Abrasives Market Analysis

Abrasives Market Analysis

The Abrasives Market size is estimated at USD 47.34 billion in 2024, and is expected to reach USD 66.83 billion by 2029, growing at a CAGR of greater than 5% during the forecast period (2024-2029).

• COVID-19 negatively impacted the market in 2020. However, the market is estimated to have reached pre-pandemic levels and is expected to grow steadily.
• The expanding usage of abrasives in the construction and automotive sectors 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 Use in the Aerospace and Automotive Sectors

• The automotive sector is one of the major users of abrasives. As the demand for light and fuel-efficient automobiles has increased, such high-performance automobiles are being developed using bonded abrasive grinding tools for different applications.
• Abrasive grinding operations are used extensively in the automotive industry to manufacture several driveline, suspension, body, and chassis components.
• Moreover, abrasive products are mainly used in the aerospace sector for the cutting and polishing of various castings in the manufacture of steam turbines, the strong grinding of the roots of turbine blades, and the polishing of the blade airfoil.
• Bonded abrasives are widely used in the aerospace industry. Abrasives in the aerospace industry are required for removing discoloration, removing rust and paint, deburring, fine sanding, finishing, blending, lacquer retouching, scuffing, surface treatment, flatting, polishing, weld preparation, and structuring.
• According to the Organization Internationale des Constructeurs d’Automobiles (OICA), around 85.01 million vehicles were produced in 2022, witnessing a growth rate of 5.99% compared to 80.205 million vehicles in 2021, thereby indicating an increased demand for acrylonitrile from the automotive industry. In 2022, around 60 million passenger cars were manufactured, which was nearly 7.35% compared to 2021.
• Additionally, the rising production of electric vehicles is likely to enhance the market demand for the Electric Vehicle segment. According to the EV Volumes, electric vehicle (EVs) sales reached 10.522 million units in 2022, registering a growth rate of 55% compared to 2021. As per the World Economic Forum (WEF), nearly 4.3 million new battery-powered EVs (BEVs) and plug-in hybrid electric vehicles (PHEVs) were sold in the first half of 2022. In addition, BEV sales grew by 75% on the year and PHEVs by 37%.
• Furthermore, the aerospace industry is experiencing stagnant growth owing to the strengthening of passenger travel demand. The backlog of new aircraft orders and the constant resurgence of business aircraft might add to the growth of the aerospace industry.
• According to the International Air Transport Association (IATA), the revenue for commercial airlines was valued at USD 727 billion in 2022, registering a growth rate of 43.6% Y-o-Y. Furthermore, the payment is expected to reach USD 779 billion by the end of 2023. Such factors are likely to increase the demand for flexible hoses as aerospace parts manufacturing is likely to grow.
• Moreover, according to the Boeing Commercial Outlook 2023-2042, the demand for new commercial jets by 2042 is expected to reach 42,595 units, valued at USD 8 trillion. The fleet is expected to double to 48,600 aircraft by 2042, expanding by 3.5% annually. Airlines are expected to replace about half of the fleet with new, more fuel-efficient models.
• Therefore, owing to the above factors, the growing automotive and aerospace industry will likely increase the demand for abrasives in the coming years.