APAC high performance wheels market to witness maximum gains over 2016-2024, OEMs to drive the end-use landscape
High performance wheels market demand is shooting high with the increasing consumer inclination toward customized performance vehicles that offer superior fuel efficiency, quick acceleration, and upgraded braking system. Carbon fiber wheels are gaining a popularity worldwide as its usage in the car enables improved fuel performance and overall weight reduction. Technology has undoubtedly played a vital role in the market’s rapid expansion in terms of wheel designs, wheel materials, and aerodynamics. Concurrently, increasing investment by the market players in research activities to incorporate technological advancements in the premium vehicle models is also catering the industry growth. An estimation by Global Market Insights, Inc., claims Global high performance wheels market to exceed USD 160 billion by 2024 with a projected CAGR of 5% over 2016-2024.
U.S. High Performance Wheels Market Size, By Material, 2015 & 2024 (Million Units)
Surging global population which has already crossed the 7 billion mark and increasing disposable income of the consumers have left a proportional impact on high performance wheels industry trends. Today, a significant portion of the urban population prefer vibration free and comfortable rides which is in turn providing lucrative business opportunities to high performance wheels industry. Impacts absorption, enhanced braking system, and improved acceleration are the other crucial factors influencing the industry revenue. The rapidly developing automotive industry has resulted in an escalating product demand from the OEMs. Original Equipment Manufacturers represented almost 80% of the overall high performance wheels market share in 2015. Also, the escalating demand for customized and aesthetically improved vehicles is fueling the high performance wheels industry share from aftermarket applications.
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Pertaining to the vehicles, premium compact segment dominated the market in 2015 by covering almost 50% of the overall volume. Enhanced visual appearance, superior fuel efficiency, cost effectiveness and light weight are some of the factors favoring the market dynamics from this segment. High performance wheels industry from mid- size luxury cars will also experience steady gains at an annual rate of 5.5% over the coming seven years.
In terms of materials, carbon fiber wheels have witnessed significant demand in the recent years. Shifting consumer trend toward light weight vehicles, along with the requirement of weight reduction in sport cars have resulted in an upswing in the material demand. Aluminum based high performance wheels industry will also record steady gains in the years ahead at a CAGR of 6% over 2016-2024. Magnesium based wheels accounted for 30% of the total market in 2015. Steel high performance wheels market will also grow significantly at an annual rate of 4.5% over 2016-2024.
Regionally, Asia Pacific has major grounds enhancing the overall high performance wheels market outlook. The rapidly expanding automotive industry along with presence of a large number of automobile manufacturers such as Toyota, Honda, etc. are the major factors boosting high performance wheels market demand in this region. With robust production capacities and increasing R&D activities, APAC high performance wheels industry is anticipated to observe the highest growth in the coming years, at an estimated CAGR of 7% over 2016-2024.
Europe market is also slated to spectate substantial progress in the years ahead, with a revenue record of USD 60 billion by the end of 2024. Spreading awareness related to carbon releases from vehicles along with regulatory compliance imposed by the government is enhancing the high performance wheels market demand in Europe. Presence of leading OEMs in countries such as Germany, Poland, France is also one of the major factors driving the regional share. North America high performance wheels industry will be majorly driven by the U.S. As per estimation, U.S market is expected to register a CAGR of more than 5% over 2016-2024.
High cost involved in the initial set up along with expensive alloy materials may act as a deterrent in the growth chart of the market. However, with the leading automotive brands’ launching advanced vehicle models, high performance wheels market demand is expected to boost substantially over the years ahead. Prominent industry participants include United Group, ALCAR Group, Fikse, BBS Kraftfahrzeugtechnik AG, OZ S.p.A, Carbon Revolution, Euromax, and Steel Strips.
Author Name :Satarupa De