PUBLISHER: Allied Market Research | PRODUCT CODE: 1472385
PUBLISHER: Allied Market Research | PRODUCT CODE: 1472385
Automotive aluminium wheels weigh between 30 and 40 percent less than steel wheels since they are mostly composed of aluminium metal and a combination of alloys. These wheels are used in automobiles to reduce tire damage, improve ride comfort, and cut down on fuel consumption because of their lighter weight. Other advantages of aluminium wheels include improved heat dissipation, resistance to corrosion, total weight reduction, and enhanced visual appeal.
The automotive aluminum wheel market market growth is driven by an increase in vehicle production and sales, an increase in demand for enhanced visual appeal in automobiles, and an increase in trend towards weight reduction. Technological advancement and increase in demand for aftermarket products are anticipated to provide lucrative growth opportunities for the market. On the contrary, volatility in raw material price and high cost are anticipated to hinder the market growth rate during the forecast period.
The production and sale of automobiles have increased recently. The primary drivers driving automobile sales are the growing demand for vehicles from emerging markets like China, India, Brazil, Indonesia, Mexico, and others, as well as the advancement of EV and hybrid vehicle technology and growing consumer disposable income. Growing urbanization and the rise in population are also helping in driving the demand for driving demand for automobiles.
Furthermore, due to rise in fuel cost, consumers have shifted their attention to hybrid cars as they offer 20% to 35% better fuel efficiency than conventional gasoline-powered vehicles. In addition, governments around the world are enforcing more stringent emission regulations for conventional internal combustion engine vehicles, in order to lower greenhouse gas emissions and tapeline emissions from the vehicles. Governments are also offering subsidies and tax benefits for the use of eco-friendly transportation options like hybrid and electric cars.
However, the cost of automotive aluminum wheel is 30%-50% more as compared to steel wheel. Aluminum is expensive as compared to steel. Aluminum wheel also requires more resources and precision casting techniques during their manufacturing process, which increases the overall cost. Similarly, in recent years the prices for raw materials, primarily aluminum, has grown immensely, due to supply chain disruption during the COVID-19 pandemic and the impact of Russia-Ukraine war. Aluminum is the third most traded metal and its major manufacturers are China, Russia, Canada, and UAE. China utilizes over half of global raw aluminum production. many developed economies depend heavily on metal exports. With the shortage in aluminum, they are focusing more on metal recycling to meet their raw material demand. With increase in global aluminum price and supply chain constraints, manufacturers in Europe and U.S are facing severe shortage of aluminum, further increasing the overall prices of wheels. Thus, volatility in the price of raw materials is anticipated to hinder the market growth during the forecast period.
Furthermore, In recent years, there has been increase in inclination of consumers towards aftermarket products. Vehicle owners seek to reduce the weight of the vehicle and to improve ride comfort and performance, wheels are often one of the first upgrades owners make. Wider wheels fit fatter tires, which increase grip and lower lap times. With growing advancements in wheel technology, aftermarket manufacturers are focusing on development of wheel, which are lighter and more efficient as compared to stock wheels. Moreover, with increasing focus towards vehicle customization and upgradation, there is increase in demand for aftermarket wheels. Even though the demand is mostly driven by aesthetic enhancement, Aluminum wheels also improve the performance of vehicle since they are lighter and more corrosion-resistant, thus creating market growth opportunities for the companies operating in the market.
The automotive aluminum wheels market is segmented on the basis of vehicle type, wheel size, distribution channel, propulsion type, and region. By vehicle type, the market is divided into passenger car, light commercial vehicle, bus, and trucks. On the basis of wheel size, the global market is divided into less than 15, 16 to 20, and more than 21. By distribution channel, the market is segmented into OEM and aftermarket. On the basis of propulsion type, the market is segmented into ICE and electric. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key companies profiled in the report include Status Wheels, ENKEI Wheels (India) Limited, Wheel Pros, Accuride Corporation, CITIC LIMITED, BBS Kraftfahrzeugtechnik AG, OTTO FUCHS KG, Ronal Group, Wanfeng Group Co., Ltd., BBS Japan Co., Ltd., SuperAlloy Industrial Co., Ltd.., Maxion Wheels, Uno Minda, Fuel Off-Road Wheels, MHT Luxury Wheels, ALCOA WHEELS, Zhejiang Hongxin Technology Co., Ltd., and UNIWHEELS AG
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