The competitive landscape is an analysis of the degree of competition among industry players as well as industry growth and the market scenario. The growth of the global coated abrasives market is driven by the increasing consumption of coated abrasives in the processing of ferrous and non-ferrous metals in the metalworking industry due to their superior properties such as toughness, longevity, and sharpness. With the surge in demand for high-quality abrasives, the players operating in the global coated abrasives market are focusing on developing new products using cutting-edge technologies. Additionally, the market players are adopting chemical vapor deposition (CVD) technology to manufacture coated abrasives due to its superior benefits such as outstanding adhesion of abrasive grains with the substrate material, uniformity in coating, and enhanced load bearing capacity.
Global Market Strategy Analysis
In the global coated abrasives market, 3M, Saint-Gobain, Sia Abrasives Industries AG, Napoleon Abrasives SpA, Fandeli International Corporation, Schaffner Manufacturing Company, Inc., Carborundum Universal Limited, VSM AG, and Hermes Schleifmittel GmbH are some of the major shareholders. Players in this market adopted various strategies to expand their global presence and augment their market shares. The key strategies adopted by most companies in the global coated abrasives market are agreements and collaborations, product development, mergers & acquisitions, joint ventures, and expansion.
Market Share Analysis
The global coated abrasives market consists of many players. The top six players profiled in this report are Saint-Gobain, 3M, Sia Abrasives AG, Napoleon Abrasives SpA, Schaffner Manufacturing Company, Inc., and Fandeli International Corporation.
Strategic business managers trying to gain an edge over competitive firms in the global coated abrasives market can utilize the Porter’s Five Forces model to better comprehend the industry in which their firm operates. The components of each of the forces and the degree of impact of each component in the context of the global coated abrasives market have been broken down and analyzed.
Threat of New Entrants
The global coated abrasives market is estimated to have a medium threat of new entrants. The high capital-intensive nature of the industry is expected to act as a major barrier for new entrants. Moreover, the development of new products to cater to the rising demand for high-performance coated abrasives in various industries requires technical expertise and capital which is limited to the tier-1 players. However, increasing demand for coated abrasives will offer lucrative opportunities to new entrants during the forecast period.
Threat of Rivalry
The global coated abrasives market is estimated to have a medium threat of rivalry as each tier-1 player operating in the market has an extended portfolio of coated abrasives and is dedicated to offering quality products. However, regional competition is intensifying among the tier-1 players as abrasive manufacturing giants such as Saint-Gobain and 3M are set to expand their presence in emerging markets.
Threat of Substitutes
The threat of substitutes for coated abrasives is anticipated to be moderate in the current scenario. However, the use of super abrasives is increasing in similar applications despite their high price due to superior qualities. This is likely to hamper the growth of the global coated abrasives market during the review period. Moreover, in developed markets, super abrasives are being widely used for industrial applications. Thus, during the forecast period, super abrasives might pose a major threat of substitution.
Bargaining Power of Suppliers
The bargaining power of suppliers is expected to be medium in the global coated abrasives market as it is fragmented with the presence of organized and unorganized players. However, the bargaining power of suppliers is dependent on the quality of the products and end user. For instance, the medical and electronics and semiconductor industries require high-quality coated abrasives for precision grinding, irrespective of the high price.
Bargaining Power of Buyers
The bargaining power of buyers is estimated to be medium as there are more choices available in the market. However, it altogether depends on the nature of application and choice of product quality. DIY consumers opt for inferior-quality products offered by unorganized players in the market. Additionally, the availability of choices for buyers to switch results in a high bargaining power. However, for high precision grinding applications, buyers are less price sensitive and demand superior-quality products, resulting in a lower bargaining power of buyers.
