Trivalent Chromium Finishing Market Report

Trivalent Chromium Finishing Market Analysis, By System (Plating, Conversion Coatings, Passivation), By Application (Decorative, Functional), By End Use, By Region, And Segment Forecasts, 2014 - 2025

Published: September 2017  |  112 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-676-9

Industry Insights

The global trivalent chromium finishing market size was valued at USD 255.36 million in 2016. The regulatory mandates to enforce the use of the product as a replacement for hexavalent is expected to be a key factor driving the global market growth over the forecast period.

Trivalent chromate is preferred in industries such as automotive, hydraulic, and heavy equipment manufacturing as it eliminates the hazards associated with hexavalent plating. The system also allows a layer of uniform thickness over the surface of the component with better throwing power, thus enhancing the productivity of metal and non-metal finishing operations.

U.S. trivalent chromium finishing market, by system type, 2014 - 2025 (USD Million)

U.S. trivalent chromium finishing market

The U.S. trivalent chromium finishing market was valued at USD 44.07 million in 2016 and is anticipated to register a CAGR of 5.4% from 2017 to 2025. The rising environmental concerns with regards to hexavalent chrome are expected to boost the demand for trivalent chrome in the country.

There has been a considerable rise in automobile sales in the U.S. on account of availability of cheaper fuel. The automobile manufacturers are providing various incentive schemes to boost vehicle sales. The increasing demand for automotive is in turn expected to encourage the trivalent chromium finishing growth as automotive component manufacturers have to comply with end-of life vehicles (ELV) directive, which mandates the use of trivalent chrome.

The increasing focus on predictive maintenance in the hydraulics industry, where chrome offers superior abrasive resistance is expected to have a positive impact on the overall growth. The emerging economies of Asia Pacific such as China, India, Japan, and others have registered an increase in construction activities, which is further expected to boost the chrome finished architectural components growth in the region over the forecast period.

However, the higher initial investments to set up a trivalent chrome facility is a challenge, as it affects the adoption rate of the system. The procurement, commissioning, and installation of these tanks incurs additional costs to the metal and non-metal finishing companies. 

System Insights

The trivalent chrome plating process meets stringent regulatory requirements laid down by REACH under the substance of very high concern (SVHC) regulations. The compliance of these regulatory requirements is expected to be one of the primary drivers for the growth of plating systems over the forecast period.

The plating system has emerged as the leading system segment accounting for 83.21% of the total revenue share in 2016. Plating has gained higher share as compared to coating and passivation systems on account of wide acceptance in industries such as automotive, appliance, and architecture.

It is being increasingly used in developed countries as they are more focused on complying with the environmental regulatory norms in the metal and non-metal finishing industries. Europe is widely recognized as the automotive manufacturing hub, which is a key factor driving the growth of plating systems in the European region. 

Application Insights

Increasing popularity of decorative application has resulted in the declining market share of functional plating in various end uses such as automotive, appliances, and architecture. The decorative application offers different types of shades, which impacts product differentiation and hence, is leading the growth of decorative applications. The use of chromium in decorative application enhances the look of components by making the surface glossy and resistant to corrosion.

The functional application uses a thick layer of chrome over the surface of the component to provide better resistance and protect it from dust and other particulate impurities. The functional chrome finds application in the refurbishment of worn-out components to increase the lifespan of the component. 

Europe trivalent chromium (chromate) market in decorative application market was valued at USD 57.70 million in 2016, expanding at a CAGR of 5.7% over the forecast period. Germany as a major manufacturing hub is expanding its production facilities, which is expected to increase the demand for decorative chromium. The presence of chrome finishing companies in large numbers within the European region which implies easy and cost-effective availability of chromium finishing is a key factor driving the growth of decorative chromium market in the region.

End-use Insights

Automotive has emerged as the major end-use segment and accounted for 43.12% of the global revenue share in 2016. The automotive industry can be further split into two-wheeler, passenger vehicles, and commercial vehicles, where two-wheelers are being widely used as they are economical, involve less maintenance cost, require lesser parking space, and are a viable option. The increasing demand for two wheelers has, in turn, resulted in the increased demand for trivalent chrome plated components as they help in improving the vehicles aesthetics.

The development of emerging economies on account of rapid industrialization and improving infrastructure is projected to boost the sales of commercial vehicles. Different types of decorative and functional chrome plating are widely used for components in commercial vehicles. These factors together are expected to result in increased demand over the forecast period. 

Regional Insights

Europe is estimated to be the fastest-growing regional segment at a CAGR of 5.6% from 2017 to 2025. The European market was valued at USD 65.40 million in 2016. The increased demand can be attributed to the presence of regulatory mandates set by the European Union, which are anticipated to impact the chromate component finishing industry. The growing trend toward compliance of regulatory norms is expected to fuel the demand over the next eight years.

Global trivalent chromium finishing market revenue, by region, 2016 (%)

Global trivalent chromium finishing market

In terms of revenue, Europe was the second-largest region followed by North America in 2016. Asia Pacific held the largest share in 2016 and the trend is projected to continue over the forecast period. The rapid growth of the automotive industry coupled with the rising demand for hydraulic & heavy machinery in Asia Pacific, which is one of the major end-user industries using trivalent chromium finished components, is projected to be an important driver.

Competitive Insights

The market is fragmented in nature with the presence of several global and regional players. MacDermid Incorporated, Atotech Deutschland GmbH, Sarrel Group, Chem Processing, Inc., Kakihara Industries Co., Ltd., Ronatec C2C, Inc. are some of the key players engaged in the research & development activities to develop new processes, which comply with the regulatory policies. Most of the key industry players are fully integrated across the value chain posing entry barriers for new players. 

Report Scope 

Attributes

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 and 2015

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, and the Middle East & Africa

Country scope

U.S., Germany, UK, Italy, China, India, Japan, and  Brazil

Report coverage      

Revenue forecast, competitive landscape, growth factors, and trends

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

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments covered in the report

This report forecasts revenue growth at global, regional & country level 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 trivalent chromate finishing market on the basis of system, application, end use, and region:

  • System Outlook (Revenue, USD Million; 2014 - 2025)

    • Plating

      • Decorative Plating

      • Functional Plating

    • Conversion Coatings

      • Decorative Conversion Coatings

      • Functional Conversion Coatings

    • Passivation

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

    • Decorative

    • Functional

  • End Use Outlook (Revenue, USD Million; 2014 - 2025)

    • Automotive

    • Oil & Gas

    • Aerospace

    • Hydraulics & Heavy

    • Machinery

    • Others

      • Appliance Industry

      • Architectural Industry

      • Fastener Industry

      • Hardware Industry

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

    • North America

      • U.S.

    • Europe

      • Germany

      • UK

      • Italy

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • Middle East & Africa 

Key questions answered by the report
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