Metal anodizing is an electrochemical process that converts the metal surface into a durable, decorative, corrosion-resistant, and anodic oxide finish. Anodizing is most commonly used for improved corrosion resistance on certain types of aluminum alloys. Types of process required for metal anodizing include sulfuric acid anodizing, hard anodizing, and chromic acid anodizing. Whereas, products involved in metal anodizing are anodized aluminium, anodized magnesium, anodized titanium, anodized zinc, and others.
The global metal anodizing market is estimated to surpass US$ 1,094.6 million in terms of revenue by the end of 2027, exhibiting a CAGR of 5.2% during the forecast period (2021 to 2027).
Advantages of anodizing have been driving the target market growth. Metal anodizing is an electrochemical process that converts metal surfaces into a durable corrosion-resistant product and increase the natural oxide layer. Some of the major benefits offered by anodizing a metal include corrosion resistant, erosion resistant, abrasion resistant, and can be used for dyeing, increased adhesion. Due to these benefits offered over conventional metal, anodized metals are expected to increase in demand during the forecast period.
Moreover, with the emergence of industrial 4.0 technologies such as industrial robots, IoT, etc., various industries have witnessed substantial increase in productivity and efficiency. Advantages offered by Industrial 4.0 are increased productivity, improved efficiency, collaborative working, enhanced flexibility and agility, and reduces costs. This is expected to be a prominent opportunity for manufacturers to focus on. For instance, Galvatek, a Finland based Company, focused on plant automation in order to lower the operational time and generate higher returns on investment (ROI). The company has offered its services to some of the leading giants in past such as ABB, Rolls-Royce, and Ericsson.
Among regions, Asia Pacific held dominant position in the global metal anodizing market in 2020, accounting for 39.2% market share in terms of revenue, followed by Europe.
Figure 1. Global Metal Anodizing Market Revenue Share (%), By Region, 2020
Unfavourable geographic and political conditions could impact overall sales revenue of global metal anodizing market. For instance, OECD (Organisation for Economic Co-operation and Development) has downgraded its associated countries GDP forecast especially from manufacturing output. China is expected to register below 5% growth in GDP. Such long term persistent fall could severely impact the various industries such as construction. These factors therefore hinder the market growth of metal anodizing.
Focus on gaining new long term contracts is current target market trend. Various companies are targeting hotels and other tourism-based facilities in order to gain more contracts. For instance, in November 2019, Alucol, an aluminium anodizing company, was awarded an anodizing project by Nhow RAI hotel in Amsterdam.
|Base Year:||2020||Market Size in 2020:||US$ 771.7 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2027|
|Forecast Period 2021 to 2027 CAGR:||5.2%||2027 Value Projection:||US$ 1,094.6 Mn|
Alucol, HPL Stampings Inc., Kikukawa Kogyo Co., Ltd., Nihon Anodizing Co., Ltd, Pailian Aluminium, Prototech Asia, Saporito Finishing Co., Techmetals Inc., Tiodize, Inc., United Anodisers Limited, and Xometry Europe GmbH
|Restraints & Challenges:||
Figure 2. Global Metal Anodizing Market – Opportunity Analysis
On the basis of process, in 2020, sulfuric acid anodizing segment accounted for 56.90% of the revenue share. Sulfuric acid provides type II and type III coatings. It primarily anodizes the surface thickness of 0.0002” to 0.0003”. It can be applied on 1100, 2000, 3000, 5000, 6000, and 7000 aluminium series. Optical components, hydraulic valve bodies, military weapons, mechanical hardware, and electronic enclosures are few end-use applications of sulfuric acid anodize. Black, red, blue, green, grey, brown, and gold are few colors available with sulfuric acid anodize.
Figure 3. Global Metal Anodizing Market Revenue Share (%), By Process, 2020
Global Metal Anodizing Market - Impact of Coronavirus (COVID-19) Pandemic
Global metal anodizing market was expected to cross US$ 800 million in terms of revenue in 2020, however, persistent lockdown in first and second quarter of FY 2020 has led to decline in sales which led to US$ 771.7 Mn in 2020. This is 1.1X lower than the expected value. With majority of the industrial production activity (parent market) is considered as ‘non-essential’, most manufacturing companies were either shutdown or operating at minimum capacity in earlier phase of FY 2020. This had an adverse impact on the operations of metal anodizing companies. Sales witnessed negative trend in FY 2020.
Key players operating in the global metal anodizing market include Alucol, HPL Stampings Inc., Kikukawa Kogyo Co., Ltd., Nihon Anodizing Co., Ltd, Pailian Aluminium, Prototech Asia, Saporito Finishing Co., Techmetals Inc., Tiodize, Inc., United Anodisers Limited, and Xometry Europe GmbH.
Aluminum alloys that are subject to marine environments typically benefit from anodizing. Anodizing is also used for abrasion control. Some of the applications of metal anodizing include building & construction, aerospace & defense, automotive, electronic appliances, energy, biomedical, marine, jewelry, heavy equipment, and others.
The global construction industry is witnessing a steady growth in the developed economies like United States and above average growth in developing countries such as India and China. Increasing demand for green construction to reduce carbon footprint and building information systems are expected to propel the growth of the global metal anodizing market. For instance, according to the Associated General Contractors (AGC) of America, Inc.: The construction industry creates nearly US$ 1.4 Trillion worth of structures each year and employees more than 733,000 employers in the U.S. Developing countries such as India are also witnessing cash influx in various housing related projects. Construction activities in developing countries like India is expected to grow at a CAGR of 11.8% between 2020 and 2027. In addition, smart housing projects will create favorable ecosystem for metal anodizing companies to capitalize on. India, China, and ASEAN are lucrative market for construction and allied industries.
Moreover, key players are focusing on various strategies such as mergers and acquisitions. For instance, in December, 2019, Xometry Europe GmbH, headquartered in Germany, commenced its planned European expansion with the acquisition of Shift, headquartered in Munich, Germany. Shift provides CNC machining, sheet metal processing, and post-processing services.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.