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Treatment & Coating of Metals in Germany - Market Research Report (2014-2029)

Nina Koefler Nina Koefler Frankfurt, Germany Last Updated: October 2024 WZ C25.61DE

Revenue

€11.2bn

2024

€11.2bn

Past 5-Year Growth

Profit

€XXX.Xm

Employees

63,777

Businesses

960

Wages

€X.Xbn

Treatment & Coating of Metals in Germany industry analysis

The surface finishing and heat treatment industry can look back on a chequered development over the last five years. The development of the supplier industry is largely determined by demand from the mechanical and vehicle engineering sector. If machine and vehicle manufacturers produce a larger number of end products, the demand for surface finishing and heat treatment of workpieces also increases. Subsequent processing and finishing is essential for most workpieces and metal surfaces. As production and therefore demand from mechanical engineering companies is determined by the overall German production volume, the development of which has a significant impact on the manufacturing industry's demand for production machinery, growth in the surface finishing and heat treatment sector is also indirectly dependent on the overall production volume. Since 2019, the industry's turnover has increased by an average of 3.3% per year and is expected to reach €11.2 billion in the current year. In the current year, a decline of 1.5% is expected compared to the previous year. The current year is likely to be characterised by lower production volumes, falling demand in mechanical engineering and weak capacity utilisation in the automotive industry, which will have a negative impact on turnover in the surface finishing and heat treatment sector. The profit margin is also likely to fall compared to the previous year due to tougher competitive conditions.The customer markets are expected to recover again over the next five years, with average annual growth of 1.7%. As a result, industry turnover should amount to 12.1 billion euros in 2029. According to IBISWorld forecasts, the number of companies operating in the market and the number of employees will increase at a slightly slower rate than turnover over the next five years due to the increasing automation of industry activities.

Trends and Insights

  • The demand for surface treatment of workpieces depends heavily on the production capacity of mechanical and vehicle engineering. The overall production and the load influence the demand for machine parts that require preparatory surface treatment.
  • Electrolytic coatings improve conductivity and save material, which is particularly relevant for expensive precious metals. As a result, the share of these coatings in industry sales is growing.
  • The centre region is the most important for the industry. North Rhine-Westphalia, the most populous federal state, stands out with a share of all industry locations that is even higher than its share of the total German population.
  • In general, the surface finishing and heat treatment industry is subject to moderate competition. While individual companies compete for customers to a certain extent, the industry as a whole can hold its own against substitute products.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 3.3 % over the past five years, to reach an estimated €11.2bn in 2024.

Trends and Insights

Refined and treated metals are indispensable for industry and electrical engineering

  • The surface finishing and heat treatment of metals is of great importance to the economy. It not only gives metal surfaces an attractive appearance, but also serves to protect against corrosion and change surface and material properties in preparation for further processing.
  • Additional trends and insights available with purchase
Treatment & Coating of Metals in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

The electronics industry is increasingly focussing on molecular coatings for small, high-performance components

  • The electronics industry is increasingly reliant on the advanced processing and finishing of metal parts used in electronic devices and printed circuit boards. As electronic components are becoming smaller and smaller while having to fulfil higher performance requirements, new material combinations and advanced processing techniques are constantly emerging.

Biggest companies in the Treatment & Coating of Metals in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
Oerlikon Surface Solutions Holding GmbH
165.5
LSV Lech-Stahl Veredelung GmbH
113.8
KAP AG
52.1

To view the market share and analysis for all 7 top companies in this industry, view purchase options.

Products & Services Segmentation

Treatment & Coating of Metals in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Electrolytic coating with metals, Coating with non-metallic materials and Heat treatment. Electrolytic coating with metals is the largest segment of the Treatment & Coating of Metals in Germany.

Trends and Insights

Electrolytic metal coating is becoming increasingly important despite the trend towards lightweight construction in the automotive industry

  • In electrolytic coating with metals, metals are placed in an acid bath and coated with a molecular layer of other metals using an electric current. The most important electrolytic process is galvanising.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

The companies in this sector treat metal surfaces using heat and mechanical or chemical effects and coat surfaces with metallic or non-metallic materials. The industry does not include forging, printing on metal, coating plastics with metal, plating metals with precious metals and engraving metals as an immediate service.

What's included in this industry?

Electrolytic coating with metalsCoating with non-metallic materialsHeat treatmentHot-dip coating with metalsAnodic oxidation

Companies

Oerlikon Surface Solutions Holding GmbHLSV Lech-Stahl Veredelung GmbHKAP AG

Purchase this report to view all 7 major companies in this industry.

Related Terms

HOT-DIP COATINGELECTROLYTIC PROCESSESTAPE GEDDINGUV-CURING LACQUERSOCCUPYELOXY

Industry Code

WZ 2008

WZ 25.61 - Treatment & Coating of Metals in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The demand for surface treatment of workpieces depends heavily on the production capacity of mechanical and vehicle engineering. The overall production and the load influence...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Electrolytic coatings improve conductivity and save material, which is particularly relevant for expensive precious metals. As a result, the share of these coatings in indust...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The centre region is the most important for the industry. North Rhine-Westphalia, the most populous federal state, stands out with a share of all industry locations that is e...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

In general, the surface finishing and heat treatment industry is subject to moderate competition. While individual companies compete for customers to a certain extent, the in...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

The industry does not have any major players. It consists mainly of very small companies. The reasons for the strong market fragmentation are the ability to enter the market ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Oerlikon Surface Solutions Holding GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of LSV Lech-Stahl Veredelung GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of KAP AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 4 additional companies

Detailed analysis

  • Description and key data for Oerlikon Surface Solutions Holding GmbH, and factors influencing its performance in the industry
  • Description and key data for LSV Lech-Stahl Veredelung GmbH, and factors influencing its performance in the industry
  • Description and key data for KAP AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 4 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Car manufacturers and their suppliers are among the industry's most important customers. The sales development of car manufacturers is an indicator of their demand for indust...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The profit is at a high level for such a highly fragmented industry. A unique selling point of companies in the sector is their high quality, which can only be guaranteed wit...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Treatment & Coating of Metals industry in Germany in 2024?

The market size of the Treatment & Coating of Metals industry in Germany is €11.2bn in 2024.

How many businesses are there in the Treatment & Coating of Metals in Germany industry in 2024?

There are 960 businesses in the Treatment & Coating of Metals industry in Germany, which has grown at a CAGR of 2.1 % between 2019 and 2024.

Has the Treatment & Coating of Metals industry in Germany grown or declined over the past 5 years?

The market size of the Treatment & Coating of Metals industry in Germany has been growing at a CAGR of 3.3 % between 2019 and 2024.

What is the forecast growth of the Treatment & Coating of Metals industry in Germany over the next 5 years?

Over the next five years, the Treatment & Coating of Metals industry in Germany is expected to grow.

What are the biggest companies in the Treatment & Coating of Metals market in Germany?

The biggest companies operating in the Treatment & Coating of Metals market in Germany are Oerlikon Surface Solutions Holding GmbH, LSV Lech-Stahl Veredelung GmbH and KAP AG

What does the Treatment & Coating of Metals in Germany include?

Electrolytic coating with metals and Coating with non-metallic materials are part of the Treatment & Coating of Metals industry.

Which companies have the highest market share in the Treatment & Coating of Metals in Germany?

The company holding the most market share in Germany is Oerlikon Surface Solutions Holding GmbH.

How competitive is the Treatment & Coating of Metals industry in Germany?

The level of competition is moderate and steady in the Treatment & Coating of Metals industry in Germany.

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Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.