Magnesium Wheel Market Size By Manufacturing (Cast, Forged), By End-Use (OEM, Aftermarket), By Vehicle (Bikes, Premium/ Sports Cars), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, Italy, Spain, Russia, France, Turkey, China, Japan, India, South Korea, Australia, Brazil, Argentina, Mexico, Saudi Arabia, South Africa, UAE), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2017 – 2024
Published Date: Oct 2017 | 300 Pages | Report ID: GMI2129 | Authors: Vitika Verma, Amulya Agarwal Report Format: PDF
Magnesium Wheel Market size was worth over USD 22.1 billion in 2016 and will surpass 76.2 million units by 2024.
U.S. Magnesium Wheel Market, By Manufacturing, 2013 – 2024 (Thousand Units)
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Shifting trend towards light weight vehicles along with increased road safety concerns will propel the magnesium wheel market size. Inclination towards enhanced driving experience accompanied by increasing replacement of traditional steel by efficient & durable magnesium material will drive the product demand.
Growing automotive industry due to rising vehicle demand along with increasing consumer spending will support the industry growth. As per analysis, in 2016 U.S. passenger car sales reached 6 million, while only 4 million cars were manufactured in the country. Changing automotive trends including vehicle customization, improved fuel efficiency and reduced weight are the key factors positively influencing the product penetration.
Increasing preference for green mobility coupled with stringent regulations promoting lightweight automotive components has enhanced the industry demand. According to California Vehicle Code (CVC), gross weight on any wheel should not surpass 10,500 pounds. For every 100 pounds of vehicle weight reduction, there is an average decrease of about 2% fuel consumption. Rising demand for hybrid and electric vehicles will drive the industry growth, as weight reduction is major concern in hybrid automobiles.
Increasing R&D spending along with technological innovations are the driving factors for business growth. Rising product demand from premium compact vehicles, sports cars and premium motorcycles will propel the magnesium wheel market. Weight reduction, enhanced vehicle braking system and improved acceleration are the significant benefits fueling the industry demand.
Economic instability, stagnant industry growth and fluctuating raw material costs are the key factors affecting magnesium wheel price trend. However, excessive costs associated with initial set up and repair may hamper the industry growth.
Magnesium Wheel Market, By Manufacturing
Cast manufacturing was valued over USD 5.6 billion in 2016. Low production cost and easier manufacturing process are the supporting factors of industry demand. However, comparatively heavier weight along with manufacturing defects including pores, cavities and metallurgical microstructure causing large grain size may restrain the segment growth.
Forged manufacturing accounted for over 71% of the overall industry share in 2016. High durability, lightweight, rigidity, strength and easy repairing are the key properties driving the industry growth. Forged magnesium wheel are around 1.5 times lighter compared to aluminum and 2.2 times lighter relative to steel. Moreover, absence of casting defects including cracks and bends provides a positive outlook for product demand.
Magnesium Wheel Market, By End-Use
OEM market generated over 39.8 million units and is anticipated to exhibit major industry share by 2024. Shifting manufacturer preference for vehicle weight reduction is the key driving factor for magnesium wheel market growth. Product innovations and development coupled with heavy R&D investment by OEMs will propel industry demand.
Magnesium wheel aftermarket will witness CAGR over 4.5% from 2017 to 2024. Increasing product replacement frequency particularly for passenger cars will support the industry growth. Shifting trend for vehicle customization and lightweight automotive components have enhanced the product demand. Rise in rate of vehicle accidents due to poor road conditions and lack of stringent regulations in several countries will drive the business growth. Moreover, favorable insurance schemes will support the product demand.
Magnesium Wheel Market, By Vehicle
Bikes market was worth over USD 520 million in 2016. Increasing road congestion due to rising population is the key factor fueling the industry growth. Changing income trends along with increasing preference for motorbikes has enhanced the product demand. Superior product properties including lower overheating, high strength and relatively light weight will propel the magnesium wheel market from bikes.
Premium/ sports cars will value over USD 27.8 billion by 2024. Rising demand for premium & luxury vehicles particularly in North America and Western Europe will drive the industry growth. Necessity for superior quality products to enhance acceleration and quick braking are the key factors supporting product demand.
Magnesium Wheel Market, By Region
Europe accounted for over 40% of the magnesium wheel market share in 2016. Recovery of automobile sector along with increasing penetration of premium cars particularly in UK, Germany, Italy, Spain and Poland will drive the regional demand. Presence of premium automotive manufacturers including Lamborghini, Ferrari, Audi, BMW and Porsche provides a positive outlook for industry growth.
Asia Pacific magnesium wheel market revenue is anticipated to surpass USD 8.2 billion by 2024. Growing automotive production due to favorable socio-economic conditions for manufacturing facilities will propel the industry growth. Increasing penetration of premium & luxury vehicles particularly in Japan and China will drive the product scope. Moreover, initiatives by Japanese associations to improve product quality will further support the industry demand.
North America will witness gains over 3.5% up to 2024. Stringent emission norms coupled with government initiatives promoting lightweight vehicles will drive the demand. High disposable income and improved standard of living are the key factors enhancing premium vehicle demand.
Competitive Market Share
BBS, Enkei, MKW Alloy, SMW Engineering and O.Z. Group are among the prominent players in magnesium wheel market share. Industry players mainly focus on collaborations with high end premium car manufacturers to increase customer base and strengthen foothold. For instance, O.Z. Group partnered with leading OEMs including Ferrari, Volkswagen, Mercedes Benz, etc. In August 2016, the company renewed its partnership with Ferrari till 2019.
Product positioning for sport and premium car manufacturers is the major strategy observed. For instance, BBS have focused its supply for sports cars used in Formula One. Similarly, Enkei Corporation developed products suitable for sportscars adopting the stringent JGTC regulations. Moreover, technological advancement and heavy R&D investment are among other strategies adopted. For instance, in 2016, SMW Engineering launched research & development projects to perform in depth analysis of environmental & economic benefits of magnesium wheel.
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Magnesium wheel are developed from alloy material produced either by forging or casting. Significant product benefits including light weight, high strength & damping capacity enhance the product preference. Material science developments are the key influencing factors for the industry growth. Development in product designs are expected to showcase high gains, owing to high absorbing capacity of harsh impacts, soaking up off-road impacts & bumps and reduced unsprung weight.
Stringent regulations for emission reduction and usage of light weight vehicles has been a major driver for industry growth. For instance, EC has set target of automobile emissions reduction to reach 175g CO2/km by 2017 and 147 g CO2/km by 2020 for lightweight vehicles. JAWA aims at improving quality of light alloy materials promoting product penetration in automotive aftermarket.
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