The global alloy aluminum forged wheel market size was USD 8.6 Billion in 2022 and is likely to reach USD 13.3 Billion in 2031, at a CAGR of 5.2% during 2023-2031. The market growth is attributed to the increasing use of lightweight alloy wheels in electrical vehicles.
Alloy aluminum forged wheels are strong, dense, and light. These wheels are usually installed in high-end vehicles and high-performance cars. The process of forging an alloy wheel industry involves applying tremendous pressure to a raw metal block to mold it into the desired shape. Forging is an expensive and multi-step process. A billet, or a sizable square piece of solid aluminum metal block is used to make forged wheels.
Aluminum alloy forged wheels are produced by two methods: Open-die forging and closed-die forging. The majority of alloy aluminum forged wheels manufacturers prefer the closed-die forging method as compared to the open-die forging method due to its tight dimension tolerance. The billet is heated to extreme temperatures and pressurized to take its shape. Forged wheels are stronger than cast wheels, due to grain refinement by a thermal process. The main benefit of alloy aluminum forged wheels over aluminum cast wheels is a weight reduction of approximately 20-25%.
The lightweight wheels provide many benefits such as proper handling of the car, improvement in fuel efficiency, high impact resistance, less upsprung mass, less workload on the suspension, lower rotation inertia, good acceleration, and efficient braking. If the unsprung mass in a vehicle is low, it is hardly affected by the road and other outside forces.
Aluminum forged wheels offer many benefits. Aluminum forged wheels are produced without voids, porosity, or shrinking, which makes them durable. The wheels receive properties due to their tight grain structure. The manufacturing process of aluminum forged wheels ensures high performance and efficient handling. The forging technology helps achieve tight tolerance of the forged aluminum rims.
The forged aluminum rims have no porosity and are rigid, which translates into high durability and a long life span. Benefits of alloy aluminum forged wheels include increased handling and maneuverability of the vehicle and quick braking and acceleration. Automotive tires are more durable and experience less wear and tear if the wheels are light in weight. Additionally, it helps in achieving fuel efficiency and offering a comfortable driving experience.
These advantages are obtained by swapping out cast wheels with forged ones, as the latter reduces weight making them safer and more durable than other types of wheels. Forged wheel aluminum rims are three times stronger than cast wheels. Forged wheels are up to 25 times lighter than cast wheels, tolerate high damage, and last for a long time.
COVID-19 Impact on Alloy Aluminum Forged Wheel Market
Import and export of raw materials were restrained, due to transport restrictions. This, in turn, impeded the market. COVID-19 impeded the supply of various products, including raw materials, due to various restrictions imposed by countries globally. Automotive companies were forced to divert capital to continue operations, starving R&D funding for advanced technology and other discretionary projects.
The global market is slightly impacted by Covid-19, due to the disruption in the supply chain and limitations in the cross broader transactions. The supply chain was disrupted in the initial stage of the lockdown, which declined the manufacturing of alloy aluminum forged wheels. The manufacturing activity of manufacturers of alloy aluminum forged wheels was restricted during the pandemic, due to global restrictions and the closure of industries.
Alloy Aluminum Forged Wheel Market Dynamics
What drives the Aluminum Forged Wheel Market?
Rising adoption of lightweight alloy wheels in EVs
Electric vehicles (EVs) require lightweight wheels. The rapid growth in the adoption of lightweight wheels, such as alloy aluminum forged wheels to increase efficiency, high performance, and overall weight reduction in electric vehicles is driving the alloy aluminum forged wheel market.
High performance and increased fuel efficiency
Alloy aluminum forged wheels are known for their rigidity. The wheels have a tight grain structure, which makes them mechanically strong and improves wear resistance over time. The forging technique improves performance and handling. Alloy aluminum forged wheels improve handling by reducing unsprung mass, allowing the suspension to follow the terrain closely and improving grip. This reduces power consumption and offers high braking power, which improves fuel efficiency and reduces CO2 emissions. Reducing the weight increases the fuel economy of the vehicle which results in increasing the adoption of alloy aluminum forged wheels aids to drive the market.
Rapid heat dissipation and high safety
Alloy aluminum forged wheels have thermal conductivity, which is three times greater than that steel or iron wheels. The unique structural characteristics of aluminum alloy wheels make it easy to dissipate the heat produced by the tire and vehicle chassis. Aluminum alloy wheels help in maintaining the optimal temperature in a car even when traveling at a high speed for an extended period of time or braking continuously while going downhill. The heat dissipation and high safety performance properties of the wheel are expected to propel the alloy aluminum forged wheel market.
High impact resistance
The load-bearing capacity of forged aluminum wheels is 5 times greater than other metal wheels. These wheels do not break, tear or wear out easily as compared to cast aluminum wheels. Alloy aluminum forged wheels withstand high impact and are durable compared to other wheels which can aid in increasing the demand for alloy aluminum forged wheels.
What Restraints the Alloy Aluminium Forged Wheels Market?
High manufacturing cost of alloy aluminum forged wheels
The manufacturing process of alloy aluminum forged wheels is tedious. The amount of time, expense, and technology invested to produce alloy aluminum forged wheels is significantly higher than that required to produce other types of wheels. Therefore, the market price of alloy aluminum forged wheels is high. High price of these wheels is expected to hinder market growth.
High wastage of metal chips
The production line of alloy aluminum forged wheels generates a significant amount of aluminum chips. Aluminum chips can be recycled and reused; however, it entails 2.3% burnout and energy loss. A lower metal utilization rate leads to a high wastage of metal, this additional cost will further reflect in the overall production of alloy aluminum forged wheels which can restrain the global market.
What are the Opportunities for the Alloy Aluminium Forged Wheels Market?
Growing investment in lightweight wheels
The alloy aluminum forged wheels market has grown quickly in recent years, as manufacturers are exploring ways to reduce the weight of wheels. Many manufacturers are investing in the expansion of production plants and the addition of multiple high-tech machine lines in different countries for a wide reach in different regions. The rising investment is expected to aid the manufacturers in penetrating the global market and strengthening the supply chain which can create lucrative revenue opportunities for the global market during the forecast period.
Rising disposable income
The current standard forming process of aluminum alloy automobile wheels involves forging and casting. Forged aluminum alloy wheels have higher mechanical performance than cast aluminum alloy wheels under the same conditions. Increasing awareness about the advantages of forged aluminum alloy wheels, growing disposable income in developed and developing economies, and rising consumer preference for these wheels are anticipated to create lucrative opportunities in the alloy aluminum forged wheel market.
Scope of Alloy Aluminum Forged Wheel Market Report
The report on the global alloy aluminum forged wheel market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Alloy Aluminum Forged Wheel Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Vehicle Type (Passenger Cars, Light Commercial Vehicles, and Heavy Commercial Vehicles) and Distribution Channels (OEM and Aftermarket)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Size and Analysis, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered
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CITIC Limited; Forgeline Motorsports, LLC; Brixton Forged LLC; Schott Wheel; Howmet Aerospace; Enkei International, Inc.; BORBET GmBH; RONAL GROUP; and Superior Industries International Inc
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Alloy Aluminum Forged Wheel Market Segment Insights
Which Major Factors influence the Substantial Growth of the Vehicle type Segment?
Increasing demand for lightweight materials and Innovative Design Concepts
In terms of vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. The passenger cars segment is projected to expand at a rapid pace in the coming years owing to the growing need for lightweight materials and innovative design concepts. The demand for performance-based vehicles is high due to the rising sales of passenger automobiles and the high consumer preference for lightweight wheels.
The light commercial vehicles segment is expected to register a considerable CAGR during the forecast period owing to the increasing demand for light commercial vehicles across the globe, especially in emerging economies such as India, China, and Japan. The increase in sales of high-performance cars such as supercars and luxury cars is driving the sales of alloy aluminum forged wheel market. Aluminum alloy is the most used metal in the manufacturing of wheels. Manufacturers of passenger automobiles, light commercial vehicles, and heavy vehicles are focusing on creating alloy aluminum forged wheels that are cost-effective, durable, and sustainable.
Why is the OEM Segment More Prevalent than the Aftermarkets Segment?
Increasing preference for High-Quality Wheels
Based on the distribution channel, the global alloy aluminum forged wheel market is bifurcated into OEMs and aftermarkets. The OEM segment is anticipated to hold a higher revenue share of the market during the forecast period owing to the increasing customer preference for OEM wheels as they are considered to be of high quality. The performance of the car may be significantly impacted by these wheels, as they were designed specifically to fit that model of the vehicle. OEM wheels are extensively used for automobiles due to their high quality, precise dimensions, and appealing design.
This, in turn, is fueling the OEM industry. Many aftermarkets manufacturer is researching to develop innovative products to extend their aftermarket product range. This, in turn, is creating numerous opportunities in the market. Additionally, as hybrid electric car models proliferate, there is a great increase in demand for the distinctive lightweight wheels that go on with these cars. There has been a lot of tussles going on between OEMs and aftermarket in order to capture a large chunk of market share.
The aftermarket segment is expected to register a considerable CAGR owing to the availability of various companies' wheels under one roof. Aftermarkets are gaining rapid traction as customers can get different wheels at a cheaper price than the OEM.
Notable development has been seen in the last few years such as Arconic Corporation, a US-based company specializing in lightweight metals engineering and manufacturing, which has invested in the building of a new wheel manufacturing plant in Hungary. It has invested USD130 million to double its production capacity in Europe in the coming years to cater to the growing demand in Europe, Latin America, Australia, and Asia.
Why is Asia Pacific dominating the Global Alloy Aluminum Forged Wheel Market?
Rapid growth in manufacturing technology for Automotives
Based on regions, the market is segregated into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific dominates the global alloy aluminum forged wheel market owing to technological growth in the manufacturing of automotive wheels. The market in North America is expected to grow at a significant CAGR during the forecast period. The US ranks first in the region due to the major presence of manufacturers in the region.
Europe market is attributed to growing at a significant pace during the forecast period. This growth is attributed to consumers choosing upgraded aluminum alloy wheels over normal steel wheels. The rest of the world consists of Latin America and Middle East and Africa. Latin America contributes significantly to the growth of the global alloy aluminum forged wheels market owing to the economic prosperity of the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Alloy Aluminum Forged Wheel
- Historical, Current, and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Alloy Aluminum Forged Wheel Performance
Segments
Vehicle Type
- Passenger Cars
- Light Commercial Vehicles
- Heavy Commercial Vehicles
Distribution Channel
Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
Key Players
- CITIC Limited
- Forgeline Motorsports LLC
- Brixton Forged LLC
- Schott Wheel
- Howmet Aerospace
- Enkei International, Inc.
- BORBET GmBH
- RONAL GROUP
- Superior Industries International Inc
Competitive Landscape
- Key players operating in the market are CITIC Limited Forgeline Motorsports, LLC Brixton Forged LLC Schott Wheel Howmet Aerospace Enkei International, Inc. BORBET GmBH RONAL GROUP Superior Industries International Inc. These companies are considered as key manufacturers of Alloy Aluminum Forged Wheel based on their revenue, research development (R&D) activities, product offerings, regional presence, and supply chain management system.
- The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunity for the Alloy Aluminum Forged Wheel market.
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