Global Abrasives Market Demand & Forecast Analysis, 2016-2032

Executive Summary : -

Abrasives have been used in almost all of the major industries like automotive & transportation, electrical & electronics, metal fabrication, industrial, oil & gas, and other applications on account of its unique properties and the ability to remove corrosion and provide a polished surface. Increase in demand from all the end-use applications where finished & polished surfaces with high precision is important along with increase in construction activities in the developing economies is likely to add to the increase in demand for abrasives in the long-term forecast. The major types of abrasives are Bonded Abrasive, Coated Abrasive and Super Abrasive. Abrasives are used in the paints & coatings industry to remove layers of paints & coatings. It is also used to remove the corroded surface in all major industries to make it corrosion free and as well to provide a polished surface.

Electrical & electronics, automotive and industrial applications are the key consumers of abrasives. Most of the demand is observed to be in Asia-Pacific. With growing population, increasing disposable income and increased per capita consumption in the region, the growth of market for abrasives is inevitable. Growing demand for consumer electronics in developing countries like India and the Asia-Pacific region in general offer growth opportunities for abrasives. Popularization of hybrid cars and electric vehicles in response to reduce emissions can serve as a growth opportunity for abrasives making automotive & transportation to be one of the fastest growing end-users of abrasives in the medium to long-term forecast.

The automotive industry is on a rise in almost all the major economies. Countries like U.S., China, Germany, Mexico, India, and South Korea are known for robust automotive / automotive part manufacturing industry. Majority of the companies have been coming up with hybrid and electric versions of their cars. Most of these countries have also set-up deadlines to ensure complete penetration of these automotive, replacing their gasoline counter-parts. Automotive manufacturers are also looking to shift towards greener cars as governments in developing countries are providing them with rebates on green vehicles.

Broader penetration in the automotive sector with newer applications, growing demand from electrical & electronics and increases use construction segment along with potential usage of abrasives in the other smaller industries is expected to increase the need for abrasives. New product developments with improved functions that can substitute other surface enhancing & polishing material are expected to prove to be an opportunity in the long-term forecast.

Abrasives relation with the global GDP is that it has been growing at atleast 1.5 times the global GDP. In term of volume consumption though the demand pattern differs from 1% growth in the mature economies to more than 8% in the developing countries. Prismane Consulting forecast the global abrasives market to grow at a CAGR between 4% to 5% in the long-term forecast.