Trivalent Chromium Finishing Market Size Forecast To Reach US $395.5 Million by 2027

May 05 18:22 2022
Trivalent Chromium Finishing Market Size Forecast To Reach US $395.5 Million by 2027
Trivalent Chromium Finishing Market | IndustryARC
An Increase in Demand From the Electronic Industry Is Most Likely to Increase Demand for Trivalent Chromium Finishing Market

The Trivalent Chromium Finishing Market size is forecast to reach US$395.5 Million by 2027 after growing at a CAGR of 5% during the forecast period 2022-2027. Trivalent Chromium Finishing provides an environmentally friendly alternative to hexavalent plating that is primarily categorized into electroplating, conversion coatings, and passivation. They are mostly used for functional and decorative applications in multiple industries such as Hydraulics & Heavy Machinery, Aerospace & Aviation, Automotive, Construction, Oil & Gas, Electronics, and other industries. According to the European Automobile Manufacturers Association (ACEA), the EU demand for new passenger cars significantly increased by 25.2% from January-June 2021 and reached around 5.4 million units in total. An increase in demand from the automotive and electronic industries acts as the major driver for the market. On the other hand, high costs associated with the implementation of trivalent chromium along with its requirement for frequent maintenance are most likely obstruct the market and hinder its growth.

COVID-19 Impact

There is no doubt that the COVID-19 lockdown has significantly reduced automotive, and production activities as a result of the country-wise shutdown of automotive sites, shortage of labor, and the decline of supply and demand chain all over the world, thus, affecting the market. Studies show that the outbreak of COVID-19 sharply declined the production of automotive in 2020 due to a lack of operations across multiple countries around the world. According to OICA (International Organization of Motor Vehicle Manufacturers), the production of automobiles decreased by 16% globally in the year 2020, compared to 2019. However, a slow recovery in the automotive industry has been witnessed across many countries around the world since 2021. For instance, the Indian government has significantly reduced customs duty for the imports of electric vehicles components from a range of 10-15% to15-30%, along with provisioning tax breaks and economic packages for the automotive industry, in order to sustain and recover from the decline of activities in automotive sectors during COVID-19 crisis. In this way, a slow and steady increase in automotive production activities will require the use of Trivalent Chromium Finishing such as electroplating and conversion coatings for decorative finishing of the exterior and interior of vehicle parts such as steering wheel trims, console trims, gear shifts, license plate frames, bumpers, headlights, and other similar parts. This will eventually lead to an increase in demand for Trivalent Chromium Finishing which indicates a slow and steady recovery of the market in the upcoming years.

Trivalent Chromium Finishing Market Segment Analysis – By Type

The plating segment held the largest share in the Trivalent Chromium Finishing Market in 2021 and is expected to grow at a CAGR of 5.2% between 2022 and 2027, owing to its increasing demand due to the characteristics and benefits it offers over other types of trivalent chromium finishing. For instance, trivalent chromium plating can be easily applied to a wide range of metal, have greater adherence to irregular surfaces and geometries, can be applied even at lower temperatures, and provides better resistance to heat, chemical, UV light, and temperature in comparison to conversion coatings, and passivation. It also improves the overall performance, provides better durability, allows smoother functioning of equipment, and prolongs the overall product lifecycle of a commercial or industrial machine in comparison to conversion coatings, and passivation. Hence, all of these properties are driving its demand over other types of trivalent chromium finishing.

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Trivalent Chromium Finishing Market Segment Analysis – By Application

The Decorative application held a significant share in the Trivalent Chromium Finishing Market in 2021, owing to its increasing demand from the automotive sector. Decorative chromium electroplating is usually applied to a plastic or metallic surface and it offers a range of benefits such as brighter appearance, improved aesthetic, better resistance to scratch, wear, and corrosion which makes it ideal for use in interior and exterior automotive parts. Decorative chromium electroplating is commonly used in automotive parts such as bumpers, trim, door handles, rocker panels, grills, and other similar parts.

For instance, according to OICA (International Organization of Motor Vehicle Manufacturers), the total automobile production which includes cars and commercial vehicles in Europe reached up to 597,8449 in 2021, an increase of 21% in comparison to 2020. It further states that the total automobile production in North and South America increased by 17% in 2021 in comparison to 2020. In this way, such an increase in automotive production is expected to increase the demand for decorative chromium plating applications, thus, boosting the market growth.

Trivalent Chromium Finishing Market Segment Analysis – By End-Use Industry

The Automotive Industry held the largest share in the Trivalent Chromium Finishing Market in 2020 and is expected to grow at a CAGR of 5.5% between 2022 and 2027, owing to the increasing demand for Trivalent Chromium Finishing from the automotive sectors across the globe. For instance, recent insights from the European Automobile Manufacturers’ Association (ACEA) states that total automobile production during the fourth quarter of 2020 reached around 34 million in Asia-Pacific, 14 million in Europe, 1.3 million in the Middle East/Africa, 1.7 million in South America, and 9.6 million in North America respectively. Recent insights from the European Automobile Manufacturers’ Association (ACEA) states that Germany posted the biggest gain in EU car markets, with an increase of 24.5% during the first quarter of 2021. This, in turn, is expected to increase the demand for Trivalent Chromium Finishing required for decorative finishing of the exterior and interior of vehicle parts. This is most likely to lead to market growth in the upcoming years.

Trivalent Chromium Finishing Market Segment Analysis – By Geography

The Asia Pacific held the largest share in the Trivalent Chromium Finishing Market in 2021 up to 30%. The consumption of Trivalent Chromium Finishing is particularly high in this region due to its increasing demand from the automotive sectors. For instance, a recent study published by the OICA (International Organization of Motor Vehicle Manufacturers) during the fourth quarter of 2021 states that around 12 million, 4.2 million, and 2.2 million units of vehicles were produced in China, Japan, and India respectively, an increase in the production rate of 27% in comparison to 2020. Hence, such an increase in demand for the production of automotive is expected to increase the demand for trivalent chromium finishing. This is most likely to lead the growth of the Trivalent Chromium Finishing Market in the upcoming years.

Trivalent Chromium Finishing Market Drivers

An increase in automotive production is most likely to increase demand for the product

According to a recent study published by the German Association of Automotive Industry during the fourth quarter of 2020, the new registration of motor vehicles reached up to 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. According to the European Automobile Manufacturers Association (ACEA), the EU demand for new passenger cars significantly increased by 25.2% from January-June 2021 and reached around 5.4 million units in total. Likewise, a recent study published by the International Netherlands Group (ING) states that the demand for the production and development of electric vehicles has been increasing since the pandemic. It states that the global sales of new electric vehicles have increased by 50% in 2021, and it is expected to increase by 8% in 2022. It further states that the sales of electric vehicles have increased by 14% in Europe, 9% in China, and 4% in the US. Hence, an increase in demand and production of vehicles is expected to increase the demand for trivalent chromium finishing such as electroplating and conversion coatings for decorative finishing of the exterior and interior of vehicle parts such as steering wheel trims, console trims, gear shifts, license plate frames, bumpers, headlights, and other similar parts. This, in turn, will lead to market growth in the upcoming years.

An increase in demand from the electronic industry is most likely to increase demand for the product

The anticorrosive properties of trivalent chromium finishing make it ideal for electroplating of electrical and electronic equipment, mainly for coating electro-galvanized steel, zinc, copper, and aluminum. According to the Statistical Handbook of Japan 2021, the production and shipments of electronic equipment reached up to US$ 52.6 billion during the fourth quarter of 2020 and is expected to increase in the upcoming years. According to the annual reports published by Samsung during the fourth quarter of 2020, the semiconductors division obtained a total revenue of US$ 15.1 billion. 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 up to US$ 60,742 million in the fiscal year 2020/21, an increase by 20% in comparison to the fiscal year 2019/20. Recent insights from the Semiconductor Industry Association (SIA) states that the U.S invested around US$ 142.2 billion on computers, and US$ 53 billion on consumer electronics such as cell phones, TV, and other similar applications. It also states that China’s National IC Fund has invested US$39 billion until July 2021, among which 69.7% has been allotted for front-end manufacturing with the aim of increasing China’s share of global semiconductor production.Hence, such an increase in production and demand for electronics products and equipment is expected to increase the demand for trivalent chromium finishing. This is most likely to drive market growth in the upcoming years.

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Trivalent Chromium Finishing Market Challenges

High costs associated with the implementation of Trivalent Chromium along with its requirement for frequent maintenance may confine the market growth

Some of the major challenges associated with trivalent chromium finishing include high implementation and chemical costs along with frequent maintenance in comparison to hexavalent chromium. A recent study performed by the Toxic Use Reduction Institute showed that the filters on the trivalent chromium system yield 3500 gallons of solution around five times an hour, which results in the need for frequent maintenance of filter and replacement of cartridge. In addition to this, analysis of the concentration of trivalent chromium bath and make-up needs to be performed twice daily even with the use of an automatic amp meter to make additions to the trivalent chromium bath, whereas a weekly analysis is sufficient with the hexavalent chromium system. Moreover, trivalent chromium baths are often more sensitive to metallic impurities in comparison to hexavalent chromium baths. Hence, all of these factors have significantly increased the costs associated with the analysis and maintenance of the trivalent chromium systems. This, in turn, may confine the growth of the market.

Trivalent Chromium Finishing Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in this market. Trivalent Chromium Finishing top 10 companies include:

MacDermid Incorporated

Atotech Deutschland GmbH

Sarrel Group

Chem Processing Inc.

Kakihara Industries Co.

Ronatec C2C

Asterion LLC

Electro Chemical Finishing Co.

Midland Polishing and Plating Ltd.

Poeton Industries Ltd.

Key Takeaways

The Plating segment in Trivalent Chromium Finishing Market is expected to see the fastest growth, especially during the forecast period. Its wide range of characteristics, corrosion resistance, and heat resistance properties made it stand out in comparison to other types of trivalent chromium finishing in the market.

Trivalent Chromium Finishing offers a range of benefits which include lower toxicity, improved quality, better coverage, easy cleaning, low generation of hazardous waste, and environmentally friendly options.

Asia-Pacific dominated the Trivalent Chromium Finishing Market in 2021, with countries like China, Japan, South Korea, and India most likely to drive the market growth, owing to the increasing demand for Trivalent Chromium Finishing from automotive sectors of the region.

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