Automotive Chromium Finishing Market Analysis

Automotive Chromium Finishing Market Analysis

The metal material segment generated over USD 3 billion in 2020. Chrome-plated parts are gaining attention from part manufacturers including alloy wheels, grills, fuel doors, piston rods, etc. Additionally, increasing product demand for decorative purposes is fueling the need for chrome finishing in the automotive sector. Rising vehicle sales along with increase in revenue of premium & luxury car is predicted to increase the product demand.

The decorative chrome segment is expected to hold more than 85% of the automotive chromium finishing market share through 2027 driven by increasing product consumption in the automotive aftermarket segment. The thickness of decorative chrome ranges between 0.05 and 0.5 microns and can be usually applied on bright copper or nickel plating. These products offer excellent corrosion protection and possess high durability, further increasing their popularity in the automotive chromium finishing sector.

Automotive OEM segment is projected to expand at around 2% CAGR during 2021 to 2027. Car manufacturers including BMW, Ford, Daimler, Bentley, etc., utilize chrome finishing for both decorative as well as functional applications. The rising production of vehicles across the globe will boost the share of OEMs through 2027. Additionally, premium car manufacturers are also focusing on introducing electric cars in the market, which is supporting the product demand.

Passenger cars segment is estimated to capture above 85% of the automotive chromium finishing market share in 2027. The rising disposable income in emerging economies is driving the sales of passenger cars. Chromium is well known for its superior characteristics including excellent hardness, high durability, superior corrosion resistance, etc., further enhancing its dominance in the industry. However, many car manufacturers are investing in alternative finishing methods owing to the hazardous nature of chrome. Such trends may hamper the overall growth rate of the automotive chrome finishing industry in the passenger car segment post 2027.

Asia Pacific automotive chromium finishing market size is forecast to account for more than 50% share by 2027. Increasing sales of passenger cars and rising repair and maintenance activities of vehicles is fueling the regional market revenue.

The growing penetration of electric vehicles in Asia Pacific is anticipated to drive the revenue share of chromium finishing in the automotive sector by 2027. Japan has planned to impose ban on sales of new petrol cars by 2050, which is expected to increase the sales of hybrid and electric cars. Such trends will create the need for plated parts and car plating in the region, further increasing the share of chrome finishing in the long term.