The global Abrasive market size is expected to be worth around US$ 57.82 billion by 2030, according to a new report by Vision Research Reports.
The global Abrasive market size was valued at US$ 44.41 billion in 2020 and is anticipated to grow at a CAGR of 4.10% during forecast period 2021 to 2030.
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Growth Factors
The market is expected to be driven by the rising growth in the metal fabrication industry on account of demand from the end-use sectors, such as automotive, aerospace, agriculture, and medical. Abrasives are tools used for shaping and providing a smooth finish to the surface of the product.
Based on product, the market has been segmented into coated, bonded, and others. The coated segment is anticipated to register the fastest growth rate over the forecast period on account of the increasing application of coated materials in metalworking, where products, such as sandpaper, are used for deburring. China held the largest share of the global market in 2020. The country leads in terms of production as well to cater to domestic demand, as it is also a huge manufacturing hub.
According to the USGS statistics, China was the largest producer of fused aluminum oxide and silicon carbide abrasives in 2019. Rising production in China has compelled other players in the value chain to expand their manufacturing capacities. For instance, in August 2020, Ahlstrom-Munksjö announced to make further investments in its Binzhou plant for producing abrasive backing paper. This investment aims at strengthening the company’s position as a leading producer for abrasive backings across the globe.
Despite the positive market outlook for the future, the market growth plummeted in 2020 on account of the Covid-19 pandemic. Several companies witnessed losses in 2020 as the manufacturing operations were suspended, which impacted both product manufacturing and consumption. For example, Grindwell Norton Ltd.’s abrasives division reported a drop in sales due to a decline in industrial activity and lockdown in the first quarter of 2020.
Report Highlights
The bonded segment dominated the global market in 2020 accounting for the largest revenue share of over 43%. Bonded abrasives include grinding wheels, snagging wheels, mounted wheels, and others, which are used for precision and rough grinding applications due to their high efficiency and enhance operational capability. The coated product segment is expected to register the fastest growth rate over the forecast period. Coated abrasives include roll, sheet, disc, belt, and flap-wheel products. Rising demand for this product type has compelled companies to expand their production capacities.
For example, in March 2020, Carborundum Universal Ltd. invested a sum of ₹48 crores (~USD 6.60 million) to double its installed capacity of coated abrasives to cater to the growing demand from the domestic and international markets. The products in this segment have applications in white goods, sanitaryware, furniture, automobile, fabrication, construction, and auto ancillaries. The developments in the stainless steel fabrication and woodworking industries are expected to boost the growth of this product segment over the forecast period.
The automotive & transportation segment held the largest revenue share of more than 35% in 2020. In the automotive industry, abrasives are used for various applications, such as coarse and lacquer sanding. Moreover, super abrasives, in the form of diamond discs, are preferred for grinding and polishing to enhance the surface finish of automotive components.
Heavy machinery is amongst the fastest-growing application segments of the market. The product is widely used in metal cutting applications, grinding & crushing of mining equipment, and others. Growth in the manufacturing sector of developing economies is expected to boost the demand for heavy machinery, thus, augment the product consumption over the forecast period.
For instance, in June 2020, Mahanadi Coalfields Ltd. announced to invest ₹60,000 crores (~USD 9.35 billion) by 2025-26 for expanding its coal production capacity to 300 million tons. Such investments are anticipated to increase the demand for heavy machinery and benefit the overall market over the coming years.
Electrical & electronics equipment is another lucrative application for the product, where it is used for slicing and grinding of electronic components and various hard materials, such as glass, silicon, zirconia, and quartz, to produce circuit components and compact discs. Moreover, with ease in restrictions imposed due to the global pandemic across various regions, nations are re-opening their electrical & electronics manufacturing sector, which is also supporting the segment growth. For instance, in May 2020, the electrical and electronics sector resumed its operations in Malaysia.
Asia Pacific dominated the global market in 2020 and accounted for the largest revenue share of more than 54%. The regional market will expand further registering the fastest CAGR from 2021 to 2028. Infrastructural developments, rising investments in the manufacturing sector, and growth in EV production in developing economies of the region are expected to drive the market growth over the forecast period.
Southeast Asian countries are potential markets for abrasives. For instance, Vietnam’s industrial production witnessed an increase of 2.7% in the first half of 2020 from the same period of 2019. The U.S.-China trade war made Vietnam a popular destination for investment in Asia and a compact manufacturing base in the world. Developments in the manufacturing sector of the country have augmented the need for machinery and hence, product demand.
North America is anticipated to witness steady growth over the coming years owing to the rising product demand from the automotive and aerospace & defense industries. Despite the decline in 2020, owing to the pandemic, rising emphasis on the production of EVs in the region, coupled with the resumption of aircraft manufacturing operations, is anticipated to prove beneficial for the market growth in the coming years.
The growth in the metal fabrication and machining industries in North America is also expected to provide lucrative growth opportunities to the manufacturers. For instance, in July 2020, Sargent Metal Fabricators Inc., announced its plan to expand operations in South Carolina, U.S. with an investment of USD 9.5 million. The expansion aims at catering to the growing customer demand. Such investments are expected to augment the product demand in the region over the forecast period.
Key Players
- 3M
- Asahi Diamond Industrial Co., Ltd.
- Bosch Ltd.
- CUMI
- Henkel AG & Co, KGaA
- Saint-Gobain
Market Segmentation
- Product Outlook
- Bonded
- Coated
- Others
- Application Outlook
- Automotive & Transportation
- Heavy Machinery
- Metal Fabrication
- Electrical & Electronics Equipment
- Others
- Regional Outlook
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- U.K.
- France
- Italy
- Russia
- Asia Pacific
- China
- India
- Japan
- Australia
- Central & South America
- Brazil
- Middle East & Africa
- North America
The study objectives of this report are:
- To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2030);
- Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
- To define, describe and forecast the market by type, application and region.
- To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
- To identify significant trends and factors driving or inhibiting the market growth.
- To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
- To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
- To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
- To strategically profile the key players and comprehensively analyze their growth strategies.
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