Automotive Carbon Wheels Market by Vehicle Type (Passenger Cars, Commercial Vehicles, and Two Wheelers), Distribution Channel (OEM and Aftermarket), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2022–2030

Global Automotive Carbon Wheels Market Analysis

The global automotive carbon wheels market size is predicted to garner a revenue of $1,481.5 million in the 2022–2030 timeframe, growing from $626.0 million in 2021, at a healthy CAGR of 9.9%.  

Market Synopsis

The necessity for the improvement of fuel efficiency and reducing the weight of the vehicle are the key driving factors expected to augment the demand for automotive carbon wheels and increase the growth of the automotive carbon wheels market size. The reduction of vehicle weight, which results in improved efficiency and performance, is a major concern for automotive players. Reduced wheel weight improves maneuverability, provides a quieter & smoother ride, faster acceleration, quicker slowdown, enhanced suspended, and improved fuel efficiency. These advantages have led to the use of composite materials in various parts of automobiles. Carbon fiber reinforced polymers provide a variety of functional benefits while also being aesthetically pleasing. As a result, several OEMs and Tier 1 suppliers are using carbon fiber to produce wheels. These wheels weigh roughly half as much as traditional aluminum or steel alloy wheels.

However, the high initial cost of manufacturing the carbon fiber material can hamper the automotive carbon wheels market growth in forth coming year. Also, carbon wheels are only available in a limited number of sizes, and their high cost limits their use to specific vehicle segments. As a result, the global automotive carbon wheel market is suffering.

According to the regional outlook, the North America automotive carbon wheels market is expected to create massive growth opportunities for market investors by growing at a CAGR of 10.4% during the review period, owing to prompted global automotive carbon wheels providers in the region.

Automotive Carbon Wheels Overview

A wheel is a circular structure with spokes or a strong disc connected to a center. Car wheels, also recognized as steel wheels or alloy wheels, are mounted on a wheel frame. Steel, aluminum, magnesium, carbon fiber, or a combination of these metals is used to make these. Automobile carbon fiber wheels are lightweight, have a long wheel life, and are extremely strong. They also have other advantages over the traditional wheels, including such high fatigue damage strength & durability, self-vibration dissipative, good traction, and high temperature rigidity. Furthermore, carbon wheels can enhance fuel efficiency and lower carbon emissions. Strict government pollution-control regulations are expected to boost the market for automotive carbon wheels.

Aluminum and steel alloys have been used in the manufacturing of automobile wheels for decades. However, these materials are susceptible to corrosion and have limitations such as considerable weight. As a result, automakers tend to use composite materials to make wheels. After being used in structural parts of aircraft and automobiles, carbon fiber is now used in the manufacturing of automobile wheels. Automotive carbon wheels are manufactured through a variety of manufacturing processes, including flow forging and dry fiber processes. These processes create a synthetic matrix with embedded carbon fiber and resin that is cured using heat and pressure. These wheels offer a variety of benefits, including lighter weight, improved driving comfort, and improved driving dynamics The automotive carbon wheels are supplied through the original equipment manufacturers and aftermarket by the distribution channel.

COVID-19 Impact on Automotive Carbon Wheels Market

The Covid-19 has had a negative impact on the automotive carbon wheels market. The global reduction in automotive sales in 2020 as a result of pandemic lockdowns and restrictions has had a significant impact on global sales of automotive carbon wheels. During the pandemic, disruptions in international supply chains for essential components used in automotive carbon wheels, such as semiconductors, impacted the global automotive carbon wheels market size. The temporary closure of manufacturing facilities in order to limit the spread of the COVID-19 virus will have a negative impact on industry demand. All such aspects are decreased automotive carbon wheels demand.

The Scope of Improving the Fuel Efficiency of the Vehicle is a Major Driving Factor Expected to Augment the Demand for Automotive Carbon Wheels Market

Automakers are continuously working on to reduce the weight of the automobiles to improve the efficiency and performance. By reducing the weight of the vehicle's wheels, it improves maneuverability for a quieter along with smoother driving experience, faster acceleration, faster deceleration, improved suspension, and improved fuel efficiency. These advantages have led to the use of composite materials such as carbon fiber and is expected to aid the growth of this market in the forecast period. In recent developments, for instance, in November 2021, united based company, "Litespeed Racing", launched world's lightest carbon fiber wheel. It is named “Carbon One wheel", it weighs 14.2 pounds for 20X9.5 inch, making it the lightest 20-inch wheel in the world. These factors are expected to aid the automotive carbon wheels market growth in the forecast period.

Furthermore, carbon wheels are lightweight and strong wheels made from carbon fiber reinforced polymers. These wheels are widely used in luxury and premium vehicles to improve speed efficiency. Rising ownership of premium and luxury vehicles, as well as an increase in the number of ultra-high and high net worth individuals (HNWI) will support industry growth. Furthermore, ongoing initiatives by vehicle owners to improve efficiency, achievement, and aesthetic appeal will drive up demand for aftermarket automotive carbon wheels. Therefore, all such aspects are projected to gain traction for automotive carbon wheels.

To know more about global automotive carbon wheels market trends, get in touch with our analysts here.

The Reduction in Production of Vehicles Globally to Restrain the Market Growth.

The reduction in production of vehicles due to events such as the global pandemic of Covid-19 that led to decrease in the utilization of vehicles across the world can hamper the growth of automotive carbon wheels market as the demand for the automotive carbon wheels is dependent on the use of vehicles. In addition to this, lack of market standardization and regulatory measures in developing and undeveloped countries such as African nations can restrict the market growth in the forecast period. Furthermore, disadvantage associated with using carbon rims is that they are unsafe to use when damaged. When a carbon rim cracks or is damaged, it should be removed and replaced immediately, as opposed to an aluminum rim. An aluminum rim can be trued, tensioned, and ridden even if it is dented or flat spotted. All such factors can restrict the market growth in the forecast period.

The Increasing Sales of Luxury Vehicles are Expected to Create Opportunities for Automotive Carbon Wheels Market

The rising demand for luxury vehicles in the four-wheeler segment is expected to expand the market's opportunities during the forecast period. The increase in the number of millionaires as a result of increased wealth creation has resulted in an increase in the sales of premium vehicles with carbon fiber wheels. BMW, Audi, Mercedes-Benz, Volvo, Jaguar, Rolls-Royce, and Land Rover are major automakers that produce the vast majority of luxury vehicles. Furthermore, sales of luxury cars are expected to rise in the near future as a result of advances in automotive technology and economic growth in developing countries. The use of carbon fiber wheels reduces vehicle noise and vibration while maintaining vehicle performance.

The increasing availability of hybrid and electric vehicles as a result of growing concern about climate change and global warming will drive demand for carbon wheels. Carbon wheels reduce overall vehicle weight, fuel usage, and have fast charging properties. Furthermore, the introduction of online platforms such as Amazon, E-bay, and Taobao will increase the accessibility and availability of the wheels, inspiring their adoption. Thus, such factors create an opportunity to gain major pull in the coming years for automotive carbon wheels market.

To know more about global automotive carbon wheels market opportunities, get in touch with our analysts here.

Global Automotive Carbon Wheels Market, by Vehicle Type

Based on vehicle type, the market has been divided into passenger cars, commercial vehicles, and two wheelers. The passenger cars sub-segment is expected to be the most dominating and commercial vehicles is projected to be the fastest growing during the forecast period.  

Global Automotive Carbon Wheels Market Share, By Vehicle Type, 2021

Source: Research Dive Analysis

In 2030, the global passenger cars automotive carbon wheels sub-segment will be worth more than $691.5 million. The increasing demand for improving the fuel efficiency of passenger cars as well as car alignment in reducing the weight of the vehicle by utilization composite materials such as carbon fiber is expected to aid the growth of this sub-segment. In addition to this, the increasing demand for luxury vehicles is expected to aid the growth of this sub-segment. The passenger cars sub-segment is expected to dominate the market among vehicle types, owing to an increase in passenger car sales and production during the forecast period. Automotive carbon wheels are standard on the majority of premium and mid-sized luxury vehicles to improve the visual appearance and comfort of the vehicle owner. The increased purchasing power of people in developing economies such as China and India is driving up demand for premium and luxury vehicles. All such factors are expected to promote the adoption of cloud based automotive carbon wheels growth during the forecast period.

Global Automotive Carbon Wheels Market, by Distribution Channel

Based on distribution channel, the market has been sub-segmented into OEM and aftermarket. Among the mentioned sub-segments, the OEM sub-segment is estimated to show a dominant share, whereas the aftermarket sub-segment is projected to garner the fastest growth.

Global Automotive Carbon Wheels Market Share, By Distribution Channel, 2021

Source: Research Dive Analysis

In 2030, the global OEM sub-segment will be worth more than $828.5 million. The large-scale production of vehicles in different categories such as commercial and passenger vehicles with increasing emphasis on fuel efficiency is expected to aid the growth of original equipment manufacturer sub-segment. As per International Organization of Motor Vehicle Manufacturers, an international trade association whose members are 39 national automotive industry trade associations, the total production of vehicles in 2020 was 77 million. Increasing vehicle production is expected to aid the growth of the sub-segment in the forecast period. OEMs are expected to dominate the market owing to their setup all through vehicle assembly. Low replacement rates and high installation expertise requirements have resulted in a significant density of automotive wheel selling to OEMs. Greater success by market participants throughout upgrading production plants and technology to boost industry expansion. All such factors are expected to promote the adoption of automotive carbon wheels by large enterprises, driving the growth during the forecast period.

Global Automotive Carbon Wheels Market, Regional Insights:

The automotive carbon wheels market was inspected across North America, Europe, Asia-Pacific, and LAMEA.

 Global Automotive Carbon Wheels Market Size & Forecast, By Region, 2021-2030 (USD Million)

Source: Research Dive Analysis

The Market for Automotive Carbon Wheels in Europe to Hold the Maximum Revenue

The Europe automotive carbon wheels market generated $244.9 million in 2021 and is projected to register a revenue of $566.5 million by 2030, growing with a healthy CAGR of 9.6% in the forecast period.  The presence of major auto manufacturers in the Europe region such as Porsche, Mercedes Benz, Audi, BMW, Ferrari, and Lamborghini that utilize the carbon fiber composite material in their vehicles, and strong emphasis on material science for developing light automotive composite materials such as carbon fiber automotive rims & wheels are expected to aid the growth of carbon wheels market in the Europe region, during the forecast period. In addition to this, automotive companies are implementing new partnerships and launching new carbon fiber technologies for the development of automotive components. For instance, in September 2020, German firm, ThyssenKrupp AG, and South Korea based Hyundai Motor Europe Technical Center, co-developed a carbon fiber forged wheel comprised of an aluminum wheel spider and the rim base made of carbon using braiding technology is attached to it. These new developments are expected to aid the growth of this market in the forecast period.

The significant presence of OEMs in Europe as well as their focus on carbon fiber wheels due to the functional benefits provided by these wheels is boosting Europe's share of the global automotive carbon wheel market. For instance, BMW AG established carbon composite wheels throughout 2016 and offered people with their M4 GTS model. The business also created hybrid carbon wheels made from metal alloys and emissions fiber composite equipment. Furthermore, automotive wheel makers in the region are partnering with OEMs to develop new carbon wheel products. For example, in September 2020, Hyundai Motor Europe Technical Center and Thyssenkrupp AG collaborated to develop carbon fiber and aluminum hybrid wheels. The share held is being driven by ongoing developments and partnerships between industry players. All such factors are expected to drive the Europe automotive carbon wheels market and witness noticeable growth.

Competitive Scenario in the Global Automotive Carbon Wheels Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading automotive carbon wheels market players are Carbon Revolution, Dymag Group Limited, ESE Carbon, ROTOBOX d.o.o., Litespeed Racing LLC, HITACHI METALS, LTD., Phoenix Wheel Company, Inc., Rolko Kohlgrüber GmbH, Thyssenkrupp AG, and Ronal Group.