The global metal cleaning chemical market is estimated to grow at a CAGR of 5.04% to reach US$12.565 billion in 2027 from US$8.909 billion in 2020.
Metal cleaning is considered an important process in the overall value chain of metal. The quality and durability of the metals are directly correlated with the cleaning and treatment of metals. However, it is imperative to note that no single solution is applicable for all metals, and different solutions are particularly designed for different metal types. The rising incorporation of metal-related products has been instrumental in driving the market for its cleaning solutions. In fact
The metal industry has been witnessing stiff competition on account of the slow global economic growth and additional capacity coming online, thus, impacting the margins. The net capacity change – considering the new capacity additions and closures, indicated that the global steelmaking capacity was 1.5% up to 2,362.5 MMT at the end of 2019 (source: Organization for Economic Co-operation and Development). Simultaneously, world steel production as a share of capacity increased from 77.7% in 2018 to 78.2% in 2019, signifying the steady increase in steel demand for various end-use consumption. Moreover, the growth of the metal cleaning chemical market is directly correlated with the global steel output. Global crude steel production increased from 189 million tonnes in 1950 to 850 million tonnes in 2000 (source: World Steel Association). As per the latest available data from the association, crude steel production was estimated to be at 1,766.50 million tonnes in 2019.
Influence of Substitute
However, the metal cleaning chemical industry faces tight competition from laser cleaning solution providers. The ability of laser cleaning technology to offer precise, controllable, and efficient cleaning solutions while simultaneously generating low waste has led to its growing popularity, with laser cleaning beginning to be accepted as the primary technique for certain applications. The Occupational Safety and Health Administration (OSHA) provides guidelines and regulations that require employers to provide an environment and working conditions that are hazardous-free. Moreover, the growing competitive environment is resulting in firms in different industry verticals aiming to optimize the cost of operations to generate higher margins. As such, the ability of laser cleaning products to provide high efficiency and cost benefits while simultaneously providing greater safety to the workers is supplementing its demand globally. Moreover, in 2012, Japan’s Ministry of Health, Labor and Welfare (MHLW) announced 26 organic solvents to be included under Guidelines concerning carcinogenicity, in accordance with Article 28 of the Industrial Safety and Health Act. Therefore, laser cleaning systems are steadily being adopted by the metal industry, among others. Owing to the early adoption of laser cleaning solutions in the United States, Europe, and Japan, there are a number of service providers present in the country offering state-of-the-art and cost-effective systems to vendors across industries. Some of the major industries using laser cleaning solutions are automotive, electronic manufacturing, metallurgy, aerospace, and defence, among several others.
China Holds a Significant Share in The Market
The global manufacturing value-added has increased from US$12.232 trillion in 2016 to US$13.809 trillion in 2019 (source: World Bank). China is estimated to be the largest metal consumer – which is also signified by the fact that the country represents 28.21% of the global manufacturing value-added. China has been one of the world’s fastest-growing economies in the last decade, with the largest population also leading in steel production, pouring nearly half of the global crude steel. It is primarily the conducive business environment which attracts foreign firms to open their manufacturing hub in the country. According to the World Steel Association, China was the largest producer of crude steel in 2018, producing 928 million tonnes of steel; also, in 2019, the steel demand in China grew by 7.8%, which is nearly double the global average.
However, the companies targeting the United States as their market are setting up their manufacturing facility closer to the country, primarily in Brazil and Mexico, resulting in improved trade relations. The metal industry of brazil is poised for high growth during the forecast period on account of the growing focus of the government of the United States on strengthening its domestic manufacturing. Since the United States constitutes more than 40% of the share of Brazil’s steel exports, the growing demand from the United States for steel will drive the production of steel in Brazil. Furthermore, in March 2017, the president of Argentina launched a new plan for the automotive industry – the ‘1 million Plan’ in which the country aims to manufacture 750,000 cars annually by 2019 and one million units by 2023, which is projected to drive the consumption of metal. India, on the other hand, is an industrial center for many manufacturing plants in a variety of industries. It produces automobiles and auto parts, brassware, metal (including metal processing), and more. These industries allow for a substantial scope in the market's growth during the forecast period.
At a factory in Marl, Germany, Evonik expanded its production capacity for its high-performance polyamide Trogamid CX in April 2020. Customers from a variety of industries will benefit from the expansion, including water distribution, filtration technology, laboratory, and medical engineering, & cosmetics container production.
To fulfill the increased demand for metal cleaning chemicals, Stepan Company (US) is focusing on acquisitions. Stepan Company finalized the acquisition of Logos Technologies' NatSurFact Business, a rhamnolipid-based range of bio-surfactants generated from renewable sources, in March 2020.
COVID-19 had a resilient impact on the global metal cleaning chemicals market. Disinfectants, all-purpose cleaners, surface cleaners, surfactants, gels, soaps, lotions, and other hygiene products have all seen increased demand in the cleaning chemicals market. To stop the spread of the infection, appropriate personal and environmental cleanliness has become essential. Apart from vital services sectors, however, demand at the industrial scale has decreased due to the closure of production units. Because of the nature of the disease's propagation, cleaning operations have taken on a new significance. To avoid the transmission of this disease, it is now required to clean surfaces, disinfect surfaces, and maintain personal hygiene. During this pandemic, proper and effective cleaning of homes, institutions, and industrial complexes have become a need. As a result of the various countries' lockdowns, manufacturing operations in the automobile, aerospace, electronics, and other industries have decreased. Once manufacturing activity resumes, these businesses are projected to recover.
The latter half of the forecast period is anticipated to be relatively lucrative for metal cleaning chemical solution providers as the global economy is expected to behave like the no COVID-19 scenario in that phase. Moreover, the anticipated improvement in the economic scenario in Europe with regards to Brexit, expected positive development in the United States and China trade relations, and the overall inclusiveness of global trade is expected to foster the development of the overall metallurgy industry; thus, providing high revenue generation opportunity for the metal cleaning chemical solution providers.
|Market size value in 2020||US$8.909 billion|
|Market size value in 2027||US$12.565 billion|
|Growth Rate||CAGR of 5.04% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Cleaner Type, Metal Type, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||BASF SE, The Chemours Company, Evonik Industries AG, The Dow Chemical Company, Stepan Company, Quaker Chemical Corporation, Eastman Chemical Company, Kyzen Corporation, Crest Chemicals, Dober, Enviro Tech International, Inc.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the metal cleaning chemical market size by 2027?
A1. The global metal cleaning chemical market is estimated to reach a market size of US$12.565 billion in 2027.
Q2. What are the growth prospects for the metal cleaning chemical market?
A2. The metal cleaning chemical market is estimated to grow at a CAGR of 5.04% during the forecast period.
Q3. What is the size of the global metal cleaning chemical market?
A3. Metal Cleaning Chemical Market was valued at US$8.909 billion in 2020.
Q4. Which region holds the largest market share in the metal cleaning chemical market?
A4. The Asia Pacific holds a significant share in the metal cleaning chemical market.
Q5. What factors are anticipated to drive the metal cleaning chemical market?
A5. The rising incorporation metal related products has been instrumental in driving the metal cleaning chemical market for its cleaning solutions.
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Defination
1.4. Market Segmentation
2. RESEARCH METHODOLOGY
2.1. Research Data
3. EXECUTIVE SUMMARY
3.1. Research Highlights
4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Force Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. METAL CLEANING CHEMICAL MARKET ANALYSIS, BY CLEANER TYPE
6. METAL CLEANING CHEMICAL MARKET ANALYSIS, BY METAL TYPE
7. METAL CLEANING CHEMICAL MARKET ANALYSIS, BY GEOGRAPHY
7.2. North America
7.2.1. North America Metal Cleaning Chemical Market, by Cleaner Type
7.2.2. North America Metal Cleaning Chemical Market, by Metal Type
7.2.3. North America Metal Cleaning Chemical Market, by Country
184.108.40.206. The United States
7.3. South America
7.3.1. South America Metal Cleaning Chemical Market, by Cleaner Type
7.3.2. South America Metal Cleaning Chemical Market, by Metal Type
7.3.3. South America Metal Cleaning Chemical Market, by Country
7.4.1. Europe Metal Cleaning Chemical Market, by Cleaner Type
7.4.2. Europe Metal Cleaning Chemical Market, by Metal Type
7.4.3. Europe Metal Cleaning Chemical Market, by Country
220.127.116.11. The United Kingdom
7.5. Middle East and Africa
7.5.1. Middle East and Africa Metal Cleaning Chemical Market, by Cleaner Type
7.5.2. Middle East and Africa Metal Cleaning Chemical Market, by Metal Type
7.5.3. Middle East and Africa Metal Cleaning Chemical Market, by Country
18.104.22.168. Saudi Arabia
22.214.171.124. The United Arab Emirates
7.6. Asia Pacific
7.6.1. Asia Pacific Metal Cleaning Chemical Market, by Cleaner Type
7.6.2. Asia Pacific Metal Cleaning Chemical Market, by Metal Type
7.6.3. Asia Pacific Metal Cleaning Chemical Market, by Country
126.96.36.199. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.1. BASF SE
9.2. The Chemours Company
9.3. Evonik Industries AG
9.4. The Dow Chemical Company
9.5. Stepan Company
9.6. Quaker Chemical Corporation
9.7. Eastman Chemical Company
9.8. Kyzen Corporation
9.9. Crest Chemicals
9.11. Enviro Tech International, Inc.
The Chemours Company
Evonik Industries AG
The Dow Chemical Company
Quaker Chemical Corporation
Eastman Chemical Company
Enviro Tech International, Inc.
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