Powered by the shifting trend toward light weighted 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. In fact, experts predict automotive wheel market share from lightweight commercial vehicles sector to witness a significant CAGR over 2017-2024, subject to a plethora of factors- implementation of strict norms related to fuel emissions, rise in global trading activities, and increase in the freight transport. 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.
Elaborating further, Accuride Corporation, one of the leading manufacturers of automotive components of North America signed a strategic acquisition 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 humougous. The increasing production of luxury vehicles quite evidently validates the 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 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. As per estimates, global automobile production in the year 2016, was over 95 million units, out of which China alone accounted for almost 14% of the total production. With beneficial government schemes along with availability of abundant workforce, APAC automotive wheel industry size is slated to exceed over USD 53 billion by 2024. Other than Asia Pacific, North America and Europe have also been experiencing massive expansion of automotive wheel market over the recent years. As per estimates, Europe and North America automotive wheel industry is forecast to record a CAGR of 4% and 4.5% respectively over 2017-2024.
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 105 billon by 2024.