September 21, 2015
Wellesley, Mass., September 21, 2015 – GDP growths in various countries have been flat in recent years, and a renewal of steady growth to global GDP is not anticipated during the next few years. BCC Research reveals in its new report that the global market is far from showing strong growth rates, partly a product of currency fluctuations owing to a crash of oil prices.
The global abrasive grains market is expected to grow at a five-year compound annual growth rate (CAGR) of 1.8% from 2015-2020 to reach $10.5 billion in the end year. The CAGR of the abrasive tools market will be slightly higher at 3.6%, bringing the market to $33.7 billion in 2020. The total abrasive market, sized at $37.8 billion in 2015, should reach $44.2 billion in the end year with a five-year CAGR of 3.2%. In pure dollar terms, the industry is expected to grow by more than $6.4 billion during the forecast period.
Abrasives are materials that cut, smooth, roughen, polish or clean surfaces, or remove material to alter surface shapes or dimensions. Products with abrasive materials include grinding discs and wheels, sandpaper, polishing and lapping compounds, deburring media and sandblasting materials. The global abrasive market comprises two segments: the companies and industries that manufacture or refine abrasive grains, and the abrasive products segment.
The industry’s growth rate nearly matches the global GDP growth rate. GDP growth is higher in developing countries, lower in developed countries. BCC Research estimates that global and regional growth of the abrasive market will mirror the national and regional output growth rates, with growth in the emerging markets doubling growth rates of advanced economies.
Currency fluctuations will be a key market driver. In 2014, every major currency across all regions depreciated against the U.S. dollar. Global growth has slowed to less than 4%. The rate of growth is expected to remain slow in the next several years as worldwide markets stabilize. The slow to stagnant growth in various global markets have already had a large impact in global oil prices.
“This drop in oil prices has had huge ramifications in almost all product markets globally, and the abrasive market is no exception,” says BCC research analyst Vijay Subramanian. “While the lower fuel prices are good for energy user industries like abrasives, the lower activity in the oil industry has also reduced the market demand for abrasive products used for drilling, cutting, mining and exploration.”
Abrasive Materials, Products, Applications and Global Markets(AVM033C) provides an in-depth analysis and forecast of the global abrasives market with focus on technology, products and market details of the worldwide abrasives industry. Analyses of market trends, with data from 2014, estimates for 2015, and projections of CAGRs through 2020.
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Abrasive Materials, Products, Applications and Global Markets( AVM033C )
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