Friday, 9 February 2018

Booming Automotive Sector to Offer Growth Prospects to Manufacturers of Metal Finishing Chemicals

Metal finishing is the process of altering the surface of a metallic object for enhancing its durability and/or appearance. Increasing emphasis on changing/controlling surface properties of metal substrates by imparting properties such as hardness, reflectivity, corrosion and wear resistance, chemical and tarnish resistance, electrical conductivity or resistance, and appearance will bolster the demand for metal finishing chemicals.


Electrical and Electronics Sector to Emerge Promising Application Segment

Metal finishing chemicals are extensively used in the automotive, aerospace, electrical and electronics, and construction sectors. Among these, automotive was the leading segment in terms of revenue in 2015. Rising utilization of these chemicals for protecting automotive parts – including body, engine, gears, and cylinders – against chemical reactions and corrosion is contributing to the growth of the segment. Besides this, changing lifestyles, increasing disposable income, and rapid urbanization are fueling the sales of automobiles, which in turn can supplement the growth of the segment.

Manufacturers are also developing products catering to the specific needs of participants in the automotive sector. For instance, MacDermid Enthone offers automotive coatings that cater to decorative and functional application requirements of automobile manufacturers. The company offers a wide portfolio of lead-free, hexavalent chromium-free, PFOS-free, cadmium-free, and cobalt-free solutions that are OEM-approved and production-proven coatings for corrosion protection, decorative plating, and wear resistance applications. Its coatings are available for auto parts, including exterior, brake systems, fasteners, powertrain, interior, and suspension systems.

The electrical and electronics segment will register noteworthy growth through 2025. Surging use of metal finishing chemicals in manufacturing semiconductor devices, connectors, and PCBs, especially in developing countries such as India, China, and Taiwan, is anticipated to drive the growth of the segment.

Market Insights

As per the findings of Grand View Research, the global finishing chemicals market is projected to cross reach USD 13.52 billion by the end of 2025. Favorable government policies, particularly in emerging economies such as India, China, Indonesia, and Mexico, are encouraging automotive development and manufacturing. This, in turn, is likely to stoke the growth of the market. Abundant availability of raw materials such as metal salts, chromates, phosphates, and alkalis is also expected to positively influence the market.

North America was at the forefront of growth in 2016. The presence of a large number of key players headquartered in the region is poised to support industry expansion. Some of the

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