Metal Finishing Equipment Market Overview
Market share consolidation by industry participants via mergers and acquisitions across all levels of the value chain is identified as the key trend in the metal finishing equipment market. For instance, in August 2018, a private equity firm Aterian Investment Partners announced the acquisition of Pioneer Metal Finishing LLC, a provider of plating, anodizing, and other value-added surface-treating services. Besides, increasing adoption of automobiles in Asian economies, such as China and India, is expected to translate into a high demand for metal finishing equipment in the automotive sector, thus positively impacting the demand dynamics of the market.
Metal finishing is a process of applying a thin layer of a foreign metal, polymer film, or alloy on a metal surface. The metal finishing process includes a series of elementary steps, including surface pretreatment/preparation, which are followed by the coating on the metal surface. This helps enhance the aesthetics of the metal in addition to improving its electrical and bonding properties. In the report, the metal finishing equipment market is segmented on the basis of type, application, and region.
Based on type, the global metal finishing equipment market can be classified into hybrid metal finishing, inorganic metal finishing, and organic metal finishing. Of these, inorganic metal finishing occupied the largest share in the market during the historical period, as it encompasses several types of metal finishing techniques, such as cladding, pretreatment, and galvanizing, which are widely employed in industrial applications. Since inorganic metal finishing equipment helps cater to diverse applications, it continues to witness a high demand from various industries. Inorganic metal finishing is further divided into cladding, surface pretreatment or preparation, galvanizing, anodizing, electropolishing, conversion coating, electroplating, and electroless plating.
Electroplating is an efficient conductive solution; it also acts as a barrier against corrosion and helps enhance the appearance of the metal, reduce friction, improves performance of catalytic converters, and prevent formation of whiskers. These factors make it a viable choice as a process for metal finishing applications and are expected to further propel its adoption in various industries, thus supporting the growth of this category in the metal finishing equipment market.
The market for hybrid metal finishing equipment is also expected to witness considerable growth during the forecast period. Hybrid coatings are majorly used in marine environments because they exhibit effective impedance in extreme environments and provide excellent corrosion protection as compared to their conventional counterparts. This is likely to contribute to the demand for related equipment in the metal finishing equipment market during the forecast period.
On the basis of application, the metal finishing equipment market can be categorized into automotive, telecommunications, aerospace, hardware, tires, heavy equipment, jewelry, appliances, and electronics.
Based on region, the metal finishing equipment industry is categorized into North America, Europe, Asia-Pacific (APAC), Latin America, and the Middle East and Africa. Geographically, APAC held a substantial share in the metal finishing equipment market during the historical period. Besides, during the forecast period, the market is expected to witness the fastest growth in APAC, owing to the high-volume production of passenger cars and lightweight commercial vehicles in the region, particularly in countries such as China, India, Thailand, and Indonesia. Moreover, the presence of major automotive manufacturers in the region, including Toyota Motor Corporation, Komatsu Ltd., and Nissan Motor Company, is expected to support the product demand in the region. In coherence, favorable laws and regulations to support foreign investments in India and China are expected to drive manufacturing and generate demand for metal finishing chemicals and related equipment in the coming years.
Metal Finishing Equipment Market Dynamics
The major factor driving the growth of the metal finishing equipment market is the increase in demand for automobiles and electronics complemented by the rise in disposable income and increased consumer spending across emerging economies.
Furthermore, the rising demand for metal finishing chemicals and related equipment by companies manufacturing printed circuit boards (PCBs) and other electrical components, such as semiconductors and connectors, in China, Japan, India, Taiwan, and South Korea is expected to support the market growth during the forecast period.
Stringent government regulations and environmental standards pertaining to the use of chemicals in industries are restraining the growth of the metal finishing equipment market to some extent. For instance, the United States Environmental Protection Agency (USEPA) and Registration, Evaluation, Authorisation, and Restriction of Chemicals (REACH) have restricted the use of metal finishing products in the U.S. and the European Union, respectively. These restrictions have been imposed due to the growing industrial use of volatile organic compounds (VOCs), cadmium, chromium, chlorinated solvents, cyanide, and other toxic chemicals that negatively impact the environment.
The metal finishing equipment market is expected to witness increased product demand for application in wear-resistant, durable, and long-lasting metal products, which are employed in various industries. These products are often further integrated into equipment, appliances, and vehicles. Besides, the growing adoption of environment-friendly electroless plating techniques and consumer shift from traditional solvent-borne technologies to newer technologies are expected to provide ample growth opportunities to the players in the metal finishing equipment industry in the coming years.
Metal Finishing Equipment Market Competitive Landscape
Some of the major players operating in the global metal finishing equipment market are Atotech Deutschland GmbH, Sequa Corporation, Plating Equipment Ltd., Coventya, DowDuPont, BASF SE, MacDermid Inc., Metal Finishing Technologies LLC, Delstar Metal Finishing Inc., TIB Chemicals AG, Honeywell International Inc., Vanchem Performance Chemicals, Industrial Metal Finishing Company, and Mass Finishing Incorporated.
The metal finishing equipment market is highly fragmented in nature. A number of manufacturers have concentrated their business in North America and Europe, although they have distribution networks across other regions as well.
Market players, such as Atotech Deutschland GmbH, Coventya, DowDuPont, BASF SE, and MacDermid Inc., are focusing on expanding their distribution network by establishing distribution centers, entering into mergers and acquisitions, and forming new agreements with local distributors. Besides, they are focusing on the development of new products and processes, owing to the rise in application of metal finishing chemicals in the automotive and electronics industries. For instance, in May 2017, Atotech developed Nichem HP 1151, a metal finishing process. The process offers a lead- and cadmium-free formulation and leads to improved wear resistance, corrosion resistance, and quality of the finished product.
The study provides the historical as well as the forecast market size data for various countries, including the U.S., Canada, France, Germany, the U.K., Italy, Spain, Japan, China, India, Brazil, Saudi Arabia, and South Africa.