As we read from some report from Authority agency,the global abrasives market size is projected to grow from USD 46.4 billion in 2020 to USD 58.0 billion by 2025, at a CAGR of 4.5% from 2020 to 2025. … However, factors such as uncertainty in economic conditions and rising raw material costs inhibit the growth of the market.
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.
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.
