PRECIPITATED SILICA MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Precipitated Silica Market Size and Trends

The global precipitated silica market is estimated to be valued at USD 3.25 Bn in 2024 and is expected to reach USD 4.56 Bn by 2031, growing at a compound annual growth rate (CAGR) of 5% from 2024 to 2031.

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Precipitated silica is widely used across industries such as rubber, agriculture, food, and others which is driving the market growth. The market is expected to witness significant growth during the forecast period. This can be attributed to rising demand from applications such as rubber, agrochemicals, food, and others. Furthermore, growing demand for low-cost reinforcing fillers in tire manufacturing will also support market expansion. Significant investments by major players for capacity expansion to cater growing demand is anticipated to boost precipitated silica market trends over the next few years.

Rapid growth in automotive industry

Automotive industry is a major consumer of precipitated silica. The precipitated silica is a key ingredient that enhances various properties of tires such as strength, durability and fuel efficiency. As the automotive industry continues to prosper globally, the demand for high quality tires from manufacturers is also increasing steadily. The increased automotive production directly influences the volume of tires required which in turn boosts the need for precipitated silica. Precipitated silica provides extended tread life to tires while also reducing rolling resistance which helps automakers meet stringent fuel economy and emission standards. With rising vehicle ownership and higher mileage driven each year, replacement demand for tires remains robust. For instance, according to data published by the International Trade Administration, U.S. Department of Commerce in 2021, light vehicle sales in the U.S. was 14.5 million units in 2020. Overall, the U.S. is the world’s second-largest market for vehicle sales and production. Autos Drive America reported that international automakers produced 5 million vehicles in the U.S. in 2020. Moreover, the trend towards larger rim sizes and lower profile tires further elevates the importance of precipitated silica for improving mechanical properties and handling characteristics of tires.

 The increasing use of precipitated silica across various end-use industries especially in the electronics segment is resulting in the positive growth of the global precipitated silica market. Precipitated silica is widely used as a reinforcing filler in silicone rubber, which is extensively employed in electronics industry for manufacture of various components such as connectors, cables, switches etc. due to its excellent insulating and dielectric properties. The rising demand for consumer electronics such as smartphones, tablets, laptops, etc., across the world has augmented the consumption of silicone rubber and thus precipitated silica over the years. Moreover, electricity consumption is increasing across the globe. For instance, according to data published by the U.S. Energy Information Administration on April 20, 2023, the total U.S. electricity end-use consumption in 2022 was about 2.6% higher than in 2021. In 2022, retail electricity sales to the residential sector were about 3.5% higher than in 2021, and retail electricity sales to the commercial sector were about 3.4% higher than in 2021.