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Developing countries drive global alumina zirconia oxide abrasives market
Edited by : AL CIRCLE
2 min read
The global market for Alumina Zirconia Oxide Abrasives is projected to reach US$202.3 million by 2018, driven by robust industrial activity in the developing countries and the resurgence of key downstream industries.
As stated by the new market research report on Alumina Zirconia Oxide Abrasives, Asia Pacific region, led by robust industrial activity in China, India and South Korea, constitutes the largest and the fastest growing market with a projected CAGR of 5.6% over the analysis period. Driven by favourable demographic factors, industrial activity in emerging economies of Eastern Europe, Asia, Latin America, the Middle East and Africa is expected to outperform the developed markets of the US, Japan, and Western Europe in the next few years.
Also, the strong government focus on industrial growth is stimulating the demand for capital equipment thereby fuelling demand for abrasives for machine manufacturing. A new group of countries called the CIVETS comprising Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa are also emerging over the horizon to spur industrial growth.
The 2007-2009 world economic recession took its toll on the abrasives industry with several end-use industries adversely impacted by the financial crisis and reduction in consumer spending, particularly in the developed economies. The construction and the automobile industry, two of the most important users of alumina zirconia abrasives, were the worst affected by the recession.
Demand in the US’s automotive/transportation industry witnessed hurting declines as a result of lower purchasing power and the resulting postponement of new car purchases, decline in per capita automobile travel and volatile fuel prices. Plant closures, capacity idling, scaling back of operating capacity reduced opportunities for growth in this vertical.
In Europe, construction and automotive industries were significantly affected by the economic drag exerted by factors like increasing taxes, reducing private construction spends and government spends in infrastructure, declining sales of automobiles and ballooning overcapacity, among others.
Cautious optimism prevails in the overall industrial abrasives market as global manufacturing Purchasing Managers Index (PMI) posted modest recovery in early 2013. Gradual resurgence in building and construction activity and industrial production are expected to stimulate demand for heavy machinery thereby propelling demand for industrial abrasives. Due to migration of production hubs to lower-cost developing countries, any revival in industrial and consumer markets in the US and Europe would inevitably benefit the manufacturing industries in China, India and other emerging countries.
As stated by the new market research report on Alumina Zirconia Oxide Abrasives, Asia Pacific region, led by robust industrial activity in China, India and South Korea, constitutes the largest and the fastest growing market with a projected CAGR of 5.6% over the analysis period. Driven by favourable demographic factors, industrial activity in emerging economies of Eastern Europe, Asia, Latin America, the Middle East and Africa is expected to outperform the developed markets of the US, Japan, and Western Europe in the next few years.
Also, the strong government focus on industrial growth is stimulating the demand for capital equipment thereby fuelling demand for abrasives for machine manufacturing. A new group of countries called the CIVETS comprising Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa are also emerging over the horizon to spur industrial growth.
The 2007-2009 world economic recession took its toll on the abrasives industry with several end-use industries adversely impacted by the financial crisis and reduction in consumer spending, particularly in the developed economies. The construction and the automobile industry, two of the most important users of alumina zirconia abrasives, were the worst affected by the recession.
Demand in the US’s automotive/transportation industry witnessed hurting declines as a result of lower purchasing power and the resulting postponement of new car purchases, decline in per capita automobile travel and volatile fuel prices. Plant closures, capacity idling, scaling back of operating capacity reduced opportunities for growth in this vertical.
In Europe, construction and automotive industries were significantly affected by the economic drag exerted by factors like increasing taxes, reducing private construction spends and government spends in infrastructure, declining sales of automobiles and ballooning overcapacity, among others.
Cautious optimism prevails in the overall industrial abrasives market as global manufacturing Purchasing Managers Index (PMI) posted modest recovery in early 2013. Gradual resurgence in building and construction activity and industrial production are expected to stimulate demand for heavy machinery thereby propelling demand for industrial abrasives. Due to migration of production hubs to lower-cost developing countries, any revival in industrial and consumer markets in the US and Europe would inevitably benefit the manufacturing industries in China, India and other emerging countries.
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