Market Trends of North America Surface Treatment Chemicals Industry
This section covers the major market trends shaping the North America Surface Treatment Chemicals Market according to our research experts:
Growing Automotive Industry Shall Drive Market Growth
- The automotive industry in North America showed a strong recovery in the aftermath of COVID-19, recording year-on-year growth of over 4% between 2020-2021. A total of over 18 million vehicles were produced in the region in 2021.
- The global shift toward electric vehicles (EVs) is expected to favor the automotive industry in the North American region. General Motors Co. (GM) announced its plan to ramp up production capabilities across the region as it aims to deliver over 400,000 EVs between 2022-2023.
- One of the major players in the automobile industry, Ford Motor Company, announced the commencement of construction activities for its USD 5.6 billion automobile production complex, which aims to produce batteries and EVs by 2025.
- With such prominent players placing their bet on the region, the North American automotive and transportation industry shows a promising outlook for the forecast period.
- Also, with environmental sustainability in mind, more and more manufacturers are now shifting to increase the use of plastic, instead of metal, in automobile manufacturing. According to the American Chemistry Council, there will be over USD 4.5 trillion worth of opportunities by 2030 aimed at creating a circular economy. Out of this, USD 400-600 billion is expected to be the potential for automotive companies and their suppliers.
- The boom of the automobile industry and the potential increase in the usage of plastics, which require surface treatment, in the manufacturing of automobiles are expected to favorably serve the demand for surface treatment chemicals in the region.
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United States Expected to Lead the Market Growth in NA Region
- The automotive sector is one of the most critical driving factors for economic growth. According to the Internation Organization of Motor Vehicle Manufacturers (OICA), in 2021, around 15 million vehicles were produced in the United States.
- The automotive industry in the United States recorded a year-on-year growth of over 3.5% between 2020-2021 and showed great promise for recovery in 2022. The United States alone accounted for around 85% of the total vehicle production in the North American Region in 2021.
- Similarly, the US consumer electronics market is projected to grow by over 2.5% in 2023, with a CAGR of around 1.5% between 2022-2027. Growing consumption of electronic media and the rising demand for comfortable living are two major factors expected to drive growth in the consumer electronics market.
- The growth of the automotive and consumer goods & appliances industries is expected to drive the demand for surface treatment chemicals in the forecast period.
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