Abrasives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

Key Highlights

• The expanding usage of abrasives in the construction and automotive sector will likely fuel the demand for abrasives during the forecast period.
• On the other hand, the stringent regulations on silica abrasives are likely to hinder the market.
• Significant investment in research and development activities will likely offer market growth opportunities.
• The Asia-Pacific region is expected to dominate the market during the forecast period owing to its growing development in major countries such as India, China, and Japan.

Abrasives Market Trends

Increasing Usage in the Construction Industry

• The building and construction industry uses abrasives in heavy-duty applications, including grinding, drilling, cutting, and sanding.
• They are used for cutting reinforced concrete, tiles, stone, and granite. Thus, they are embedded in machine tools, including masonry, floor, tile, handheld saws, core drilling equipment, floor grinders, and power trowels.
• China's construction sector generated around 6.9% of the country's GDP in 2022. Further, according to the Ministry of Housing and Urban-Rural Development in China, the construction industry intends to maintain a 6% share of the country's GDP by 2025 under the 14th Five-Year Plan period (2021-2025).
• In India, according to the Ministry of Statistics and Program Implementation's Infrastructure and Project Monitoring Division, the government had 1,559 projects in the pipeline valued at INR 26.7 trillion (~USD 326 billion) as of May 2022. Furthermore, owing to a strong pipeline of infrastructure projects in several sectors, the Indian construction industry is predicted to grow at a 6.2% annual rate from 2023 to 2026.
• Also, the Japanese construction industry is expected to grow significantly, owing to the events hosted in the country. Tokyo hosted the Olympics in 2021, and Osaka will host the World Expo in 2025. Construction in Japan is mainly driven by redevelopment and recovery from natural disasters, thus driving the demand for abrasives in the construction sector.
• Therefore, owing to the above factors, the growing construction industry will likely increase the demand for abrasives in the coming years.

The Asia-Pacific Region is Expected to Dominate the Market

• The Asia-Pacific region is expected to dominate the abrasives market in the future. The rising construction, automotive, aerospace, and electronics industries are contributing to the massive demand in the market.
• China's growth is fueled mainly by rapid expansion in the residential and commercial building sectors and the country's expanding economy. China is encouraging and enduring a continuous urbanization process, with a projected rate of 70% by 2030. As a result, increased building activity in nations like China is projected to fuel the region's adhesive industry. All such factors tend to increase the demand for abrasives across the region.
• Furthermore, South Korean builders' overseas building orders surpassed 30 billion US dollars for the third consecutive year in 2022, owing to strong demand from Asia, North America, and the Pacific Ocean regions.
• Moreover, the Indian electronics industry is one of the fastest-growing industries globally. The domestic electronics manufacturing sector is expanding at a steady rate, owing to favorable government policies, such as 100% foreign direct investment (FDI), no requirement for industrial licenses, and the technological transformation from manual to automatic production processes.
• Electronics System Design and Manufacturing (ESDM) is the fastest-growing industry, continuously transforming businesses and economies worldwide. For instance, by 2025, India's digital economy will be worth USD 1 trillion.
• Hence, owing to the factor above, the Asia-Pacific region is expected to dominate the abrasives market during the forecast period.

Abrasives Market Competitor Analysis

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