Electroplating Chemicals Market

Electroplating Chemicals Market Outlook (2022-2032)

The global electroplating chemicals market is valued at USD 17.93 Billion in the year 2022. The market is expected to grow continuously with a CAGR of 4.4% in the forecast duration. The Electroplating chemicals market is estimated to surpass the size of USD 27.58 Billion.

Report Attributes	Details
Electroplating Chemicals Market size (2022 A)	USD 17.93 Billion
Base Year for Estimation	2022
Forecast duration for this research	2022-2032
Forecasted Market value (2032 F)	USD 27.58 Billion
Global Market Growth rate (2022-2032 E)	CAGR 4.4%
Key Companies Profiled	Sun Glo Plating Company Mahavir Expochem Ltd. Rishi Chemical Works Pvt. Ltd. Grauer & Weil (India) Limited Raschig GmbH Blendl GmbH

Demand Drivers of the Electroplating Chemicals Market

The electroplating process ensures the covering of metal onto substances with the intention to prevent it from corrosion. The demand for electroplating chemicals is also driven by decorative purposes. The process of the metal coating is done using an anode and cathode in an electrolyte bath. After the passage of the current, the metal coating gets done. The automotive sector is a major driver in demand for electroplating chemicals owing to the need for keeping parts free from corrosion.

The electroplating chemicals provide a protective barrier that decreases the friction of a surface. These include electrolyte solutions, sealers, passivates, cleaners, and pre-and post-treatment electroplating chemicals, to name a few. Passivates make the substrate inactive to any further chemical reaction, avoiding oxidation and corrosion reactions.

The market is anticipated to see a rise due to its applicability in airplanes, automotive, agricultural components, and electronics during the projection period. The business in electroplating is considerably profitable as there is high applicability in the electroplating process with higher corrosion resistance for improving appearance and durability.

Electroplating chemicals often contain additives that brighten and/or enhance the uniformity of the plating metal while influencing corrosion resistance. The most widely use electroplated metals include iron, nickel, copper, zinc, and silver. Aluminium, stainless steel, lead, and magnesium has limited applications as these are difficult to electroplate.

The electroplating chemicals market is highly driven by demand from the electrical and electronics industry. Along with this, electroplating chemicals have been witnessing high demand from the automotive and aerospace industries as well. Automotive and especially aerospace are expected to experience fast-paced growth and hence, are driving the electroplating chemicals market.

Moreover, these chemicals are used in the production of printed circuit boards in combination with other electronic devices, electroplating chemicals are also used to enhance the anti-corrosion properties of metals used in the automotive and aerospace industries.

Heavy industrial machinery and transportation equipment also demand electroplated metals and thus, drive the demand for electroplating chemicals to some extent. Defence industry involve need for all weather machines where electroplating material has application to protect machines in extreme weather conditions. As electroplating helps increase the service life of metals, the demand for electroplating chemicals is slated to increase throughout the forecast period.

Deterrents for the growth of the Electroplating Chemicals Market

The electroplating chemicals are associated with an amount of toxicity which makes them harmful to health and the environment. The rising awareness of health and safety of environmental policies can affect the growth of the electroplating chemicals market across the globe.

The covid-19 pandemic has impacted negatively on the automotive industries which have declined demand for the electroplating chemicals market. The impact of border closures and longer lockdowns has contributed to the decline of automobiles for the period. However, considering the economic effects of the pandemic situation companies have started to overcome restraints post-pandemic.

The dropped share of the automobile and electronics segment during the pandemic is likely to take time to recover market values for manufacturers. The decline in industrial functions during the pandemic declined demand for electroplating chemicals. These circumstances have been considered by the manufacturers owing to the risk of the supply chain network and maintaining profits and expenses has become a challenge for the companies.

Fluctuations in the prices of raw materials and chemicals required for the electroplating process have an immediate impact on the production cost. Considering the competition in the industry players has to sell products with consistent pricing scheme which owing to higher production cost can result in less margin profit for companies.

The manufacturers in the electroplating chemicals industry have to consider research on technologies and pay attention to environmental sustainability to gain a competitive advantage in the forecast duration.

Segment wise analysis

Automobile and electronics hold a chief share in the electroplating chemicals market.

The demand in the automobile and electronic industry is reigning over other application segments owing to the large volume of electroplating chemicals required to perform plating on large parts. Other consumer products including furniture and decorative items require comparatively lesser amounts of electroplating chemicals.

The exterior parts of automobiles include emblems and doors. Wheel rims require electroplating. The higher penetration of digital and electronic devices across the world has widened the need for electroplating chemicals. The demand from the automobile and electronics sector for electroplating chemicals is anticipated to cross a valuation of USD22.95 Billion by end of 2032.

Tin Plating in preference: cost-effective alternative.

Based on the type of plating material, tin plating is expected to grow with the fastest growth rate owing to its cost-effectiveness. Tin is considered a cheaper alternative to silver, gold, and palladium. Tin is available in abundance which is also a reason for the rising usage of tin-based plating solutions. There are other properties of tin including, protection against corrosion and higher surface contact resistance have contributed to the rising application of tin electroplating by manufacturers.

Novel applications in trends: Electroplating on Non-metals

The non-metallic segment in electroplating chemicals is also estimated to notice higher growth in the forecast period. However, this process is more complex than plating on a metal surface. The applications of metallic coating on some non-metallic substances can make it an electric current conductor.

Copper is one of those metals which if coated on plastic becomes an electric conductor. This has applications in electric meters and board segments. The fashion and decoration industry also uses these types of chemical coating to enhance the look and shelf life of products.

Acidic and Alkaline: Equally effective?

Acidic chemicals are widely employed in the electroplating process owing to their ability in protecting surfaces from corrosion and abrasion. Sulphuric acid is widely used in acidic electroplating due to its ability to slow down the plating rate in certain areas when blended with chloride ions.

This selective plating is largely done in decorative and adding shedding effects in automotive or electronic parts. However, the combination of both is also seen as effective for electroplating. The nickel and zinc alloy is effective due to zinc being a protective chemical while nickel offers higher nobility of coating.

Regional analysis

On the basis of region, electroplating chemicals witness high demand from North American countries like Canada, and Mexico exhibiting heavy demand from electrical & electronics, and aerospace industries. The rising income capacity of people driving demand for automobiles in the region is attributed to the aggregate demand for electroplating chemicals.

European regions including Germany and France are also registering high demand for electroplating chemicals due to the growth of the automotive and manufacturing sectors in the region.

India and China are rising markets in the Asia Pacific region due to digitalization and lifestyle demands.

The Asia Pacific electroplating chemicals market is expected to grow at the fastest rate, owing to the growth in population and disposable income in this region. India and China are expected to become major shareholders in the segment of electroplating chemicals due to rising demand for electronics and automobiles. The rising adaptation of digital appliances in these countries is expected to fetch positive figures for the electroplating market.

Latin American and the Middle East and African electroplating chemicals markets are pegged to grow at moderate rates throughout the forecast period.

Recent developments

The industry players in the electroplating field working on the improvisation of products for longer and more flexible coating options. The mainstay of firms in this market is the result of consistent product innovation and satisfying end outcomes.

• Sun-Glo machine and metal finishing company has developed powder-based coatings in form of electrostatic spray containing polymer powder on the metal surface. The longer molecular chains are durable and flexible offering more benefits including economic, color, and corrosion resistance.
• Blendl GMBH has expanded the application of coating solutions to include more products. The company now offers plating technology solutions for applications in – electronics, contact technology, and Jewellery

Electroplating Chemicals Market: Segmentation

The electroplating chemicals market can be segmented on the basis of plating metals, nature, function and end use.

• By Plating Metals :

  • Zinc plating chemicals
  • Copper plating chemicals
  • Nickel plating chemicals
  • Tin plating chemicals
  • Brass plating chemicals
  • Chrome plating chemicals
  • Lead plating chemicals
  • Precious metals plating chemicals
  • Others

• By Nature :

  • Acidic 
  • Basic 
  • Neutral 

• By Function :

  • Electrolyte
  • Sealer
  • Passivation chemicals
  • Inhibitor
  • Cleaner chemicals
  • Pre-treatment chemicals
  • Post treatment protective chemicals
  • Others

• By End-Use :

  • Electrical and electronics
  • Construction
  • Heavy machinery
  • Aerospace
  • Defense
  • Automotive
  • Others

• By Region :

  • North America (U.S., Canada)
  • Latin America (Mexico, Brazil, Argentina, Chile, Peru)
  • Western Europe (Germany, Italy, France, U.K, Spain, BENELUX, Nordic, Eastern Europe)
  • CIS and Russia
  • Asia-Pacific (China, India, ASEAN, South Korea)
  • Japan
  • Middle East and Africa (GCC Countries, South Africa, Turkey, Iran, Israel)