Powered by the shifting trend toward lightweight, aesthetically appealing cars, automotive wheel market has rather experienced a commendable growth over recent years. Automotive giants are increasingly focusing on manufacturing light weight vehicles in response to the growing concerns over environmental pollution. Subject to a plethora of factors such as the implementation of strict norms related to fuel emissions, rise in global trading activities, and increase in the freight transport, incorporating reduced weight in vehicles has become the norm. In order to comply with the emission control regulatory norms, renowned automotive companies are coming up with improvised concepts and novel product designs to increase the fuel efficiency of the vehicles, leaving a perpetual impact on automotive wheel market size.
North America Automotive Wheel Market, By Material, 2013-2024, (Thousand Units)
Speaking of competitive profiling, it has been observed, lately, that companies engaged in the industry are readily inclining toward M&A activities to strengthen their business position in the competitive matrix. The recent acquisition of Mefro Wheels by Accuride Corporation can be considered as an apt instance manifesting the aforementioned declaration.
ition agreement with German based wheel producer, Mefro Wheels Gmbh, to expand its business profile across passenger and commercial vehicle sectors. Experts depict, through this deal, the former has strengthened its business profile in the automotive wheel market with a strong product line such as advanced wheels, wheel-end products and the like. The industry is characterized by similar kind of acquisition activities that significantly underline the competitive landscape of automotive wheel market. Some of other prominent players involved in automotive wheel industry include Ronal AG, Breyton Wheels, Otto Fuchs KG, Maxion Wheels, Trelleborg AB, Enkei Wheels, Borbet, and Fondmetal S.p.A.
Shifting consumer preference toward comfort & improved driving experience along with the mass popularity of corrosion-resistant automobile parts are expected to encourage product innovations, by extension lucratively benefitting automotive wheel industry outlook. Speaking of potential opportunities of the industry, it is nothing but humongous. The increasing production of luxury vehicles quite evidently validates the aforesaid fact.
Speaking along similar lines, estimates depict, Jaguar Land Rover, subsidiary of Tata Motors, has recorded an increase in sale over 30% in 2013, when compared to what it recorded in 2012. Renowned British automaker, Rolls-Royce, has a record of selling over 3,575 units of ultra-luxury vehicles in 2012. As recent as in 2016, Bentley Motors’ Flying Spur Limousine which got launched at the General Motor show previous year, has recorded an increase in sale of almost 24% over 2016-2017. The escalating demand curve of luxury vehicles quite evidently demonstrate the lucrative growth opportunities for automotive wheel market players in the coming years.
The global automotive wheel market is anticipated to register substantial growth from the sales of passenger vehicles. Rising passenger car sales on account of escalating disposable incomes as well as mobility requirements are expected to significantly contribute toward the automotive wheels market share. In the year 2018, the European Automobile Manufacturers' Association (ACEA) apparently witnessed close to 12 million passenger car vehicle registrations, depicting a 2.5% growth rate from Jan-Sept 2018. The humongous requirement to cater the rising vehicle demand in tandem with the need to deliver competitive products will thus drive automotive wheel industry trends from passenger cars.
The reason behind APAC to become a favorite hotspot for automotive wheel industry investors is quite overt- the expanding automotive sector of the region. Increasing vehicle production particularly in countries like India and China remains the key driving factor influencing the regional market outlook. According to OICA, global automobile production in the year 2017 was recorded over 97,000,000, more than 29,000,000 of which was accrued by China alone. Aided by beneficial government schemes along with the availability of abundant workforce, APAC is anticipated to dominate the global automotive wheel industry over 2018-2024. Other than Asia Pacific though, North America and Europe have also been experiencing massive expansion in automotive wheel market over the recent years.
Despite the high production cost due to comprehensive manufacturing process and easy availability of substitute raw alloy materials that are somewhat restraining the business proliferation, automotive wheel market is slated to carve a lucrative road map in the ensuing years, given the surging demand for high performance vehicles. In addition to this, global transportation industry which has, of late, recorded a remarkable commercialization, will undoubtedly leave an unparalleled impact on automotive wheel industry size. Global Market Insights, Inc., forecasts automotive wheel market to exceed a valuation of USD 100 billon by 2024.