Automotive Wheel Market Size, by Material (Alloy, Steel, Aluminum, and Carbon Fiber); Vehicle Type; End user - Growth Trends, Regional Share, Competitive Intelligence, Forecast Report 2025-2037

Automotive Wheel Market: Growth Drivers and Challenges

Growth Drivers

• Governments to shape technological uptake in the overall automotive industry: Technological advances in autonomous driving vehicles, automotive parts, EVs, vehicle connectivity, and in-vehicle infotainment are profoundly influenced by the extent to which governments regulate the value chain including subsidies or other incentives. In the self-driving cars segment, OEMs have also profoundly ramped up the development of safety technologies such as in-wheel motors, emergency call systems, and collision avoidance. One of the key wildcards amongst these opportunities comprises the regulatory environment.
  
  In the U.S., for instance, the Department of Transportation (DOT) in collaboration with the National Highway Traffic Safety Administration (NHTSA) has been working to standardize vehicle-to-vehicle collision-avoidance equipment in new automobiles. Similar to GM’s OnStar technology, an eCall emergency call system is likely to become mandatory in the U.S. and the EU. At the federal level, automakers and auto parts are regulated by two key agencies: the U.S. Environmental Protection Agency (EPA) and NHTSA. The latter oversees vehicle safety compliance and the former regulates emissions. Local and state jurisdictions are permitted to institute their safety regulations providing that they do not conflict with federal standards.
  
  The California Air Resources Board (CARB) authorizes the vehicle emissions standards, which other U.S. states may then adopt. NHTSA enforces Federal Motor Vehicle Safety Standards (FMVSS) to set up safety performance requirements for new automotive parts and components. They cover items such as wheels, wheel rims, tires, brake hoses, lighting, and glazing. Notably, in 2021, over 1.5 million vehicles could not be manufactured owing to a direct effect of global semiconductor chip shortage. OEMs, undoubtedly, need to maximize chip production to meet the demand for new-vehicle production levels, while abiding by government regulations. To mitigate this crisis, in August 2022, the U.S. government rolled out the CHIPS and Science Act which aided chip manufacturers with USD 52.7 billion, thus, helping to boost domestic automobile production.
  
  The value proposition is high for EVs with lower operating costs-electricity tends to be cheaper than gasoline. The exponential growth in EV sales is, in turn, influencing demand for lightweight wheels, advanced wheel technologies, and wheel designs that enhance the aerodynamics of wheels offered in the market today. Wheel manufacturers, therefore, invest in research and development to innovate new products and technologies that can serve the emerging market needs for forged aluminum and carbon fiber wheels.
  
  For example, BMW reinvented its wheel with the aerodynamic rims of the BMW iX3. An innovative design that ensures that it is lighter than the standard aerodynamic rim and is fuel-efficient.
• Advancement in material and manufacturing expansion: The development in the material and manufacturing process has transformed the landscape of automotive wheels, wherein high-performance wheels can be manufactured to be lightweight yet durable. New premium material developments such as forged aluminum, carbon fiber, and titanium, among others, have involved new wheel makers in manufacturing wheels with better strength-to-weight ratio, corrosion resistance, and durability.
  
  In January 2024, Carbon Revolution study shared that its carbon fiber wheel production tripled in Q4 CY2023 and has ramped up its throughput and mega-line capacity to cater to its growing OEM customers including Ford, JLR, General Motors, Ferrari, and Renault. Production for Q1 and Q2 of the fiscal year ending in June 2024 was equivalent to the collective total production of 2023, with a backlog doubling to USD 730 million since October 2022. The company plans to expand its regional presence in North America, Mexico, and Australia to cater to its global consumer base.
  
  Furthermore, advanced manufacturing processes such as 3D printing, casting, and forging have allowed the production of complex wheel designs with unparalleled accuracy. Advanced materials combined with manufacturing technologies enabled innovative designs for wheels-such as aerodynamic wheels, turbine wheels, and ventilated wheels-to be developed. For instance, manufacturers have turned to lighter materials such as aluminum, carbon fiber, and composite materials to reduce the overall weight of the vehicle and improve fuel efficiency and performance.
• Increasing adoption of advanced features: Prevailing awareness among consumers about advanced safety features is driving the growth of the automotive wheel market. People are shifting more towards high-value vehicles inclusive of advanced features such as anti-lock braking systems, electronic stability control, and lane departure warning systems. These features require high-performance wheels, hence pushing the demand for wheels that are durable, responsive, and full of stability. Additionally, autonomous emergency braking and adaptive cruise control will also drive demand for more precise and consistent wheels, therefore driving demand for forged aluminum and carbon fiber wheel technologies. Also, with increasingly advanced safety features, there is a higher demand for better aerodynamic wheels that enhance the stability and responsiveness of a vehicle.

Challenges

• Raw material price volatility: The volatility in raw materials poses significant challenges in the industry, price hikes in vital components in manufacturing wheels such as steel, aluminum, titanium, and iron can affect the profitability of producers. The price fluctuations are driven by several factors such as disruptions in timely supply and demand, trade regulations, and inflation which add up to high production costs and unstable economic conditions. Thus, it hinders automotive wheel market growth and compels manufacturers to face the challenges of high competition and increased production costs.
• Intense market competition: Competition in the automotive wheel market is growing intense, with many established players and new entrants, making it very complex for manufacturers to attain a stable market position. A highly competitive environment has emerged with multiple suppliers and low-cost manufacturers, forcing companies to constantly innovate and differentiate their products to sustain in the competition. Key players like Enkei, Accuride, and BORBET have managed to create brand equity and customer loyalty, which might prove to be a challenge for new entrants.