Bonded Abrasives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)


Posted April 25, 2021 by Statzyreports

The bonded abrasives market was estimated at USD 18 billion in 2020 and the market is projected to register a CAGR of over 5% during the forecast period (2021-2026).
 
The bonded abrasives market was estimated at USD 18 billion in 2020 and the market is projected to register a CAGR of over 5% during the forecast period (2021-2026). The market was negatively impacted due to COVID-19 in 2020. Owing to pandemic scenario, several countries across the world went into lockdown to curb the spreading of virus. All the construction and manufacturing activities were halted due to supply chain disruptions and laour shortages. This negatively impacted the market. However, the condition is expected to recover in 2021, thereby driving the market studied durong the forecast period.

- Over the short term, rapidly growing construction activities in emerging economies are augmenting the growth of the market.
- On the flip side, declining automotive industry growth and negative impact of COVID-19 pandemic are likely to hinder the market growth.
- Asia-pacific region is expected to account for the largest share during the forecast period.

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.

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- 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.
- In Germany, the increasing migration to the country has been stimulating the current demand for new residential construction. ​About 3.6 million migrants were expected to arrive to Germany, by the end of 2020-2021, which will require at least 350,000 new dwellings per year.
- 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

- United States is the world largest and most powerful economy in the world. However, the economic growth of the country has been slowed in the recent past with the GDP growth rate dropping from 3% in 2018 to 2.2% in 2019. Additionally, the GDP of the country contracted by 4.8% in the first quarter and 31.4% in the second quarter of 2020, indicating severe impact of COVID-19 pandemic. Overall, the country’s annual GDP growth dipped to -4.3% in 2020.

- United States has one of the world largest construction industry and it recorded an annual revenue of USD 1,306 billion in 2019. The United States is a major industrialized nation that houses multiple industries in heavy-scale, medium-scale, and small-scale categories. The country is known for its booming commercial activities.

- According to US Census Bureau, the total Residential housing units authorized by building permits in March 2020 were at a seasonally adjusted annual rate of 1,353,000 representing 5% growth over March 2019 rate of 1,288,000. The total number of privately‐owned housing starts in March 2020 were at a seasonally adjusted annual rate of 1,216,000 representing 1.4% growth over March 2019 rate of 1,199,000.
- Even though United States construction sector has taken a plunge in 2020, the industry is expected to recover and grow by late 2021, thereby increasing the demand for bonded abrasives market from the construction sector during the forecast period.

- Despite the continuous growth of automotive industry from the past decade, the sector is exhibiting a sharp decline since the beginning of 2019 due to several factors like the trade war between China and United States and further due to the outbreak of COVID-19.
- In the first nine months of 2020, the total automobile production in United States witnessed a decline of about 25.1% Y-o-Y over the same time period in 2019 and reached a total of about 6.24 million vehicles from 8.33 million vehicles produced in January-April 2019. The decline in production due to the virus outbreak has affected the automotive industry in the country thereby indirectly affecting the market for bonded abrasives.
- US Department of Energy 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.

- Furthermore, the United States has the largest aerospace industry in the world. According to the Federal Aviation Administration (FAA), the total commercial aircraft fleet is expected to reach 8,270 by 2037, from 7,397 in 2018. Moreover, the US mainliner carrier fleet is expected to grow at a rate of 54 aircraft per year, as the existing fleet has been becoming older, which is expected to provide opportunities for bonded abrasives market.
- Such factors are expected to drive the market for bonded abrasives in United States during the forecast period.

Competitive Landscape

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, among others.

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- The market estimate (ME) sheet in Excel format
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Tags Bonded Abrasives Market , Bonded Abrasives Market size , Bonded Abrasives Market share , Bonded Abrasives Market forecast , Bonded Abrasives Market Growth , Bonded Abrasives Market Trends , COVID-19 Impact
Last Updated April 25, 2021