30/09/2024
The global abrasives market is experiencing significant growth, with a value of USD 54.8 billion in 2022 and a projected increase to USD 87.80 billion by 2030, representing a CAGR of 6.06% during the period. Leveraging this global expansion, the Indian Abrasive Market witnessed growth, reaching USD 362.26 million in FY21, and is expected to achieve a CAGR of 6.61% in the forecast period, reaching USD 541.84 million by FY27.
Abrasive products are widely used in various industries, including Automobiles, Auto Ancillary, Metalworking, Building and Construction, Woodworking, Railways, Aerospace, and General Engineering. In the Indian market, major end-user industries such as Auto industries (~26%), Construction (25%), and Steel & Metal Fabrication (23%) heavily rely on abrasives.
The Indian abrasive market predominantly utilizes bonded abrasives, which hold over 60% market share, followed by coated abrasives at approximately 25%, and super abrasives at less than 10% in 2021. The bonded abrasives market is expected to grow at a CAGR of 5.8%, coated abrasives at 5.0% CAGR, and super abrasives at 6.5% CAGR from CY21 to CY29.
The growth of India’s automotive industry is driven by factors such as increasing disposable income, growing demand for personal vehicles, and government initiatives like the FAME India scheme. These factors are anticipated to drive the demand for abrasives in the coming years.
Furthermore, the government’s focus on infrastructure development and the rising demand for housing is expected to contribute to the growth of the construction industry, thereby increasing the demand for abrasives in India.
The adoption of automation and robotics in manufacturing is another significant factor expected to drive the demand for abrasives. Additionally, there is a growing trend towards green and sustainable abrasives in the Indian market.
The PLI Scheme’s capital expenditure allowance is likely to generate strong demand for short-cycle products and industrial consumables in the capital goods sector.
In the Indian abrasive market, Grindwell Norton (GWN) and Carborundum Universal (CUMI) collectively hold approximately 51% market share, with GWN at around 26% and CUMI at approximately 25%. 3M India follows with an approximately 11% market share, particularly strong in coated abrasives. Power tool players account for around 7% market share, while imports, mainly consisting of Chinese products, contribute approximately 31%.
In conclusion, the global and Indian abrasive markets are witnessing significant growth, driven by the expansion of the automotive industry, infrastructure development initiatives, and the adoption of automation in manufacturing. There is also a growing demand for green and sustainable abrasives.