Metal Finishing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The metal finishing market was estimated at USD 95,213.42 million in 2020, and the market is projected to register a CAGR of over 4% during the forecast period.

The market was negatively impacted by COVID-19. The COVID-19 pandemic had an adverse effect on the global economy, which includes the disruption of the supply chain. The supply of many components from China was delayed, which resulted in major end-user industries, globally, running out of materials for production. The supply chain is opening again now, but it is taking some time to fill due to the shortages of many market items. The lead times doubled, and that shortage is compounded by the shortage of air and ocean freight options to move products to and from manufacturing countries. China’s dominant role as the raw material supplier means that any major disruption puts global supply chains at risk. However, the condition is expected to recover in the year 2021.

• Over the short term, increasing demand for durable, wear-resistant, and long-lasting metal products is driving the market's growth.
• On the flip side, environmental restrictions on some metal finishing chemicals, increasing replacement of metal by plastics, and the impact of COVID-19 are somehow going to hinder the market growth.
• By type, the inorganic metal finishing segment dominated the market, and it is expected to grow during the forecast period. Among various inorganic metal finishing types, pretreatment/surface preparation is expected to witness the highest growth during the forecast period.
• The shift from traditional solvent-borne technologies to newer technologies is likely to provide opportunities for the market during the forecast period.
• Asia-Pacific dominated the global market, with robust demand from end-user industries, such as automotive, construction, electronics, and hardware.

Scope of the Report

Metal finishing is a term used to describe the process of placing some type of metal coating on the surface of a metallic part, typically referred to as a substrate. It can also involve the implementation of a process for cleaning, polishing, or otherwise improving a surface. Metal finishing is a process of changing the surface of the object in order to improve its appearance and durability. The metal finishing market is segmented by type, application, and geography. By types, the market is segmented by inorganic metal finishing, organic metal finishing, and hybrid metal finishing. By application, the market is segmented by automotive, appliances, hardware, jewelry, aerospace, heavy equipment, medical devices, electronics, construction, and other applications. The report also covers the market size and forecasts for the metal finishing market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).

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Key Market Trends

Automotive Segment to Dominate the Market

• Among applications, the automotive industry dominated the demand for metal finishes. Metal finishing is one of the prominent methods used to provide a protective layer on the metal components of vehicles.
• Metal finishing is used in various vehicle parts, such as engines, other under-the-hood components, power steering systems, brake parts and systems, air conditioning components and systems, chassis hardware, climate control components, and fuel systems.
• Metal finishing also includes the application of paints or ceramics. Numerous small and large parts of the automobile require their contact surfaces to be smooth, stress relieved, and without burrs or defects. This enables the automotive engines to achieve a surface with less friction and heat, leading to the generation of more horsepower and overall better performance.
• However, after an encouraging term of growth in the automotive sector during the past decade, the momentum has slowed down over the recent years. Sales of new vehicles are going down in various parts of the world, including Europe and the United States. This has affected the previously growing automotive production in most countries, thereby affecting the metal finishing market, which finds major application in the automotive industry. According to OICA, in 2019, a total of 91.79 million vehicles were produced, which is down by 5.2% from the previous year.
• The COVID -19 has further aggravated this decline in 2020. In the first three quarters of 2020 (Upto October), the global passenger vehicle production declined by more than 24.2% compared to the same period in 2019. In the first 9 months, the production declined from 4,87,61,096 units in 2019 to reach about 3,69,63,361 in 2020.
• The market, however, has the potential for growth in the long term with the emergence of more technologically developed cars.

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