Factors such as accident rates, changing consumer preferences for stylish wheels, and the growing number of automobile enthusiasts in Europe and North America fuel the growth of the automotive wheels aftermarket to reach $ 4.1 billion by 2027 from $ 3.4 billion in 2022.
According to the new market research report - Automotive Wheels Aftermarketby new wheel replacement, refurbished wheel fitment, vehicle, coating, material, rim size, product, distribution and region - Global Forecast to 2027, published by MarketsandMarkets, the global automotive wheels aftermarket is projected to grow at a CAGR of 3.5% till 2027.
In addition, the environmental regulations in Europe mandating a reduction in CO2 are estimated to play a critical role in the market over the forecast period as it will put the onus on manufacturers to develop and manufacture wheels made up of alloys and other lightweight materials.
Some of the major players in this market include Ronal Group, Borbet, Enkei Corporation, Superior Industrie and Maxion Wheels.
Passenger Cars
Increased passenger car sales and better vehicle handling are expected to drive the automotive wheels aftermarket, the report noted.
The passenger cars segment is the largest of all segments of the automotive wheels aftermarket and is expected to witness significant growth during the forecast period. The growing trend of engine downsizing and vehicle weight reduction without compromising vehicle performance has accentuated the need for wheels made of advanced materials.
Passenger cars are now using lightweight alloy wheels that improve the vehicle's performance. Also, the use of lightweight wheels has resulted in improved vehicle dynamics and performance compared to conventional wheels. Aftermarket wheels for passenger cars come in a vast range of styles to fit the different types of passenger cars. Aftermarket wheels are primarily made of alloys for passenger cars.
Alloy Wheels
Alloy is expected to be the fastest market for global automotive wheels aftermarket. The growth is due to factors such as corrosion resistance, durability, high tensile strength, density, ductility, and malleability.
The two major or commonly used components in making alloy wheels are aluminium and magnesium. Aluminium is a lightweight material and is ductile, durable, and corrosion-resistant. As a result, cars manufactured using aluminium are lightweight, fuel-efficient, and emission efficient.
Alloy wheels have been increasingly used during the last decade, while the use of regular steel has seen a steady decline in the automotive industry. In addition, the use of steel wheels has also declined as aluminium cast wheels have slowly replaced steel wheels, mainly in the passenger vehicle segment.
Asia Pacific
The Asia Pacific region is estimated to be the fastest-growing market. The region comprises some of the fastest developing economies globally, such as China and India. The Asia Pacific region is home to key suppliers of automotive wheels, such as Enkei (Japan) and Zhejiang Wanfeng Auto Wheel (China).
Factors such as the availability of cheap labour and favourable government policies help undertake mass production of automotive components in the Asia Pacific, which results in lower prices. In addition, high investments by major OEMs in advanced technologies are providing growth opportunities for the aftermarket wheels manufacturers in this region.
China is the largest producer of automobiles in the world. Recent infrastructural developments have boosted the growth of the light-duty vehicle market in the region. Also, nearly all major OEMs have invested in the Chinese market, which is inclined toward small and affordable passenger vehicles. The growing automotive sales levels in China have driven the demand for automotive wheels in the aftermarket, the report noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Ronal Group.