Competitive Overview
The competitive landscape offers an analysis of the key developments by the companies operating in the global market between 2016 and 2019. The global market for chromium oxide is projected to witness moderate growth during the forecast period, 2019 to 2030. The global market is projected to register a CAGR of 5.13% owing to the rising demand for the chromium oxide pigments in the paints & coatings and building & construction industries. Moreover, with the widespread use of chromium oxide in the plastics, metallurgical, and ceramics industries, coupled with the healthy growth of these industries globally, is expected to favor the growth of the global chromium oxide market in the years to follow. Furthermore, expansion of the construction sector in the developing countries of Asia-Pacific and the Middle East & Africa is projected to create lucrative opportunities for the players operating in the global chromium oxide market.
LANXESS, Venator Materials PLC, Elementis plc, and Saint-Gobain are the key players operating in the global chromium oxide market. These players account for a majority of the global market share owing to their global revenue base, strong R&D facilities, easy availability of raw materials, and wide distribution network.
Competitive Dynamics
The key players operating in the global market have large and advanced manufacturing facilities at the domestic and international levels. This helps them to supply the casted products to various end users across the globe within less time as compared to the small-scale manufacturers, providing a competitive edge in the global market. Additionally, the adoption of various growth strategies by these players such as expansion in lucrative markets, product development as per the customer requirements, strengthening distribution base in the key regional economies, and investments are expected to help these players to gain maximum revenue and long-term growth during the review period. For instance, LANXESS, one of the key players in the market, focuses on maintaining a balanced product portfolio for the end-use industries and reduce its economic dependency on individual sectors by increasing its presence in attractive consumer markets. Likewise, Venator Materials strives to expand its footprint, extend its product offerings, and meet customers’ needs by developing innovative products.
According to Wantstats analysis, the global chromium oxide market has a huge revenue base in Asia-Pacific, North America, and Europe. Asia-Pacific accounted for over 45.40% of the global market in 2017, and with the robust growth of the building & construction and metallurgical industries in the region, the demand for chromium oxide is expected to increase and drive the global market growth during the forecast period.
Michael Porter’s five forces model gives a framework that models the global chromium oxide market, which is influenced by five forces. The strategic business managers, trying to create an edge over competitive firms in the global chromium oxide market can utilize this model to better comprehend the industry connection in which the firm operates. The components of each of the forces and the degree or impact of each component in the context of the global chromium oxide market have been broken down and analyzed.
Threat of New Entrants
The new entrants are the players willing to enter the global chromium oxide market to grab the growth opportunities. The threat of new entrants in the global market is estimated to be moderate to high. This is mainly attributed to the presence of established players in the market with a strong distribution network and the stringent regulations pertaining to the production of chromium oxide from chromite. However, significant growth of the construction sector in the emerging economies of Asia-Pacific and the Middle East & Africa is expected to incentivize the entry of new players during the forecast period. Additionally, there are many small-scale manufacturers of chromium oxide in India as well as in China. The demand for the product in these economies is expected to be high and is likely to bring in more manufacturers of the product in the coming years.
Intensity of Competitive Rivalry
The competitive rivalry within the industry refers to an extent to which market players put pressure on each other. The leading players are focusing on expanding their global footprint and sourcing raw materials at a lower price to increase competitiveness in the market. The degree of competition in the market is high, owing to the presence of a significant number of key players which are mainly located in Asia-Pacific, North America, and Europe wherein there is a high demand for the product. With the health hazards associated with the product, it is strictly monitored by various health associations and regulatory bodies. This forces the producers to maintain the product quality and adds to the intensity of competitive rivalry in the market. With the significant growth of the end-use industries of the product, the players operating in the market need to develop the products in line with the customer requirements, which further intensifies the competitive rivalry in the market.
Threat of Substitutes
The threat of substitutes in the global chromium oxide is expected to be moderate. Chromium oxide is widely used as a green pigment in the coating applications due to its excellent self-mating and anti-galling properties, resistance to acid and alkali, chemical resistance, corrosion resistance, exterior durability, and compatibility. However, due to health hazards associated with the product, some alternatives in the form of inorganic pigments such as barium chromate and zinc chromate and calcium modified silica gel pigments, among others are used in the coating applications.
Bargaining Power of Suppliers
The bargaining power of suppliers in the global chromium oxide market is estimated to be moderate. The prominent suppliers of the product are from India, Germany, Russia, the US, and China. The key consumers are based in Asia-Pacific, Europe, and North America, and they depend on the suppliers to meet the demand for chromium oxide used in coatings and construction industries. With the availability of a large number of suppliers, the buyers have a choice to make, which is likely to limit the bargaining power of suppliers. In addition, the availably of alternatives such as the anticorrosive inorganic pigments for coating applications is further expected to reduce the bargaining power of suppliers. However, the excellent properties offered by chromium oxide make it a preferred choice for use in the building & construction and coatings industries, which is expected to increase the supplier’s bargaining power.
Bargaining Power of Buyers
The bargaining power of buyers in the global chromium oxide market is estimated to be high. A large consumer base of chromium oxide is mainly concentrated in Asia-Pacific, including thermal spray coating service providers and plastics and building & construction industries. In addition, the availability of alternatives such as inorganic pigments is further expected to add to the bargaining power of buyers.
