Analysis by Material Type (Alloy, Steel, Chrome, and Carbon Fiber); by Vehicle Type (Passenger Vehicles, and Commercial Vehicles); by Distribution Channel {Original Equipment Manufacturer (OEM) and Aftermarket}; and by End-User (Manufacturing Industry and Workshops) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2033
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The global automotive wheel rims market is estimated to garner a revenue of ~USD 84 billion by the end of 2033 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2033. Further, the market generated a revenue of ~USD 45 billion in the year 2022. The growth of the market can primarily be attributed to the rising awareness of lightweight wheel rims amongst automobile users along with the growing sales and production of automobiles worldwide. For instance, it was found that the global sales of automobiles were just under 70 million units in 2021.
It is a known fact that the rim is a key component of a wheel. Wheel rims are made from different materials, which not only affect the look of the wheels but also justify their strength, weight, and durability. It is important to consider a number of things it comes to wheel rims and wheels besides size considerations as durability and strength are crucial to staying safe behind the wheel. Lightweight wheels are more susceptible to denting, cracking, and other damage while heavy wheels may reduce fuel economy. Every vehicle type has different needs. With the recent developments in the designs of rims as well as tires, the demand for automotive wheel rims is on the rise amongst automobile manufacturers, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive wheel rims market during the forecast period. For instance, the overall global tire industry volume was expected to reach more than 2.5 billion units at the end of 2022.
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~ 6% |
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Base Year Market Size (2022) |
~ USD 45 Billion |
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Forecast Year Market Size (2033) |
~ USD 84 Billion |
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Regional Scope |
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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
The global automotive wheel rims market is segmented and analyzed for demand and supply by passenger vehicles and commercial vehicles. Amongst these segments, the passenger vehicle segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing demand for passenger vehicles along with the surge in the export of passenger vehicles worldwide. For instance, in the financial year 2021, passenger vehicle exports grew from ~404,000 to 577,800 units in India. The rising need for better driving quality and the efficiency provided by passenger cars is projected to promote segment growth in the forecast period. Moreover, the rising per capita income and rising spending capacity in developing countries such as China, India, and Mexico are increasing the demand for passenger vehicles owing to an increased preference for intimate and individualized transportation. Along with the other factors, constant government support along with government initiatives and investment is estimated to boost the preference for electric vehicles among consumers thus, creating a positive outlook for the segment growth in the forecast period.
The global automotive wheel rims market is also segmented and analyzed for demand and supply by material type into the alloy, steel, chrome, and carbon fiber. Out of these, the alloy segment is attributed to holding the largest share during the forecast period. Alloy wheel rims are gaining more popularity among the consumer base owing to their appearance, and lightweight features. Additionally, alloys are good conductors of heat and have the ability to dissipate heat from tires and brakes more effectively than steel wheel rims. For the 2024 model year, Polestar is creating substantial changes to the 2. The electric sedan's base model switches from front-wheel drive to rear-wheel drive. The elective Efficiency Pack comes with 20-inch alloy wheels.
Our in-depth analysis of the global automotive wheel rims market includes the following segments:
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By Material Type |
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By Vehicle Type |
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By Distribution Channel |
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By End-User |
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The Asia Pacific automotive wheel rims market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033, backed by the presence of a strong automobile network in the region, as well as a growing production of vehicles in countries such as China, and India. According to the statistics, China produced more than 2.5 million vehicles in September 2022. The increased production and sales of vehicles in the region are estimated to raise the demand for automotive wheel rims. Along with the other growth factors, the reduction in low and middle-income population and rising disposable income is also projected to adopt automotive wheel rims for vehicles. Further, the rising concern to curb carbon dioxide emissions and safeguard the environment is also estimated to create a positive outlook for market growth in the region. The growing use of automotive wheel rims in the commercial vehicle sector along with the presence of major key players in the region are other factors that are attributed to positively contribute to the market growth.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: Rising number of wheels along with a growing number of automobiles as well as increasing adoption of renewable energy in the automotive industry are some of the major factors anticipated to drive the growth of the market.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2033.
Ans: Shortage of raw materials, as well as the need for huge investment and susceptibility of lightweight wheels to denting, cracking, and other damage, are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.
Ans: The major players in the market are Ronal AG, ESE Carbon Company, Accuride Corporation, Melrose Industries PLC, Iochpe-Maxion S.A., Wheel Pros, LLC, Trelleborg AB, Vöxx Products, MHT Luxury Wheels, Fuel Off-Road Wheels, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by material type, vehicle type, distribution channel, end-user, and by region.
Ans: The passenger vehicle segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
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