Global Metal Finishing Chemicals Market to Reach $11.5 Billion by 2026

Metal finishing industry uses a wide range of chemicals and processes to etch, clean and plate both metallic and non-metallic surfaces to improve their appearance and surface characteristics. Growth in the metal finishing market is closely linked to the pace of economic growth and level of manufacturing activity, along with end-use market dynamics such as CAPEX investments in plant expansions and upgrades. In the pre-COVID period, growth was led by growing demand for wear-resistant and durable products continues to grow from various end-use industries is expected to fuel metal finishing chemicals market. The market benefited from stable automobile production trends, robust demand for consumer electronics/appliances and the parallel increase in production activity, steady recovery of the construction sector and the resulting improvement in business climate for related markets and technologies including heavy equipment and machinery. There was growing adoption of eco-friendly measures to ensure compliance with stipulated regulations. After the temporary hiatus in growth caused by the pandemic, the market will bounce back given the already existing strong commercial value of environmentally safe industrial metal finishing chemicals like cleaners and degreasers.

Amid the COVID-19 crisis, the global market for Metal Finishing Chemicals estimated at US$9 Billion in the year 2020, is projected to reach a revised size of US$11.5 Billion by 2026, growing at a CAGR of 4.2% over the analysis period. Plating Chemicals, one of the segments analyzed in the report, is projected to grow at a 4.1% CAGR to reach US$4.5 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Cleaning Chemicals segment is readjusted to a revised 4.8% CAGR for the next 7-year period. This segment currently accounts for a 25.9% share of the global Metal Finishing Chemicals market. Copper plating chemicals are expected to witness strong growth in demand, mainly due to the increasing use of copper interconnect technology. Cleaning chemicals segment is forecast to grow at the fastest led by their growing acceptance in several end-use sectors including industrial machinery, construction, aerospace, automotive, manufacturing and electrical & electronics. Cleaning chemicals continue to find increasing demand, due to their ability to remove metal oxides, carbon smut, lapping compounds, and oils and coolants that are deposited over metal surfaces during metal finishing processes.

The U.S. Market is Estimated at $2.2 Billion in 2021, While China is Forecast to Reach $1.8 Billion by 2026

The Metal Finishing Chemicals market in the U.S. is estimated at US$2.2 Billion in the year 2021. The country currently accounts for a 24.27% share in the global market. China, the world`s second largest economy, is forecast to reach an estimated market size of US$1.8 Billion in the year 2026 trailing a CAGR of 6.6% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.2% and 2.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.8% CAGR while Rest of European market (as defined in the study) will reach US$1.9 Billion by the end of the analysis period. The US remains a major market for metal finishing chemicals due to the presence of a large number of production facilities operated by automobile and electronics industry participants. European metal finishing chemicals market is forecast to record stable growth led by countries such as France, Spain and Italy, and the steady growth being seen in the manufacturing industry. Asia-Pacific ranks as the fastest growing regional market driven by industrial machinery, aerospace and automotive industries which are in their developing phase.

Conversion Coatings Segment to Reach $2.4 Billion by 2026

Conversion coatings are usually thin layers, which make the metal surface highly corrosion resistant and allow applied coatings to persist. Conversion Coatings significantly enhances the adhesive property of the metal surface and also prevents degradation. In the global Conversion Coatings segment, USA, Canada, Japan, China and Europe will drive the 3.8% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.4 Billion in the year 2020 will reach a projected size of US$1.9 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$265.3 Million by the year 2026, while Latin America will expand at a 5.4% CAGR through the analysis period.