Automotive Wheel Rims Market Trends

Growth Drivers

• Growing Demand for Wheels - Wheels as a whole provide a means of mounting & affixing the tires to the vehicle through which the power of the engine is transferred to the ground. The rising demand for wheels is expected to boost the automotive wheel rims market in the projected time period. As per an estimation, there were nearly 35 billion wheels across the globe in 2022.

• Increasing Development in the Transport Infrastructure - With the growing population, better roads and other infrastructure is needed, which needs around USD 2 trillion every year for its expected development by 2040 globally.

• Rising Penetration of Vehicles - With the rising economies, per capita income along with the spending capacity of individuals has risen in the past few years. As a result, people are inclined towards purchasing vehicles across the world which is estimated to increase the demand for automotive wheel rims at the end of the forecast period. For instance, there were 400 million vehicles in Europe, spread across EU and non-EU countries in the first quarter of 2022.

• Upsurge in the Demand for Heavy Vehicles for Freight Transport - As supply chains are being strengthened post-pandemic, the freight transport demand is expected to grow from nearly 135 ton-kilometer in 2015 to 300 ton-kilometer by 2050 globally.

• Growing Adoption of Electric Vehicles - Electric vehicles are becoming more and more common in everyday life owing to their energy-efficient and zero-emissions properties. As automotive wheel rims are required for an enhanced driving experience for EVs, the demand for automotive wheel rims is anticipated to grow in the forecast period. For instance, all new buses will use 100% renewable energy from 2025 onwards in the Netherlands.

Challenges

• Fluctuation in the Prices of Raw Material - Globally, since 2021, the average aluminum price has changed substantially. In 2020, the average price of the metal per metric ton was about 2500 USD, an increase from the previous year. Additionally, the price of aluminum increased substantially in the first quarter of 2022, averaging about USD 3,500 per metric ton.
• Concern for Requirement of Huge Investment
• Susceptibility of Light Weight Wheels to Denting, Cracking, and Other Damages