Industry Analysis
Automotive Wheel Hub Market revenue is anticipated to reach USD 80.34 Billion in 2023 and could account for USD 135.73 Billion while growing at a CAGR of 6.0% over 2023-2032 owing to rising sales of automobiles.
The wheel hub industry includes manufacturing, distribution, and sales of wheel hubs for various types of vehicles. A wheel hub is a crucial component of a vehicle's wheel assembly, serving as the mounting point for the wheel and allowing it to rotate smoothly.
Increasing Automotive Production to Drive the Overall Market Growth
The automotive industry is continually evolving, with technological advancements shaping the vehicles of today and tomorrow. Advancements such as electric vehicles (EVs), autonomous driving technology, and lightweight materials impact the design and performance of wheel hubs. As automotive manufacturers adopt new technologies, they require innovative wheel hubs to meet the specific requirements of these advancements, further creating a positive impetus on the automotive wheel hub industry outlook.
As per The European Automobile Manufacturers’ Association, 85.4 million motor vehicles were manufactured across the globe in 2022. The number had increased by 5.7% from the previous year.
Population growth, rapid urbanization, improving economic conditions, and the need for transportation, are fueling the automotive industry’s growth, which in turn, is carving a substantial growth graph for the overall market.
Increasing Inflation Could Hinder the Industry Expansion
Wheel hub industry dynamics are majorly impacted by rising product prices. In an article published in Fox News, Lev Peker, CEO of CarParts, stated that the auto parts prices had increased by 5%-7% in 2021 The rising prices are attributed to the disrupted supply chain across the globe.
Jeff Shepherd, Advance Auto Parts CFO expressed that due to the increased prices of labor, product, and freight, the company would model 3% inflation in the future.
Inflation has eroded the purchasing power of consumers, in turn, impacting the demand for vehicles and related components, including wheel hubs. If consumers experience a decline in their real income due to inflation, they may delay or reduce their purchases of wheel hubs, particularly in the aftermarket segment, leading to a slowdown in market growth.
As per the Center of Automotive Research, China, Mexico, Canada, Japan, and Germany, the top 5 largest automotive trade partners have experienced Producer Price Index inflations at a forty-year high since the fall of 2021.
Technological Advancements to Create New Opportunities for the Market
Innovation and adoption of new technologies are anticipated to drive the wheel hub market growth through 2032. Wheel hubs with integrated sensor technology have gained prominence. These sensors can monitor various parameters such as wheel speed, tire pressure, temperature, and vibrations. They provide real-time data to the vehicle's control systems, enabling better vehicle dynamics control, improved safety features, and enhanced fuel efficiency.
Advancements in materials science have led to the use of lightweight materials in wheel hub manufacturing. High-strength alloys, composites, and carbon fiber-reinforced polymers are being employed to reduce weight while maintaining strength and durability. Lighter wheel hubs contribute to improved fuel efficiency, reduced vehicle weight, and enhanced handling characteristics.
Technological advancements have also influenced the manufacturing processes of wheel hubs. Computer numerical control (CNC) machining, precision casting, and additive manufacturing techniques like 3D printing have enhanced manufacturing accuracy, flexibility, and efficiency. These techniques allow for complex designs, customization, and rapid prototyping.
By Type
On the basis of type, the market is segmented into alloy and steel. Alloy when hub market is expected to gain traction in the coming years as they improve vehicle performance. The reduced weight of alloy wheel hubs results in better performance characteristics for the vehicle. The lighter mass allows for quicker acceleration, improved braking response, and enhanced maneuverability. The reduced rotational inertia of the wheel hubs also leads to more responsive steering and better suspension performance.
Alloy wheel hubs are significantly lighter than steel wheel hubs. The use of lightweight materials like aluminum alloys reduces the unsprung weight of the vehicle, which improves handling, acceleration, and fuel efficiency. Lighter wheel hubs also help reduce the overall weight of the vehicle, contributing to better performance and lower fuel consumption.
Alloy wheel hubs offer a wide range of design options and finishes, allowing for more attractive and stylish appearances compared to steel wheel hubs. The aesthetic appeal of alloy wheels can enhance the overall visual appeal of the vehicle, giving it a more modern and sportier look.
By Application
Based on application, the market is segmented into commercial vehicles and passenger vehicles. Automotive wheel hub market share from passenger vehicles is anticipated to grow at a significant rate between 2023 and 2032 owing to an increase in sales of passenger vehicles.
As per an article published in Economic Times, passenger vehicle sales in India alone grew by 26.7% in the financial year 2022-2023. The wholesale passenger vehicle volumes increased from 3.1 million units in 2022 to 3.9 million units in 2023.
This growth is driven by the growing population, urbanization, rising disposable incomes, and increasing consumer demand for personal transportation. Passenger vehicle manufacturers and consumers place a high emphasis on safety and performance. Wheel hubs play a critical role in ensuring the safe and smooth operation of the vehicle. They provide the mounting point for the wheels and contribute to stability, handling, and braking performance. As manufacturers continue to focus on improving vehicle safety and performance, the demand for reliable and high-quality wheel hubs rises.
Along with that, many passenger vehicle owners seek to personalize and enhance their vehicles by upgrading various components, including wheel hubs. Upgraded wheel hubs can provide improved aesthetics, performance, and functionality. This desire for customization and upgrades leads to an increased demand for aftermarket wheel hubs catering to specific customer preferences and requirements.
Regional Segment
In terms of region, the industry is segmented into North America, Europe, Asia Pacific, Middle East & Africa, and South America. Asia Pacific automotive wheel hub market revenue is poised to grow at a notable CAGR through 2032. The growth is primarily attributed to the expanding electric vehicle market.
As per an article published in DownToEarth, EV discussions increased by 28% in 2022 in the APAC region as compared to 2021.
Electric vehicles typically prioritize lightweight construction to maximize range and efficiency. Lightweight materials, such as aluminum alloys, are commonly used in EV components, including wheel hubs, to reduce weight. The demand for lightweight wheel hubs compatible with EVs has increased due to the industry's focus on enhancing energy efficiency and extending the driving range of electric vehicles.
Moreover, rapid urbanization in the Asia Pacific has led to the expansion of cities, the development of transportation networks, and the construction of roads and highways. The need for efficient transportation systems drives the demand for vehicles, including passenger cars, public transportation, and commercial vehicles, all of which require wheel hubs.
Competitive Analysis
Major automotive wheel hub market players include:
- Dicastal
- Maxion
- CMW
- Enkei
- Ronal
- Borbet
- Faway Zenix
- Superior
- Alcoa
- Accuride
- Lioho
- Uniwheel
These market players are taking various strategic initiatives like innovations, new product developments, partnerships, acquisitions, etc. to stay ahead of the competition. For instance:
Schaeffler, a German automotive manufacturer, in March 2023 announced that the in the coming years, the company is putting its wheel hub drives into series production for various customers in the compact municipal vehicle segment.
Impact of the Recent Events
COVID-19 Impact
The COVID-19 pandemic has had a significant impact on various industries worldwide, including the automotive sector and, consequently, the wheel hub market. The pandemic led to disruptions in global supply chains, including the automotive supply chain. Factory closures, restrictions on movement, and trade disruptions affected the production and distribution of automotive components. Supply chain disruptions resulted in delays, shortages, and increased costs, impacting the availability and pricing of wheel hubs.
Moreover, many automobile manufacturers temporarily suspended or reduced their production activities in response to the pandemic. Lockdowns, social distancing measures, and reduced consumer demand led to lower vehicle production levels. With fewer vehicles being manufactured, the demand for wheel hubs significantly declined during the pandemic.
Along with that, the pandemic influenced consumer preferences and behaviors regarding transportation. There has been a shift towards personal mobility, with consumers opting for private vehicles over public transportation for safety reasons. However, this shift has been more prominent in the used car market and entry-level segments, which generally use more cost-effective wheel hubs.
Russia-Ukraine War Impact
The Russia-Ukraine war has disrupted supply chains at a significant level. Any disruption in the supply chain can lead to delays, shortages, and increased costs in the production and distribution of wheel hubs.
The conflict and geopolitical tensions have led to economic instability and uncertainty, which has resulted in decreased vehicle production in the affected regions. Automakers face challenges in sourcing components, including wheel hubs, due to disruptions in the supply chain or trade restrictions.
Geopolitical tensions and the imposition of trade restrictions have also hindered international trade flows and market access. Trade barriers, tariffs, or sanctions have limited the export/import of automotive components, including wheel hubs. This has impacted the availability and affordability of wheel hubs in affected markets.
Market Segments
- By Type
- Alloy Wheel Hubs
- Steel Wheel Hubs
- By Application
- Commercial Vehicle
- Passenger Vehicle
- By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
FAQs
What is the size of automotive wheel hub market?
The overall market revenue is expected to reach USD 80.34 Billion in 2023 and could account for USD 135.73 Billion through 2032.
Why is the demand for alloy wheel hubs rising?
Automotive wheel hubs market revenue from alloy segment could gain traction as they improve the performance of the vehicle.
How will passenger vehicles drive wheel hub industry growth?
Passenger vehicles are expected to contribute a major revenue share in the overall market owing to increasing population and rapid urbanization.
What Asia Pacific a potential growth ground for automotive wheel hub business?
APAC automotive wheel hub industry is poised to garner significant growth owing to increasing production and adoption of electric vehicles.
Objectives of this report:
- To estimate market size for automotive wheel hub market on regional and global basis.
- To identify major segments in automotive wheel hub market and evaluate their market shares and demand.
- To provide a competitive scenario for the automotive wheel hub market with major developments observed by key companies in the historic years.
- To evaluate key factors governing the dynamics of automotive wheel hub market with their potential gravity during the forecast period.
Customization:
This study is customized to meet your specific requirements:
- By Segment
- By Sub-segment
- By Region/Country
- Product Specific Competitive Analysis
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