Chemical Surface Treatment Market Overview
Chemical Surface Treatment Market size is forecast to reach $16.30 billion by 2025, after growing at a CAGR of 5.10% during 2020-2025. Chemical surface treatment refers to Aluminum surface modification through chemical processes. This form of surface treatment is cast-off most frequently as a pre-treatment process for the subsequent finishing operations, such as powder coating or anodizing. Chemical surface treatment is utilized to improve the aluminum corrosion performance.
Asia Pacific is expected to be one of the largest markets for chemical surface treatments during the forecast period. Growth in Asia Pacific region is due to large industrial base and augmented demand for automobiles.
Plating chemicals segment is expected to grow during the forecast period as they are in high demand by industries like electronics, jewelry, and plastic, among others. Plating is performed for increasing aesthetic value and appeal of a product.
Transportation segment is foreseen to hold significant share in the chemical surface treatment market attributed to the increased use of these chemicals in surface treatments of shock absorbers, heat sinks, gears, cylinders, and capacitors.
By Chemical Type – Segment Analysis
Plating chemicals segment held a significant share in chemical surface treatment market in 2019. The growth of this segment of the market can be attributed to the suitability of plating chemicals for use in various end-use industries such as transportation, industrial machinery, and construction. Growing adoption to plating to reduce scrap rate, bath solution losses, and improved quality of the surface is further fueling the segment growth.
Moreover, cleaning chemicals segment is projected to grow at a significant pace as they are used in industries for cleaning and degreasing substrates before they are plated. They also remove oils and coolants, lapping compounds, carbon smut, metal oxides, and various other soils from surfaces during various surface treatment processes.
Conversion coating allows for a product to be treated electro-chemically. Thus, not only adding decorative value but also providing for corrosion protection. These include procedures like parkering and chromate conversion coating.
By Base Material – Segment Analysis
Plastics segment held a significant share in chemical surface treatment market in 2019. The growth of this segment of the market can be attributed to the preference given to plastics over metals in various end-use industries such as transportation and construction as they are lightweight. Moreover, plastics also offer ease of fabrication as they can be easily formed and machined. Moreover, they require reduced finishing. Its booming utility in automotive as well as general industry is because of its lightweight and better chemical resistance over metals. Chemical polishing is used for aesthetic surface treating and pre-treatments for other surface finishes, and is a very effective treatment method in terms of production efficiency and costs. Phosphating is a chemical process for treating the surface of steel, where barely soluble metal-phosphate layers are formed on the base material. Passivation is a chemical treatment applied to the surface of stainless steel to remove contaminants and assist the formation of a continuous chromium-oxide, passive film.
By End-Use Industry – Segment Analysis
Transportation segment held a significant share in chemical surface treatment market in 2019 growing at a CAGR of 5.5% during the forecast period. The growth of this segment of the market can be attributed to ongoing urbanization, increasing number of vehicles, and improving road infrastructure across the globe that have resulted in increased number of personal vehicles, worldwide. According to the International Organization of Motor Vehicle Manufacturers, the contribution of the automotive industry plays a crucial role in the economy of any country, and according to the data available from this organization; the automotive industry registered an increase of 4.5% in its production in 2016 as compared to 2015. According to OICA, the number of passenger vehicles production increased from 68,539,516 units in 2015 to 71,750,946 units in 2018. Hence, increase in number of vehicles is expected to drive the chemical surface treatment market.
However, due to the outbreak of the novel coronavirus (COVID-19), automobile and component manufacturing plants are being shuttered around the world, consumer footfalls in showrooms have fallen sharply, vehicle sales are dropping dramatically and almost every major industry event is either being cancelled or going the digital way.
Geography- Segment Analysis
Asia Pacific dominated the chemical surface treatment market with a share of more than 35%, followed by North America and Europe. The growth of the Asia Pacific chemical surface treatments market can be attributed to the large industrial base in the region and increased demand for automobiles. In addition, several initiatives undertaken by governments of different countries of the Asia Pacific region to attract investments from various international companies are also expected to propel the growth of the Asia Pacific chemical surface treatments market during the forecast period. The demand for technical etchants and treatment chemicals is quickly growing due to their usage in a broad range of applications, including manufacturing, medical, and the advent of lighter as well as cheaper methods for attaining superlative mechanical stress withstanding capabilites is expected to augment the market growth.
Drivers – Chemical Surface Treatment Market
Usage of chemical surface treatments in wide range of end use industries
Chemical surface treatments are used in a wide range of end-use industries such as transportation, industrial machinery, packaging, and construction, among others as they offer corrosion resistance, wear resistance, electrical conductivity, electrical resistance, reflexivity, torque tolerance, hardness, and chemical resistance to base substrates. Increasing demand for automobiles and growing number of infrastructure projects in various emerging economies is expected to drive the chemical surface treatment market.
The utility in consumer as well as industrial construction is booming. Industries utilize these surface treating chemicals in construction for residential as well as commercial infrastructure. This is because of the wear resistance as well as corrosion resistance properties induced by chemical treatment. The development of heavy machinery is promoting the chemical surface treatment market as well because of the need to protect them from wearing and controlling friction. They are also augmented in terms of hardness because of the various properties induced by chemical treatment.
Stringent government regulations
The formulation and stringent implementation of various government regulations on the use of plating chemicals, which are hazardous to human health, are major challenges for the growth of the chemical surface treatments market during the forecast period. The European Union has put into effect an integrated Pollution Prevention and Control Directive in to restrict the utilization of harmful chemicals that might have a negative effect on the overall growth of the chemical surface treatment market in this region.
Concerns regarding the effects of chemical surface treatment have caused the majority of manufacturers to shift the focus from chemicals to green (bio-based) chemicals, in order to abide by the different stringent policies brought into the industry by the authority. Green chemicals are not only environment-friendly but also cost-efficient as compared to their conventional counterparts. These chemicals are produced using animal and plant extracts as well as manufactured by implementing environment- friendly procedures.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the chemical surface treatment market. In 2019, the market of chemical surface treatment has been consolidated by the top five players accounting for xx% of the share. Major players in the chemical surface treatment market are Brite Company, Advanced Chemical Company, Atotech Deutschland GmbH, Chemetall, Inc., DOW, Henkel AG & Co. KGaA, Nihon Parkerizing Co., Ltd., NOF Corporation, Platform Specialty Products Corporation, and PPG Industries, Inc., among others.