Automotive & Heavy Machine Industries Driving Abrasives Demand

Janifha Evangeline

The abrasives market is anticipated to reach USD 53634 million by 2023. Used to shape or finish a workpiece in a broad spectrum of applications such as industrial, domestic and technological applications, abrasives are segmented into natural and synthetic broadly.

While corundum, garnet, emery and pumice come under the natural abrasives’ categories, silicon carbide, synthetic diamond, and alumina, come under the synthetic abrasives. Furthermore, abrasives can be bonded or coated. While bonded abrasives are fixed to a matrix, also known as a binder are often made of rubber, clay, resin/glass, coated abrasives are attached to a backing material. These include paper, cloth, resin, polyester or metal.

Market Segmentation

The abrasives market is classified on the basis of end-user industry, type, and material. On type it is classified into bonded, coated, and super; on material it’s classified into natural and synthetic and on the end-user industry it’s classified into automotive, metal fabrication, machinery, electronics, construction and many others.

Growth Trends

One of the industries offering highest market potential is the automotive industry. This is due to increase in per capita disposable incomes and surge in demand for passenger and commercial vehicles mainly in the developing nations such as India. Besides, strict regulatory environment and shift in consumer demand are the other aspects driving its market growth.

Abrasives play a major role in the finishing of vehicles. Bringing the products into a working condition is accomplished by the use of abrasives. Some of the tasks carried out using abrasives include the deburring, repair and maintenance of the body. Others include sizing engine parts, cleaning of accessories and interiors of the automobile.

Heavy machinery is one of the fastest-growing application sectors of the abrasives market. Since it is used largely in applications such as metal cutting, grinding and crushing of mining equipment, etc.

Growth in the manufacturing sector of developing nations is anticipated to bolster the demand for heavy machinery and this in turn is predicted to fuel the product consumption in the near future.

Indian Abrasives Market

“Currently, Indian Abrasives Market size is estimated to be above INR 30 billion, largely dominated by MNCs. The market is prospering day by day in line with GDP growth. Coated abrasives growth is higher than bonded abrasives, as there is more focus on the product finish by the end users.

India is becoming a global manufacturing hub of various products, more so after the production linked incentives scheme announced by the Government of India for various manufacturing sectors which will surely drive the market growth. Furthermore, new applications and new products are evolving in abrasives industry to ensure higher growth,” says Rajesh Lundia, Founder & CEO, Flexible Abrasives.

“The main factors behind the demand and growth of the Abrasives industry is its diverse uses – Coated abrasives is a necessary consumable item in varied industries such as steel, automobile, Auto components, Hand tools, Engineering, General metal fabrication, Glass, Sanitary Fitting, Plywood, Laminate, Woodworking, leather, Shoe industries and many more,” he adds.

Two major players dominating the abrasives industry in the country include Carborundum Universal and Grindwell Norton. These command seventy percent of the Indian abrasive market size. The abrasives industry mainly serves the other industrial sectors that include Auto Components, General Metal Fabrication, Automotive etc. The abrasive industry also contributes to the exports of the nation.

Future road map

There is an immense potential for the abrasive industry in the country. Furthermore, the schemes introduced in domestic manufacturing under the ‘Make in India’ initiative will enable to attract huge investments towards manufacturing/production in the country. The 25 billion rupees organized abrasives industry of the country is anticipated to register a 5-year Compound Annual Growth Rate of thirteen percent to Forty billion rupees.

And, this is expected to grow in tandem with the strong economic growth that is anticipated in the country. Also, conventionally, India’s Gross Domestic Product growth has been related with the growth in the abrasives industry and this accentuates the industry’s substantial dependence on the economic performance of the country.

At present, the super abrasives constitute 10 percent of the abrasive industry and the conventional abrasives such as the bonded and coated abrasives account for the rest. What is making Super abrasives the preferred choice for such products is the growing awareness regarding the high-end technology and merits & advantages of super abrasives. However, using them in different industries other than automotive is still at a budding stage.

With growing awareness, it is anticipated that the usage and utilization of super-abrasives will rise over time. Thus, this not only creates the opportunities for diversification and expansion that are within the industry but it also enhances margins along with overall profitability.