Electroplating – Gains Buoyed by Application Diversity
Essentiality of electroplating as an integral requirement in various critical industry components shows no signs of abating. Although profit margins for service providers is not sizeable, sustenance of electroplating industry is buoyed by the fact that application of the process is not confined to a certain industry, but pervasive. Growth remains abated by hidden moats in the industry, entailed by the occupancy of countless unorganized providers and small-scale end users.
Key Factors Shaping Electroplating Market
High Fragmentation Results in Low Threat from New Market Entrants in Electroplating
Plating, in the automotive industry, for rust protection and brightening of metal & non-metal components is quite common. Growth in the automotive industry drives the demand for zinc and zinc-nickel alloy plating, for corrosion protection, and to improve aesthetics of OEM & Automotive Aftermarket parts. The demand for gold-plated exterior parts is fueled by the luxury car segment for aesthetic appeal, as well as corrosion and wear resistance. Electroplating is also being used to improve electrical conductivity of electronic parts and components. High demand for chrome-plated exterior automotive parts, such as tire rims, bumpers, grills, etc., is expected to continue over the forecast period.
North America and Europe re projected to hold strong prominence in the global electroplating market. Major automotive manufacturing hubs are prominent in countries such as Germany and the U.S.; however, Asia Pacific is anticipated to show extensive growth in the coming years. High production activities from consumer electronics and automotive industries (particularly electric and hybrid vehicles), in countries such as Japan, China, India, and ASEAN countries have projected healthier demand rate for electroplating.
Growing Application in Electrical & Electronics Industry and Other End Users
Electrical & electronics industry is considerably reliant on electroplating service providers as it helps increase product lifespan and makes it more resilient. The electrical & electronics industry uses precious as well as non-precious plated components for various end-use applications to improve characteristics such as corrosion resistance, wear resistance, solder-ability, and electrical conductivity of the product.
Electroplating is a cost-effective process to perform, resulting in a lot of players entering the market over recent years. Large number of fresh electroplating participants have emerged in regions of East Asia and South Asia, owing to the increase in demand from various small-scale end users across the globe as multiple service providers offer services globally.
End users, which are heavily reliant on the electroplating process have developed in-house electroplating coating facilities and are self-sufficient.
Key Challenge in Electroplating Market
Substandard Waste Management Techniques
With advantages of electroplating, comes the adverse aftermath of high pollution caused by the process. The electroplating industry constantly engages with hazardous materials, which are harmful to humans as well as the environment. However, service providers have embraced the implementation of green chemicals, cleaner & greener technology, waste management, and recycling techniques as probable solutions, which are expected to propel the growth of the electroplating market.
The process of electroplating results in production of sludge, which contains high quantity of metals that should be classified as hazardous waste or should be subjected to metal recovery procedures. Sludge should be reused to ensure that toxics are not released in the environment and process baths should be recycled post concentration and filtration. Thus, waste management is the most challenging aspect of the electroplating industry, making electroplating industry growth uncertain.
Electroplating Market: Structure Analysis
- The global electroplating market is a highly fragmented market owing to the presence of large number of players in the global market.
- Service providers operating in the electroplating market are focusing on business expansion through mergers, collaborations, partnership, and joint ventures. Key market players focus on strategies such as offering customized services and enlargement of distribution channels, which will help drive market growth.
- Major players in the electroplating market include, Interplex Holdings Pte. Ltd., Kuntz Electroplating Inc., Pioneer Metal Finishing Inc., Atotech Deutschland Gmbh, Sharretts Plating Co. Inc. and Allied Finishing, Inc. among others
FAQ About the Market
Will the electroplating market head towards consolidation?
Definitely not, the electroplating market is projected to remain highly fragmented across the forecast period and beyond. Threat of new entrants is very low as tier I service providers hold nearly 5% of the global market share. Service providers are focusing on establishing brand presence in the global market, and aiming to get long-term contracts from end users.
Which end-use industry holds potential growth opportunities for electroplating market participants?
While automotive industry continues to influence growth strategies, end users tend to have in-built facilities and are self-sufficient in electroplating and protective coating department. Moreover, end users and service providers have shifted focus towards green chemicals, recycling methods, and waste management to stand out from the competition abiding by new norms against toxins and hazardous waste regulations.
What is the degree of competition in the electroplating market?
The market portrays highly competitive nature with large number of regional and local market players. In the current scenario, prominent industry participants include, Interplex Holdings Pte. Ltd., Kuntz Electroplating Inc., Pioneer Metal Finishing Inc., Atotech Deutschland GmbH, Sharretts Plating Co. Inc. and Allied Finishing, Inc.
Which region will lead the global sales for the electroplating market?
APEJ (Asia Pacific Excluding Japan) is anticipated to lead the electroplating market with emergence of China as a prominent consumer, owing to high presence of growing automotive, consumer goods, and electrical & electronics industries.
Electroplating Market to Grow at 1.5X between 2019 and 2029
Advent of innovative disruptions in electroplating technologies, such as nanotechnology and dry plating methods, has meant that the efforts of industry players on ebbing their environmental footprint and improving waste management are being materialized.
Attractiveness of Asian Countries for Electroplating Service Providers Endures
Asia-Pacific excluding Japan (APEJ) will remain the highest contributor to shares of the electroplating market in 2019. Opportunities remain promising for service providers in countries such as China, India, and ASEAN, in line with remarkable growth in the electronics and automotive industries. However, demand will grow relatively stronger in India, with rising production facilities of various industrial sectors in the country.
* This data is only a representation. Actual data may vary and will be available in report.
The Broader Perspective
End-users continue to show marked preference for components electroplated with nickel and copper. Collectively, these two electroplating metals will account for over three-fifth sales.
Gold also remains a lucrative electroplating metal, upheld by its demand in decorative metal finishing – an upward trend
Hospitals remain the top end-user, with nearly 60% revenue share.
Electrical & Electronics – the most remunerative industry for service providers – will create an opportunity over US$ 5,600 Mn in 2019
Automotive industry also remains under the radar of electroplating service providers, as they uptake the growing requirement for high-performance coatings for critical auto components
How Growth will Unfold
Cost reduction and service improvement are key priorities of providers in the electroplating market, apart from the recent rise in emphasis on sustainability and waste management. The blend of fragmented and unorganized nature of the electroplating landscape is directing efforts of key players on authentic, quality offerings at competitive prices, abreast evolving demands from end-users.
Electricals & Electronics | Automotive | Aerospace & Defense
* This data is only a representation. Actual data may vary and will be available in report.Click Here To Know How The Growth Will Unfold
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Electroplating Market: Global Industry Analysis 2014–2018 and Opportunity Assessment 2019–2029
This research study by FMI (Future Market Insights) offers a ten-year forecast for the global electroplating market for the forecast period 2018-2029. To estimate the market value of electroplating, we have considered FY 2018 as the base year, and market values have been estimated keeping in mind the trends, driving factors, and key developments by key global electroplating market participants. The compound annual growth rate (CAGR) for the electroplating market has been derived for the forecast period of 2019 to 2029.
Electroplating Market Taxonomy
This global electroplating market report consists of around 21 sections that elaborate the market numbers in terms of value in US$ million, at regional and global levels.
By Metal Type
- Other (Cadmium, Tin, etc.)
By End-Use Industry
- Electrical & Electronics
- Aerospace & Defence
- Machinery Parts & Components
- Others (Silverware, Optics, Etc.)
- North America
- Latin America
- Western Europe
- Eastern Europe
- Middle East & Africa
Executive summary of the electroplating market with a side focus on the supply side as well as demand side trends of the market.
The market overviews includes the market definition and taxonomy to give the reader a market description of electroplating.
Factors and strategies adopted by key market participants, which have a significant impact on the electroplating market.
Market volume projection in terms of consumption over the forecast period of 2019-2026.
This section helps the reader analyze pricing trends owing to the necessary assumptions.
This section helps the reader to understand the global market value analysis and forecast for the electroplating market.
Key macroeconomic factors, value chain, market participants and consumptions & production are the highlights of this chapter.
Based on material, the electroplating market is segmented into gold, silver, copper, nickel, chromium, zinc, and others (cadmium, tin, etc.)
Electroplating market is segmented on basis of end use into automotive, electrical & electronics, aerospace & defense, jewelry, machinery parts & components and others (silverware, optics, home appliance, healthcare, etc.).
This chapter explains how the electroplating market will grow across various geographic regions.
Deep dived analysis on the basis of segments to the country level of the U.S and Canada.
Deep dived analysis on the basis of segments to the country level of Brazil, Mexico, Argentina, and Rest of Latin America.
Important growth prospects of the electroplating market based on its end users in several countries such as Germany, Italy, France, Spain, the U.K., Nordic, Benelux, and the rest of Western Europe are included in this chapter.
This chapter highlights the growth of the electroplating market in Eastern Europe by focusing on Russia, Poland, and Rest of Eastern Europe
Market analysis in China, India, ASEAN, Australia & New Zealand, and Rest of APEJ countries as they are the prominent countries in the East Asia region.
Analysis of the electroplating market in countries such as Australia and New Zealand regions during the forecast period.
Growth of the electroplating market in MEA by focusing on South Africa, GCC countries, and the rest of MEA.
Some of the market players featured in the report are Interplex Holdings Pte. Ltd., Kuntz Electroplating Inc., Pioneer Metal Finishing Inc., and Atotech Deutschland GmbH, among others.
This chapter includes a list of acronyms and assumptions that provides a base to the information and statistics included in the electroplating market report.
This chapter help readers understand the research methodology followed to obtain various conclusions as well as important qualitative and quantitative information about the electroplating market.