Australia Abrasives Market To Hit Value 9.7 Million By 2027

Posted by Mrudula Anil Karmarkar on April 14th, 2022

The Australia abrasives market size is anticipated to reach 9.7 Million by 2027, according to a new report by Grand View Research, Inc. It is projected to register a CAGR of 2.2% in terms of revenue, during the forecast period. The increasing utilization of abrasives for the high-quality surface finish in automotive and oil and gas are expected to propel market growth.

Abrasives are used in automotive, transportation, electronics, and manufacturing industries to smoothen surfaces during component manufacturing, to shape materials through grinding, to remove surface layers of paint or corrosion, to cut hard materials made of steel or concrete, and to polish finished products.

Super abrasives segment is expected to register the fastest CAGR across the forecast period on account of its super properties. It offers longer product life and machine downtime, shorter cycle times, thereby reducing machining costs for customers. Its high cost is one of the restraints in its demand; however, its performance is much better than others especially for hard surfaces.

The oil and gas industry is one of the end-users of the product. Surface finish is an important factor that ensures an appropriate barrier coating to oil and gas materials to protect from corrosion and reduce maintenance costs. The use of appropriate abrasive ensures the desired surface finish on large metal structures used in oil and gas exploration. Australia’s oil and gas extraction industry’s GVA was AUD 31.4 billion in 2018.

The oil and gas industry is witnessing growth in Australia, which is expected to propel the demand for abrasives. For example, in June 2020, Saunders International won the contract of million for upgrading and mechanical refurbishment of two tanks of BP, which are located in Queensland. Post this the company shall work for BP in the Bulwer Full Fuel project for which it will refurbish three tanks and two piping projects.

Have a Query? Ask Our Expert:

https://www.grandviewresearch.com/inquiry/450812/ibb

Automotive is the major end-use segment for abrasives in the country. The rise in vehicle registrations in the country indicates increasing demand for cars, thereby, the potential growth for the automotive aftermarket. The motor vehicle registrations increased from 2020 to 2020 in all Australian states except for Northern Territory. Tasmania witnessed the highest number of registrations, an increase of 2.6% as of January 2020 from 2020.

Australia Abrasives Market Report Highlights

  • Super abrasives expected to witness the highest growth rate of 2.8%, in terms of volume, over the forecast period owing to its superior properties over other product types in surface finishing
  • Bonded constituted the largest revenue share of over 60.0% in 2020. High preference for the product over coated and super abrasives in automotive and construction industries on account of its properties and less cost
  • Automotive anticipated registering growth rate of 2.0% in terms of revenue across the forecast period, which is attributable to the auto service and repair shops in the country
  • Segments including machinery, metal fabrication, and E&E equipment expected to witness a high CAGR in terms of revenue, owing to the use of super abrasives in their applications
  • The manufacturing sector is a minor contributor to the GDP of the country, which is further hit hard on account of the COVID-19 pandemic. As a result, the demand for abrasives in the manufacturing sector of Australia is expected to remain low

Abrasives are largely used in the aftermarket by mechanics and repair shops. Although, on account of the COVID-19 pandemic, 83% of automotive service and repair workshops have reported a decrease in revenue, according to a survey by the Australian Aftermarket Association. The sector is one of the largest employers in the country with over 150 thousand people and 23 thousand small businesses and a decline in its revenue shall have major implications on economic growth.

Grand View Research has segmented the Australia abrasives market on the basis of product type and application:

Australia Abrasives Product Type Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Bonded
  • Coated
  • Super Abrasive

Australia Abrasives Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)

  • Automotive
  • Machinery
  • Metal Fabrication
  • E&E Equipment
  • Others

List of Key Players of Australia Abrasives Market

  • 3M
  • Saint-Gobain
  • sia Abrasives Industries AG
  • GMA Garnet Group

Like it? Share it!


Mrudula Anil Karmarkar

About the Author

Mrudula Anil Karmarkar
Joined: July 2nd, 2020
Articles Posted: 1,808

More by this author