HIGH PURITY SILICA MARKET ANALYSIS

Global high purity silica market is expected to reach US$ 20.44 billion by 2030, from US$ 7.50 billion in 2023, exhibiting a CAGR of 15.4% during the forecast period.

High purity silica is processed sand, and has properties like high brightness, low color and cleanliness. It is widely used in industries like electronics, automotive, chemicals, and others. The market growth is driven by increasing demand from tires and coatings industry. Global high purity silica market is segmented into by type, application, end-use industry, and region. By type, the market is segmented into precipitated silica, fumed silica, silica gel, fused silica, colloidal silica, and others (microsilica, nanosilica etc.). Precipitated silica accounts for the largest share due to its properties like reinforcing ability, thickening action, and others.

Global High Purity Silica Market- Regional Insights

• North America is the largest market for high purity silica, accounting for a share of over 30% in 2023. The growth of the market in this region is driven by increasing demand for high purity silica in the semiconductor, solar, and glass industries. The U.S. is the major market for high purity silica in North America.
• Asia Pacific is the second largest market for high purity silica, accounting for a share of over 25% in 2023. The growth of the market in this region is driven by increasing demand for high purity silica in the electronics, automotive, and construction industries. China is the major market for high purity silica in Asia Pacific.
• Europe is the third largest market for high purity silica, accounting for a share of over 20% in 2023. The growth of the market in this region is driven by increasing demand for high purity silica in the pharmaceutical, cosmetics, and food & beverage industries. Germany and France are the major markets for high purity silica in Europe.

Figure 1. Global High Purity Silica Market Share (%), By Region, 2023

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Global High Purity Silica Market- Drivers

• Increasing demand from tires industry: The tires industry is the major consumer of precipitated and fumed silica for reinforcement purpose. Silica improves grip, fuel efficiency and durability of tires.
• Growing consumption in coatings and paints: High purity silica is used as a functional additive in coatings and paints to improve scratches resistance, anti-corrosion and weathering properties
• Rapid growth of electronics industry: High purity fused silica is used in semiconductor manufacturing and optical fiber production due to its ultra-high purity, dielectric property
• Increase in consumption from personal care industry: Precipitated silica is used as a viscosity modifier and anti-caking agent in cosmetics, oral care and skin care products

Global High Purity Silica Market- Opportunities

• Increasing demand for green tires: Growing awareness about fuel efficiency and eco-friendly tires is expected to boost demand for silica as it helps in lowering rolling resistance in tires
• Growth in production of electric vehicles: High purity fused silica demand is increasing due to its application in the manufacturing of various EV components
• Rising consumption in pharmaceutical industry: Precipitated silica can be used as glidant, viscosity modifier and tablet disintegrants in pharmaceutical preparations
• Surge in consumption for wastewater treatment: Rising need for wastewater treatment around the globe is expected to boost demand for precipitated silica

Global High Purity Silica Market- Trends

• Increasing use of nanotechnology: Nanoscale silica is being used widely in coatings, catalysts, batteries and biomedical due to its high surface area and porosity. For instance, in 2022, according to Royal Society Of Chemistry, silica nanoparticles are used in lithium-ion batteries to improve their performance and stability.
• Growing demand for specialty silica: Specialty silica like spherical, porous, and surface-modified silica are in high demand from end-use industries
• Investment in R&D activities: Key manufacturers are continuously investing in R&D to develop new silica products for applications in biomedical, energy storage, catalyst, and others
• Capacity expansions: Key players are expanding production capacities particularly in APAC region.

Global High Purity Silica Market- Restraint

• Health hazards associated with silica: Chronic exposure to crystalline silica dust can cause silicosis that hinders the market growth. For instance, according to Occupational Safety and Health Administration, isa regulatory agency of the U.S., silicosis typically occurs after 15-20 years of occupational exposure to respirable crystalline silica, and high concentrations of respirable crystalline silica can develop typical silicosis symptoms as well as fever and weight loss within weeks instead of years.
• Volatility in raw material prices: Fluctuating prices of raw material like sand, sodium silicate, and others act as challenge for manufacturers
• Requirement of large capital investments: Manufacturing of high purity silica requires huge capital investments in facilities and equipment
• Stringent regulations over mining activities: Strict regulations on mining activities, land acquisition, workforce safety, and others restricts raw material supply

Counterbalance: Silica, also known as silicon dioxide, is a naturally occurring substance found in various forms such as sand, quartz, and granite. It is widely used in many industries including construction, glass-making, and ceramics. However, prolonged exposure to silica dust can lead to serious health hazards such as silicosis, lung cancer, and other respiratory diseases.

Analyst Viewpoint:

Global high purity silica market growth is driven by the growing electronics industry. As semiconductors become more advanced with each passing generation, the demand for ultra-high purity silica to manufacture such chips also rises. New applications in areas like 5G, electric vehicles, and renewable energy adoption will further drive the market growth in the near future. The Asia Pacific region, led by countries like China, South Korea, Taiwan and India, dominates the high purity silica market currently due to presence of a robust electronics manufacturing base. However, uncertainties around trade issues and policies bring some challenges. Suppliers must closely monitor the supply-demand dynamics and adjust capacity planning accordingly to cater to the dynamic industry requirements and avoid risks of oversupply. On the opportunities front, high purity silica is increasingly finding acceptance in new verticals like pharmaceuticals, where it is used as an excipient for various drugs. Growth in the biotech/life sciences sector presents an avenue for market expansion beyond the traditional electronics domain. Suppliers would need to proactively invest in R&D to develop new high-value specialty grades of silica targeted at emerging applications.

Global High Purity Silica Market- Recent Developments

New product launches

• In January 2022, Evonik is a chemical company launched SIPERNAT 820 AEROSIL, a hydrophilic fumed silica ideal for production of automatic dishwashing detergents
• In September 2021, Cabot is a chemicals and performance materials company launched a new precipitated silica ULTRASIL VN3 SP for use in battery separator coating formulations
• In June 2020, Wacker Chemie AG is a German multinational chemical company expanded its HDK portfolio with new N 20 PH pyrogenic silica grades for transparent and high-gloss industrial coatings

Acquisition and pPartnerships

• In December 2021, Wacker acquired a stake in start-up SILA Nanotechnologies to jointly develop silicon-based anode materials for lithium-ion batteries
• In January 2020, Evonik partnered with GE to develop silica technology-based additive manufacturing process for high-performance applications

Figure 2. Global High Purity Silica Market Share (%), By Application, 2023

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Top companies in Global High Purity Silica Market

• Wacker Chemie
• Evonik Industries
• Cabot Corporation
• Solvay S.A.
• PPG Industries
• Madhu Silica
• Fuji Silysia Chemical
• Tosoh Silica Corporation
• Oriental Silicas Corporation
• Albemarle Corporation
• Sibelco
• Quarzwerke GmbH
• Hanwha Chemicals
• AGC Inc.
• BASF
• Tokuyama Corporation
• SINOENERGY Group
• RUSNANO Group
• QingHai Meijia New Materials
• Yichang Huopei Silicon Material Factory

Definition: Global high purity silica market refers to the industry associated with manufacturing of high purity silica products like precipitated silica, fumed silica, fused silica, and others. High purity silica is a processed sand with properties like high brightness, negligible impurities, and controlled particle size distribution. It finds applications as reinforcing filler in rubber and tire industry, additives in paints, coatings, cosmetics, food, pharmaceuticals, and others due to its viscosity modifying, thickening, anti-caking, abrasive, and moisture absorbent properties.