Chromium Market

Market Overview

The global chromium market size was valued at USD 16.3 billion in 2021 and is projected to reach USD 23.4 billion by 2030, registering a CAGR of 4.1% from 2022 to 2030. Chromium has a wide variety of applications, some of which include the production of metal ceramics, chrome plating, refractory materials, dyes and paints, synthetic rubies, and alloys like ferrochromium stainless steel. Chromium can also be used in a variety of other applications. Ferrochromium alloy is generated from chromite by silicothermic or aluminothermic interactions with chromium metal. The International Organization of Motor Vehicle Manufacturers (OICA) forecasts that the global production of automobiles will reach 80,2 billion units in 2021, representing a 3% increase in comparison to the 77.7 billion units that will be produced in 2020. It is a widespread practice to employ chromium for electroplating and conversion coatings in the exterior and interior of vehicle parts. These coatings can be found on components such as steering wheel trims, gear shifters, licence plate frames, bumpers, and headlights, among other components. In a similar vein, chromium's resistance to corrosion makes it an excellent material for electroplating electrical and electronic components and machinery. Therefore, the key driver for the market is a growth in production of automobiles together with an increase in demand from the electronic industry. On the other side, there are potential risks to one's health linked with the usage of chromium, which may act as a barrier for market expansion.

Market Dynamics

Global Chromium Market Drivers

• An increase in demand from the electronic industry

Chromium's resistance to corrosion makes it an excellent material for electroplating electrical and electronic equipment, particularly for coating electro-galvanized steel, zinc, copper, and aluminium. Chromium's anticorrosive qualities make it an ideal material for electroplating. According to the Statistical Handbook of Japan 2021, the production and shipment of electronic equipment reached US$ 52.6 billion during the fourth quarter of 2020, and it is anticipated that this number will continue to rise over the course of the following years. Furthermore, Lenovo Group, a leading brand in consumer electronics and media, published the annual report for the fiscal year that ended in March 2021, which stated that the total revenue of the company reached US$ 60,742 million in the fiscal year 2020/21, an increase of 20 percent compared to the fiscal year 2019/20. The report also stated that the company's headquarters are located in Beijing, China. Recent research findings from the Semiconductor Industry Association (SIA) indicate that the United States invested approximately US$ 142.2 billion in the production of computers and approximately US$ 53 billion in consumer electronics such as cell phones, TV, and other applications of a comparable nature. It also claims that China's National IC Fund had spent US$ 39 billion as of July 2021, of which 69.7 percent had been allocated for front-end manufacturing to boost China's share of global semiconductor production. This information was found in the document.

Because of this, it is anticipated that the demand for chromium, which is used in the electroplating of electrical and electronic equipment, will increase as a result of such an increase in production and demand for electronic products and equipment. In the approaching years, the expansion of this market is most likely going to be driven by this factor.

Global Chromium Market Restraints

• Health hazards associated with the use of hexavalent chromium

Long-term contact with hexavalent chromium can cause serious adverse consequences on a person's health, including occupational asthma, perforated eardrums, eye irritation or eye damage, respiratory irritation, liver damage, lung congestion, kidney damage, respiratory cancer, and skin irritation. Chromium can also cause skin ulcers, which are referred to as chrome ulcers, if it comes into touch with skin that is not intact. In addition, consistent or extended exposure to 0.045 nanograms per cubic metre of hexavalent chromium could raise the risk of cancer among employees, as stated by the California Office of Environmental Health Hazard Assessment (OEHHA). Therefore, the potential health risks connected with the use of chromium may inhibit the expansion of the market.

Global Chromium Market Opportunity

• An increase in automobile production

According to a recent study that was published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached 16,763 units in Europe, 37,467 units in Asia, 3080 units in South America, 17,421 units in North America, 12,733 units in Western Europe, and 5180 units in other regions worldwide. The study also found that the number of new registrations of motor vehicles in other regions worldwide totaled 5180. The European Automobile Manufacturers Association (ACEA) said that the demand for new passenger cars in the European Union (EU) had a considerable increase of 25.2% from the months of January through June 2021, reaching a total of around 5.4 million units. Since the epidemic, there has been a growth in the amount of demand for the manufacturing and research and development of electric vehicles, according to a study that was only recently published by the International Netherlands Group (ING). It was reported that the global sales of new electric vehicles climbed by 50% in 2021 and are predicted to increase by 8% in 2022. [Citation needed] In addition, it is mentioned that the sales of electric vehicles have climbed by 14% in Europe, by 9% in China, and by 4% in the United States. Chromium is primarily used for electroplating and conversion coatings in the exterior and interior of vehicle parts such as steering wheel trims, console trims, gear shifts, licence plate frames, bumpers, headlights, and other similar parts. As a result, an increase in demand for automobiles and production of automobiles is expected to increase the demand for chromium. Chromium is primarily used for electroplating and conversion coatings. Because of this, it is projected that the expansion of the market would accelerate over the next several years.

Regional Analysis

The market is split into North America, Europe, Asia-Pacific, and LAMEA.

Up to 40 percent of the chromium market was owned by Asia-Pacific in 2021, making it the region with the greatest share. The metallurgical industry is driving up demand for chromium, which has resulted in an especially high level of consumption in this part of the world. As an illustration, the Japan Iron and Steel Federation forecasts that crude steel output in Japan would reach 96.3 million tonnes in 2021, representing a 14.9 percent increase in comparison to the 83.2 million tonnes produced in 2020. In addition, according to the most recent forecasts from the World Steel Association, India will generate 118.1 million tonnes of crude steel in 2021, which is a 17.8 percent increase in comparison to the amount it would produce in 2020. It goes on to forecast that the total amount of steel produced in China and South Korea will respectively reach 1,032.8 million tonnes and 70.6 million tonnes in the year 2021. In addition, the Japan Aluminium Association forecasts that total aluminium production in Japan would reach 690,2 thousand tonnes in the year 2020.

As a result, an increase in the production of metals in the region is anticipated to result in an increase in the demand for chromium in the manufacturing process. This is due to chromium's exceptional durability, toughness, corrosion resistance, and other features of a similar nature. During the period covered by the analysis, it is anticipated that this will propel the expansion of the chromium market.

Segmental Analysis

• Chromium Market Segment Analysis By Type

Because of the qualities and advantages offered by hexavalent chromium, the market for trivalent chromium maintained a sizeable share in 2021. This was mostly attributable to the growing demand for chrome plating as a result of the presence of hexavalent chromium. Trivalent chromium plating, for example, can be easily applied to a wide variety of metals, has greater adherence to irregular surfaces and geometries, can be applied even at lower temperatures, and offers superior resistance to heat, chemicals, and ultraviolet light, as well as temperature. This is in comparison to hexavalent chromium, which can be difficult to apply and only works on a limited number of metals. A commercial or industrial machine's entire product lifecycle is lengthened as a result of this factor, as well as its performance, its durability, the ability of the equipment to run more smoothly, and its overall product lifecycle length. In addition, in comparison to hexavalent chromium, trivalent chromium provides options that are less harmful to the environment, as well as greater quality, better coverage, an easier cleaning process, lower toxicity, and a smaller creation of hazardous waste. As a result of these advantages, its demand is growing at a faster rate than that of chromium hexavalent, which is anticipated to stimulate the expansion of the market in the future years.

• Chromium Market Segment Analysis By End-Use Industry

In 2021, the metallurgy sector dominated the Chromium Market, accounting for the majority of the market's revenue. As a result of the growing demand for chromium in the production of metals such as steel, aluminium, and others, it is anticipated that it will expand at a compound annual growth rate (CAGR) of 3.1 percent between the years 2022 and 2030. The World Steel Organization forecasts that the total crude steel production in North America would reach 108.3 million tonnes in 2021, representing a 17.8 percent increase in comparison to the production levels expected in 2020. In a similar vein, the crude steel output in South America achieved an all-time high of 42.1 million tonnes in 2021, which is an increase of 20.7 percent in comparison to the year 2020. In addition, Emirates Global Aluminium, a leading aluminium manufacturing company with its headquarters in the United Arab Emirates, produced approximately 1.09 million metric tonnes in the first half of 2021, which is an increase from the 880,000 metric tonnes that were produced in the first half of 2020.

Chromium's primary application is in the field of metallurgy, where it is used to give metals a shiny sheen and protect them from corrosion. Because it retains its hardening and corrosion-resistant qualities even when heated to extremely high temperatures, it is an essential component in the manufacturing of stainless steel. In a similar fashion, chromium is utilised in the production of aluminium so that its strength and durability may be improved, and so that its structure can be controlled while it is being heated. Therefore, it is anticipated that an increase in global production of steel and aluminium would lead to an increase in demand for chromium, which in turn will contribute to an increase in market size over the forecast period.

Recent Developments

In January 2022, Albchrome Holding, an Albanian corporation that specialises in chrome and ferrochromium, was purchased by Yildirim Group. The primary goal of this acquisition is to help the company maintain its current level of success and further bolster its standing in the global marketplace by acquiring further market share.

In May 2021, Wall Colmonoy Limited, which has its headquarters in the United Kingdom, recently introduced a new line of cobalt-chromium powders and cast discs that are intended for usage in the dental sector. Because of their excellent strength, biocompatibility, and resistance to wear, the newly developed cobalt-chromium powders are ideally suited for use in dental implants, partial dentures, and prosthetics.

In June 2020, Dr. William Ringling was the one who ultimately decided to purchase Hard Chrome Enterprises Inc., which has its headquarters in Florida, United States, and is a business that primarily focuses on hard chrome, passivation, cadmium plating, electropolishing, silver plating, and the elimination of surface contaminants. Its primary concentration is on metal plating and finishing, which it provides to a variety of industries, such as the aerospace, automotive, medical, and consumer products sectors.