The global abrasives market is estimated to witness a healthy growth, at an estimated CAGR of over 5%, over the forecast period. The major factors driving the growth of the market studied are Rapidly growing construction sector in emerging economies and rapid increase in manufacture sector across the globe.
- Stringent regulations on usage of silica abrasives are likely to hinder the markets growth.
- Significant investment in R&D activities is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness highest CAGR during the forecast period.
Key Market Trends
Increasing Usage in the Automotive Industry
- There is a need to improve the efficiency of automotive to address the functional requirement. An automotive in general consists of many components mainly exterior and interior mirrors, plastic components, fuel tanks, air ducts, de-aeration tanks, valve springs.
- It is essential to maintain dimensional accuracy of these components in order to meet the functional requirements. Abrasives are used in finishing operation of the manufactured components of automotive.
- In 2019, the automotive production witnessed a decline owing to trade war pf US-China and other political reasons. This is expected to continue in the first half of 2020, owing to the weak sales in second half of 2019. However, the automotive industry is likely to recover by the end of 2020.
- In addition, the development of electric vehicles may continue to gain momentum in the upcoming years especially in Europe, China. and United States, where many government programs are promoting a move away from fossil fuels owing to the various environmental concerns.
- Owing to all these factors, the market for abrasives is likely to grow across the world during the forecast period.
Asia-Pacific Region to Dominate the Market
- Asia-Pacific region is expected to dominate the market. In the 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 country’s economy.
- The Chinese aircraft industry depicted 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.
- Foreign investment in China has also been extended into the aviation sector, which is projected to register a CAGR of 6%, owing to China’s geographical location, which provides easy access to the industrial goods markets in the neighboring countries, as well as, 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 shaping up for product evolution, with the country focusing on manufacturing products, in order to ensure fuel economy, and to minimize emissions (owing to the growing environmental concerns due to mounting pollution in the country).
- The production is expected to reach 30 million units by 2020, owing to the “Made in China 2025” initiative support in upgrading the existing low-cost mass production to higher value-added advanced manufacturing. “Automobile Mid and Long-Term Development Plan”, was released in 2017, with an objective to make China a strong auto power in the next ten years.
- Due to all such factors, the market for abrasives in the region is expected to have a steady growth during the forecast period.
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, among others.
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