Asia Pacific Automotive Chromium Finishing Market size exceeded USD 2.1 billion in 2020 and is predicted to register growth of 3.4% from 2021 to 2027. Increasing demand for functional and aesthetic properties along with rising adoption of luxury vehicles will propel the industry growth.
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Automotive chromium finishing is a technique of electroplating automotive parts & components with a thin layer of chromium. It can be used for both metal and plastic surfaces to prevent from harsh environmental factors, degradation, and strain of high-stress applications. Also, chrome plating provides an aesthetic appearance, corrosion resistance, ease cleaning operations, and improves surface hardness.
The APAC market is certain to experience high growth in the luxury car segment owing to the improving sales figures across the region. China is the major consumer of luxury cars in the Asia Pacific and accounted for around 32% of the global sales in 2017. Luxury vehicle sales in China have been so dramatic that leading segment manufacturers, such as Maserati and Lamborghini have observed an overwhelming sales performance in the recent past.
China automotive chromium finishing market dominated more than 60% revenue share in 2020. However, India is also set to drive revenue generation in the near future. India holds the fifth position in terms of total passenger car sales in the world. Even though the luxury car consumption in the country is only marginal, the auto manufacturers see huge potential in both luxury and non-luxury segments and are willing to invest in this fast-growing market. Additionally, favorable government norms and relatively lower import duties, make China and India a preferable destination for car manufacturing. This trend has steered manufacturers from mainstream to luxury automobile segment and luxury car producers, such as Jaguar, Mercedes-Benz, and BMW are producing an increasing number of vehicles in the region.
The metal chromium finishing market segment is most preferred by auto manufacturers and consumers, contributing over 85% to the industry size. The is majorly due to the rising attention of automakers towards chrome-plated components like alloy wheels, fuel doors, grills, piston rods, and others. The rising number of sales for passenger vehicles along with emerging buyers of luxury vehicles is augmenting the demand for chromium finishing.
The decorative chrome segment is anticipated to register a growth rate of 3.5% between 2021 and 2027. The aftermarket segment of the automotive sector is the main driver fueling the product demand. Decorative chrome plating has a thickness ranging from 0.05 microns to 0.5 microns and can be conveniently applied on nickel or copper plating. The superior performance, corrosion protection, extended durability achieved by the chrome plating makes it a more demanding product, thereby, playing a crucial role in propelling the market size of the segment.
The passenger car segment is expected to acquire more than 86% share of the total market by 2027 owing to the increasing disposable income in the developing economies across the Asia Pacific. The well-admired properties of chromium finishing, including aesthetics, hardness, durability, and corrosion resistance, among others are further strengthening the dominance of the product in the segment.
However, the hazardous nature of the material is navigating manufacturers towards new plating techniques. This trend is likely to create restraints to market growth in the future. Moreover, the recent outbreak of COVID-19 disease is having a severe toll on the automotive chromium finishing market. The market witnessed a downfall of over 7% in 2020 compared to the year before. The declined automobile production, plummeted buying power of consumers, and disrupted supply chain are the key factors hampering the market. On the other hand, the government initiatives and investments made to offset the pandemic's economic toll are expected to create a new set of opportunities for market players in the approaching years.
The automotive chromium finishing industry contains numerous small-to-medium scale manufacturers and is highly fragmented in nature. Some of the key manufacturers include Atotech Deutschland GmbH, Synergies Castings Limited, Veer industries, China Metal Solutions, Highnic Group, Jin Yuan Kang Industry Co., Ltd., Asahi Precision Co.,Ltd., Toyoriko CO., Ltd., Toyo Koka Co., Ltd., Mitsuya Co., Ltd., Kiyokawa Plating Industry Co., Ltd., Precision Plating (Aust) Pty Ltd., Hardchrome Engineering, Phiew Seng, and Wong Wai Vit Co., Ltd.