Europe Metal Cleaning Chemicals Market - Growth, Trends, and Forecasts (2023 - 2028)

The European metal cleaning chemicals market is projected to register a CAGR of over 4% during the forecast period.

The market was negatively impacted by COVID-19. The consumption of metal cleaning chemicals was reduced from the industrial segment due to the shutting down of production units and disruptions in the supply chain. However, the market's demand increased from the cleaning sector owing to the high importance given to disinfecting metal surfaces for controlling the spread of COVID-19 in houses, industrial complexes, institutions, and other areas. Post-pandemic, the market has been doing well due to increased demand from the industrial sector.

Key Highlights

• Over the short term, growing concern toward industrial cleaning and maintenance, and increasing demand for metal cleaners from manufacturing industries, are some of the factors driving the market demand.
• Stringent environmental regulations may hinder the market's growth.
• The development of bio-based cleaning chemicals is likely to create opportunities for the market in the coming years.

Europe Metal Cleaning Chemicals Market Trends

Increasing Usage in the Transportation Industry

• Any tiny metallic or non-metallic particle in a transportation structure may impact the performance and life of the system. Transportation services, such as aerospace, automotive, railways, and marine, provide a considerable market for metal cleaning chemicals in Europe.
• Selecting an efficient metal cleaner for the transportation industry is a critical process as different cleaners can react differently to different grades of aluminum, steel, silicones, plastics, and rubber seals, causing wear, etching, or corrosion to the material, something that could potentially render an aircraft non-airworthy.
• As per the OICA report, Germany is the leading manufacturer of passenger cars in Europe. Passenger car production in the country amounted to nearly 3.1 million in 2021. Spain ranked second with approximately 1.6 million passenger cars manufactured in the same year.
• Furthermore, in 2021, according to the OICA, Italy's total automotive production increased by 2% over 2020 and reached 7,95,856 vehicles. Moreover, according to the EV Volumes, in 2021, the country's new BEV and PHEV registration witnessed a growth rate of 132%, compared to 2020, which increased the consumption of metal cleaning chemicals in Italy.
• Metal cleaning chemicals are powerful and versatile substances that can remove tarnish and hard water deposits from surfaces before and after the manufacturing process. They are also capable of removing all kinds of deposits of ions from metals. Hence, increasing their usage in the transportation industry.
• The shipping and marine industries are the most significant sectors of the UK economy. As per the Maritime United Kingdom, approximately 95% of all imports and exports in the United Kingdom are moved by sea, and the shipping sector's contribution to the GDP in the United Kingdom is GBP 7.7 billion (~USD 9.08 billion).
• The aerospace sector in the United Kingdom is the second largest in Europe and the third largest across the world. The presence of aviation component suppliers in the United Kingdom has been the reason for the healthy exports of the aviation industry.
• France has signed the Strategic Committee contract for the electronic industries and launched the Nano 2022 Industrial Development and Deployment Program, which brings the manufacturers of electronic components, connectors, and printed circuits, the design, and assembly of electronic boards and subassemblies together to improve in the areas of innovation, industrialization, digital transformation, skills, and the international arena.
• Due to all such factors, the market for metal cleaning chemicals in the region is expected to have steady growth during the forecast period.

Germany to Dominate the Market

• In the European region, Germany is one of the leading economies in terms of GDP. Germany has the largest automobile industry in Europe. Germany leads the European automotive market, with 41 assembly and engine production plants that contribute to one-third of the total automobile production in the region.
• According to the German Association of the Automotive Industry (VDA), Germany produced 263,400 units of vehicles in July 2022, registering a growth rate of 7% compared to the same period in 2022.
• In 2021, the country registered 689,500 BEVs and PHEVs, witnessing a growth rate of 72% compared to 2020 BEV and PHEV registration. According to the German Association of the Automotive Industry (VDA), out of total automotive production of 293,663 units in June 2022, the electric vehicle segment accounted for 23%, compared to a 5% share in the same month of the previous year.
• Germany is among the largest seafaring nations in the world. The country has the fourth largest merchant fleet and is the third largest exporter by sea route. The German maritime industry has struggled ever since the onset of COVID-19. Due to pandemic-related distortions, investments in cruise ships, one of the crucial assets for the maritime industry, were postponed till 2023-2024. As one-third of the container ships are owned by German companies, the production and maintenance of ships and related equipment offer good opportunities for the market studied during the forecast period.
• For instance, in August 2022, the government of Germany planned to support the green shipping industry and fund the construction of zero-emission ships. For the development of zero-emission ships, the federal government provided an additional EUR 30 million (~USD 31.02 million) per year until 2025. This government initiative is likely to support the growth of the maritime industry and thereby enhance the demand for metal cleaning chemicals in the coming years.
• Therefore, the above-mentioned factors are likely to boost the demand for the metal cleaning chemicals market in Germany during the forecast period.

Europe Metal Cleaning Chemicals Market Competitor Analysis

The European metal cleaning chemicals market is fragmented in nature. Some of the major players in the market include Nouryon, Evonik Industries, BASF SE, 3M, and DOW (not in any particular order).

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