COLLOIDAL SILICA MARKET SCENARIO: KEY INSIGHTS
- The global colloidal silica market is estimated to be valued at US$ 233 Mn in 2020.
- Market growth is majorly defined by growth spurt in electronics & semiconductor and paints & coatings industries.
- Acidic colloidal silica continues to stay in-demand; alkaline colloidal silica to gain momentum.
- East Asia would remain the hub of opportunities in the colloidal silica market; Europe and North America to generate stable returns.
- The colloidal silica market is expected to receive further impetus from the growing global chemical industry.
- Colloidal silica is used in investment casting as a slurry on base coatings such as zircon flour and zircon sand, thereby, offering white spaces to market players.
KEY FACTORS SHAPING COLLOIDAL SILICA MARKET
Electronics & Semiconductor and Paints & Coatings Industries to Shape Revenue Growth
Colloidal silica is leveraged as an abrasive polish in the electronics & semiconductor industry. Capturing around one-third of overall market value, the end-use industry continues to attract significant stakeholders’ investments.
Colloidal silica is also used as a solvent in water-based paints & coatings, which are suitable for application in dry as well as wet surfaces, and reduce environmental pollution. The paints & coatings industry is aggressively moving towards an eco-friendly approach. Consequently, market players are targeting the paints & coatings industry for outsized returns.
Pharmaceutical Industry to Offer Potential Value-capture Prospects
Colloidal silica is used as a chemical excipient for the production of pharmaceutical tablets, including paracetamol, and animal pharmaceuticals. The compound improves the stability of moisture-sensitive active pharmaceutical ingredients (API), and is thus grabbing significant attention of pharmaceutical manufacturers. In addition, colloidal silica finds immense use in tablet making as a disintegrant, adsorbent, glidant, or anti-caking agent, to allow the smooth flow of powder during the development of tablets
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COVID-19 to Hinder Growth of Colloidal Silica Market
The electronics & semiconductor industry is the key contributor to the revenue of the global colloidal market. However, the coronavirus (COVID-19) pandemic is posing deep implications for the global supply chain. The pandemic has brought with it quarantines, travel restrictions, and stock market uncertainties. These events will severely impact the year-on-year (YoY) growth of the electronics & semiconductor industry, worldwide, and thus, will have a negative impact on the colloidal silica market in the near term.
COLLOIDAL SILICA MARKET: STRUCTURE ANALYSIS
- The colloidal silica market is expected to witness intense competition in the years ahead, with a strong presence of manufacturers at both, regional and domestic levels.
- Market players are focusing on product customization for enhanced business footprint.
- R&D activities in tandem with capacity expansion remain the key tactic followed by colloidal silica market players.
- Base Year - 2019
- Historical Period - 2015-2019
- Forecast Period - 2020-2030
- Market Value in 2020 - US$ 233 Mn
- Segments Covered - Product Type, Application, and Region
- Regions Covered - North America, Latin America, Europe, South Asia and Pacific, East Asia, and the Middle East and Africa
- Key Companies - Akzo Nobel N.V (Nouryon Holding, Merck KGaA , ADEKA CORPORATION, ALLIED HIGH TECH PRODUCTS, INC, Nissan Chemical Corporation, The Dow Chemical Company, Cabot Corporation, Evonik Industries AG, FUSO CHEMICAL CO., LTD, W. R. Grace & Co.-Conn, NYACOL® Nano Technologies Inc, REMET, Ecolab Inc., Chemiewerk Bad Köstritz GmbH, Guangdong Well-Silicasol Co. Ltd, Qingdao Haiyang Chemical Co. Ltd., Jinan Yinfeng Silicon Products Co. Ltd, Sterling Chemicals, and Makall Group
- Growth Drivers
- Growth of electronics & semiconductor industry
- Rising preference for water-based formulations in paints & coatings industry
- High adoption of colloidal silica as a chemical excipient in the pharmaceutical industry
Manufacturers Capitalize on Acidic Colloidal Silica
Capturing over 2/5 of overall market value, acidic colloidal silica continues to garner higher preference among manufacturers. Excellent stability attribute of colloidal silica is enabling its broader adoption in various end-use applications.
However, this study highlights a gradual leaning towards alkaline colloidal silica, which will continue over the decade ahead. While both, acidic and alkaline colloidal silica maintain their positive trend, modified and ordinary variants would see a subsequent decline in their consumption.
East Asia Continues to Remain in Driver’s Seat
East Asia would remain the hub of value-creation prospects in the colloidal silica market, procuring around one-third of total market stack. This growth is primarily attributable to flourishing electronics and semiconductor industries in the region. Further, China represents the most lucrative investment casting and coating production markets. Leading manufacturers are focusing on developing colloidal silica as per end-use applications. Furthermore, the colloidal market in East Asia is likely to experience an uptick in number of small and medium enterprises (SMEs).
Pharmaceutical Industry to Reflect Investment Opportunities
Colloidal silica is leveraged as an active chemical ingredient in developing pharmaceutical tablets such as paracetamol and animal pharmaceuticals. It enhances the stability of moisture-sensitive specialty active pharmaceutical ingredients (API), and, as such, is garnering huge attention of pharmaceutical companies.
Furthermore, colloidal silica finds immense application in tablet making as an adsorbent, anti-caking agent, disintegrant, or glidant in order to enable smooth flow of powder during the processing of tablets. Market players must tap the potential opportunity to capture the value at stake.
How Growth will Unfold
Market players continue to allocate their resources to the electronics & semiconductor industry, wherein, colloidal silica is leveraged as an abrasive polish. The end-use industry will generate greater total returns to shareholders (TRS) - around 30% - over the projection period. Colloidal silica is utilized as a solvent in water-based paints & coatings, which are suitable for application in both, dry and wet environments, and curb ecological burden. The paints & coatings industry is accelerating its shift towards a greener approach. As such, market players investing in the paints & coatings industry will be well placed for better margins.
COLLOIDAL SILICA MARKET TAXONOMY
The global colloidal silica market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach to the reader.
- Alkaline Colloidal Silica
- Acidic Colloidal Silica
- Modified Colloidal Silica
- Ordinary Colloidal Silica
- Pulp & Paper
- Metals & Metallurgy
- Electronics & Semiconductors
- Paints & Coatings
- Building & Construction
- Textiles & Fabrics
- North America
- Latin America
- East Asia
- South Asia
- Middle East & Africa