Overview of the India Metal Treatment Chemical Market
Applications of metal treatment chemicals in the automotive industry are increasing. As a result of this growing demand, the scope of the India metal treatment chemical market is expected to increase from USD 170 million in 2024 to USD 290 million by 2035. This progress is projected to adhere to a CAGR of 4.96% through the forecast period.
The metalworking industry is a vital part of the Indian economy, supporting a wide range of sectors including automobile components, electrical & electronics, infrastructure, and packaging.
Consequently, the growth of these application industries is driving the demand for metal treatment chemicals. India’s chemical industry ranks as the third largest in the Asia-Pacific region, benefiting from automation, integration, and collaboration initiatives.
The Indian manufacturing sector is expanding at a CAGR of 7.32% and is expected to maintain this momentum in the coming years, fueled by reforms such as 100% FDI, industrial de-licensing, and export-focused policies under the ‘Make in India’ initiative.
Government support and economic liberalization are creating new opportunities for the manufacturing sector, further supporting the metal treatment chemicals market.
Automotive and Metalworking Sectors to Drive the Demand
The Indian automotive industry is a key driver for metal treatment chemicals, contributing approximately 7.1% to the country’s GDP. With over 1.2 billion people and rising vehicle demand, the sector requires substantial quantities of bio-based metal treatment chemicals, which offer economic, environmental, and social benefits.
Policy frameworks facilitating resource-efficient interventions will further encourage adoption. Metal treatment chemicals are applied to machine tools used in automotive, railways, textile, and electrical industries to enhance surface properties and protect against corrosion.
These treatments improve hardness, electrical resistance, wear & tarnish resistance, and anti-corrosion properties. Common applications include anodizing, plating, and corrosion protection, which also ensure long-term paint adhesion.
Automotive manufacturers increasingly rely on these chemicals to optimize operational efficiency and meet customer satisfaction, especially for warranty and repair parts.
Metalworking Industry Growth and Automation
The metalworking market is highly dynamic, with advanced processes requiring tougher metals and higher efficiency. Machine tool adoption, particularly in high-end sectors like railways, defense, and aerospace, is driving demand for metal treatment chemicals.
As automation becomes more prevalent, productivity increases, further expanding the market. The growth of the machine tool industry, the backbone of manufacturing, is closely tied to the demand for metal treatment chemicals in India.
Bio-based Metal Cleaning Chemicals
Sustainable and eco-friendly metal treatment chemicals are gaining importance. Metal cleaning is a critical surface treatment, and the quality of the final product depends heavily on it. Environmental regulations and consumer preference for non-toxic, biodegradable, and pollutant-free products are driving demand for bio-based chemicals.
Industry leaders like BASF and Henkel are producing bio-based cleaners while supporting government environmental legislation. Ongoing research in green chemistry is promoting environmentally safe solutions, increasing the adoption of bio-based metal treatment chemicals.
Competitive Landscape
The Indian metal treatment chemicals market is dominated by global players, with regional players capturing the remaining share.
Prominent companies include BASF India Ltd., Henkel Adhesives Technologies, Metalguard Pvt. Ltd., Chemtex Speciality Limited, CMP Pvt. Ltd., Dimetrics Chemicals, KCH India Pvt. Ltd., Olivine Mercantiles Pvt. Ltd., Prime Laboratories, and GTZ India Pvt. Ltd. BASF, for instance, strengthened its market position by acquiring Chemetall, a global supplier of surface treatments.
Leading players focus on technological innovation and bio-based product development to maintain dominance in the market.