Market Overview:
The global automotive chromium finishing market size was valued at around USD 4.4 billion in 2021 and expected to grow at a CAGR of 3.5% during the forecast period.
Automotive chromium finishing refers to the process of adding a layer of chromium or chromium compounds to the surface of automotive components or parts to improve their appearance, corrosion resistance, and durability. Chromium is a metal that is known for its high corrosion resistance, hardness, and shiny appearance, making it a popular material for finishing automotive parts such as bumpers, wheels, and trim. The process of automotive chromium finishing typically involves electroplating, which involves the use of an electric current to deposit a layer of chromium onto the surface of the part. The automotive chromium finishing market includes the suppliers of chromium plating materials, equipment, and services to automotive manufacturers and suppliers.
Covid-19 Impact:
The COVID-19 pandemic has had a significant impact on the global automotive chromium finishing market. The pandemic led to a decline in automotive production and sales, which in turn impacted the demand for automotive chromium finishing.
During the initial stages of the pandemic, many automotive manufacturers and suppliers had to temporarily shut down their operations due to the government-imposed lockdowns and restrictions. This led to a decrease in demand for automotive chromium finishing materials and services, as well as a disruption in the supply chain.
Moreover, the pandemic also led to a decline in consumer spending and a shift in consumer preferences towards more practical and affordable vehicles, which could impact the demand for luxury vehicles that typically require automotive chromium finishing.
However, with the gradual easing of lockdowns and restrictions, the automotive industry has been recovering, which is expected to have a positive impact on the demand for automotive chromium finishing. Furthermore, the increased focus on vehicle aesthetics and customization, especially in the luxury vehicle segment, is expected to further drive the demand for automotive chromium finishing in the post-pandemic period.
Overall, while the COVID-19 pandemic has had a negative impact on the global automotive chromium finishing market, the industry is expected to recover in the coming years with the gradual resumption of automotive production and sales.
Market Dynamics:
Drivers:
Aesthetics: The automotive chromium finishing provides an attractive and shiny appearance to the vehicle, which enhances its aesthetics and appeal. This is a major driver for the automotive chromium finishing market, especially in the luxury vehicle segment.
Corrosion resistance: Chromium is known for its high corrosion resistance, which helps protect the automotive components and parts from rust and other forms of corrosion. This is particularly important in harsh environments, where the vehicle is exposed to salt, moisture, and other corrosive elements.
Durability: Automotive chromium finishing also increases the durability and lifespan of the components and parts, making them more resistant to wear and tear. This is important for components that are subject to friction, such as door handles, knobs, and switches.
Increasing demand for luxury vehicles: The growing demand for luxury vehicles, especially in emerging markets, is a major driver for the automotive chromium finishing market. Luxury vehicles require high-quality finishes to meet the expectations of their customers.
Technological advancements: The development of advanced electroplating techniques and materials is driving the growth of the automotive chromium finishing market. These technologies are helping to improve the efficiency and quality of the finishing process, while reducing costs.
Restraints:
High cost: The process of automotive chromium finishing is expensive and requires specialized equipment and skilled labor. This can increase the overall cost of the finished product and limit its adoption by manufacturers.
Alternative finishes: There are alternative finishing materials and techniques available that can achieve similar or better results than chromium finishing. For example, some manufacturers are using powder coating, which is a more environmentally friendly and cost-effective alternative to electroplating.
Supply chain disruptions: The automotive chromium finishing market is dependent on the supply of raw materials such as chromium, which can be subject to supply chain disruptions due to factors such as geopolitical tensions and trade restrictions.
Regional Analysis:
North America: The North American region is a significant market for automotive chromium finishing, with the United States being the largest market in the region. The region is home to several leading automotive manufacturers, including General Motors, Ford, and Tesla, which drive the demand for automotive chromium finishing. Moreover, the growing demand for luxury vehicles in the region is expected to further boost the demand for automotive chromium finishing.
Europe: The European region is another significant market for automotive chromium finishing, with Germany, France, and the United Kingdom being the major markets in the region. The region is home to several leading luxury automotive manufacturers such as BMW, Mercedes-Benz, and Audi, which are key customers for the automotive chromium finishing market.
Asia Pacific: The Asia Pacific region is expected to witness significant growth in the automotive chromium finishing market, with China, Japan, and India being the major markets in the region. The region is home to several leading automotive manufacturers such as Toyota, Honda, and Hyundai, which drive the demand for automotive chromium finishing. Moreover, the increasing demand for luxury vehicles in the region, especially in China and India, is expected to further boost the demand for automotive chromium finishing.
Latin America: The Latin American region is a growing market for automotive chromium finishing, with Brazil and Mexico being the major markets in the region. The region is witnessing increasing demand for luxury vehicles, which is expected to drive the demand for automotive chromium finishing.
Middle East and Africa: The Middle East and Africa region is a growing market for automotive chromium finishing, with the United Arab Emirates and Saudi Arabia being the major markets in the region. The region is witnessing increasing demand for luxury vehicles, which is expected to drive the demand for automotive chromium finishing.
Market Segmentation:
Type: The market can be segmented into decorative chromium plating and hard chromium plating.
Material: The market can be segmented into hexavalent chromium and trivalent chromium.
Vehicle type: The market can be segmented into passenger vehicles, light commercial vehicles, and heavy commercial vehicles.
Application: The market can be segmented into exterior and interior applications.
Sales channel: The market can be segmented into OEMs (original equipment manufacturers) and aftermarket.
Region: The market can be segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Competitive Landscape:
The global automotive chromium finishing market is highly competitive, with several key players operating in the market.
Some of the major players in the market include:
Atotech Deutschland GmbH
MacDermid Enthone Industrial Solutions
Allied Finishing Solutions, Inc.
Precision Plating (Aust.) Pty Ltd.
Interplex Holdings Pvt. Ltd.
KC Jones Plating Company
Sharretts Plating Co., Inc.
Pioneer Metal Finishing
Peninsula Metal Finishing, Inc.
Roy Metal Finishing
These companies are focused on expanding their product offerings and strengthening their presence in various regions through strategic partnerships, acquisitions, and collaborations. They also invest heavily in R&D activities to develop new and innovative solutions that meet the evolving demands of the automotive industry. Moreover, these companies are increasingly focused on sustainable solutions, such as the use of trivalent chromium instead of hexavalent chromium, to meet environmental regulations and customer preferences.
The competition landscape in the global automotive chromium finishing market is expected to remain intense in the coming years, with companies adopting various strategies to maintain their market position and gain a competitive edge.