India Metal Treatment Chemical Market Size

India Metal Treatment Chemical Market Growth Projections and Opportunities

The metal treatment chemicals market in India is expected to reach around USD 271.6 million by the end of 2017 and is projected to expand to USD 378.4 million by 2023, with a compound annual growth rate (CAGR) of 5.68% during the forecast period. The volume of the market is estimated to be around 183.5 kilo tons by the end of 2017. Several factors, both market-driven and non-market-driven, influence the metal treatment chemicals market in India. Positive market factors include the growth in automotive production and the expanding metalworking industry, driven by increased demand from sectors like automobile, auto components, defense, and railways.

Government initiatives, such as the 'Make In India' program, have identified key industries like automotive OEM and components, and railways as crucial for economic development. This identification is expected to drive the production of machine tools, subsequently influencing the demand for metal treatment chemicals. However, the growth of the market faces challenges, primarily from the substitution of metal with composites and plastic materials. Currently, metal treatment chemicals make up approximately 85% of the overall surface treatment chemical industry in India. Yet, the increasing use of plastic and composites poses a hindrance to the growth of the metal treatment chemicals market. As a result, the overall market is anticipated to grow at a CAGR of 5.68% over the forecast period.

The market's growth is intricately linked to the dynamic landscape of industries such as automotive and metalworking in India. The demand for metal treatment chemicals is set to rise due to the 'Make In India' initiative and the increased production of machine tools. However, the market faces a significant challenge from the growing popularity of plastic and composites over metal. While metal treatment chemicals currently dominate the surface treatment chemical industry, the rising use of alternative materials poses a threat. Despite these challenges, the market is expected to maintain a steady growth rate of 5.68% over the forecast period. The balance between traditional metal use and emerging materials will likely determine the trajectory of the metal treatment chemicals market in India.