The global abrasives market registered a revenue of nearly $40,396.5 million in 2018, and is anticipated to grow at 5.7% CAGR, surpassing $62,715.3 million by 2026.
The market will witness a decline in the growth during 2020, due to the pandemic. Increasing use of abrasive in the end use industry is predicted to drive the abrasives market later in the estimated period. Moreover, increasing prices of raw material is predicted to be the biggest restraint for the market in the estimated period.
|Recovery By||Realtime BPS||*Estimate market Size, 2020,
|**Real Time market Size, 2020,
|6.2%||5.7%||Q3/Q4 2022||51||USD 45,108.5 Million||USD 24,809.7 Million|
* The numbers are estimated prior to the COVID-19 Pandemic in 2020
** The data will vary depending on upcoming developments announced by the operating players
KEY ASPECTS OF THE INDUSTRY
BOOMERS AND DECLINERS
Abrasives are mostly used as a supporting material to make the surface of the finished product much stronger and durable. The abrasives market is mainly driven by their increasing use in automobile, construction, medical, electrical and machinery industries. Increasing manufacturing activities across the globe are predicted to be the one of the major driving factors for the market in the forecast period.
Stringent government rules and regulations and the high cost of the raw material are predicted to be the biggest restraints for the market in the forecast period. There are certain restrictions with regards to the manufacturing process of various products, which is predicted to hinder the market growth in the forecast period.
Due to the lockdown, the abrasive market is predicted to witness a decline in 2020. Abrasives, such as silicon carbide, aluminum oxide, and boron nitride, are mostly present in nature which can be found by extracting from under the ground. Manufacturing industries like automobile, textile and many others are the major users of abrasives. The lockdown across the globe, has affected the mining activities and hence the market growth in 2020. The stringent government regulation for the extraction of raw material and shut down of manufacturing units are predicted to be the biggest restraints in the forecast period. For instance the Indian government has amended extraction of aluminum as well as bauxite.
Automobile industry uses all varieties of abrasives in various stages for manufacturing the automobile parts. Many automobile manufacturers use robots extensively and have shifted into manufacturing of auto parts for mechanic shops and repair shops with the use of abrasives. Due to the pandemic, the manufacturing units of these industries are shutdown down which have impacted the abrasive market to a large extent.
MANAGING SUCCESS AMIDST
THE PANDEMIC STRESS
As the whole world is under a lockdown the extraction of the barite has been stopped due to which the use of the abrasive has decreased drastically as barite is a raw material used for preparation of abrasive in various industries, impacting the market growth in a negative way in 2020. Increasing demand of abrasives in the automotive industry and rise in the demand for abrasive in electronic industry is predicted to drive the abrasives market in the forecast period. Increase in the cost of the raw material is predicted to hamper the market growth in the forecast period. Moreover, strict rules and regulations with respect to the manufacturing units are predicted to be the biggest restraints for the market in the forecast period. For Instance, Ernslaw, a softwood plantation company of New Zealand, has halted the expansion of their four projects of manufacturing softwood due to the forest regulations initiated by the government.
Increase in the demand of abrasives in medical and biotechnology sector is predicted to create more opportunity in the abrasive market in the forecast period. Moreover, increasing in the production of finished product by various end use industries after the lockdown period is predicted to boost the demand for abrasives market in the forecast period. The automotive segment offers maximum market potential with the rise in the demand for the abrasive in the forecast period.
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- Long-Term and Short-Term impact of Covid-19 on the market
- Cascading impact of Covid-19 on Abrasives Market , due to the impact on its extended ecosysytem
- Understanding the market behavior Pre- and Post-Covid-19 pandemic
- Startegy suggestions to overcome the nagative impact or turn the positive impact into the opportunity