Metal Finishing Market

Market Overview

The metal finishing market size valued at USD 95,213.42 million in 2022. It is projected to reach USD 152,095.08 million by 2031, growing at a CAGR of 4.35% during the forecast period (2023-2031).

Metal finishing chemicals preserve the automotive interior and exterior parts from corrosion and premature wear. These chemicals are also utilized to enhance the components' look by smoothing out the pieces. The amount of moisture in the air may lead to corrosion, which could harm the car's metal components. Manufacturers now provide distinctive metal coatings to shield automobile metal components from corrosion. The market for metal finishing chemicals is expanding due to several significant factors, one of which is the increasing number of applications from the automobile industry. Additionally, the forecast period will see plenty of chances to expand the metal finishing chemicals market due to the increased demand for bio-based cleaning products, fast urbanization, and changing lifestyles.

Market Dynamics

Market Drivers

Increasing Automotive Production in Africa

The automotive sector has a broad application for metal finishing. It is utilized in fuel systems, power steering systems, brake parts, and systems, air conditioning parts and systems, chassis hardware, and other under-the-hood components, including engines. As a result, the metal finishing market's growth is directly correlated with the automobile sector. Compared to Latin America, Asia-Pacific, and the Middle East, the automotive market in Africa is relatively minor. However, the African automotive market is expanding quickly. Compared to other rising regions like Asia, the Middle East, and Latin America, Africa has a motorization rate of just about 48 automobiles per 1,000 people, which is significantly lower than the global average of 180 vehicles per 1,000 people. 

The automobile manufacturing industry is expected to expand further throughout the projection period thanks to ongoing investments in the automotive and transportation sectors in nations like Morocco, Angola, and South Africa. In recent years, FDI from Europe and North America has fallen, but Chinese capital investments in Africa have significantly expanded. Such expansion in the automotive sector is anticipated to propel the metal finishing market during the anticipated period. The epidemic posed a significant challenge to the world's current production capacities.

Market Restraint

Environmental Restrictions on Some Chemicals

Environmental standards are stringent when it comes to metal finishings. Since most of the principal feedstock used in metal finishing operations is hazardous, most of these rules are necessary. Solvents and metals are used as raw materials in the metal finishing business, resulting in dangerous environmental emissions. Living things can become harmed by these pollutants if they come into contact with them. The biggest waste concerns come from the chemical and electrochemical procedures used in metal polishing. Diverse chemicals, including solvents (from cleaning or degreasing of parts) and metals, are released during metal finishing processes (from electroplating operations). These processes can result in cancer, neurotoxicity, developmental toxicity, and other immediate health problems. Many chrome platers produce carcinogens near homes, schools, and daycare facilities. 

Governments are developing regulators worldwide to control wastewater emissions from enterprises that execute different metal finishing techniques. China and India, two developing nations, are creating new laws and regulations to limit the harmful pollutants produced by these operations. Although industrialized countries like the United States and the European Union currently have such rules, it is anticipated that these regulations will get stricter as environmental awareness grows. The metal finishing market is constrained by strict laws and customer pressure brought on by rising consumer awareness.

Market Opportunities

Increasing Requirement for Durable, Wear-resistant, and Long-lasting Metal Products

The automobile, construction, appliance, manufacturing, mining, and transportation industries are the primary end-user customers of metal products. Several alternative materials, including composites and polymers, are finding use in these industries. One of the main characteristics of metal that makes it a sustainable material is its endurance, which enables the reuse of products like paper clips, car parts, and train tracks. Mining operations, industrial machinery, oil exploration activities, and high-speed automobile applications require equipment and vehicles that can resist highly high stress levels and impacts. Any breakdown might result in significant issues or greater expenditures. It might also call for replacing certain parts or result in equipment downtime. These applications call for solid and wear-resistant metals that can withstand abrasive environments. Therefore, durable and wear-resistant metal goods are needed in demanding and intricate engineering applications. Over time, there has been an increased desire for metals that are stronger and more resistant to wear. This fuels the market for metal finishing since metal finishing is crucial to metals' durability and wear resistance.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global metal finishing market is divided into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 4.47% during the forecast period. The need for aviation in China could increase significantly. The high demand for aviation prompted the government to launch the airport building program, which includes significant investment in terminals and runways. With over 200 minor aviation parts manufacturers in the nation, the manufacturing of aircraft parts and assemblies is expanding quickly. The main manufacturing hubs are Nanchang, Shanghai, Chengdu, Xi'an, Harbin, Shijiazhuang, and Shenyang. The government's long-term goal for the nation is still to have 450 airports by 2035. As a result, China's need for aircraft has increased along with the number of airports. 

Another significant infrastructure undertaking that is anticipated to significantly increase demand for metal finishing across the nation is the metro rail project. In India, more than 15 metro projects are currently being built. While more than 457.56 kilometers of metro lines have been approved and are expected to be built in phases, 462.67 kilometers are now being built nationwide. The Indian government has taken several measures to support the development of a thriving medical device manufacturing industry in India. The government modified the Linked Incentives Scheme for Medical Devices and the medical device approval process to make them easier to understand. By 2030, it is anticipated that the Indian medical device market will be worth USD 50 billion, increasing demand for metal finishing products there. Over the projection period, the country's metal finishing market is anticipated to have moderate to high demand growth.

North America is expected to grow at a CAGR of 4.39% during the forecast period. With the United States at the forefront, North America has the largest medical device market in the world. One of the most profitable industries in the US's healthcare sector, the medical device industry has consistently developed for decades. With a market share of about 40%, the United is currently the most significant medical device industry globally. It is anticipated to increase by around 3% during the projected period. In terms of scale, the electronics market in the United States is the biggest in the world.  Due to the use of cutting-edge technology, the growth in the number of R&D facilities, and the rising consumer demand, it is also anticipated that this market will continue to hold the top spot over the projection year. The emphasis on creating high-end products has led to significant growth in the number of manufacturing facilities and development hubs in the United States. Over the projected period, this is anticipated to boost the metal finishing market. 

Furthermore, the Canadian consumer electronics industry has expanded and opened up several new prospects in the major product categories because of the growing need for value and fresh product innovations. The country's enhanced network connectivity is fueling this industry's expansion. Consumer gadgets are becoming more compact in the nation thanks to product improvements with various characteristics. Additionally, the market for consumer appliances is expanding healthily in Canada. Consequently, it is anticipated that this will increase demand for applications for metal finishing.

Germany, as one of the top locations for producing airplanes, is home to various manufacturers, including those from the equipment, material, component, engine, and complete system integration sectors. Aerospace is a significant business in Germany, according to the Federal Ministry of Economic Affairs and Energy, with a solid industrial base and anticipated high growth rates in the years to come. Diagnostic, ventilators, dental, orthopedic, and high-quality wound care items are in high demand in the medical industry. After Germany and France, the region has Europe's third-largest market for medical devices. Numerous small-scale medical device makers and a select number of international manufacturers with sizable market shares define domestic device production. It is anticipated that the market research for medical devices will have increased consumption during the projected period due to the rising demand from the medical sector.

Brazil is placing more emphasis on raising local production due to the "local content requirements" regulation. In addition, the coronavirus outbreak, the brief lockdown, and a halt in manufacturing have all impeded the expansion of the nation's medical device business. Due to this, several manufacturers have begun establishing their facilities locally or forming joint ventures with local manufacturers to enhance the production of medical devices. The end-user industries' tendencies above will help the market under study. Colombia primarily produces Airbus defense and space products and does maintenance, repair, and overhaul on the CN-235 and C-295 aircraft. By expanding manufacturing and maintenance facilities, the government is taking steps to boost the productivity of the aerospace industry. The nation's building industry faces several difficulties, including corruption scandals. The licensing of construction and environmental licenses has been the subject of scandals, which have slowed the sector's expansion. One of the main factors promoting Colombia's building industry is the growing cooperation between public and private investment and the implementation of public housing schemes.

Segmental Analysis

The global metal finishing market is segmented by product and application.

Based on product, the global metal finishing market is bifurcated into inorganic metal finishing, organic metal finishing, and hybrid metal finishing. 

The inorganic metal finishing segment is the highest contributor to the market and is estimated to grow at a CAGR of 4.37% during the forecast period. The majority of metal finishing is comprised of inorganic processes. Surface modification, anodizing, cladding, enameling, metallic coatings, and further inorganic finishing are all types of inorganic metal finishing (coatings). These coatings are produced chemically, turning the metal's surface layer into a metallic oxide film or compound, which lessens corrosion. Electroplating is anticipated to experience the most significant increase among inorganic metal finishing methods and kinds throughout the projection period. Due to the growing use of electroplating for various purposes worldwide, particularly in emerging nations, the demand for it is predicted to rise even higher. The second-largest market share is accounted for by surface preparation/pretreatment. Since electroless plating is more environmentally benign and is anticipated to grow significantly during the projected period, it is replacing electroplating in numerous applications. The increasing need for galvanized steel for various uses is driving the demand for galvanizing. The market for inorganic metal finishing is anticipated to expand overall during the projected period.

Organic coatings or metal finishing are frequently paints or powders that need to be applied in layers to build up to a thickness that will prevent corrosion. The coating needs to be robust and dense. These procedures are also known as lacquering, varnishing, and painting. For protecting manufactured parts from wear and corrosion, organic finishing is said to be more environmentally friendly and occasionally more economical. Spraying, dipping, spinning, electrophoresis, and powder coating techniques are used to apply the coating. There are organic binders in the solution. Curing is required to dry out these components' solvents or polymer resins. Up to 60% of the substance of a standard paint can be made up of pigment. These pigments give the paint color, texture, and opaqueness. In addition to serving as corrosion inhibitors and UV shields, these pigments also include light-absorbing and biological inhibitory qualities. The pigment produces a distinctive matte, gloss, or lacquer finish. The demand for organic metal finishing is anticipated to rise over the forecast period as more people switch from high VOC-based products to organic alternatives due to improved awareness.

Based on application, the global metal finishing market is bifurcated into automotive, appliances, hardware, jewelry, aerospace, heavy equipment, medical devices, electronics, construction, and other applications. 

The automotive segment owns the highest market and is estimated to grow at a CAGR of 3.98% during the forecast period. The elements are something that cars are continually exposed to. Corrosion can start from moisture from rain and snow, which can result in the early demise of metal car parts. As a result, coatings are used on various automobile parts, primarily to offer smoothness, lubricity, aesthetics, corrosion, wear, and corrosion resistance. They extend the metal component's life or durability as well. One of the popular techniques for adding a protective layer to metal automobile parts is known as metal finishing; it entails coating a substrate with one or more thin layers of metal, such as gold, copper, silver, chromium, or nickel. 

In addition, engines, other under-the-hood components, power steering systems, brake parts and systems, air conditioning parts and systems, chassis hardware, climate control components, and fuel systems are examples of the many car parts that use metal finishing. Automobile manufacturers are constantly looking for new corrosion protection methods to shield their products from the destructive impacts of corrosion. Metal automotive parts may fail before their time because of the frequent exposure to moisture from rain and snow. Applying a metal coating using inorganic metal finishing, such as electroplating, is known as metal finishing. This keeps the underlying metal surface of autos from being affected by either red or white rust.

Precision parts of the highest caliber are required for aerospace applications. Furthermore, specific items need outstanding surface finishes that are free of flaws. Additionally, each component of every system and machine must adhere to exceedingly high requirements in the aerospace sector. Equipment failure might result from even the slightest variation in specifications. The third-largest end-user use for metal finishing is in the aircraft sector. The industry's primary methods for metal finishing are electroplating and electroless plating. 

In aerospace, metal finishing contributes to improved corrosion resistance, including resistance to atmospheric corrosion, oxidation resistance, strength, solderability, electrical conductivity, high-temperature resistance, and other benefits. The aerospace sector demonstrated several developments in technology for wastewater treatment, waste reduction, chemical alternatives, and metal polishing procedures. Several talks mentioned Nadcap, the National Aerospace and Defense Contractors Accreditation Program, as an impetus for change and progress in the metal finishing industry. In addition, the aerospace industry found many chemical substitutes, including zirconium, manganese, phosphate, titanium, and cold-spray surface finishing procedures. It reduced the chromium needed in the etching and plating process steps.

Recent Developments

• April 2022- ALMCO’s Sutton Centri-Flo machines were heavy-duty spindle-finishing equipment designed for high-production environments. These large-part deburring machines were made to finish parts such as turbine disks, blisks, blades, and impellers – with the ability to handle other types of parts.
• September 2022- DuPont Pyralux® AP aided the reliable performance of the Semikron-Danfoss eMPack® module powering next-gen electric vehicles.