The global metal finishing chemicals market is projected to reach USD 11.21 Billion by 2021 at a CAGR of 4.7%. The metal finishing chemicals market has witnessed significant growth in the recent years, and this growth is projected to persist in the coming years as well. Metal finishing chemicals are used in a wide range of end-use industries such as automotive, industrial machinery, aerospace & defense, electrical & electronics, construction, and others as these impart properties such as corrosion resistance, wear resistance, electrical conductivity, electrical resistance, reflexivity and appearance, torque tolerance, hardness, and chemical resistance to base metal substrates.
Different types of metal finishing chemicals are also covered in the report, the main types being plating chemicals, cleaning chemicals, conversion coating, proprietary chemicals, and others. The plating chemicals type segment is estimated to have accounted for the largest market share in 2016 due to their suitability in several application areas, while cleaning chemicals is the fastest-growing type segment in the metal finishing chemicals market due to their increasing acceptance in various end-use industries such as automotive, industrial machinery, electrical & electronics, and construction. Cleaning chemicals help in effective metal finishing by fulfilling the requirement for cleaning and degreasing metal substrates before being plated. The demand for cleaning chemicals is growing as these chemicals remove oils and coolants, lapping compounds, carbon smut, metal oxides, and most other oils deposited on metal surfaces during various metal finishing processes.
Metal finishing chemicals are used in various end-use industries such as automotive, industrial machinery, electrical & electronics, aerospace & defense, construction, and others, which are the main end-use industries considered in the report. In 2015, the automotive end-use industry accounted for the largest market share, in terms of value, followed by electrical & electronics, industrial machinery, construction, and others. The construction industry is projected to grow at the highest CAGR from 2016 to 2021 among all the end-use industries considered. Metal finishing is done on metal substrates to obtain excellent corrosion resistance, wear resistance, electrical conductivity, electrical resistance, reflexivity and appearance, torque tolerance, hardness, and chemical resistance, and thus are in high demand for construction applications such as frames for doors and windows, aluminum, steel, and zinc metal finishing.
North America, Europe, Asia-Pacific, Middle East & Africa, and South America are the main regions considered for the metal finishing chemicals market in the report. North America is the largest metal finishing chemicals market. The rising demand for metal finishing chemicals in this region is mainly driven by their increased use in electrical & electronics and automotive industries. Europe is the second-largest consumer and manufacturer of metal finishing chemicals, globally. The Asia-Pacific region is the fastest growing region in the metal finishing chemicals market, which is mainly driven by the growing demand from the automotive industry and also from the growing industrial machinery end-use sector. Automotive and electrical & electronics are the top two end-use industries contributing to the growing demand for metal finishing chemicals globally. The Middle East & Africa is the second fastest-growing region after the Asia-Pacific region due to the growing electrical & electronics industry.
Though the metal finishing chemicals market is growing at a significant rate, a few factors such as the high price of raw materials, shift of the end-use market from developed countries to emerging countries, and the rising cost of production hinder the growth of the market, globally.
Atotech Deutschland GmbH (Germany), Chemetall (Germany), The Dow Chemical Company (U.S.), Elementis plc (U.K.), and Platform Specialty Products Corporation (U.S.) are the leading companies in this market. These companies are projected to account for a significant share of the market in the near future. Entering into related industries and targeting new markets will enable the metal finishing chemicals manufacturers to overcome the effects of volatile economies, leading to diversified business portfolios and increase in revenues. Other major metal finishing chemicals manufacturers are, Advanced Chemical Company (U.S.), Coral Chemical Company (U.S.), Houghton International, Inc. (U.S.), McGean-Rohco, Inc. (U.S.), and NOF Corporation (Japan).