global supply and demand, the availability of iron and bauxite ore, and the cost of gasoline; nonetheless, steel is often less expensive than aluminum. Aluminum is the most prevalent metal in the Earth's crust. It is expensive mostly owing to the amount of electricity required in the extraction process. In addition, the manufacturing process for these wheels is more complex than that for regular steel wheels. Consequently, alloy wheels are often more costly than steel wheels. Additionally, steel wheels are significantly less expensive to repair than alloy wheels. As a result, the cost factor may hinder market expansion.
The category of polished alloy wheels constitutes a substantial portion of the global market. The metal wheels are polished and not nickel-plated. The polishing method involves sanding the surface of the alloy wheel until it is completely smooth. The surface is then polished using a chemical polishing agent to obtain a lustrous luster. Due to the fact that polishing does not add weight to the wheel, polished lightweight racing wheels are more common than chromed or toned lightweight wheels. Another advantage is that polished wheels can be repolished when their finish gets dull and tarnished. Because they are affordable, automatically polished, and buffed to a mirror sheen, the automobile and freight sectors have boosted demand for polished wheels. Dymag, the pioneer of alloy wheel production, launched the SSC Tuatara with its polished 20-inch wheels in March of 2021. Dymag's hybrid aluminum alloy and carbon fiber is 40% lighter than normal alloys.
During the projection period, the segment of two-tone alloy wheels is anticipated to display a higher CAGR. Two methods exist for producing two-toned alloy wheels. The first technique for painting alloy wheels is a machine process in which the rims receive a two-tone surface protected by a layer of clear coat. The second method utilizes diamond-cut alloy wheels with machine-turned faces and painted backgrounds. This technique provides the rims with a crisp color transition without requiring masking or painting. In addition, this makes the rim highly resilient and robust. The painting makes cleaning the rims easy for the user. Any sort of dirt or dust adheres less strongly to the surface and is easier to remove. Two-toned alloy wheels add visual appeal to the exterior of a car. As a result, sales of luxury automobile brands surged, and when this happened, all automakers took notice. Consequently, this expands the market for two-tone alloy wheels.
The passenger car segment is anticipated to continue to dominate the aluminum alloy wheels market throughout the projected period. SUVs, hatchbacks, sedans, and electric vehicles (battery electric vehicles (BEV), multi-utility vehicles (MUV), and hybrid electric vehicles (HEV)) are classified as passenger automobiles. The passenger vehicle industry has a large market share and is anticipated to maintain its dominance during the forecast period.
Commercial vehicles are predicted to have the highest CAGR during the forecast period. Durability is one of the disadvantages of alloy wheels today. When struck by the road, these wheels are more likely to bend and even fracture than more resilient steel wheels. Due to the greater weight exposure of commercial vehicles, steel wheels are preferable to alloy wheels. However, technical advancements in the production of alloy wheels and the use of additional materials to make alloy wheels more durable and long-lasting are anticipated to stimulate market growth.
Asia-Pacific will dominate the worldwide automobile alloy wheels market in 2021. It has the largest market share in the business now. The enormous population in countries such as China and India, which accounts for more than 38 percent of the world's population, is essential to the growth of this region. This expansion is the result of expanding urbanization and disposable income, which has led to a change in individual preferences. The expansion of the automotive sectors in South Korea, India, and China is mostly attributable to increased automobile output.
According to the OICA, India produced 4.51 million automobiles in 2019, of which 3.62 million were vehicles. China was the greatest vehicle-producing nation in 2019, according to the International Organization of Motor Vehicle Manufacturers; it produced 25.72 million vehicles, of which 21.36 million were automobiles. The rise of the market is primarily driven by the presence of a robust automotive sector and an increasing number of manufacturers of passenger vehicles.
Due to the world's highest population density and the presence of two densely populated nations, China and India, the demand for automobiles in the region will be the highest in the world throughout the projected period, with roughly 60 percent of the world's vehicles located there. Similarly, the income levels of residents in this region are rising rapidly. The region is concerned with automotive fuel efficiency and has a large share of residents with middle incomes. With a decrease in the vehicle's total mass, it is projected that the fuel economy will improve. During the projected period, the demand for automobiles is anticipated to drive growth in the wheels market.
China, the largest automotive market in the world, is also expected to play a significant part in propelling the industry forward, mostly because of its workforce, production capacity, and manufacturing-friendly legislation. The car wheel market in India is continually developing, and this growth is expected to accelerate in the coming years. The growth rate of alloy wheels in India is higher than the average growth rate of the market for car wheels. Passenger cars have been expanding at around a 9% annual pace. The growth rate of alloy wheels has surpassed 15%, and it is expected to reach 20% in the future. India manufactures alloy wheels with diameters ranging from 12 to 18 inches. In spite of this, 14 to 16-inch alloy wheels make up approximately 68% of the market, since the components sector is robust enough to capitalize on India's cost-effectiveness, profitability, and internationally known engineering skills.
Europe is predicted to be the second-largest shareholder in the global market and to have the highest CAGR over the forecast period. It is due to the preference of consumers for aluminum alloy wheels over ordinary steel wheels. According to a market assessment released by BVRLA, the size of the car fleet in the United Kingdom climbed by 1.5% in the first quarter of 2021, after declining for two consecutive quarters. In addition, Germany is home to forty manufacturers of alloy wheels, a significant percentage of the European market.
The North American market is the third largest in the world. As a result of the concentration of major manufacturers, the United States ranks top in the region. The U.S. fleet market is currently characterized by low inflation and cheap financing rates and adheres to the country's economic requirements, necessitating significant OEM investment. Steel wheels are more prevalent in the United States. Steel wheels are on the cusp of being replaced by aluminum alloy wheels, despite their lower cost. Increasing globalization leads to the expansion of the region's market.
The market for Automotive Wheels is fragmented, with numerous players owning significant market shares. Thyssenkrupp, Superior Industries, Enkei Wheels, and HRE Wheels are market leaders. Companies are investing heavily in research & development in order to create innovative new products and technologies. Due to advancements in materials and production techniques, manufacturers can produce wheels with the most contemporary qualities. The vehicle wheel market is utilizing new design tools and materials, such as high-strength steel, to reinvent wheels. Numerous wheel manufacturers make high-performance automobile wheels by utilizing structural analysis methodologies and simulation tools.
To increase the value of car alloy wheels on the market, big firms have begun using new technologies. Mergers, acquisitions, and the expansion of product lines are crucial strategies employed by market leaders. The market forecast analysis for automobile alloy wheels focuses on key industry drivers, market potential, leading regions, etc. Alcoa Wheels, MAXION Wheels, BORBET GmbH, MHT Luxury Wheels, RONAL GROUP, Stamford Sport Wheels, Superior Industries International, Inc., TSW Alloy Wheels, Fuel Off-Road Wheels, CITIC Dicastal Wheel Manufacturing Co, WHEELPROS LLC, and Others are among the prominent market participants.