The report provides analysis of global Magnesium Wheel market for the period 2015-2026, wherein 2019 to 2026 is the forecast period and 2018 is considered as the base year. According to Acumen Research and Consulting, the global Magnesium Wheel market is expected to grow at noteworthy CAGR around 3 % throughout the forecast period and reach around US$ 29 billion by 2026.
Increased preference by car manufacturers for lower vehicle weight, together with lower carbon emissions, drives the magnesium wheel market size over time. Growing demand for lightweight automotive parts with superior mechanical characteristics will influence the product penetration positively. Customers choose specially designed wheels, which significantly enhance performance and the esthetic of vehicles. Magnesium rollers provide superior thermal conductivity, making heat dissipation easier compared with traditional rollers. These wheels also provide fluid driving and smoother cushioning, which significantly contributes to improving driving conditions on uneven and bad roads. The increasing demand for high-quality external automotive components together with rigid and durable structure of the wheel has a positive impact on the market in the magnesium wheel over the studied timeframe. The adoption of premium cars is significantly increasing per-capita disposable income. In 2018, for example, the sales of luxurious cars in Russia increased by more than 1.5% compared to 2017, to approximately 1,500 units. Increasing prominence of prime cars with increased maneuverability and stability in handling will substantially boost the market share in the forecast period.
The magnesium wheel market is boosted throughout the projected timeframe by increasing preference for green movement solutions along with rising demand for Premium & Sports cars and bikes. Strict government regulations to reduce emissions and improve fuel efficiency make it possible for manufacturers to invest in advanced technology for the production of such wheels. For example, the National Highway Traffic Safety Administration (NHTSA) Corporate Average Fuel Economy (CAFE) standards focus every year on improving the fuel efficiency of cars. Magnesium wheels are currently being integrated in its premium and luxury vehicles to enhance market share by industrial players. In comparison to alloy wheels and traditional steel , higher products prices limit their use in cheap vehicles. Automotive OEMs however invest in R&D to introduce innovative manufacturing technology for low-cost wheels. For example, Ford Motors and AUTO21 researchers are developing custom tailor-selded blank (TWB) and friction wheel soldering technologies (FSW) that support the manufacturing of cheaper magnesium rollers to cater for a wider range of customers.
Higher costs associated with magnesium procurement and processing may reduce the market share during the study period. Relating to changing trade policies and tariff duties may further obstruct the growth of industry by flooding raw material prices. The magnesium wheel market growth has been continuously promoted by manufacturers for R&D to develop advanced production processes. In comparison with the traditional processes, for example, MagSonic technology manufactures the production of magnesium with approximately 80% less energy and 60% less carbon emissions.
The lower cost of production for cast products increases the share of the segment over the time period planned. The process is further supported by lower casting complexities coupled with easier manufacturing processes. Magnesium rolls ' share in the market will have a significant impact on the uniform grain structure together with the availability of various production processes, such as low pressure and gravity casting. The increased use of forged car components can be attributed to a variety of advantages including increased tensile strength, lower weight and the ability to deal with heavier loads than cast products. The interconnected internal structure of the forged wheels makes them tough, thus contributing to its diversified applications throughout the automotive industry. These wheels are also ideal for high-speed cars, including racing, which can accelerate the market size over the course of the study.
OEMs will take a significant part in improving the aspirations of car manufacturers because of the increased preference that they incorporate high-end features into their vehicles. In addition, a significantly reduced weight of magnesium wheels helps to enhance the efficiency of the vehicle and reduce emissions. In addition, improved quality and superior damping capabilities and comfort on uneven roads are some of the key factors contributing to the growth of the magnesium wheel market during the study.
In the market, the aftermarket will grow considerably. The increased preference of consumers to tailor their vehicles to the aftermarket can be attributed to this. The need to repair and replace pipes after a certain range of driving, due to defects and accidents, will further increase the segment size. Additional factors will increase the growth in the market for magnesium wheels significantly by wearing tires on old vehicles, along with their ability to improve vehicle comfort.
Due to increased congested traffic and easier maneuvers across cities and cities, the adoption of two rollers increases the growth of motorcycles within the planned period. The lower weight of the wheel facilitates driving and significantly increases bike efficiency. Automotive OEMs launch magnesium wheels upgraded products to increase their market share. For example, the RSV4 X cycle with factory-fitted magnesium wheels was presented by Aprilia in 2019.
Over the study period, premium and sports cars represented a significant volume share. This may be attributable to the growing demand for such vehicles with advanced technology. The improved performance including quick acceleration and braking, together with superior heat dissipation, also supports segment growth over a long distance. Moreover, the quality of these wheels is substantially greater than other wheels and thus plays a significant role in increasing the use of wheels for premium and sports cars.
The magnesium wheel market size represented a significant share in Europe's revenues. The presence of major car manufactorys in the entire region can be attributed to the fact that new vehicles are launched and their existing portfolio upgraded. Few of the main car manufacturers of magnesium vehicles in the region include Volkswagen, BMW, Skoda, Audi and Rolls Royce, to improve their share of the market. In 2018, for example, Porsche started up its upgraded GT2 RS model with magnesium wheels with considerable savings in weight of approximately 11 kg.
As a result of improved disposable income and a greater preference for personal mobility, growing vehicle sales in Asia Pacific have driven the market across the region. The regional share will continue to be strengthened by increased sales of premium and luxury cars and the proliferation of automotive aftermarket. In addition, stringent regulatory policies enable industrial players to invest in lightweight and effective automotive components in order to improve vehicle efficiency and lower carbon emissions.
Global Magnesium Wheel Market, By Manufacturing
Global Magnesium Wheel Market, By End Use
Global Magnesium Wheel Market, By Vehicle
Global Magnesium Wheel Market, By Geography
The market research study on “Magnesium Wheel Market (By Manufacturing: Cast, Forged; By End Use: Aftermath, OEM; By Vehicle; Bike, Sports/Premium Cars) - Global Industry Analysis, Market Size, Opportunities and Forecast, 2019 - 2026” offers detailed insights on global Magnesium Wheel market segments with market dynamics and their impact. The report also covers basic technology development policies.
Key Players & Strategies
Due to the presence of key players such as BBS, Enkei Corporation, the Ronal Group, SMW Engineering, Marvic Wheels SRL and Marchesini, the magnesium wheel market share is particularly competitive. MKW Alloy, OZ, Cromodora Wheels, Tan-ei-sya, Minilite, and Washi Beam are other leading manufacturers. Increased product design, configuration, and post-sales services are key to industry players ' areas. Expansion & innovation of the portfolio of products are amongst the major strategies taken to improve their market share by industry players. Fusions and acquisitions are just a few of the major market share strategy adopted by industry participants. In 2017, for example, Ronal Group announced that APP-Tech Srl will acquire a wider range of forced magnesium wheels in order to complement its product portfolio.