Abstract
US demand to reach $2.2 billion in 2013
Demand for metal finishing chemicals in the US is forecast to grow 2.4 percent
per year to $2.2 billion in 2013. Although this represents a deceleration from
the 2003- 2008 period due to pricing moderation and macroeconomic slowdown,
advances will be supported by above average gains in the large transportation
equipment market. In addition, increasingly stringent environmental and worker
safety regulations will help increase demand for higher-value and safer
alternatives. However, gains will be limited by continued trends toward the
use of plastics, which typically require less finishing, in applications where
metals have traditionally been employed.
Plating chemicals to remain largest product type
Plating chemicals will continue to account for the majority of metal finishing
chemical demand -- about 56 percent of the total in 2013. However, plating
chemicals and surface cleaners, which are used in widely established markets,
will only post gains comparable to the overall average. Also restraining
demand will be environmental pressures that have caused some metal finishing
firms to adopt chemical recycling processes. For instance, certain solvents
are now being recycled and reused in closed loop systems, diminishing the need
for new products. Conversion coatings and proprietary chemicals are expected
to register slightly above average growth, benefitting from new product
developments.
Transportation equipment market to grow the fastest
Through 2013, the transportation equipment market is expected to record the
most rapid gains. Metal finishing chemical consumption in this industry will
be boosted by a rebound in transportation equipment production (especially
motor vehicles). In addition, the development of alternatives to chrome, in
particular for the replacement of hexavalent chromates, will support demand
for higher-value metal finishing chemicals. Factors that will negatively
affect demand include the continuing replacement of metals by plastics in many
automotive and other transportation equipment parts, due to their lower cost,
lighter weight, superior corrosion resistance and other performance advantages.
Gold plating solutions to support electronics market
The electronics and electrical equipment market will remain the second largest
market. However, growth in this sector will be well-below average as
manufacturing of these items continues to move offshore. Additionally, the
trend toward smaller, yet more powerful and technologically sophisticated
electronic components will restrain demand in volume terms. Nonetheless,
growth will be supported by the use of higher-priced finishing chemicals,
including precious metal (gold in particular) plating solutions.
Study coverage
Details on these and other findings are available in the new Freedonia
industry study, Metal Finishing Chemicals, presents historical demand data
(1998, 2003 and 2008) plus forecasts for 2013 and 2018 for metal finishing
chemicals, including plating chemicals, conversion coatings, cleaning
solutions, and proprietary additives and other chemicals. Substrates covered
include metals, printed circuit boards and other electronics, and plastics.
The outlook for major markets is also discussed, with a focus on
transportation equipment, electronics and electrical equipment, industrial
machinery, appliances, hardware, industrial fasteners, and plumbing, among
others. The study also considers market environment factors, provides an
overview of environmental and regulatory issues, assesses industry structure,
evaluates company market share, discusses competitive variables and profiles
30 industry competitors
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