The Global Metal Finishing Chemicals Market is expected to grow at a high CAGR of 4.2% during the forecasting period (2022-2029).
Metal Finishing utilizes a variety of chemical substances during the processing in tanks to electroplate, facilitate smooth texture and treat parts. The most common chemicals used in metal surface finishing processes are nitric acid, ammonia, hydrochloric acid, sulfuric acid, sodium hydroxide, hydrofluoric acid, phosphoric acid and others.
The chemicals can evolve from the surface of the process tank as a gaseous vapour or liquid mist to avoid worker exposure and prevent corrosion to equipment and building structures. Surface finishing is applied to millions of components, parts and devices of several industries. the surface finishing chemicals are used in several manufacturing processes such as plating, electroplating, anodizing, polishing, carbonizing, plasma spray coating and others.
The processes use certain finishing chemicals to offer several benefits including corrosion protection, improved appearance, wear resistance, lubricity and physical enhancement of a substrate. Surface Finishing is used across a number of markets from simple workshops to huge industries of metal and critical components.
Metal finishing chemicals are substantially used in end-user industries such as industrial machinery, automotive, electrical & electronics, construction, aerospace & defence and among others.
The global metal finishing chemicals market is driven by rising demand in automotive production to provide good chemical stability, better surface finishing, corrosion resistance and minimum attrition of the automotive parts. Metal chemicals are non-toxic and soluble in water formulated in exact composition as per the required applications. Further increasing industrialization with a surge in manufacturing facilities of electronics, electrical and aerospace sector parts and devices have propelled the metal finishing chemicals market.
Rising demand for metal finishing chemicals in growing automotive production sector due to rising global sale of the vehicles
The market is driven by the surge in the production of automotive and automotive components, accessories with the surge in vehicle sales have propelled the metal surface finishing chemicals market. As surface finishing chemicals provide a better physical appearance to the automotive components, enhance the corrosion-resistant properties and facilitate cleaning, burr removal and degreasing of metal such as steel, aluminium and nickel among others.
Increasing production of the vehicles due to the growing sale of the vehicles around the globe has impelled the surface finish chemicals segmental growth. For instance, as per the International Organization of Motor Vehicle Manufacturers (OICA) in 2019, global passenger and light commercial vehicle production reached around 67,149,196 and 20,223,655 units respectively. It created massive demand by the OEMs of the automobile sector for the metal finishing chemicals market.
Increasing industrialization with the surge in manufacturing facilities of electronics, electrical and aerospace sector parts and devices have propelled the metal finishing chemicals market
Metal finishing chemicals are used in the manufacturing facilities of electronics & electrical devices, aerospace components and parts for better surface finish. Rising sales of the electronics devices such as smartphones, tablets, laptops, etc. with the growing expansion of the production facilities have propelled the metal surface finishing chemicals market.
For instance, as per the International Monetary Fund in 2019, smartphone sales reached 1.37 billion around the globe and is increasing expansion production capacity of smartphones in developing region have propelled the metal finishing chemicals market. For instance, on 6th Nov 2019, China's Vivo expanded mobile production capacity to 33.4 million per year in India.
Further on 6th Nov 2019, Vivo mobile manufacturer expanded its annual production capacity by 8.4 million units due to growing demand in developing countries. Thus it created a massive demand for metal finishing chemicals in these industries to facilitate a better surface finish.
The launch of advanced bio-based metal finishing chemicals by the leading players is expected to strengthen the market growth
The growing use of bio-based chemicals for cleaning and surface finishing as well as several leading players launching new chemicals for the industrial and automotive manufacturing sector has created huge opportunities for the growth of the metal finish chemicals market. For instance on 21st April 2016, Houghton International launched a new heavy-duty bi-metal honing fluid for the Automotive Market Houghton International has launched a new water-based metal removal fluid for use in automotive honing operations.
The product provides high lubricity & detergency and improves machining performance by complying with all global chemical regulations. Further growing demand and sale of consumer electronics and appliances have created a huge demand for the global metal finishing chemicals market. For instance, as per the India Brand Equity Foundation Organization in 2019, the consumer electronics and appliances sale reached around US$ 10.93 billion and is projected to reach around US$ 21 billion by 2025 in India.
COVID-19 Impact Analysis
The global metal finishing chemicals market has shown immense declination due to the Covid-19 pandemic, as several leading manufacturing industries were closed. Several countries have restricted production activities during the covid-19 pandemic. Further, the growth of the automotive, electrical & electronics, as well as aerospace industry, was also declined due to low demand in June 2020.
For instance, Indian car sales dropped by 41% from April to June. Further, as per the International Labour Organization report, factory closures in Europe and North America have affected some 2.5 million passenger vehicles to be removed from production schedules, which costs US$ 77.7 billion in lost revenue for automotive and parts manufacturing companies due to Covid-19 lockdown in March to June 2020.
However, the demand for metal finishing chemicals is slightly increased in August 2020, as several leading manufacturers started production. The leading manufacturers of electrical coating insulation have planned the investment for enhancing the production of automotive and electronics equipment due to growing demand. Further increasing demand for medical device manufacturing during the covid-19 pandemic created a huge opportunity for the metal finishing chemicals market. Further demand for metal finishing chemicals will increase as soon as the pandemic is over.
The global metal finishing chemicals is segmented based on type, process, material, end-user and region.
Rising demand in the automotive sector with the surge in the global sale of passenger vehicles have propelled the polyurethane resins market
In terms of product, the global metal finishing chemicals are bifurcated into conversion coating chemicals, plating chemicals, cleaning chemicals and proprietary chemicals. Among these, conversion coating chemicals has the highest market share in 2019, owing to rising demand in the manufacturing facilities of the aerospace and defence industries.
These chemicals protect aluminium against corrosion and can also protect against the loss of electrical conductivity. Hence widely used in the aerospace and defence industry. As per the Aerospace industry association report in the United States, the aerospace and defence industry contributed around US$ 374 billion to its represented 1.8% of the entire United States GDP. It created a massive demand for the conversion of coating chemicals in the country.
Similarly, plating chemicals, cleaning chemicals and proprietary chemicals are also growing at a faster pace owing to increasing demand by automotive applications with the surge in sales and production of passengers and vehicles around the globe. For instance, as per the International Organization of Motor Vehicle Manufacturers, the global passenger vehicles sale reached around 67,149,196 number units which propel the metal finishing chemicals market required in the manufacturing of the automotive components.
Increasing sale and production of cars that uses electroplating to add beauty, resistance and durability to metals have propelled the demand for the electroplating segmental growth for this market
Based on the process, the global metal finishing chemicals market is divided into plating, electroplating, anodizing, polishing, carbonizing, plasma spray coating and others. Among these electroplating has the highest market share owing to rising demand in the automotive components of the cars to protect from radiation, abrasion and other natural occurrences. Rising car production and sale have propelled the metal surface finish chemicals market. For instance, as per the cars group organization, global production of cars reached around 94.5 million which ultimately propels the electroplating segmental growth required in car components manufacturing.
Increasing expansion capacities of the automotive manufacturing plants around the globe have propelled the aluminium segmental growth around the globe
Based on material, the global metal finishing chemicals are divided into copper, precious metals, zinc, chromium, nickel, aluminium and others. Increasing manufacturing facilities of the automotive factories in the developing countries coupled with growing population demand and surge in disposable income have propelled the demand for the aluminium segmental growth.
Increasing demand and sale of electric vehicles with government investment and initiatives have propelled the demand for the metal finishing chemicals market
Based on the end-user, the global metal finishing chemicals market is divided into industrial machinery, automotive, electrical & electronics, construction, aerospace & defence and others. Among this automotive segment has the highest market share in 2019, this is primarily due to the increasing sale of electric vehicles and rising launching of new vehicles around the globe by the leading players. For instance, in 2018 as per the International Energy Agency Organization, global electric vehicle sales reached around 5.2 million increased by 63% as compared to 2017.
Asia-Pacific region holds the largest market share global Metal Finishing Chemicals Market
Asia-Pacific region is dominating the global metal finishing chemicals market accounted for the largest market share in 2019, due to the presence of several manufacturing companies, growing industrialization and rising investment by the leading players in this region followed by North America and Europe. Further increasing government and private companies investing in the Asia-Pacific region for several projects have propelled the demand for the metal finishing chemicals market in this region.
Further increasing production facilities of the electric vehicles due to the surge in its sale in this region have created immense demand for the metal finishing chemicals in this region. For instance, as per the International Energy Agency report in 2019, China’s electric vehicle sales reached around 2.3 million cars representing around 45% of the world’s electric cars in 2018 whereas Europe accounted for 24% of the global fleet and the United States 22%.
The Metal Finishing Chemicals Market is moderately competitive with the presence of local as well as global companies. Some of the key players which are contributing to the growth of the market include Wuhan Jadechem International Trade Co., Ltd, ELEMENTS PLC, DOW, NOF CORPORATION, COVENTYA International, Metal Finishing Technologies, Atotech, Houghton International Inc., Chemetall GmbH, Coral, McGean-Rohco Inc., A Brite Company, C.Uyemura & CO., LTD., Grauer & Weil (India) Limited, Henkel Adhesives Technologies India Private Limited., Industrial Metal Finishing, Inc., Quaker Chemical Corporation, RASCHIG GmbH and others.
The major players are adopting several growth strategies such as product launches, acquisitions and collaborations, which are contributing to the growth of the Metal Finishing Chemicals Market globally. For instance, on 13th Nov 2019, Chemetall planned the expansion of its production site in Langelsheim, Germany. This completes the expansion of the production site in Lower Saxony which mostly focuses on the development and production of Naftoseal aircraft sealants require in the aerospace industry. Further, on 12th March 2019, BASF expanded a new process catalysis research & development centre with manufacturing capabilities with an investment of around US$ 40.4 million for innovation scope in Asia-Pacific.
Overview: Elementis plc is one of the leading manufacturers of speciality chemicals and personal care, coating, chromium, energy and talc business with extensive operations in the United States, Europe and Asia. Elementis employed over 1,600 people at more than 30 locations worldwide.
Product Portfolio: The company has a product portfolio of electrical coating insulation that includes:
Key Development: On 20th December 2018, Elementis plc completed the acquisition of Advantaged Manufacturing Site in India to enhance production facility to meet the identified growth in Asia.
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