Metal Finishing Chemicals Market Report

Metal Finishing Chemicals Market Analysis, By Product (Plating Chemicals, Cleaning Chemicals, Conversion Coatings), By Process (Electroplating, Electroless Plating, Chemical & Electrochemical Conversion), By Application And Segment Forecasts, 2014 - 2025

Published: August 2017  |  101 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-995-1

Industry Insights

The global metal finishing chemicals market size was valued at USD 9.08 billion in 2016. The market is expected to show significant growth over the forecast period owing to the increasing automotive manufacturing in emerging economies including China, India, Mexico,Indonesia and Thailand. In addition, favorable government policies in these countries promoting the growth of automotive development and manufacturing is likely to fuel demand

The increasing demand for the product can be accrued to the altering/controlling surface properties of metal substrates by imparting surface properties including corrosion & wear resistance, reflectivity, hardness, electrical conductivity, chemical & tarnish resistance, electrical resistance and appearance is expected to augment growth. 

U.S. metal finishing chemicals market revenue by application, 2014 - 2025 (USD Million)

U.S. metal finishing chemicals market

The rising demand in China, Japan, India, Taiwan and Korea for manufacturing printed circuit boards and other electrical components including semiconductor devices and connectors is expected to drive the market over the forecast period.

Asia Pacific is expected to witness the fastest growth over the forecast period owing to high production volume of passenger cars and light weight commercial vehicles in the region, particularly in China, India, Thailand and Indonesia. Moreover, prevalence of major automotive manufacturers in the region including Toyota Industries, Komatsu and Nissan Motor company along with increasing government spending in India and China will create immense potential over the upcoming years.

Growing electric vehicles sales in China owing to the government subsidies and the presence of major players including Hangzhou Changjiang, Beijing Electric Vehicle Co, BYD Auto Ltd and Passenger Vehicle Co will further accelerate the demand for the product in automotive plating and cleaning.

The easy and abundant availability of various raw materials including metal salts, alkalis, phosphates and chromates and the presence of large number of players including DOW Chemicals, BASF and MacDermid Enthone in China, Germany and US will drive the demand over the forecast period. However, the fluctuation in raw material price and the regulations on storage, recycling and disposal of these products is likely to hinder the industry growth over the upcoming years.

Technological Insights 

Electroplating was the dominant metal finishing process and accounted for 43.8% of the total revenue in 2016 owing to its lower cost in comparison with electro less plating and galvanization. However, stringent environmental regulations on cadmium and chromium electroplating is likely to hinder growth.

Electroless plating is expected to witness the fastest growth over the forecast period owing to the rising usage in electronics and electrical sector. In addition, the ability of electroless plating to provide an even finishing in comparison with electroplating is expected to drive the market.

Application Insights 

Automotive was the prominent segment and was valued at USD 3.39 Billion in 2016. The increasing usage of this product in protecting automotive parts including body, engine, shock absorber, rim, gears, cylinder and radiator against corrosion and chemical reaction is expected to fuel industry expansion. In addition, factors including favorable government initiatives, rising disposable income, changing lifestyle and rapid urbanization will further propel market growth over the next eight years.

The electrical and electronic segment is expected to witness a significant revenue growth at a CAGR of 4.9% from 2017 to 2025 owing to the increasing usage of these products in manufacturing printed circuit boards, semiconductor devices and connectors in countries including China, India, Taiwan and Japan.

Product Insights 

Plating chemicals were the dominant product segment and accounted for 40.9% of the overall revenue in 2016 owing to its superior characteristics including wear resistance, corrosion resistance, electrical conductivity and hardness in comparison with all the other metal finishing chemicals. In addition, rising usage of these chemicals to produce desired properties including corrosion inhabitance, wear resistance and electrical conductivity on metal substrates is expected to drive the demand.

Global metal finishing chemicals market by revenue, by product 2016 (%)

Global metal finishing chemicals market

However, cleaning chemicals market is expected to witness the fastest growth over the forecast period owing to its growing acceptance in end use industries including aerospace, automotive and industrial applications. Asia pacific is expected to be the largest market owing to growing automotive and industrial sectors.

Regional Insights 

North America was the largest market for metal finishing chemicals in 2016 and accounted for 32.6% of the overall revenue. North America is expected to show a steady growth over the forecast period owing to the growing automotive and construction sector in countries including Mexico, Canada and U.S.

In addition, presence of large number of players in the market including DOW Chemicals, Houghton Inc, Quaker Chemicals, Advanced Chemical Company, MacDermid Enthone. Coral Chemical Company, McGean-Rocho and A Brite Company is expected to augment industry expansion.

Europe was the second largest market in 2016 and accounted for 27.5% of the overall global revenue. Europe is expected to witness a steady growth over the forecast period owing to the increasing automotive manufacturing in countries including France, Italy and Spain. In addition, the presence of many metal finishing chemical manufacturers including BASF SE, Coventya, Atotech Deutschland GmbH, Rashig, Elementis and Henkel AG will fuel growth

However, Asia Pacific is expected to witness the fastest growth at a CAGR of 6.3% owing to increasing automotive manufacturing in countries including China, India, Indonesia and Thailand coupled with favorable government policies and the growing electronics and electrical sector in countries including Korea, China, Japan, India and Taiwan will fuel growth.

Competitive Insights 

The market is highly fragmented in nature. It comprises of prominent and well-established players as well as many small players who collectively captured the market in 2016.

The manufacturers have concentrated their businesses to North America and Europe although they have their distribution networks across the other regions. North America and Europe are the largest markets for metal finishing chemicals owing to the increasing demand from industries including automotive, electrical & electronics, aerospace and manufacturing

Key market players including Atotech Deutschland GmbH, Coventya, DOW Chemicals, BASF and Macdermid Enthone are focusing on expanding their distribution channels by establishing distribution centers, through mergers & acquisitions, and by forming new agreements with local distributors. Forward integration is not only limited to distribution networking but key market players are also developing new products owing to rise in application of metal finishing chemicals in the automotive and electrical & electronics sector.

In May 2017, Atotech developed Nichem HP 1151. This product offers a lead & cadmium free formulation and exhibits improved wear resistance, corrosion resistance and quality.

In April 2017, the company launched the “Neogath E Reducer” to reduce cost pressures within the PCB HDI industry.

Report Scope 

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                                                

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Germany, China, Brazil

Report coverage             

Revenue forecast, company share, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global metal finishing chemicals market on the basis of product, process, application and region:

  • Product Outlook (Revenue, USD Million, 2014 - 2025)

    • Plating Chemicals

    • Conversion Coating Chemicals

    • Cleaning Chemicals

    • Others

  • Process Outlook (Revenue, USD Million, 2014 - 2025)

    • Electroplating

    • Electroless Plating

    • Chemical & Electrochemical Conversion

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Automotive

    • Electrical & Electronics

    • Aerospace

    • Construction

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • Germany

    • Asia Pacific

      • China

    • Central & South America

      • Brazil

    • Middle East & Africa
Key questions answered by the report
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