Asia-Pacific Surface Treatment Chemicals Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• In the short term, the growing adoption of surface treatment chemicals from the automotive and transport industry is benefiting the market demand.
• Rapid industrialization is another blooming opportunity for the surface treatment chemicals market.
• Strict government regulations on higher emission rates of volatile organic compounds (VOCs) remain a constraint to the market's growth.
• China is expected to dominate the surface treatment chemicals market in Asia-Pacific and is also likely to witness the highest CAGR during the forecast period.

APAC Surface Treatment Chemicals Market Trends

Rising Demand for Surface Treatment Chemicals from the Automotive and Transportation Industry

• Surface treatment is frequently used in the automotive and transportation sectors because most of the parts are made of metals (steel, iron, and aluminum), which require surface treatment for various objectives, including electrical insulation, thermal insulation, corrosion resistance, and decorative purposes.
• Surface treatment is a more common process in the automotive and transportation sectors, which boosts the demand for surface treatment chemicals (activation and passivation agents, cleaners, conversion coatings, and others) in this sector.
• Additionally, compared to other types of chemicals, the industry's demand for cleaners is particularly high, with acidic and basic cleaners accounting for most of the sales. Alkaline cleaners remove organic residues such as oils, fats, greases, and proteins, whereas acidic cleaners remove brake dust, road grime, and rust.
• Asia is the largest global competitor in the automotive industry. In 2021, China was the largest automotive segment, followed by India in third place and Japan in fourth place in terms of vehicle production. Some Asian automobile manufacturing companies, such as Toyota Motor Corporation (Japan), Shanghai Automotive Industry Corporation (China), and Hyundai Motor Company (South Korea), are global leaders.
• According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), India produced a record-breaking 3.6 million passenger cars vehicles in 2021, witnessing a growth rate of 27% compared to the previous year.
• In addition, Asia produced 4,67,32,785 units of vehicles in 2021, witnessing a growth rate of 3% compared to the previous year.
• Therefore, considering the factors mentioned above, the demand for the surface treatment chemicals market is expected to rise significantly in the automotive and transport segment in the near future.

China to Dominate the Market

• China dominates the Asia-Pacific surface treatment chemicals market in revenue and share. The country is set to continue flourishing in its dominance over the forecast period.
• Surface treatment chemicals are used in various automotive, metalworking, wood, and aerospace industries. China holds a considerable share in all these major end-user sectors, which boosts the country's demand for surface treatment chemicals.
• According to the Organisation Internationale des Constructeurs d'Automobiles (OICA), China led the vehicle manufacturing market, producing the most vehicles in the world (26.1 million units). Furthermore, the automotive industry is the largest consumer of surface treatment chemicals, bolstering its regional dominance in the surface treatment chemicals market.
• According to the National Bureau of Statistics of China, the construction industry in China generated an added value of about CNY 8.013 trillion (~USD 1.241 trillion) in 2021, witnessing a growth compared to CNY 7.24 trillion (~USD 1.1 trillion) in 2020. Surface treatment chemicals are used as a fire retardant in the construction industry, thereby increasing the demand for surface treatment chemicals within the country.
• All aforementioned factors are likely to fuel the growth of the surface treatment chemicals market in China over the forecast time frame.

APAC Surface Treatment Chemicals Market Competitor Analysis

Additional benefits of purchasing the report:

• The market estimate (ME) sheet in Excel format
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