COVID-19 IMPACT SURVEY MAY 2020
The global market for Automotive Wheel is projected to reach US$40.9 billion by 2025, sustained by stable opportunities in emerging markets as mature markets saturate in terms of sales potential. Automotive sales in developed and developing markets are on the opposite sides of the wave. Emerging markets will emerge as key revenue generating pockets as global production growth transitions from mature markets to emerging markets, a trend that will only intensify further over the long-term. A large chunk of production growth by 2025 will emerge from China, South Asia, Europe, South America, and Middle East and Africa. Although fraught with volatility, there are opportunities to leverage in the dynamically changing automotive market environment. "Innovation" will become the biggest levers for creating value and for remaining profitable in the changing automobile ecosystem. A strategic blend of product development/innovation, high level of technical knowledge, and robust customer support are vital parameters for success in the evolving future of the automotive value chain.
As the most important weight bearing structural part of the automobile, the wheel and the wheel base are important components. The wheel is also important as it influences the structural safety of the vehicle when in motion. Over the last 50 years, the standard automotive wheel system remained fairly unchanged given their largely effective design which enabled mobility. However, of late, with increased emphasis laid on efficiency wheel design standards are changing. Given the pressure to innovate in other to survive, wheel manufacturers are heading back to the drawing board to design efficient and safe wheel structure. The engineering focus shed on lightweighting is creating string demand for aluminum alloy wheels which are lightweight, stronger with higher heat resistance index. Aluminum wheels also have the perfect balance of performance, cost, aesthetics, and mileage. Few of the major trends influencing growth in the market include continuous material innovation and growing prominence of carbon fiber as a wheel material; expanding base of middle class in Asia and the ensuing rise of automotive consumerism; growing demand for customized aftermarket wheels as car owners eye aesthetics; global pothole epidemic and increase the frequency of wheel/rim replacements in the aftermarket; and rise of 3D printing in wheel design and production. China, Europe and the United States represent large markets worldwide with a combined share of 60.9%. China ranks as the fastest growing market with a 8.3% CAGR over the analysis period supported by the fact that the country remains a cash cow for mass market and premium cars. Also, rising domestic automakers in the country are strongly focused on dominating the world`s next era of driving which opens opportunities for innovative component systems and sub-systems.