Companies Undertake Research to Reduce Weight of Vehicles and Fuel Consumption
Growing consumer preference toward electric vehicles and the demand for lightweight vehicles are some of the key drivers contributing to the growth of the automotive alloy wheels market. For instance, in September 2019, Rio Tinto— an Anglo-Australian metal and mining corporation, announced the launch of Revolution-Al™, their new high strength aluminum alloy, specially designed for the development of lightweight car wheels. Companies in the market for automotive alloy wheels are extensively investing in research to gain competitive edge over other companies for the development of innovative alloy solutions.
Metal corporations in the automotive alloy wheels market are increasing efforts to gain inputs and insights from their company’s customers who test new alloys. However, manufacturing a strong alloy for die cast car wheels in order to reduce fuel consumption poses as a challenge for companies. Hence, companies in the market for automotive alloy wheels are partnering with researchers to develop new alloys that help automakers reduce the weight of wheels and also enhance the aesthetics of the vehicle.
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Intelligent Polishing Systems Gain Prominence in Automotive Alloy Wheels Market
Several technologies and services are becoming increasingly mainstream in the automotive alloy wheels market. For instance, Fintek-a specialist in superfinishing methods, has gained expertise in technologies that deploy automatic surface treatment and polishing of alloy wheels. However, several methodologies go into the servicing of alloy wheels. Surface finishing specialists in the automotive alloy wheels market are investing in German-made vibratory polishing and grinding systems that are integrated in complex manufacturing production processes.
Companies in the market for automotive alloy wheels are focusing on technologies that enable fully automated alloy wheel surface finishing. They are increasing research to develop equipment that have control over abrasive effects and are developing systems that act on all surfaces of the alloy wheel. Emergence of intelligent polishing systems is one of the key drivers for the automotive alloy wheels market.
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Automakers Rely on Components Made in Europe to Achieve Production Efficiency
Companies in the automotive alloy wheels market are exploring opportunities in Europe to stabilize their revenue streams. This is evident since Europe is estimated to lead the global market during the forecast period. As such, the market of automotive alloy wheel is largely fragmented with regional and local players accounting to ~73% of the market stake. This indicates that regional and local players are posing as tough competition to prominent players.
Efficient technologies and innovative production cycles are becoming the key focus points for companies in the market for automotive alloy wheels. Since Europe is also flourishing in the OEM sector, automakers are resting their faith of components made in Europe. For instance, Brock-a manufacturer of alloy wheels in Europe, relies on certified management systems throughout their value chain in order to introduce continuous innovations in alloy wheels.
Growing Demand for Big Alloy Wheels Gives Rise to Aesthetically Pleasing Cars
In order to develop aesthetically pleasing cars, manufacturers are introducing big alloy wheels, especially for SUVs. As such, SUV OEM segment dominates the automotive alloy wheels market, where the market is estimated to reach a total output of ~285,100 units by the end of 2027. Hence, leading automakers are incorporating big allow wheels in SUVs. For instance, Lamborghini has announced that it will introduce 23-inch alloy wheels in its Urus SUV.
The trend of redesigning big alloy wheels in passenger vehicles are generating incremental opportunities for companies in the market for automotive alloy wheels. Big wheels are advantageous to ride over road imperfections without getting deflected. Thus, users are always demanding SUVs that provide the added comfort while driving. Hence, enhancing user experience has become one of the key focus points for companies in the automotive alloy wheels market.
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Automotive Alloy Wheels Market: Overview
- The global automotive alloy wheels market is expected to expand at a CAGR of ~6% between 2020 and 2027
- Alloy wheels are slowly replacing steel wheels as they offer better heat dissipation, performance, and are lightweight
- Increase in number of luxury vehicles and utility vehicles is estimated to fuel the market during the forecast period
Drivers of Automotive Alloy Wheels Market
- Increase in stringency of emission norms is estimated to drive the demand for lightweight components such as alloy wheels. Alloy wheels are lighter than steel wheels and help achieve better fuel economy. Automakers are adopting the automotive alloy wheel to improve fuel efficiency of the vehicle and lower emissions.
- Light weighting is imperative for electric vehicles. Rise in sales of electric vehicles is anticipated to boost the demand for alloy wheels.
- Rise in disposable income of consumers and revival of the global economy are boosting the demand for alloy wheels. Alloy wheels can be fabricated into intricate styles and complex shapes, thereby prompting wheel manufacturers to develop esthetically appealing wheels. Rising competition among automakers has led to increased focus on esthetic appeal of the vehicle. Alloy wheels have evolved from being a mere mechanical component to an attractive feature that promotes the brand of the vehicle. Increased emphasis by automakers to improve vehicle esthetics is projected to drive the automotive alloy wheels market.
Challenges for Automotive Alloy Wheels Market
- Alloy wheels are expensive and several car manufacturers use steel wheels as standard fitments in budget cars. Latin America and Middle East & Africa are price sensitive markets and alloy wheels have low preference primarily in the aftermarket. The high price of alloy wheels is a major factor restraining the market.
The global automotive alloy wheels market has been segmented based OEM, aftermarket, and region
- Based on OEM, the market has been classified into commercial vehicle and passenger vehicle. The passenger vehicle segment dominated the global automotive alloy wheels market in 2019. Sport Utility Vehicles (SUVs) were a preferred choice of consumers, globally, accounting for 57,495 units of total 166,846 passenger vehicles sold in 2019, globally. Passenger vehicles are majorly purchased to fulfill consumers’ requirement for transportation, while commercial vehicles are utilized for construction, mining, logistics and other purposes. Globally, passenger vehicles dominated vehicle sales in 2019, recording Y-o-Y growth in number of passenger vehicles sold. Furthermore, alloy wheels are adopted by automakers to reduce vehicle weight and increase fuel-efficiency of their vehicles. All these factors are boosting the passenger vehicle segment of the global automotive alloy wheels market.
- Based on aftermarket, the passenger vehicle segment is anticipated to hold a leading share during the forecast period, owing to rising customization and replacements post-crash. The lifespan of alloy wheels is similar to that of the vehicle itself; hence, the aftermarket segment accounted for a minor share of the global automotive wheels market. However, maintenance and repairs of vehicles involved in a crash attributed to the increase in market share. Furthermore, rise in number of on road passenger and commercial vehicles in the near future is anticipated to propel the aftermarket segment of the global automotive alloy wheels market during the forecast period.
Automotive Alloy Wheels Market: Regional Analysis
- In terms of region, Europe held a significant share of the global automotive alloy wheels market in 2019, owing to high production of vehicles in the region and rising demand for premium and luxury vehicles among developing countries of the region. The availability of major component manufacturers and presence of major OEMs in the region are key factors attributed to the notable share held by Asia Pacific of the global automotive alloy wheels market. Furthermore, consistent demand for passenger as well as consumer vehicles, which is attributed to an increase in the penetration of vehicles in Asia Pacific, is a prominent factor propelling the automotive alloy wheels in the region. Asia Pacific is witnessing a robust increase in penetration of passenger vehicles. Automakers are increasingly adopting alloy wheels to enhance vehicle esthetics and attract consumers in order to increase vehicle sales. Furthermore, China and Japan are leading in research and developments activities to improve vehicle performance. Vehicles require robust and lightweight vehicle components to enhance vehicle economy. This can be achieved through the adoption of alloy wheels. All these factors are propelling the automotive alloy wheels market in Asia Pacific.
- Proximity to North America, which is home to several major automakers and aftermarket players, has made Latin America a favorable region for investment for several car manufacturers from other regions and investors alike Moreover, major OEMs are collaborating with these manufacturers to provide alloy wheels to automakers. All these factors are likely to drive the automotive alloy wheels market in Latin America
Automotive Alloy Wheels Market: Competition Landscape
- Key players operating in the global automotive alloy wheels market include
- BBS Alloy Wheels
- ARCONIC
- BORBET GmbH
- Enkei
- CITIC Dicastal Wheel Manufacturing Co.
- Foshan Nanhai Zhongnan Aluminum Wheel Co., Ltd.
- MHT Luxury Wheels
- Fuel Off-Road Wheels
- RONAL GROUP
- MAXION Wheels
- TSW Wheels
- Superior Industries International, Inc.
- WHEELPROS LLC.
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