Specialty Silica Market

How the Historical and Future Outlook of Specialty Silica Market Match Up?

Specialty silica is used as performance additive in various industries such as rubber and plastics. Inclination towards the use of specialty silica as a performance additives for producing green and energy efficient tires is a key growth driver. Increasing demand from automotive industry owing to its wide range of applications in tire manufacturing including filler material will continue aiding expansion.

Use of specialty silica in tires as a performance additive reduces their rolling resistance and increases road grip in wet weather condition. Furthermore, tire labelling regulations have been being implemented across the globe, further adding the growth for specialty silica.

Leading manufacturers are focusing on developing technologically advanced specialty silica. For instance, Evonik Industries AG, one of the leading manufacturer of specialty silica has recently launch new specialty product Spherilex 145 for the oral care industry. These advancements by market participants are expected to be crucial in boosting the demand for specialty silica over the forecast period. According to FMI’s analysis, specialty silica sales is expected to rise at 4.8% CAGR between 2021 and 2031.

With ongoing crisis caused by the COVID-19 pandemic, manufacturing activities have declined. However, are expected to improve with the economic recovery with stabilization of the ongoing pandemic. COVID-19 pandemic has had serious repercussions at various levels on the global economy and on the specialty silica market.

The automotive industry, a key end user of synthetic silica had already reported reduced sales in 2019. COVID-19 outbreak has further impacted the growth of automotive industry, reducing the demand for specialty silica during the pandemic period. Moreover, disruption in supply chain, lack of raw material supply, government lockdowns, and shutdowns impacted the global specialty silica market adversely depleting the growth.

What is the Commercial Potential of Specialty Silica?

Specialty silica is used in rubber, plastics, ink & coatings, electrical & electronic, agriculture & feed, food & beverages, and personal care industries among others. Specialty silica is mostly used in rubber, tires and footwear manufacturing, performance additives in tires & plastics, carrier agent in agriculture, chemical mechanical planarization (CMP) in electronics & electrical and others. Specialty silica have wide range of commercial usage and advantages over other materials which is expected to push the market in upcoming future.

What is the Scope for Research and Development (R&D) in Specialty Silica Market?

Some of the major players are investing in R&D to gain a competitive edge. Product development and product positioning strategies are adopted by vendors to build a market position. Manufacturers are investing in R&D for developing new products. Also, they are partnering with major end-users to provide customized solutions.

With companies around the world concentrating more on research activities, expansion is expected. Moreover, they are focusing on building sales and service facilities in emerging countries besides forging long term partnerships with regional distributors. Companies are focusing on advanced product grades. For instance, Solvay is focusing on introducing new grades of highly dispersible silica (HDS) for application in the tire industry. Huber on the other hand is expanding its product portfolio for silica products, for application in the oral care and paper industries.

What is the Regulatory Impact on Usage and Sales of Specialty Silica?

Numerous standards for the manufacturing, handling, and use of specialty silica have been prescribed in Occupational Safety and Health Act of 1970 created by Occupational Safety and Health Administration (OSHA). This organization set a rules of healthful working condition for worker which handling silica. Furthermore, specialty silica is consumed as a performance additives for producing green and energy efficient tires. With increasing regulations related to tires and carbon emissions, the market for specialty silica is anticipated to spur in foreseeable future.

How is Focus on Energy-efficiency Driving Specialty Silica Sales?

According to FMI, the increasing focus on green and energy efficient tires is a key trend in the global specialty silica market and is anticipated to drive the specialty silica market. Rubber industry is the most procured area for specialty silica, followed by plastics industry, owing to increasing demand for green tires in automotive vehicles.

Developing value added and high performance grades of specialty silica that deliver superior physical characteristics to end-products and supplying these at competitive prices is among key market strategies adopted by companies. There is immense focus towards developing green processes for producing high grade silica. For instance, deriving silica from rice husk ash can attract government support as well as help companies gain a competitive edge in terms of end product. Development of new generation products for end use industries is anticipated to give significant impetus to the market.

Country-wise Insights

What is the Degree of Specialty Silica market Expansion in China?

China is a major manufacturing hub globally for electrical & electronics, rubbers, and other commodities. In China, the demand for specialty silica is growing substantially with rising adoption of green tires in automotive as China is one of the leading automotive vehicles exporter across the globe.

Furthermore, shift in focus of leading manufacturers in automotive industry from Europe to China is projected to impact the specialty silica market positively in the country. Moreover, rapid growth of the personal care industry has created a positive impact on specialty silica demand. This provides tremendous potential for manufacturers of Specialty Silica to introduce new and innovative products in the market.

Which End Use Industries are Exhibiting Demand for Specialty Silica in U.S?

The growth of the rubber and tire industry is creating lucrative opportunity for specialty silica sales in the U.S. Owing to new tire labeling regulations, adoption of green tires is projected to fuel the demand for specialty silica. The plastics industry is also a large consumer of specialty silica, subsequently driving the market in the U.S. Also, with technological advancements in the country, the U.S. is one of the most attractive location for manufacturers.

How Lucrative is the Specialty Silica Market in Germany?

Germany is Europe's largest manufacturer of plastics with an annual turnover of over EUR 101 billion. Specialty silica is used to improve the processing, rheology and overall performance of various plastics, polymer compounds and composites. It is also used as an anti-caking agent, carrier, matting agent etc. in plastics. Owing to this, Germany specialty silica market successively grow in upcoming assessment period. Moreover, the developing automotive, electronics and electrical industry in Germany are creating new opportunities for the growth of specialty silica in the country.

To what extent has Electronics Industry is Driving Specialty Silica Sales in Japan?

Electronics industry in Japan has been the wealthiest and most creative field in the global electronics market for many decades. In the electronics industry, specialty silica finds application in chemical mechanical planarization (CMP) Fumed and colloidal silica is prominently used for this application. Thus, growth in electronics industry significantly accelerating demand of specialty silica. In addition, Japan's automotive industry is expected to stimulate the market for specialty silica during the forecast period.

What is the demand potential of Specialty Silica in South Korea?

South Korea’s industrial sector contributes 40% to the total GDP. Also, the country is one of the major manufacturing hubs for automotive manufacturers, Original equipment manufacturers (OEMs) and related industries which is expected to create significant demand for specialty silica in the country. Moreover, in South Korea, electronic industry is one of the leading industries and is anticipated to boost the use of specialty silica market, owing to its application in chemical mechanical planarization (CMP) which improve the overall efficiency and productivity of the industry.

Category-wise Insights

Which Specialty Silica Type will be in High Demand?

Precipitated silica dominated the global specialty silica market and is projected to continue its dominance over forecast period by exhibiting highest growth amongst other types. Growth recorded is attributed to the growing demand from various end use industries such as rubber, plastics, electrical & electronics, personal care, agricultural & feed and others. Precipitated silica finds its applications as a performance additive in rubber used in production of tire and footwear among others. It is an anti-caking and thickening agent in foods and pharmaceuticals, as a cleaning agent in toothpastes, and flow modifier and anti-foaming agent and others.

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Who is Leading End User of Specialty Silica?

Rubber industry is projected to dominate the global specialty silica market followed by plastics and inks & coatings. Personal care is expected to grow at highest rate owing to increasing consumer spending and increasing concern related to human health amongst the consumers especially in developing countries. Rubber is expected to create the highest opportunity for specialty silica as its falls under high share, high growth category.

Competitive Landscape

The specialty silica market is significantly competitive. Leading manufacturers are gradually concentrating on positioning innovative technologies to design specialty silica to improve the operating efficiency. Besides this, there is immense focus on strategic collaborations and expanding production capacity.

For instance, in September 2018, Evonik announced that it was planning to expand its production capacity for hydrophobic fumed silica in Rheinfelden, Germany.

Some of the leading companies operating in the market are:

• Solvay SA
• Huber Engineered Materials
• Madhu Silica Pvt. Ltd.
• Evonik Industries AG
• PPG Industries, Inc.
• Akzo Nobel NV
• Cabot Corporation
• Wacker Chemie AG
• Nalco Holding Company
• Qingdao Makall Group Inc.

*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.

Scope of the Report

Key Questions Answered in the Report

• Which is the most lucrative market for Specialty Silica?

  East Asia currently leads the global Specialty Silica market.

• Which are the most common Specialty Silica?

  Precipitated and fumed are the most commonly used specialty silica.

• Which end-use application is demanding the highest requirement of Specialty Silica?

  Specialty Silica are widely used in rubber industry. Also its usage in plastics, ink & coatings is increasing day-by-day.

• Which are some of the leading companies providing Specialty Silica?

  Some of the leading companies manufacturing Specialty Silica are Solvay SA, Huber Engineered Materials, Madhu Silica Pvt. Ltd., Evonik Industries AG, PPG Industries, Inc., Akzo Nobel NV, Cabot Corporation, Wacker Chemie AG, etc.

• Which product type is driving sales of Specialty Silica?

  Precipitated silica is the driving sales of specialty silica owing to its wide applications in manufacturing of rubber and tire.

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Is this research conducted by Future Market Insights?

Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

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Specialty Silica Market by Category

Product Type

• Precipitated
• Fumed
• Fused
• Silica Gel
• Colloidal

Application

• Rubber
• Plastic
• Ink & Coatings
• Electrical & Electronics
• Agricultural & Feed
• Food & Beverages
• Personal Care
• Others

Region

• North America
• Latin America
• Europe
• East Asia
• South Asia & Pacific
• Middle East & Africa