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.
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.