Automotive Wheel Rims Market Trends

Growth Drivers

• Lightweight material adoption for fuel efficiency and emissions compliance: According to the International Energy Agency, 2024 saw a 0.8% increase in total energy-related CO2 emissions, reaching a record high of 37.8 Gt CO21. Globally, stricter laws governing CO2 emissions and fuel economy are anticipated to spur a move toward lightweight, innovative materials, including magnesium, carbon fiber, and aluminum for car wheel rims. To comply with evolving regulations, leading manufacturers are adopting forged aluminum rims. They are focusing on strategic partnerships with OEMs to meet strict regulatory and market demands effectively. 
• Customization and aesthetic demand in aftermarket sales: The customization trend is estimated to fuel the sales of personalized automotive wheel rims in the coming years. The aftermarket wheel rims trade in the U.S. and Germany is expected to be driven by rising demand for custom finishes, cool spoke patterns, and high-performance wheels. The top companies are capitalizing on aftermarket trade with build-to-order programs and forged monoblock designs. To stay competitive, businesses are also using customer data to create personalized options and digital tools.
• Increase in vehicle production and sales: Increasing disposable income, urbanization, and enhancement of living standards have made purchasing a car a reality for more consumers, increasing demand for durable wheel rims of high quality. Ongoing growth within the electric vehicle (EV) market adds further demand for wheel rims designed for high performance and high quality, tailored towards the unique design and performance of EVs. The increase in personalization and customization of vehicles has also created additional demand for high-quality wheel rims as visually appealing and customized aspects of premium and luxury vehicles recognize the aesthetics and customization aspects of wheel rims, accommodating the need for quality.

Production of Electric Cars by Region and Headquarters Location (2021-2024)

Source: International Energy Agency (IEA)

World Vehicle Production by Region (2008-2023)

Source: ACEA

CO2 Emissions by Country (1990-2023) and World Share in 2023

Source: EDGAR - Emissions Database for Global Atmospheric Research

Challenges

• Complex Import Tariffs and Trade Barriers: The trade restrictions on raw materials such as aluminum and magnesium are anticipated to pose significant hurdles for global automotive wheel rim manufacturers. The high import taxes and trade tensions also contribute to the sales of automotive wheel rims. The same source also highlights that some countries are even imposing higher rates amid geopolitical tensions. Considering this, smaller and mid-sized players are expected to witness expansion barriers.
• Infrastructure Gaps in Emerging Markets: The unavailability of advanced infrastructure in the emerging markets is expected to hamper the sales of automotive wheel rims. Southeast Asia and Africa, owing to limited ICT infrastructure and smart manufacturing capabilities, are likely to slow the adoption of advanced rim production technologies. In addition, the limited supply chains and workforce attributes in these markets exacerbate the challenge of producing quality and innovative wheel rims. Without advanced smart manufacturing capabilities and automation, manufacturing is mostly manual and inefficient.