Aluminum Alloy Wheel Market Size, Share, Analysis, Trends, Growth, 2032

Aluminum Alloy Wheel Industry Prospective:

The global aluminum alloy wheel market size was worth around USD 17.61 billion in 2023 and is predicted to grow to around USD 33.33 billion by 2032 with a compound annual growth rate (CAGR) of roughly 7.35% between 2024 and 2032.

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Aluminum Alloy Wheel Market: Overview

Aluminum alloy wheel industry refers to the sector producing wheels made using a combination of aluminum and other metals. Some of the most commonly used raw materials for the production of aluminum alloy include magnesium, titanium, silicon, and nickel.

According to research-based analysis, aluminum alloy wheels are made using 90% aluminum, 10% silicon, and less than 1% other metals. Aluminum alloy wheels are preferred over alternate solutions since the former impart lighter weight to the vehicles.

In addition, aluminum-based alloy wheels showcase higher corrosion resistance and opposition to heat. Furthermore, aluminum alloy wheels can be easily molded in a variety of finishings, thus allowing them to impart aesthetic appeal compared to alternate products.

The demand for wheels made of aluminum alloy has been growing steadily over the years, encouraged by greater use in sports vehicles.

Furthermore, during the forecast period, the aircraft manufacturing industry is expected to generate significant growth opportunities.

However, fluctuations in the price and availability of raw materials required for producing aluminum alloy can impact the overall revenue during the projection period.

Key Insights:

• As per the analysis shared by our research analyst, the global aluminum alloy wheel market is estimated to grow annually at a CAGR of around 7.35% over the forecast period (2024-2032)
• In terms of revenue, the global aluminum alloy wheel market size was valued at around USD 17.61 billion in 2023 and is projected to reach USD 33.33 billion by 2032.
• The aluminum alloy wheel market is projected to grow at a significant rate due to the rising sales of electric vehicles.
• Based on rim size, the 18-21 segment is growing at a high rate and will continue to dominate the global market as per industry projection
• Based on vehicle type, the passenger vehicle segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Aluminum Alloy Wheel Market: Growth Drivers

Rising sale of electric vehicles to promote demand in the automotive industry

The global aluminum alloy wheel market is expected to grow due to the growing sale of electric vehicles (EVs). The global automotive industry is witnessing a shift in consumer buying patterns.

Modern buyers are actively seeking environmentally friendly and sustainable automobiles such as EVs. The fluctuating prices of fuel such as petrol, diesel, or gas have encouraged automobile buyers to invest in electric vehicles. In addition to this, EV prices have significantly reduced in the last 5 years.

Unlike a few years ago, automobile makers are investing in developing affordable EVs for ordinary buyers. The prices have further reduced due to an increase in EV production capacity facilitated by higher government-backed projects and financial schemes.

In September 2024, the Indian government approved the PM E-DRIVE Scheme. The project is worth INR 10,900 crore and is expected to promote faster adoption of electric vehicles, including setting up a robust charging infrastructure. The scheme will be implemented from October 2024 and will last until March 2026.

Furthermore, reports emerged in October 2024 suggesting that African continents are eyeing investments in EV manufacturing and clean energy sectors.

The Democratic Republic of Congo, along with major agencies such as the United Nations Economic Commission for Africa (UNECA), African Development Bank, and others, are identifying ways to channel higher investments in clean energy and EV production.

Increasing enhancements in alloy manufacturing technologies to generate significant revenue during the long term

The demand for aluminum alloy wheels can benefit from the increasing investments in alloy development and manufacturing innovation.

Market players are working toward delivering highly efficient aluminum alloys with extensive applications across industries, thus changing the global aluminum alloy wheel industry.

In a recent event, scientists at the University of Michigan made a major breakthrough innovation with the development of a highly advanced aluminum alloy.

According to official claims, the new alloy formula can reshape automobile manufacturing, especially in fuel efficiency and EVs. The team has created a metal matrix nanocomposite made by adding minuscule titanium carbide (TiC) particles into molten aluminum.

Aluminum Alloy Wheel Market: Restraints

Fluctuating prices and availability of raw materials will limit the industry’s expansion trends

The global industry for aluminum alloy wheels is expected to be restricted due to the constantly changing prices and availability of aluminum and other metals required for the production of alloy wheels.

According to official reports, aluminum supply in 2023 witnessed a steady dip, especially due to reduced output from some of the largest aluminum producers and suppliers.

Furthermore, changes in geopolitical partnerships, along with fluctuating demand rates, can impact the overall revenue in the industry.

Aluminum Alloy Wheel Market: Opportunities

Growing applications in the aircraft manufacturing industry will generate more growth opportunities

The global aluminum alloy wheel market is expected to generate growth opportunities due to the rising applications of the materials in the growing aircraft manufacturing industry.

The surge in demand for lightweight aircraft is prompting companies to opt for aluminum alloy wheels since these materials have lighter weights without compromising on the final performance. Aluminum alloy-based wheels are regularly used in the landing gear of aircraft.

Furthermore, aluminum alloy wheels can be easily cast with specific measurements. They are easy to maintain and repair. The technical advantages of aluminum alloy wheels make them widely popular in the aircraft manufacturing sector.

In October 2024, Airbus, one of the largest aircraft manufacturers, announced that it would increase its component sourcing activities from India. The company has received extensive orders from regional carriers such as Indigo and Air India.

In November 2024, Ethiopian Airlines received its first delivery of 4 A350-1000 from Airbus, thus becoming the first-of-its-kind aircraft to be operated by an African operator and marking new beginnings in African aircraft-based services.

Aluminum Alloy Wheel Market: Challenges

High competition from alternative solutions to challenge market expansion rate

The aluminum alloy wheel industry is expected to be challenged by the high competition faced by the industry players from suppliers of alternate solutions.

For instance, composite materials have become widely popular among automobile and aircraft manufacturers. Moreover, steel wheels are also gaining higher traction among end-buyers.

Aluminum Alloy Wheel Market: Segmentation

The global aluminum alloy wheel market is segmented based on rim size, vehicle type, sales channel, and region.

Based on the rim size, the global market segments are more than 22”, 18-21”, and 12-17”. In 2023, the highest growth was witnessed in the 18-21” segment due to the versatility offered by mid-size wheels in achieving performance and appearance.

The demand for 18-21” rim size is higher in the passenger vehicles segment, especially in the premium and mid-range categories.

Furthermore, the rising demand in the EV sector among passenger groups will further promote segmental growth during the forecast period. According to official estimates, more than 80,000 passenger EVs were sold in the Indian market in 2023.

Based on finishing type, the global aluminum alloy wheel industry is divided into anodized, chrome wheel, split wheel, diamond cut, powder coated/painted lacquered, and others.

Based on the vehicle type, the global market divisions are trucks, light commercial vehicles, two-wheelers, buses & coaches, passenger vehicles, and aircraft. In 2023, the highest revenue was generated by the passenger vehicle segment.

Factors such as rising disposable income, higher access to financial assistance, and increased production of affordable luxury vehicles have helped the segment thrive. In 2022, around 92% of households in the US were reported to possess at least one vehicle.

Based on the sales channel, the global market divisions are aftermarket and original equipment manufacturer (OEM).

Aluminum Alloy Wheel Market: Report Scope

Aluminum Alloy Wheel Market: Regional Analysis

Asia-Pacific is expected to own major stakes in total revenue during the forecast period

The global aluminum alloy wheel market is expected to be led by Asia-Pacific during the forecast period. Countries such as India, China, and Japan will lead the regional revenue due to the presence of a robust and growing automobile manufacturing industry. China, for instance, is the world’s largest producer and supplier of electric vehicles. Japan, on the other hand, is a prominent player in terms of the production of highly valuable luxury automotives.

Regional automobile producers are actively seeking expansion in the international market, which will prove beneficial for aluminum alloy wheel producers and suppliers. In September 2021, the Government of India announced a new Production-Linked Incentive (PLI) scheme worth USD 3.49 billion for auto parts and automobile manufacturers in the country.

In addition, Asian countries are registering a surge in demand for luxury vehicles. According to market research, luxury car brand Mercedes-Benz sold over 7,30,000 cars in China in 2023.

Furthermore, the regional market can also benefit from the increasing investments in aluminum production and distribution. China, for instance, is the world’s largest producer of aluminum. It recorded a 6% increase in year-on-year sales in 2023 in terms of aluminum production.

Aluminum Alloy Wheel Market: Competitive Analysis

The global aluminum alloy wheel market is led by players like:

• TSW Alloy Wheels
• BBS GmbH
• OZ Racing
• MHT Luxury Wheels Inc
• BORBET GmbH
• Konig Wheels
• Foshan Nanhai Zhongnan Aluminium Wheel Co. Ltd
• Enkei Corporation
• Vossen Wheels
• RAYS Co. Ltd
• American Racing
• Kosei Aluminium Co. Ltd
• SSR Wheels
• Wheel Pros
• Maxion Wheels.

The global aluminum alloy wheel market is segmented as follows:

By Rim Size

• More than 22”
• 18-21”
• 12-17”

By Finishing Type

• Anodized
• Chrome Wheel
• Split Wheel
• Diamond Cut
• Powder Coated/Painted Lacquered
• Others

By Vehicle Type

• Truck
• Light Commercial Vehicles
• Two Wheeler
• Bus & Coach
• Passenger Vehicle
• Aircrafts

By Sales Channel

• Aftermarket
• Original Equipment Manufacturer (OEM)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa