Abrasive Market

Market Overview

The Total Addressable Market (TAM) for Abrasive was valued at USD 38.13 billion in 2022. It is projected to reach USD 54.28 billion by 2031, growing at a CAGR of 4% during the forecast period (2023-2031). 

Abrasives are the materials used to shape or finish a workpiece by polishing, rubbing, and cutting. Abrasives are very common and are used extensively in various residential, industrial, and technological applications. Some of the standard abrasives include calcite (calcium carbonate), sandpaper (sand), Iron Oxide, and Corundum. Different types of abrasives are available in the market based on their hardness and density. The application of abrasives decides which type of abrasive is required. The hardest abrasive available on the earth is diamond, mainly used for precision grinding applications.

Some of the significant abrasives' significant uses include sharpening, lapping, drilling, sanding, cutting, honing, buffing, polishing, and grinding. These abrasives can be human-made or natural. Natural abrasives include diamond, sand, emery, calcite, and pumice, among others. Human-made or synthetic abrasives include aluminum oxide, silicon, carbide, ceramic, dry ice, glass powder, and metallic abrasives.

Market Dynamics

What are the Primary Factors Driving the Abrasive Market?

Growing Automotive Industry

The growing demand for abrasives in the automotive sector is a major factor in the growth of the market. Abrasives play an important role in automobile components manufacturing. It helps in modifying operating parameters, such as reducing CO2 emissions and lowering the noise levels of high-performance engines. It is also used for automotive machining components. Moreover, the automotive industry is increasing at a fast pace which is directly impacting the abrasive market. Another significant market-stimulating factor is anticipated to be the expansion of the electric vehicle (E.V.) industry. With 2.1 million EVs sold globally in 2019, the United States was one of the major EV markets. The IEA reports that from 2018 to 2019, the stock of electric cars in the United States increased by 29.5%. In the upcoming years, it is anticipated that the demand for abrasives will rise as electric vehicles (E.V.s) and the charging stations they require become more popular in the United States.

Growing Manufacturing Industry

Super abrasive demand is rising as the manufacturing sector expands in Asia's developing nations. For instance, in order to entice investments in mobile phone manufacturing and electronic component units, the Indian government announced production-linked incentives for large-scale electronic goods makers for the following five years in April 2020. Such initiatives are fostering industrial development in the nation, which is boosting the market as a whole.

What are the Main Factors that will Slow Down the Abrasive Market?

Shortage of Raw Materials

Aluminum oxide, silicon carbide, cubic boron nitride, artificial diamond, and ceramics are the most widely used raw materials for abrasives. Petroleum is one of the renewable resources used to produce these raw materials. Depletion of these resources reduces the supply of raw materials, which limits market expansion. Additionally, governments have acted and imposed strict regulations on the use of this product as a result of growing concerns over environmental protection and halting the spread of pollution, which has slowed market expansion.

What are the Future Opportunities for the Abrasive Market?

Increasing Construction Activities

Due to rapid urbanization and improved lifestyles, there has been an increase in construction activities. Market development is further aided by high levels of renovation activity and economic growth in developing nations. These goods are employed in the construction sector for a variety of purposes, including metal fabrications, metal components, and woodworking & fabrication. The construction industry is expanding most dramatically in developing nations like China, India, Japan, and other Asian countries. Due to the expansion of residential construction, the rising population in these nations has had a positive impact on product consumption. Additionally, the rapid industrialization of smaller western nations is directly boosting the expansion of the construction sector, which in turn is fueling the expansion of the abrasives market.

Regional Analysis

The global Abrasive market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

Asia Pacific Dominates the Global Market

Asia Pacific region is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast. This growth can be attributed to increasing regional economic development, rapid industrialization, automotive, metal fabrication, and machinery growth. The economies such as India, China, Japan, and South Korea are the key contributors to regional market growth. Furthermore, India and China's increasing automotive sector is one of the significant factors for regional market growth. According to Statista, China is counted among the largest automobile markets globally. Moreover, China is anticipated to lead the automotive market by 2040, with projected automatic vehicle sales of around 14.5 million units. Moreover, abrasives are also used in electrical equipment manufacturing; the increasing electrical equipment sector in the countries like India is further expected to boost the market growth in the near future. According to the India Brand Equity Foundation (IBEF), the electric equipment market is expected to reach USD 72 billion by 2025.

North America is expected to witness dynamic growth in the abrasive market during the forecast period due to the enormous aerospace and defense industries. Moreover, the presence of huge automotive manufacturers and machinery industries in the U.S. is the major factor for North America's abrasive market growth. According to the Aerospace Industries Association (AIA), in 2018, the U.S. aerospace and defense industry contributed more than USD 374 billion to the GDP (Gross Domestic Products) of the U.S. The aerospace and defense industry contributed to 1.8% of the U.S. GDP. Moreover, the aerospace and defense industry is growing at a fast pace in the U.S., which will further help in accelerating abrasive market growth in the North American region. According to the Aerospace Industries Association (AIA), the aerospace and defense industry generated USD 929 billion in 2018, an increase of 4.2% from the previous year.

Europe is expected to witness significant growth in the Abrasive video market during the forecast period. The production of automobiles is concentrated in Europe, which raises overall product consumption. In addition, a high level of cleaning and maintenance services for these cars is a significant factor that will foster the market's expansion in the area. According to the European Construction Industry Federation (FIEC), the total investment in the European construction industry will increase by 5.2% in 2021. In 2022, France is expected to grow by 3.5%, compared to Germany's predicted growth of just 1.0%. For the entire year 2021, the 27 E.U. members invested nearly €1.6 trillion in construction.

The LAMEA region is expected to witness moderate growth in the global abrasive market during the forecast period. The expansion of the automotive, aerospace, construction and furniture industries is responsible for the region's growth. The region's expanding solid surface grinding and polishing, metal fabrication, and woodworking industries will help the market grow in the years to come.

Segmental Analysis

The global abrasive market is segmented by material, product type, and application.

By Material Analysis

Based on material, the global market is bifurcated into natural and synthetic.

The synthetic segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. A product that refines chemical raw materials or precursors is called a synthetic abrasive. These substances include alumina, silicon carbide, and synthetic diamond. They can alter the purity, control the crystal structure within the grains, and alter the shape of abrasive grains to suit the needs of the application. The segment's growth is looking promising thanks to these adaptable features.

The natural segment is expected to witness a higher CAGR. Natural abrasives are extensively used in a wide range of domestic, industrial, and technological applications as a result of the growing consumer shift toward organic products. Since they are found naturally, these include corundum, diamond, and emery, which can be mined and processed for use with less variation. One of the major factors propelling the market growth is the rising use of this product type in the automotive industry.

By Product Type Analysis

Based on the product type, the global market is bifurcated into bonded, coated, and super.

The coated segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. Grain, a backing material, and bonding adhesive make up the coated segment. These elements give the product a distinctive quality that makes it suitable for a variety of applications. Segment growth will be fueled by the use of coated abrasives in consumer goods, fabrication, hand and power tools, general engineering, furniture, and surgical products.

The bonded segment is expected to grow at a significant rate. An ingredient kept in a matrix known as a binder makes up a bonded abrasive. The binder, which consists of extremely fine aluminum oxide abrasive and is used to sand and polish metal products, is composed of interred material. The market is growing as a result of expanding applications for bonded abrasives in the automotive and, electrical & electronics industries.

By Application Analysis

Based on application, the global market is bifurcated into automotive, electrical & electronics, metal fabrication, machinery, and others.

The metal fabrication segment is the highest contributor to the market and is expected to grow at a healthy CAGR during the forecast period. Metal structures are manufactured using this kind of fabrication through bending, cutting, and assembly procedures. This item is used to cut metals into the desired shape using cut-off saws, also known as chop saws. These saws have steel-cutting abrasive disks. Fiber discs and flap discs, which are primarily used for smoothing and grinding metal surfaces, are additional products for metal fabrication.

The automotive segment is expected to grow at a significant rate. In order to smooth or roughen the surface for polishing, fitting, or painting, abrasive material is typically used as grinding wheels and grinding segments. Segment growth will be brought on by the rising applications for deburring, cleaning, and repairing auto parts.

Recent Developments

• In June 2022, Saint-Gobain Abrasives launched a new applications center in Northborough.
• February 2022, H.P. Inc, Bosch is going to launch an in-house startup about quantum sensor products