The global super abrasive market size was valued at USD 6.8 billion in 2018 and is estimated to progress at a CAGR of 6.3% from 2019 to 2025. The demand for super abrasives is majorly driven by the growing manufacturing sector, thereby creating a need for machining and precision tools.
The global manufacturing sector value increased by 3.6% from 2017 to 2018, as per the data published by the United Nations Industrial Development Organization (UNIDO). Manufacturing processes such as automated systems and machining centers use the product as they require higher operating speed of the machining process for better surface finish. Increasing implementation of these manufacturing technologies is expected to drive the demand for the product over the coming years.
Properties offered by super abrasives such as extraordinary hardness, unparalleled performance, and longevity provide high-quality surface finish on hard materials. Also, they provide longer product life and reduced machine downtime, accounting for high initial cost and low machining costs. For example, metal-bonded design wheels created for more extended wear resistance can lead to shorter cycle times and longer life, thereby reducing machining costs for the customers.
Diamond and cubic boron nitride (CBN) super abrasive products are used extensively in the aerospace industry and other industrial applications where price considerations are less significant as they incur high initial costs. They are used in the machining of materials such as nickel, cast iron, and cobalt-based superalloys, where precision in machining operations is of prime importance.
The increasing complexity of super abrasive technology in high-performance applications and its high initial cost makes it difficult for small-scale and medium-scale companies to compete with the global market leaders. While industry leaders can afford significant research operations, a majority of unorganized players do not have access to substantial R&D resources. This disparity can make it difficult for small & medium-scale companies to compete in the market, in terms of developing products that may require advanced technologies.
Diamond is projected to be the largest segment and advance at the fastest CAGR of 5.7% from 2019 to 2025 owing to the increasing demand for cutting and grinding tools. Chemical inertness, anti-adhesion, low coefficient of friction, and better wear resistance are the properties exhibited by diamonds. Super abrasive diamonds are of two types, namely synthetic and natural diamonds. Manufacturers of super abrasives have started preferring synthetic diamonds due to their high efficiency in comparison to natural diamonds. Increasing demand for synthetic diamonds is likely to augment the market growth over the coming years.
CBN is produced by treating hexagonal boron nitride at high temperature and pressure and used in automotive, electronics, and aerospace industries. Properties of CBN such as high electrical resistance, thermal conductivity, and low thermal expansion along with its easy binding with metals are likely to propel its use in end-user industries. This is anticipated to augment the growth of the super abrasive market over the coming years.
Growing construction industry is anticipated to drive the demand for super abrasives over the coming years. Government initiatives in countries such as the U.S., India, and China to promote construction activities are further likely to propel the market growth. For instance, in 2015, Housing for All was a major initiative taken by the Indian Government for the welfare of its citizens, which, in turn, is expected to drive the demand for the product over the coming years.
The demand for the product in the transportation industry is anticipated to grow at a CAGR of 7.8% from 2019 to 2025. Diamond discs are preferred for grinding and polishing in the automotive industry to optimize polishing time as well as to improve the surface finish and impart glossy look. The global sales of motor vehicles increased by 3.08% from 2016 to 2017, as per data by the OICA. The growth of the automotive industry is likely to directly impact product demand in the market over the coming years.
Electrical & electronics segment accounted for a share of 10.9% in 2018 owing to the rising demand for precision grinding technology to create smaller and complex pieces with tight tolerances, which fit correctly in machine components. Product manufacturers can capitalize on manufacturing technology by catering to the demand from customers in electronics and precision instrument industries.
In another segment, the aerospace industry is expected to witness an inclined demand owing to the increasing need for ceramic super abrasives. Ceramics are used to grind, cut, and polish materials to provide a smooth surface finishing. They are widely used in aerospace industry owing to their advantages such as strength, lightweight, and ability to withstand high temperatures. The demand for ceramics in others segment is expected to propel the market growth over the coming years.
The Asia Pacific was the leading segment and accounted for a market revenue share of 60.7% in 2018. The region is expected to be a major consumer of the product over the coming years. Increasing demand for the product is majorly driven by developing countries such as India. Precision tooling is one of the rapidly growing markets in India as the majority of machine shops in the country are shifting toward manufacturing precision tools to cater to the rapidly advancing automotive, bearing, aerospace, and electronic markets. The growing precision tooling market is expected to trigger the market growth in the coming years.
Manufacturers of super abrasives are slowly evolving in high-end North America and Europe markets as customers are looking for a long-term reduction in costs despite the higher initial cost of super abrasives. As a result, the manufacturers in these regions are expected to witness a profitable growth rate over the forecast period.
North America was one of the major consumers of cubic boron nitride owing to the growing demand from the automotive and construction industries in the region. CBN products are used in the manufacturing of window tints for vehicles. Increasing demand for motor vehicles, especially in the U.S., is anticipated to drive the demand for CBN, which, in turn, is likely to boost market growth over the forecast period.
In the U.S., the evolution of the manufacturing industry has enabled an improvement in precision tooling, which is useful in manufacturing smaller components with greater accuracy used in various industries. In 2018, the U.S. was the second-largest manufacturer after China. The country exported over 1.3 billion manufactured goods, mainly transportation equipment, followed by chemicals and electronics. This is, in turn, anticipated boost the demand for the product over the coming years.
Protech Diamond Tools Inc.; Radiac Abrasives, Inc.; American Superabrasives Corp.; Noritake Co. Limited; Asahi Diamond Industrial Co., Ltd.; 3M Company; and Saint-Gobain Abrasives Inc., are some of the established super abrasives manufacturers. These players are developing super abrasives to enhance productivity and reduce machining costs for end-users.
Major companies are adopting strategies such as acquisitions, mergers, and expansions to increase their market share. Major companies are acquiring local dealers/manufacturers and are entering into partnerships with major end-users to continuously supply products. For instance, in February 2019, Sak Abrasives Inc. announced the acquisition of Buffalo Abrasives Inc. to expand its manufacturing capabilities and global presence.
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global super abrasive market report based on product, application, and region:
- Product Outlook (Revenue, USD Million, 2014 – 2025)
- Cubic boron nitride
- Application Outlook (Revenue, USD Million, 2014 – 2025)
- Oil & gas
- Electrical & electronics
- Regional Outlook (Revenue, USD Million, 2014 – 2025)
- North America
- The U.S.
- Asia Pacific
- Central & South America
- Middle East & Africa
- Saudi Arabia
- North America