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Chromium Market Overview
The Chromium Market size is forecast to reach
US$ 15.7 billion by 2027, after growing at a CAGR of 2.6% during the forecast
period 2022-2027. Chromium can be used in a wide
range of applications which include metal ceramics, chrome plating, refractory
materials, dyes and paints, synthetic rubies, along with alloys such as ferrochromium,
stainless steel, and other applications. Ferrochromium alloy is produced from
chromite through silicothermic or aluminothermic reactions with chromium metal.
According to the International Organization of Motor Vehicle Manufacturers
(OICA), the total global automobile production reached 80.2 billion units in
2021, an increase of 3% as compared to 77.7 billion units in 2020. Chromium is commonly used for
electroplating and conversion coatings in the exterior and interior of automobile
parts such as steering wheel trims, gear shifts, license plate frames, bumpers,
headlights, and other similar parts. Likewise, the anticorrosive properties of
chromium make it ideal for electroplating electrical and electronic
equipment. Thus, an increase in demand from the electronic industry along with
an increase in automobile production acts as the major driver for the market. On the other hand, health hazards associated with the use of
chromium may act as a constraint for the market.
COVID-19 Impact
There is no doubt that the COVID-19 lockdown
has significantly reduced manufacturing, and production activities as a result
of the country-wise shutdown of manufacturing sites, shortage of labor, and the
decline of the supply and demand chain all over the world, thus, affecting the
market. Studies show that the outbreak of COVID-19 sharply declined the
production of raw materials in 2020 due to a lack of operations across multiple
countries around the world. However, a slow recovery in the metallurgy industry
has been witnessed across many countries around the world since 2021. Chromium
is primarily used in the metallurgy industry during the production of metals in
order to provide corrosion resistance and a glossy finish to the metals. For
instance, according to the World Steel Association, the annual production
volume of steel in Spain reached 14 million metric tons in 2021, an increase of
27.7% in comparison to 2020. Furthermore, in September 2021, Emirates Steel,
based in Abu Dhabi, announced its plans for the development of a new steel
manufacturing plant in the country. Once completed, the new plant is expected
to increase the company’s total steel production capacity to over 5 million
tons per year. In this way, a steady increase in the production of steel is expected
to increase the demand for chromium as it is crucial
for the production of stainless steel, owing to its hardening and corrosion
resistance properties. This
indicates a steady recovery of the market in the upcoming years.
Report Coverage
The report: “Chromium Market Report– Forecast (2022-2027)”, by IndustryARC
covers an in-depth analysis of the following segments of the Chromium Industry.
Key Takeaways
- Trivalent Chromium held a significant share in the Chromium market in 2021. Its wide range of characteristics, corrosion resistance, and heat resistance properties made it stand out in comparison to other types of chromium in the market.
- Metallurgy industry held the largest share in the Chromium market in 2021, owing to the increasing demand for chromium for the production of metals such as steel, aluminum, and more. According to the World Steel Association, the annual production volume of steel in Belgium reached 7 million tons in 2021, an increase of 13.6% in comparison to 2020. The total steel production in Belgium reached 6.1 million tons in 2020.
- Asia-Pacific dominated the Chromium Market in 2021, owing to the increasing demand for chromium from the metallurgy sector of the region. For instance, according to the World Steel Association, Japan is considered to be the third-largest country in steel production with 96.3 million tons of steel produced in 2021.
Figure: Asia-Pacific Chromium Market Revenue, 2021-2027 (US$ Billion)
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Chromium Market Segment Analysis – By Type
The trivalent chromium segment held a
significant share in the Chromium in 2021, owing to its increasing demand for chrome
plating due to the characteristics and benefits it offers over hexavalent
chromium. For instance, trivalent chromium plating can be easily applied to a
wide range of metals, have greater adherence to irregular surfaces and
geometries, can be applied even at lower temperatures, and provides better
resistance to heat, chemicals, UV light, and temperature in comparison to hexavalent
chromium. It also improves the overall performance, provides better durability,
allows smoother functioning of equipment, and prolongs the overall product
lifecycle of a commercial or industrial machine. Moreover, trivalent chromium
offers improved quality, better coverage, easy cleaning, lower toxicity, low
generation of hazardous waste, and environmentally friendly options as compared
to hexavalent chromium. Thus, all of these benefits are driving its demand in
comparison to hexavalent chromium, which in turn, is expected to boost the
market growth in the upcoming years.
Chromium Market Segment Analysis – By End-Use Industry
The metallurgy industry held the largest share
in the Chromium Market in 2021 and it is expected to grow at a CAGR of 2.8%
between 2022 and 2027, owing to the increasing demand for chromium for the production
of metals such as steel, aluminum, and more. According to World Steel Organization,
the total crude steel production in North America reached 108.3 million tons in
2021, an increase of 17.8% as compared to 2020. Likewise, crude steel
production in South America reached up to 42.1 million tons in 2021,
representing a growth of 20.7% in comparison to 2020. Furthermore, Emirates
Global Aluminium, a leading aluminum manufacturing company based in the UAE
produced around 1.09 million metric tons of aluminum in the first half of 2021,
an increase from 880,000 metric tons during the first half of 2020.
Chromium is primarily used in metallurgy in
order to provide corrosion resistance and a glossy finish to the metals. It
plays a critical role in the production of stainless steel, owing to its
hardening and corrosion resistance properties even at high temperatures.
Likewise, chromium is used in the manufacturing of aluminum to improve its
toughness, and durability, and to control its structure during heat treatment. Thus,
an increase in the production of steel and aluminum across the world is
expected to increase the demand for chromium, leading to the growth of the
market during the forecast period.
Chromium Market Segment Analysis – By Geography
Asia-Pacific held the largest share in the Chromium
Market in 2021 up to 40%. The consumption of chromium is particularly high in
this region due to its increasing demand from the metallurgy sector. For
instance, according to the Japan Iron and Steel Federation, crude steel
production in Japan reached up to 96.3 million tons in 2021, an incline of
14.9% in comparison to 83.2 million tons in 2020. Furthermore, recent insights
from the World Steel Association states that India produced 118.1 million tons
of crude steel in 2021, an increase of 17.8% in comparison to 2020. It further
states that total steel production in China and South Korea reached 1,032.8
million tons and 70.6 million tons in 2021 respectively. Furthermore, according
to the Japan Aluminum Association, the total aluminum production in Japan
reached 690.2 thousand tons in 2020.
In this way, such increasing production of metals in the region is expected to increase the demand for chromium for use in the manufacturing process of such metals, owing to its excellent durability, toughness, corrosion resistance, and other similar properties. This is expected to accelerate the growth of the Chromium Market during the forecast period.
Chromium Market Drivers
An increase in demand from the electronic industry is most likely to increase demand for the product
The anticorrosive properties of chromium make
it ideal for electroplating of electrical and electronic equipment, mainly for
coating electro-galvanized steel, zinc, copper, and aluminum. According
to the Statistical Handbook of Japan 2021, the production and shipments of
electronic equipment reached US$ 52.6 billion during the fourth quarter of 2020
and it is expected to increase in the upcoming years. Furthermore, Lenovo
Group, a leading brand in consumer electronics and media, published the annual
report for the fiscal year that ended in March 2021, which stated that the
total revenue of the company reached US$ 60,742 million in the fiscal year
2020/21, an increase of 20% in comparison to the fiscal year 2019/20. Recent
insights from the Semiconductor Industry Association (SIA) states that the U.S
invested around US$ 142.2 billion in the production of computers, and US$ 53
billion in consumer electronics such as cell phones, TV, and other similar
applications. It also states that China’s National IC Fund had invested US$ 39
billion in July 2021, among which 69.7% has been allotted for front-end
manufacturing with the aim of increasing China’s share of global semiconductor
production.
Hence, such an increase in production and
demand for electronics products and equipment is expected to increase the
demand for chromium for electroplating such electrical and electronic
equipment. This is most likely to drive the market growth in the upcoming
years.
An increase in automobile production is most likely to increase demand for the product
According to a recent study published by the
German Association of Automotive Industry during the fourth quarter of 2020,
the new registration of motor vehicles reached up to 16,763 units in Europe,
37,467 units in Asia, 3080 units in South America, 17,421 units in North
America, 12,733 units in Western Europe, and 5180 units in other regions
worldwide. According to the European Automobile Manufacturers Association
(ACEA), the EU demand for new passenger cars significantly increased by 25.2%
from January-June 2021 and reached around 5.4 million units in total. Likewise,
a recent study published by the International Netherlands Group (ING) states
that the demand for the production and development of electric vehicles has
been increasing since the pandemic. It states that the global sales of new
electric vehicles increased by 50% in 2021, and it is expected to increase by
8% in 2022. It further states that the sales of electric vehicles have
increased by 14% in Europe, 9% in China, and 4% in the US. Hence, an increase
in demand and production of the automobile is expected to increase the demand
for chromium as it is primarily used for electroplating and conversion coatings
in the exterior and interior of vehicle parts such as steering wheel trims,
console trims, gear shifts, license plate frames, bumpers, headlights, and
other similar parts. This, in turn, is anticipated to boost the growth of the
market in the upcoming years.
Chromium Market Challenges
Health hazards associated with the use of hexavalent chromium may cause an obstruction to the market growth
Prolonged exposure to hexavalent chromium is
known to have severe health effects which include occupational asthma,
punctured eardrums, eye irritation or eye damage, respiratory irritation, liver
damage, lung congestion, along with kidney damage, respiratory cancer, and skin
irritation. Chromium contact with non-intact skin can also lead to ulcers in
the skin, also known as chrome ulcers. Furthermore,
according to the California
Office of Environmental Health Hazard Assessment (OEHHA), continual or
prolonged exposure to 0.045 nanograms per cubic meter of hexavalent chromium
could increase the risk of cancer among workers. Thus, such health hazards
associated with the use of chromium may confine the growth of the market.
Chromium Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Chromium Market. Chromium top 10 companies are:
- Kermas
Group Ltd.
- CVK
Group
- AI
Tamman Indsil Ferro Chrome LLC
- Gulf
Mining Group LLC
- Glencore
PLC
- Eurasian
Natural Resource Corporation
- Hernic
Ferrochrome Ltd.
- Odisha
Mining Corporation
- Assmang
Proprietary Limited
- MVC
Holdings LLC
Recent Developments
- In January 2022, Yildirim Group acquired Albchrome Holding, an Albanian chrome and ferrochromium company. The main motive of this acquisition is to support the continuation of its progress and to further strengthen the company’s position in the world markets.
- In May 2021, Wall Colmonoy Limited, based in the UK, launched its new range of Cobalt-Chromium powders and cast discs for use in the dental industry. The new Cobalt-Chromium powders are considered to be ideal for dental implants, partial dentures, and prosthetics, owing to its high strength, biocompatibility, and wear resistance.
- In June 2020, Dr. William Ringling acquired Hard Chrome Enterprises Inc. based in Florida, U.S., a company that primarily specializes in hard chrome, passivation, cadmium plating, electropolishing, silver plating, along with the removal of surface contaminants. It focuses on metal plating and finishing that serves a wide range of industries which include aerospace, automotive, medical, and consumer products.
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