Australia Abrasives Market Size, Share & Trends Analysis Report By Product (Bonded, Coated, Super Abrasive), By Application (Automotive, Machinery, Metal Fabrication), By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The Australia abrasives market size was valued at USD 428.2 million in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 2.2% from 2020 to 2027. The market is driven by an increasing number of vehicles on roads, which is propelling the growth of the automotive aftermarket in the country. Along with the automotive, the oil and gas sector is augmenting the market growth. These are extensively used for surface finishing the oil and gas equipment and with growing investments in the country’s oil and gas industry, the demand is expected to augment. For instance, Emperor Energy contracted AGR to begin the design and planning of the Judith 2 exploration well in Gippsland Basin, Victoria.

The automotive industry is the key end-use in the market. The market growth witnessed a significant decline post Ford, Holden, and Toyota ceased their manufacturing in 2017, however, they hold a significant presence in the country through engineering services, design, and product development, and sales and distribution. In addition, government initiatives such as the Automotive Transformation Scheme, which aims at promoting investment and innovation in the industry through financial assistance is expected to propel the demand for abrasives in automotive applications.

Abrasives are used in most stages of the vehicle production process, but, with the advent of molded auto and engine bodies and the use of robots in manufacturing the majority use of abrasives is shifted to auto parts suppliers, mechanic, and repair shops. With the increasing fleet of vehicles in the country, the demand is expected to flourish. According to the Motor Vehicle Census, Australia, there were 19.8 million registered motor vehicles as of January 31, 2020, establishing an increase of 1.5% from 2019 in the national fleet.

The manufacturing sector of Australia makes a meager contribution of 5% of the country’s GDP and 5.4% of total employment. The low share of the manufacturing sector is attributable to the shutting down of facilities such as Arrium, Holden, and Ford and offshoring fabrication projects. For example, the intercity train fleet contract worth $2.43 billion was off-shored by the NSW government.

Manufacturing is an important sector for boosting economic growth and helping in crisis. The small share of manufacturing in the country is having a huge impact on the economy especially during the outbreak of the Covid-19 pandemic. For instance, a lack of automotive manufacturing has affected the country. Car manufacturers in various countries such as the U.S. and India are producing masks, ventilators, and other equipment, where Australia cannot do so. Surgical face shields are being produced by Ford Australia but not in a factory but in a parts distribution center.

Product Insights

Bonded held the largest revenue share of over 60.0% of the Australia abrasives market in 2019. Bonded abrasives are formed with several synthetic grains like silicon carbide, aluminum oxide, or natural grains like garnet and corundum. Examples of bonded abrasives include snagging wheels, grinding wheels, and mounted wheels, which find application in rough grinding and precision applications. The steel fabrication industry and automotive is anticipated to augment product demand over the forecast period.

Coated abrasives include belts, cloths, paper, and flap wheels. These are made up of an abrasive mineral, backing material, and adhesive. There are various types such as garnet, silicon carbide, zirconia alumina, and ceramic alumina depending upon the application. For example, emery is used for polishing and cleaning of metal only, whereas, zirconia alumina finds use in heavy-duty snagging and grinding of ferrous and non-ferrous metals, fiberglass, rubber, and plastics.

Super abrasives expected to witness the fastest growth rate across the forecast period as these provide a high-quality surface finish for hard materials as well. They possess extraordinary hardness, longevity, and offer superior performance, for example, industrial diamonds. These find applications in aerospace, automotive, medical, electronics, composites, and oil industry.

Application Insights

Automotive held the largest revenue share of over 27.0% in 2019 of the market. The high share of the segment is owing to various applications of abrasives in the industry, such as, body panel repair, bumper repair, paint preparation, alloy wheel refurbishment, paint defect removal or polishing, glass upgrade, glass repair, headlight repair, and many more. Factors like the rising number of vehicles on roads and government initiatives to promote the growth of the automotive industry are anticipated to augment segment growth across the forecast period.

Metal fabrication has high prominence in the global abrasives market, which is attributable to the increasing production of metals across the globe. However, the significance of the industry is slightly low in the country compared to the rest of the world. In Australia, the steel fabrication industry has diversity in nature as various businesses fabricate steel products. Also, according to the Australian Bureau of Statistics, a sum of USD 23 million was invested in 2016-2017 by Australian Fabricators. Still, the segment is anticipated to witness sluggish growth over the forecast period, on account of rising reliance on imports and substitution with non-metal products.

In the machinery industry, abrasives are used for metal cutting applications such as cutting of high-alloyed steels, non-ferrous metal alloys, and other high-grade materials. They are also used in grinding and crushing of mining equipment such as hammer mills, cement mills, rod mills, and others. Applications such as advanced ceramics and machining of metal matrix composites are anticipated to propel the demand for advanced abrasives.

Key Companies & Market Share Insights

The market is competitive in nature with the presence of large players in the country such as 3M and Saint-Gobain along with various other local players. The demand for abrasives is accelerating owing to the automotive, wood manufacturing, and oil and gas industries. However, the demand and production of abrasives in the country are witnessing slow growth owing to the impact of the COVID-19 pandemic. Some of the prominent players in the Australia abrasives market include:

• 3M

• 111 Abrasives Australia Pty Ltd

• Best Abrasives

• GMA Garnet Group

• Hermes Abrasives Australia Pty Ltd

• PFERD Australia Pty Ltd

• Saint-Gobain

• sia Abrasives Industries AG

• Superabrasive Inc.

• Workmate Abrasives

Australia Abrasives Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the Australia abrasives market report on the basis of product type and application:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Bonded

  • Coated

  • Super Abrasives

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Automotive

  • Machinery

  • Metal Fabrication

  • E&E Equipment

  • Others