Market Trends of Bonded Abrasives Industry
This section covers the major market trends shaping the Bonded Abrasives Market according to our research experts:
Increasing Demand from the 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.
- 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. The 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 the 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.
- According to the United Nations (UN), around 50% of the global population resides in urban cities, which is projected to touch 60%, by 2030. The pace of economic and demographic growth must be in harmony with the demand for residential activities. By 2030, around 40% of the global population is likely to need housing at the rate of over 96,150 houses per day.
- Globally, Asia-Pacific has the largest construction market where construction senctor in countries such as India, China, and various Southeast Asian countries has been growing in recent times. 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.
- German Social Democrat government is focusing heavily on the housing crisis in the country and has created a new ministry to supervise its housing plans. In November 2021, the government pledged more than 400,000 new housing units every year from 2022, 100,000 of which will be publicly subsidized.
- All these construction activities are likely to drive the bonded abrasives market in the construction sector during the forecast period.
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Asia Pacific Region to Dominate the Global Market
- Asia Pacific Region is home to around 3/5th of the total global population and countries such as China, India, and Indonesia are the part of the region, which are among the most populated nations in the world, and hence the region has the largest construction market.
- China is one of the largest countries in the world, where the construction sector dominates almost all other sectors in growth. In 2021, the revenue of construction enterprises in China was CNY 8,013.8 billion, up by 2.1% over the previous year. The profits made by construction enterprises qualified for general contracts and specialized contracts reached CNY 855.4 billion, up by 1.3% over the previous year, of which the profits made by state-holding enterprises were CNY 362.0 billion, up by 8.0%.
- China is also the world's largest vehicle market by both annual sales and manufacturing output, By 2025 domestic production in China is expected to reach 35 million vehicles.
- According to IBEF, India is expected to become the third largest construction industry by the end of 2022 with an investment of over INR 50 trillion (USD 777.73 billion). Hence, all such construction activities and favorable government measures are likely to boost the construction activities in the country.
- In India, the aerospace & defense (A&D) market is projected to reach ~USD 70 billion by 2030, driven by the burgeoning demand for advanced infrastructure and government thrust.
- According to Korean Statistical Information Service (KOSIS), the total value of construction orders in South Korea in 2021 stood at KRW 141.28 trillion.
- Indonesia is one of the largest and fastest-growing markets. Moreover, the Indonesian government has started a program to build about one million housing units across Indonesia, for which the government has allocated about USD 1 billion in the budget.
- All aforementioned factors are expected to drive the market for bonded abrasives in the Asia Pacific region during the forecast period.
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