Abrasives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Abrasives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The global abrasives market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Considering the pandemic, the activities of various end-user industries of abrasives, including metal manufacturing, construction, and other industrial activities, were temporarily halted during the lockdown, thereby leading to a decrease in the demand for abrasives. For instance, according to the OICA, automobile production declined by around 16% in 2020, compared to 2019. However, the construction industry is recovering fast after the COVID-19 outbreak. Thus, the construction industry is expected to positively impact the market's growth in the coming years.

Key Highlights

• Over the short term, the growing construction sectors in emerging economies are expected to drive the market's growth.
• However, the stringent regulations on the usage of silica abrasives are likely to hinder the market.
• The significant investment in research and development activities related to abrasives is likely to create opportunities for the market in the coming years.
• The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market TrendsIncreasing Usage in the Construction Industry

• In the building and construction industry, abrasives are used in heavy-duty applications, including grinding, drilling, cutting, and sanding.
• They are used for cutting reinforced concrete, tiles, stone, and granite. Thus, they are embedded in machine tools, including masonry, floor, tile, and handheld saws, core drilling equipment, floor grinders, and power trowels.
• The global construction industry was valued at about USD 12 trillion in 2019, recording a growth rate of about 4% compared to the previous year. It is expected to reach USD 8 trillion by 2030, primarily driven by countries such as India, China, and the United States.
• The US construction industry is set to continue its relatively solid growth over the forecast period, supported by the expanding residential construction sector.
• In 2019, the total value of new construction put in place in the United States was about USD 1,365 billion. This value reached about USD 1,430 billion in 2020, registering a growth rate of about 4.5%.
• In India, the foreign direct investment (FDI) received in the construction development sector (townships, housing, built-up infrastructure, and construction development projects) from April 2000 to December 2019 stood at USD 25.37 billion, according to the Department for the Promotion of Industry and Internal Trade (DPIIT).
• Therefore, the aforementioned factors are expected to significantly impact the market in the coming years.

Asia-Pacific Region to Dominate the Market

• The Asia-Pacific region is expected to dominate the abrasives market in the future. In this region, China is the largest economy in terms of GDP. China is one of the fastest emerging economies and has become one of the biggest production houses in the world today. The country’s manufacturing sector is one of the major contributors to the economy.
• The Chinese aircraft industry experienced significant growth over the years. According to Boeing, China is estimated to require around 7,600 new commercial aircraft, valued at USD 1.2 trillion, over the next two decades.
• The foreign investments in China have also been extended into the aviation sector, which is projected to register a CAGR of 6%. These investments are being made owing to China’s geographical location, which provides easy access to the industrial goods markets in the neighboring countries and other countries globally, making it a major access point for manufacturers and suppliers.
• China is the largest manufacturer of automobiles in the world. The country’s automotive sector has been focusing on product evolution and manufacturing products to ensure fuel economy and minimize emissions. This focus is due to the growing environmental concerns related to the rising pollution levels in the country.
• Abrasives also find applications in the automotive manufacturing segment. In 2020, the production of automobiles decreased by around 2% compared to 2019, reaching a total of 25.23 million units. This led to a decrease in the demand for abrasives in automotive manufacturing for applications including cutting and grinding.
• China is in experiencing massive growth in its construction sector. The country has the largest building market in the world, accounting for 20% of all construction investment globally. It is expected to spend nearly USD 13 trillion on buildings by 2030.
• The aforementioned factors are expected to show a significant impact on the market in the coming years.

Competitive Landscape

The abrasives market is partially fragmented in nature. Some of the major players in the market include 3M, ARC Abrasives Inc., Abrasive Technology Inc., Fujimi Incorporated, and Saint-Gobain|.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

3M
Abrasive Technology Inc.
Allied High Tech Products Inc.
Almatis GmbH
ARC Abrasives Inc.
Asahi Diamond Industrial Co. Ltd
CMC Materials
Dewalt
Fujimi Incorporated
Henkel AG & Co. KGaA
Klingspor
Murugappa Group (Carborundum Universal Limited)
Noritake Co. Limited
Pan Abrasives
Radiac Abrasives
Robert Bosch GmbH
RPM International Inc.
Saint
Gobain
SAK Abrasives Limited
Super Abrasives
Tyrolit Schleifmittelwerke Swarovski KG
Uneeda Enterprizes Inc.

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.