Abrasive Market Size, Share & Trends Analysis Report By Product (Coated, Bonded), By Application (Automotive & Transportation, Metal Fabrication), By Region (North America, APAC, Europe), And Segment Forecasts, 2021 - 2028

Report Overview

The global abrasive market size was valued at USD 34.41 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 4.2% from 2021 to 2028. Growth in the metal fabrication industry on account of the rising demand for pre-engineered buildings & components and developments in the manufacturing sector is one of the key driving factors of the market. The growth of the metal fabrication industry is also driven by the rising demand from various end-use industries including medical, agriculture, automotive, and aerospace. Moreover, the market is continuously evolving because of the changing technologies and lack of skilled labor. The U.S. holds key importance in the global market.

Although, the country has not witnessed any major growth in the manufacturing sector, due to changing economic priorities affecting tariffs and internal investments; emphasis on domestic production is expected to prove fruitful for market growth over the coming years.

Growth in the Electric Vehicles (EVs) industry is expected to be another major driving factor for the market. In 2019, the global EV sales reached 2.1 million and the U.S. was amongst the key markets for EVs. According to the IEA, the U.S. electric car stock increased by 29.5% from 2018 to 2019. The demand for EVs and their charging stations is increasing in the U.S., which, in turn, is anticipated to boost the abrasives demand over the coming years.

Moreover, growth in the manufacturing sector of developing economies of Asia is boosting the demand for super abrasives. For instance, in April 2020, the government of India announced production-linked incentives for large-scale electronic goods makers for the next five years to attract investments in mobile phone manufacturing and electronic component units. Such initiatives are contributing to industrial growth in the country, thereby driving the overall market.

However, the market growth is expected to be restrained on account of volatile raw material prices. Mass production of abrasives requires large amounts of raw materials, such as aluminum oxide. The prices of bauxite and other source minerals fluctuate significantly, owing to factors, such as varying transport costs impacted by fuel prices, thereby affecting the production cost and pricing of abrasives.

Product Insights

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.

Application Insights

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.

Regional Insights

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 Companies & Market Share Insights

The global market is highly competitive and fragmented owing to the presence of several small- and large-scale players. The companies witnessed revenue losses in 2020 owing to the suspension of automotive operations, which led to a declined demand for abrasives. Thus, companies are adopting several strategic initiatives to overcome their losses and gain a competitive edge.

For example, in September 2020, RPM International Inc. acquired Ali Industries, Inc. a leading manufacturer of sandpaper and other products, through its Rust-Oleum business. With this acquisition, RPM International aims at broadening its Consumer Group segment’s surface preparation capability through the addition of abrasives to the company’s lineup of repair, cleaning, and patch products. Some of the prominent players in the global abrasive market include:

• 3M

• Asahi Diamond Industrial Co., Ltd.

• Bosch Ltd.

• CUMI

• Henkel AG & Co, KGaA

• Saint-Gobain

Abrasive Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global abrasive market report on the basis of product, application, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2028)

  • Bonded

  • Coated

  • Others

• Application Outlook (Revenue, USD Million, 2017 - 2028)

  • Automotive & Transportation

  • Heavy Machinery

  • Metal Fabrication

  • Electrical & Electronics Equipment

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2028)

  • 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