Environmental Regulations Drive Demand for High-Value Metal Finishing Chemicals, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Metal Finishing Chemicals markets. The global market for Metal Finishing Chemicals is projected to reach US$8.5 billion by 2018, driven by the recovery in sectors such as electronics, heavy equipment and machinery, automobile, appliances, and aerospace. Trends in the market are also being shaped by the adoption of stringent environmental, worker safety and performance regulations, which in turn are driving sales of high-value products.

Metal Finishing Chemicals: A Global Strategic Business Report

Follow us on LinkedIn – Metal finishing is among the few industrial sectors to hold ground despite the volatile economic scenario, partly due to the fact that metal finishing is essential for improving the appearance of surfaces by using a wide range of chemical processes ranging from nickel plating and gold plating to power coating. As metal finishing industry dynamics are closely linked to the trends in the overall manufacturing sector, future growth is determined by trends in sectors such as electronics, heavy equipment and machinery, automobile, and appliances. With the manufacturing industry in the growing economies offsetting the tense investment environment in Europe and US amid the debt crisis, demand for surface finishing chemicals continues to remain modest. Continuous rise in the sales of advanced electronic products, high-end smartphones, and advent of advanced and innovative IT products, all of which require metal finishing for improving the surface appearance also bodes well for market growth. Automotive is a major end-use market for metal finishing chemicals, with growth driven by the rising demand for new and better looking models. Market dynamics are also influenced by stringent worker safety and environmental regulations, which in turn are driving the demand for high-value products.

Since the processes used in metal finishing operations are highly chemical intensive, the industry is known to have one of the most stringent environmental regulations the world over. The sector continues to receive increasing demands from the common public as well as the environmentalists to cease the use of harmful chemicals. This pressure is particularly intense in developed nations. The market is expected to be significantly impacted by the increasing stringency of environmental compliance regulations in the years to come. However, the scenario is not likely to unsettle the metal surface finish companies’ prospects in developing markets such as India, at least in the near future. But there exists a great need for companies in developing nations as well to adopt eco-friendly concepts so as to sustain operations in the long-run and to ensure profitability. As the scrutiny on environmental compliance increases globally, owners of metal finishing plants would be required to incorporate innovative and advanced processes so as to survive the changing market conditions.

As stated by the new market research report on Metal Finishing Chemicals, the United States represents the single largest market worldwide. Recent changes including newer manufacturing technologies that use a lesser degree of plating and metal finishing reduced durable goods shipments and the general downslide of the economy led to a considerable decline in the overall growth of the US metal finishing chemicals market in the recent past. However, demand is expected to pick up pace, driven by resurgence in motor vehicle production. Growth would also be driven by the adoption of stringent worker safety and environmental regulations that are expected to bolster the demand for safe and high-value products. A likely roadblock to growth is expected from the growing usage of plastics that require lesser amount of finishing, compared to metals-based applications. Asia-Pacific represents the fastest growing regional market with China reporting significant growth over the past decade owing to noticeable economic development.

Segment-wise, Plating Chemicals represents the largest product segment in the global metal finishing chemicals market. Rising popularity of up market bathroom and kitchen plumbing fixtures is expected to fuel demand for high value plating chemicals. Growth would be driven by the launch of advanced and improved chemicals in order to ensure compliance with stringent performance specifications and for conforming to the strict workforce safety and environmental regulations. However, the demand for plating chemicals is expected to be adversely affected by the intense regulatory pressure to minimize pollutants, which is compelling metal finishing companies to focus on limiting the discharge of potentially hazardous chemicals. Future demand for plating chemicals will also be restrained on account of mounting environmental concerns, which is causing the metal finishing companies to recycle the chemicals. Proprietary Additives & Others, used to purify the deposit characteristics of chemicals, constitutes the fastest growing product category. In terms of end-use segments, Electronics and Electrical represents the largest market, while Aerospace segment is poised to grow at the fastest rate.

Major players profiled in the report include Advanced Chemical Company, Atotech Deutschland GmbH, Coral Chemical Co., Elementis Chromium LP, Enthone Inc., Houghton International Inc., MacDermid Inc., McGean Specialty Chemicals Group, NOF Metal Coatings North America, and Quaker Chemical Corporation.

The research report titled "Metal Finishing Chemicals: A Global Strategic Business Report" announced by Global Industry Analysts, Inc., provides a comprehensive review of trends, issues, strategic industry activities, and profiles of major companies worldwide. The report provides market estimates and projections across geographic markets such as the US, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia Pacific, Middle East, and Latin America. Key product segments analyzed include Plating Chemicals, Conversion Coatings, Cleaning Chemicals, and Proprietary Additives & Others. End use segments analyzed include Electronics and Electrical, Aerospace, Motor Vehicle Equipment, Industrial Machinery, and Others.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/


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