Physical Vapor Deposition (PVD) Faucet Finishes Market Analysis Report By Color Variation (Chrome, Nickel, Rose, Black, Gold), By Application (Home, Hotel), By Region (U.S., Germany, China), And Segment Forecasts, 2015 - 2020

Industry Insights

The physical vapor deposition (PVD) faucet finishes market size in the U.S., Germany, and China was valued at USD 8.93 billion in 2016. Demand is driven by economic recovery in the U.S. and Germany. Increased spending by global hotel chains on premium hospitality services is an important trend observed in the industry. The market is likely to witness high demand due to expanding residential sector across the U.S., Germany, and China.

The market is fragmented in nature and characterized by the presence of major manufacturers such as GROHE AG, Hansgrohe SE, and Kohler Co. Physical vapor deposition faucet finishes are available in various colors such as chrome, nickel, and rose by molecularly binding the color through physical vapor deposition process. Products offered by manufacturers differ in terms of specification and are available in all price ranges. Competition among the manufacturers has intensified with global players entering the market through acquisition of prevailing regional or domestic market players.

The market is driven by rise in urbanization rates and government support for the construction industry in the form of lower interest rates on home loans and tax waivers. Urbanization rate in developing economies such as China is outpacing the rate in U.S. and Germany. Growing preference for modular kitchens is another factor fueling demand for these products.

The rebound of the construction industries in North America and Europe since the economic downturn has created demand for bathroom and kitchen accessories such as bidets, showerheads, and related plumbing accessories. The U.S. market was valued at USD 1,903.9 million in 2016 and is likely to register a CAGR of 5.0% from 2017 to 2020. Rise in construction of new homes is leading to high demand for kitchen and bathroom faucets in the U.S. market.

Faucets play a key role in conserving water and global concerns over water conservation is another factor contributing to the overall demand. Retailers in U.S. states, including California, Texas, Georgia, and Colorado, under the U.S. Energy Policy Act of 1992, are required to sell bathroom accessories that use minimal amount of water. As per the policy, toilet water usage should not exceed 1.28 gallons per flush. The rest of the states are likely to follow the norms laid down by the act. This, in turn, is expected to augment the demand for certified WaterSense faucets with consumers looking to replace existing products and other plumbing fixtures.

Color Variation Insights

Chrome physical vapor deposition faucet finishes are durable, ideal for secondary bathrooms, especially those used by children, and do not require periodic maintenance. In the U.S. and Germany, chrome products are mostly preferred for use in homes rather than in hotels as they do not leave hard water stains and fingerprints after use. Polished chrome products are preferred for hotel use, particularly when hotel chains want to add a vintage and classy finish to their bathroom interiors.

Nickel PVD faucets are anticipated to witness high demand in China over the forecast period. The major factor contributing to its growth in demand is rising disposable income of middle-class population.

Application Insights

Home users prefer aesthetically appealing and operationally superior interior home improvement products such as fixtures. Incorporation of advanced technologies such as sensor-based and thermostatic in PVD faucets makes them immensely user-friendly. This factor is key in propelling the demand for these products for use in kitchen and bathroom applications.  

PVD faucets are nontoxic to the environment as compared to traditional powder coated products. They are also a lead-free alternative, which enables their use in hotels. This is in line with regulatory requirements, especially in developed economies of North America.

Country Insights

The physical vapor deposition faucet finishes market in U.S. was primarily driven by the growth of the home and hotel construction sectors. The U.S. market is characterized by product expansion by manufacturers, price-based competition among manufacturers, and acquisitions by global brands.

The hotel industry in Germany is booming as many international visitors, including Europeans, consider the country a business destination. According to Germany’s Federal Ministry for Economic Affairs and Energy, since 2012, the number of international stays by travelers in the country’s hotels increased by 46.1 million and reached 59.6 million in 2016. The home and hotel use segments in Germany are witnessing high demand for pull-down products with dual sprays due to easy operation.

In terms of volume, China was the largest segment in 2016, followed by U.S. and Germany. China held close to 80.0% share in 2016 and the trend is projected to continue over the forecast period. The growth of the construction industry is driving the demand in the country. The growth is also augmented by presence of government policies such as “Public Rental Housing (PRH)”, which provides affordable housing for people in the low-income bracket.

The Chinese government has also increased subsidies and credit support for such housing policies, which is expected to increase the number of public rental housing units annually. Consumers seeking houses through the PRH system prefer to install affordable faucets in their bathrooms, which is expected to fuel the demand for chrome and nickel PVD faucets.

PVD Faucet Finishes Market Share Insights

Major market players, such as Kohler Co.; Moen Inc.; Delta Faucets Company; and GROHE AG, are using various patented technologies, equipment, and designs to stay competitive in the market. Some of these technologies are water sense, motion sense, and spot resist, which help in enhancing user experience. Market players such as Moen Inc.; Kohler Co.; and GROHE AG often employ specialized design systems to ensure products are attractive and aesthetically appealing. A number of manufacturers are acquiring advanced technical expertise to develop faucets in all price ranges.

Legal policies also affect the growth of the industry. For instance, the Americans with Disabilities Act (ADA) provides design outlines for manufacturers to develop products that will enable easy access to people with disabilities in all public and commercial spaces. While some market players have already developed products adhering to ADA norms, others are also changing their faucet designs to follow suit and remain competitive in the market.

Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at country level and provides an analysis on industry trends in each of the sub-segments from 2015 to 2020. For the purpose of this study, Grand View Research has segmented physical vapor deposition (PVD) faucet finishes market report on the basis of color variation, application, and region.

• Color Variation Outlook (Volume, Number of Faucets; Revenue, USD Million, 2015 - 2020)

  • Chrome

  • Nickel

  • Rose

  • Black

  • Gold

• Application Outlook (Volume, Number of Faucets; Revenue, USD Million, 2015 - 2020)

  • Home Use

  • Hotel Use

• Country Outlook (Volume, Number of Faucets; Revenue, USD Million, 2015 - 2020)

  • The U.S.

  • Germany

  • China