The market for metal finishing chemical is expected to grow at a CAGR of around 5% globally. Major factor driving the market studied is the increasing automotive fleet size, along with increased demand for durable and wear resistant products. On the flip side, replacement of metals by plastics and unfavorable conditions arising due to the COVID-19 outbreak is hindering the growth of the market.
- Growing adoption of bio-based cleaning chemicals is anticipated to create further growth opportunities for the market.
- The automotive industry is expected to dominate the end-user industry segment of the global metal finishing chemical market as it offers properties such as corrosion resistance, wear and tear resistance, electrical conductivity among others.
- Asia-Pacific region represents the largest market and is also expected to be the fastest-growing market over the forecast period owing to the consumption from countries such as China, India, and Japan.
Key Market Trends
Increasing Automotive Fleet Size
- Increased demand in automotive sector is generating significant opportunities for innovation in the automotive aftermarket, which in turn surge the demand for metal finishing chemicals.
- These chemicals exhibit properties such as corrosion resistance, wear resistance, electrical conductivity, electrical resistance, reflexivity and appearance, torque tolerance, hardness, and chemical resistance to base metal substrate.
- Metal finishing is used in various vehicle parts, such as engines, other under-the-hood components, power steering systems, brake parts and systems, air conditioning components and systems, chassis hardware, climate control components, and fuel systems.
- Automotive components are finished by utilizing various materials like zinc and nickel for corrosion resistance, gold for improving appearance of exterior parts, and palladium for superior corrosion and wear resistance.
- However, there was a decline of vehicle production by 5.2% globally, compared to 2018, because of sales declining in regions like China and Europe. Furthermore, the market has further growth potential with adoption of technologically more advanced cars which in turn will boost the market for metal finishing chemicals.
Asia Pacific Region to be the Fastest Growing Market
- Asia-Pacific is anticipated to witness the highest CAGR during the period on account of rapid expansion of automobile industry and growing industrial machinery end use sector in the region.
- The increasing investments and production in the automotive industry, rising electrical and electronics production, and surging demand for heavy equipment, with multinational companies investing in the industrial sector, are some of the major factors driving the demand for metal finishing in the region.
- China is the largest manufacturer of automobiles globally. The automotive sector in China is shaping up for product innovation, with the country focusing more on manufacturing products, to enhance fuel economy and minimize emissions, because of increasing environmental concerns owing to rising pollution levels in the country.
- The Japanese metal finishing market is primarily driven by the increased usage in the aerospace sector, which increased significantly in the last few years due to the advancements in technology and R&D supported by the government.
- The Japanese aerospace industry manufactures aircraft components for commercial and defense aircraft. The production of commercial aircraft has been increasing over the past couple of years, owing to the increasing cargo demands.
- Due to the aforementioned factors, the demand for metal finishing chemical is expected to increase in the region during the forecast period.
The Global Metal Finishing Chemical Market is partially consolidated in nature with a few major players dominating a significant portion of the market. Some of the major companies are Atotech, Chemetall, Dow, ELEMENTIS PLC and McGean-Rohco Inc. and among others.
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