Precipitated Silica Market Overview
The Precipitated Silica Market size is estimated to reach US$3.6 billion
by 2027, growing at a CAGR of 7.4% during the forecast period 2022-2027. Precipitated
Silica or amorphous precipitated silica is a form of synthetic amorphous
silicon dioxide, a crystalline form of silicon dioxide. Precipitated silica has
major utilization across end-use sectors such as cosmetics, automotive, fertilizers in agriculture and others, thereby boosting its demand. The bolstering demand for
precipitated silica in automotive for seals, hoses, rubber tires, hoses and
others due to its high strength, durability and reduced fuel consumption, acts
as a driving factor in the precipitated silica industry. According to the
International Organization of Motor Vehicle Manufacturers (OICA), global
automotive production increased from 77,621,582 units in 2020 to 80,145,988
units in 2021. In addition, the established utilization of green rubber tires
is propelling the growth scope for the Precipitated Silica Market.
Precipitated Silica Market Report Coverage
The “Precipitated Silica Market
Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis
of the following segments in the Precipitated Silica Industry.
Key Takeaways
- Asia-Pacific dominates the Precipitated Silica Market, owing to growth factors such as flourished automotive production, rising construction activities and an established manufacturing base.
- The flourishing automotive sector across the world is propelling the demand for Precipitated Silica for major utilization in rubber reinforcement in tires, seals, gaskets, hoses and others, thereby contributing to the Precipitated Silica Market size.
- However, the availability of substitutes and the potential hazardous impact of Precipitated Silica act as challenging factors in the Precipitated Silica industry.
Figure: Precipitated Silica Market Revenue Share by Geography, 2021 (%)
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Precipitated Silica Market Segment Analysis – by Grade
The rubber grade segment held a significant share of the Precipitated Silica Market in 2021 and is projected to grow at a CAGR of 7.5% during the forecast period 2022-2027. The demand for precipitated silica rubber grade is high over other grades due to its excellent features such as high strength, tear and wear resistance, high adhesion and resilience. Due to such features, the demand for precipitated silica or amorphous precipitated silica is increasing for applicability in rubber and tires, belts, hoses, footwear and others. This is fuelling the growth prospect for rubber grade. Thus, with the major utility of rubber grade in major industries, primarily automotive, the rubber grade segment is anticipated to grow rapidly in the Precipitated Silica Market during the forecast period.
Precipitated Silica Market Segment Analysis – by Application
The rubber (reinforcement) held a significant share of the Precipitated Silica Market in 2021 and is projected to grow at a CAGR of 7.9% during the forecast
period 2022-2027. Precipitated Silica has major growth for rubber applications
as it acts as a reinforcing filler, strengthens the durability of rubber products
and offers faster cure rates and flexible extrusion. The automotive sector is lucratively growing due to growth factors such as rising demand for fuel-efficient vehicles, vehicle
electrification and urbanization. According to the Federal
Chamber of Automotive Industries, the new vehicle registration in Australia
represented an increase of 1.2% with 101,233 units in March 2022 compared to
March 2021. According to the International Organization of Motor Vehicles
Manufacturers (OICA), the global production of passenger cars increased from
55,834,456 units in 2020 to 57,054,295 units in 2021. Thus, with rising
automotive production, the utilization of rubber (reinforcement) applications in
automotive tires are rising, thereby anticipated to boost the growth scope for Precipitated Silica in rubber (reinforcement) applications during the forecast
period.
Precipitated Silica Market Segment Analysis – by Geography
Asia-Pacific held the largest share of up to 43% in the Precipitated Silica Market in 2021. The lucrative growth scope for precipitated silica in this region is influenced by the flourished base for the automotive sector, which utilizes rubber and growing public transportation. The lucrative growth for the automotive sector in APAC is influenced by rising production trends, an established base for auto manufacturers in the major countries such as China, India, Japan, South Korea and others and fast-paced urbanization. According to the China Association of Automotive Manufacturers (CAAM), the production and sales of new energy vehicles reached 1.29 million units and 1.25 million units in the 1st quarter of 2022, respectively, showing an increase of 140% year-on-year. According to the International Organization of Motor Vehicle Manufacturers (OICA), the total automotive vehicle production in China rose by 3%, a 30% increase in India, 8% growth in Taiwan and 63% growth in Indonesia for the year 2021 compared to the previous year. With the bolstering automotive vehicle production and growth scope, the utilization of precipitated silica in seals, rubber tires, hoses and others is growing, which, in turn, is projected to boost its growth prospects in the Asia-Pacific region during the forecast period.
Precipitated Silica Market Drivers
Bolstering Growth of the Agriculture Sector:
Precipitated Silica has significant demand in
the agricultural sector for applicability in pesticides,
fertilizers, herbicides and others as it acts as an anti-caking agent and is
highly absorptive. The agriculture industry is significantly flourishing, owing
to factors such as rising grains and cereals production, demand for fertilizer
and pesticides and the government's initiative to promote agricultural and
organic farming development. According to the India Brand Equity
Foundation (IBEF), the agriculture sector in India is expected to increase to
US$24 billion by 2025. According to the Office for National Statistics, the
volume of agricultural output increased by 2.6% in the United Kingdom with
cereals output increased by 23% and 24% for the crop products in 2021. With the
robust scope for agricultural production, the utilization of precipitated
silica in agrochemicals for herbicides, fertilizers and pesticides is
increasing. This, in turn, is driving the Precipitated Silica industry.
Flourishing Growth of the Cosmetics & Personal Care Sector:
Precipitated Silica has a wide range of applications in the cosmetics
& personal care sector for creams, lotions, toothpaste and others. The cosmetics
& personal care industry is significantly growing due to growth factors such as a
rise in premium beauty production, demand for color cosmetics and lifestyle
trends. According to
L’OREAL Annual Report 2021, the beauty sector of L’OREAL rose by 8.2% in 2021, after a sharp decline of 8% in 2020. According to the International
Trade Administration (ITA), the beauty and personal care sector in Thailand
rose from US$6.2 billion in 2018 to US$8.0 billion in 2022, representing a
projected growth rate of 7.8% from 2019 to 2022. Thus, with the rapid increase
in cosmetics & personal care products, the applicability of precipitated
silica as an absorbent, thickening agent and water resistance in cosmetic and
personal care products is growing. This, in turn, is driving the precipitated
silica industry.
Precipitated Silica Market Challenges
Availability of Substitute and Hazardous Impacts:
The availability
of substitute act as a challenging factor in the Precipitated Silica Market. The
presence of carbon black acts as a major substitution for the precipitated
silica. Carbon black works as a reinforcing agent and offers an advantage
over precipitated silica, as silica is hard to compound compared to carbon
black, which spikes production costs and other manufacturing activities.
Moreover,
the hazardous impacts of precipitated silica such as skin irritation, nose
bleeds and others act as growth hampering factors. Thus, due to such
factors, the Precipitated Silica Market faces a major slowdown.
Precipitated Silica Industry Outlook
Technology launches, acquisitions and R&D activities are key
strategies adopted by players in the Precipitated Silica Market. The 10 companies
in the Precipitated Silica Market are:
- Evonik Industries
- PQ Corporation
- Oriental Silica Corporation
- Wacker Chemie AG
- AntemChem Co., Ltd
- Tata Chemicals Ltd
- Solvay SA
- IQE Group
- Huber Engineered Materials
- PPG Industries
Recent Developments
- In August 2019, Evonik Industries AG released the latest Precipitated Silica variant for whitening toothpaste in the personal care sector.
- In October 2018, Evonik Industries increased the production of precipitated silica for applicability in the tire industry in South Carolina, USA, with an investment of around US$120 million in the production plant, thereby strengthing its product offering in the automotive sector.
- In April 2018, Tata Chemicals signed Business Transfer Agreement with Allied Silica (ASL) to acquire the precipitated silica business. The transaction includes the acquisition of an existing site for the manufacture of Precipitated Silica in Tamil Nadu.
Relevant Reports
Report Code: CMR 88526
Report Code: CMR 1391
Report Code: CMR 99450
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