South Africa Automotive Trailer Wheel Rims Market - Insights
Wheel rims are the skeleton structure located at the middle of a tire module designed to support the wheel in different conditions and also to support the tire alignment when the vehicles are moving. Trailer wheel rims are specifically designed to bear large amount of load for transportation purposes.
South Africa automotive trailer wheel rims market is expected to witness significant growth during the forecast period (2018–2026). The market growth is majorly attributed to increasing heavy vehicle production and growth of road transportation sector in the country, which is increasing demand for wheel rims for heavy vehicles. Furthermore, as per Coherent Market Insights’ analysis, growth of the automotive trailer wheel rims market is also propelled by the automotive industry growth. For instance, the government of South Africa has planned to increase the automobile production (includes automotive components, medium and heavy vehicles) to 1.2 million vehicles per year by 2020.
Figure 1. South Africa Automotive Trailer Wheel Rims Market Share (%), by Material (2017)
Source: Coherent Market Insights, 2017-18
Steel segment is expected to be the largest segment in South Africa automotive trailer wheel rims market during the forecast period, owing to its high strength properties during harsh environments such as mining, industrial, and construction sites. The steel wheel rims are processed through multiple processes while manufacturing, which includes the following processes:
After going through all these processes, the wheel rims are tested on multiple levels to check its durability and strength during working conditions. Some of the testing of wheel rims include fatigue testing (radial and cornering), weld penetration testing, and corrosion test.
Steel wheel rims are 70-80% cost-effective than alloy wheels, which makes it a best fit to keep a second set in the case of replacement due to heavy damage. Furthermore, steel wheels rims are generally heavier in weight when compared to alloy wheel rims, so if a steel wheel rims is put up on a vehicle that had alloy wheels-based suspension system, it lowers the speed of the vehicle and acts as a bulldozer or a tank.
South Africa Automotive Industry Trends:
Due to increasing developments in South Africa’s automotive industry, many automotive players are providing innovative products and solutions to meet the market needs in such a competitive market. For instance, in March 2014, Alcoa, the subsidiary of Arconic, introduced the world’s lightest heavy-duty truck wheels, which aids in reducing the overall weight of the vehicle. These wheels are 47% lighter than steel wheels of the same size.
Moreover, the production of commercial vehicles is projected to increase continuously, which will create investment opportunities for the investors. For instance, according to International Organization of Motor Vehicle Manufacturers, South Africa produced 25,162 commercial vehicles in 2017, which increased to 27,493 in 2018.
Figure 2. South Africa Automotive Trailer Wheel Rims Market Share (%), by Distribution Channel (2017)
According to Coherent Market Insights’ analysis, OEMs segment was the most dominant segment in 2017 and it is projected to be the fastest growing segment during the forecast period. This is owing to increasing heavy commercial vehicle production in South Africa and projected production plan of the government of the country.
Some of the key players operating in the South Africa automotive trailer wheel rims market include Arconic, BORBET GmbH, Burquip, Enkei, Globalwheels, JBH Wheels, MAXION Wheels, Stamford Sport Wheels, Titan International Inc., and TSW Alloy Wheels.
South Africa automotive trailer wheel rims market is expected to generate an absolute dollar opportunity of US$ 2.3 Bn during the forecast period of 2018-2026. This is owing to increasing heavy vehicle production in the country, which was 25,162 in 2017 and reached 27,493 in 2018, according to International Organization for Motor Vehicle Manufacturers. Moreover, the government of South Africa has planned to increase the production of automotive components, medium and heavy commercial vehicle production to 1.2 billion units per year by 2020, according to Coherent Market Insights’ analysis.
Trailer wheel rims is expected to witness significant adoption in the road transport & logistics applications during the forecast period. In South Africa, road transportation sector is considered as the backbone of the country’s economy. Moreover, increasing demand for heavy vehicles in transportation and logistics sector of the country is propelling demand for heavy vehicle production and thus, increasing the demand for automotive trailer wheel rims in South Africa. In addition, the demand for alloy wheel rims is becoming a trend, owing to its light weight and fuel efficient properties, and also its attractive physical appearance through its design.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.