The bonded abrasives market is expected to register a CAGR of more than 5% during the forecast period. Bonded abrasives are a mixture of abrasive grains, fillers and bonding materials. They are used to remove surface materials such as metal, ceramics, glass, plastics and paint. These abrasives are used in both grinding wheels and abrasives stones or sticks.
- Rapidly growing construction activities in emerging economies are augmenting the growth of the market.
- Declining automotive industry is likely to hinder the market’s growth.
Key Market Trends
Increasing Demand from Construction Industry
- Bonded abrasives are substances used in the construction industry, to smooth out or mould (providing the finish) other softer materials through extensive rubbing.
- These bonded materials work by scratching away the surface of materials, to get rid of unwanted roughness or substances, thus resulting in a polished floor look. Increasing population is ramping up the demand for living spaces, thereby driving the bonded abrasive materials use in the construction sector including residential, commercial, and infrastructural activities.
- According to a study by Institution of Civil Engineers (ICE), the global construction industry is expected to value USD 8 trillion by 2030, primarily driven by China, India, and the United States region.
- Globally, Asia-Pacific has the largest construction market, followed by India, China, and various Southeast Asian countries. In India, the government has initiated projects, such as 100 smart cities and ‘Housing for All by 2022’, which are expected to immensely drive the residential construction market in India through the forecast period.
- Construction, in Canada, is a strong indicator of the country's economic strength. Toronto and Montreal were the main centers of construction activities, accounting for almost 25% of the total construction activities, in the recent past.
- The United States construction industry continued to expand soon, owing to a strong economy and positive market fundamentals for commercial real estate, along with an increase in federal and state funding for public works and institutional buildings.
- All these construction activities are likely to drive the bonded abrasives market in the construction sector during the forecast period.
In North America region, United States to dominate the Market
- The United States is the world’s largest and most powerful economy, and the economy’s growth rate increased to 2.9% and is poised to grow at a rate of 2.3% in the near future.
- The United States construction industry had witnessed a rapid growth over the past few years, as a result of increased private sector spending on residential construction. The residential construction, from the past had increased Y-o-Y, by almost 10.5%.
- Furthermore, despite continuous growth in the automotive industry since the past few years, the sector is exhibiting a sharp decline since the beginning of 2019. According to Edmunds, vehicle sales in 2019 are likely to drop to 16.9 million from 17.3 million last year.
- US Department of Energy’s Vehicle Technologies Office supports the development of battery and electric drive systems. The United States government announced few policies and targets to drive the electric vehicle market.
- Such factors are driving the market for bonded abrasives in United States.
The bonded abrasives market is expected to be partially consolidated, with the top five-six players occupying a significant position in the market. Key players in the bonded abrasives market include 3M, Marrose Abrasives, Saint-Gobain, SAK ABRASIVES LIMITED, Carborundum Universal Limited, DRONCO, among others.
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