The unexpected shifts in the global markets because of the sudden outbreak of the COVID-19 virus have brought many major and minor tremors to industries of all sizes including Magnesium Wheel Market. It was estimated prior to this unanticipated outbreak Magnesium Wheel Market will reach CAGR of 12.8% during the forecast period. However, the gradual slowing down of industries will undoubtedly impose limits on the previously estimated growth rate.
Market Insights
Magnesium Wheel Market is likely to witness a CAGR of 2.9% during the forecast period. The major factors such as increasing preference of automobile OEMs to lower vehicle weight to enhance fuel efficiency coupled with lowering carbon emissions, increasing disposable incomes, growing preference for personal green mobility solutions along with the growing demand for premium & sports cars and bikes is expected to fuel the growth of the market during the forecast period.
Segment Analysis
Magnesium Wheel Market Share: By Manufacturing Type Based on the manufacturing type, the market is segmented as cast and forged. The cast manufacturing type is projected to account for the major share of the market owing to its lower cost of production. Factors such as lower complexities in casting along with easier fabrication processes, and uniform grain structure coupled with the availability of multiple manufacturing processes are further expected to boost the growth of the segment during the forecast period. On the other hand, the forged segment is estimated to witness significant growth rate in the market on account of its various advantages, such as higher tensile strength, capability to bear heavier loads as compared to cast products, and lower weight. These types of wheels are ideal for high-speed automotive applications, fueling the overall industry growth over the forecast period.
Magnesium Wheel Market Share: By End-Use Type Based on the end-use type, the market is segmented as OEM and aftermarket. OEM is anticipated to account for the major share of the market on account of growing preferences of automobile manufacturers to incorporate high-end features in their vehicles to enhance their aspirational value. Moreover, enhanced quality of riding & comfort on uneven roads and excellent damping abilities are further expected to fuel the overall market growth during the forecast period. On the other hand, aftermarket is projected to witness significant growth rate owing to increasing consumer preferences for customizing their vehicles in the aftermarket during the forecast period.
Magnesium Wheel Market Share: By Vehicle Type Based on the vehicle type, the market is segmented as bikes and premium/sports cars. The bike vehicle type is estimated to register higher growth rate in the market on account of increasing traffic congestion and easier maneuverability across various cities & towns during the forecast period. Its light weighted wheel helps in enhancing the efficiency of bike and riding with ease and comfort, fueling the segment’s growth during the forecast period. Moreover, premium/sports car is projected to witness significant growth in the market during the forecast period owing to the growing demand for such cars with technologically-advanced properties, which results in an improved performance of the vehicle.
Regional Analysis In terms of regions, Europe is estimated to be the leading region in the market owing to the presence of some of the key automobile manufacturers in the region, launching new and improvised vehicles to meet consumer’s demand during the forecast period. Moreover, Asia-Pacific is also estimated to witness significant growth in the market on account of increasing disposable income and growing preferences for personal mobility in the region over the forecast period. North America is also expected to offer substantial growth opportunities during the forecast period.