SPECIALTY SILICA MARKET ANALYSIS

Global specialty silica market was valued at US$ 7.8 Bn in 2022, exhibiting a CAGR of 7.0% in terms of revenue, over the forecast period (2023 to 2030) to reach US$ 13.4 Bn by 2030. Specialty silica is widely used in the production of tires in the automotive industry as it helps to reduce carbon emissions. Specialty silica can be classified into precipitated silica, fumes silica, fused silica, colloidal silica, and silica gel and they all find application across paints & coatings, electronic components, personal care, and cosmetic products. Moreover, silica precipitate also finds application across the construction industry owing to its high tensile strength and resistance to abrasion. Furthermore, specialty silica is also used in the electronics industry as a circuit board and capacitor.

Global Speciality Silica Market- Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic has had a negative impact on the global specialty silica market, primarily due to disruptions in the supply chain and a slowdown in demand from key end-use industries. Specialty silica is used in a wide range of applications, including rubber, coatings, plastics, adhesives, and personal care products. One of the major impacts of the pandemic has been the disruption in the supply chain due to the closure of manufacturing facilities and restrictions on transportation. This has led to a shortage of raw materials and delayed production, causing a ripple effect on downstream industries. Additionally, the pandemic caused a slowdown in demand from key end-use industries, such as the automotive and construction industries, which has further impacted the market. For instance, the automotive industry is a major consumer of specialty silica, which is used in tire manufacturing. The pandemic led to a significant drop in demand for vehicles, which in turn affected the demand for specialty silica. In addition, the closure of manufacturing facilities and supply chain disruptions led to a shortage of raw materials, causing production delays. Overall COVID-19 pandemic has had a significant impact on the global specialty silica market, with disruptions in the supply chain and a slowdown in demand from key end-use industries. However, with the easing of restrictions and the resumption of economic activity, the market is expected to recover in the coming years

Figure 1. Global Speciality Silica Market, By Product Type, 2022

To learn more about this report, request sample copy

Global Specialty Silica Market - Drivers

• Growing adoption of specialty silica for chemical mechanical planarization/ polishing (CMP) in the electronics industry

The growing adoption of specialty silica for chemical mechanical planarization/ polishing (CMP) in the electronics industry is propelling the market growth of specialty silica. CMP is a polishing process that involves the removal of undesirable dielectric products on the surface of the silicon wafer. Specialty silica is broadly used in the manufacturing of flat, defect-free, and smooth surfaces on silicon semiconductors, optical lenses, and sapphire wafers in electronic goods. Moreover, increasing the application of specialty silica in oral care products is projected to propel market growth over the forecast timeframe. Silica is widely used as a cleaning and whitening agent in the manufacturing of various oral care products. High grade of specialty silica that is used in the dental application offers a high cleaning-to-abrasion ratio which is projected to raise its demand across oral care products. Therefore, rising application across oral care products is expected to fuel market growth.

• Rising demand from the personal care industry

Specialty silica is used as a functional ingredient in personal care products such as toothpaste, sunscreen, and cosmetics. For instance, the global beauty and personal care products market is expected to grow at a compound annual growth rate of 7.6% from 2022 to 2030 to reach US$ 972.7 billion by 2030.

Global Specialty Silica Market - Restraints

• High dependency on cyclical end-use industries

High dependency on cyclical end-use industries specialty silica is not a standalone finished product, instead, it is a consumable product that finds application across various end-use industries. Some of the end-use industries such as the automobile industry represent cyclical behavior in terms of demand, which in turn might affect demand for specialty silica. As a result of derived demand from the end-use industries, the growth, and profitability of the specialty silica market depend on the growth and profitability of end-user industries. This, in turn, could become a major challenge for market players operating in the global market. The major disadvantage of specialty silica filler is that it is very hard which leads to increased wear in polymer processing instruments. Moreover, the availability of cost-effective substitutes of silica gel and colloidal silica is also projected to restrict the market growth of specialty silica over the forecast period.

Global Specialty Silica Market - Market Opportunities

• Increasing the launch of novel and new silica for emerging applications is expected to propel the market growth of specialty silica. For instance, in August 2019, Evonik Business Line Silica launches a new specialty product, SPHERILEX 145, for the oral care industry. This product in oral care product will help to achieve high cleaning levels can be achieved while offering lower abrasion to dentin, enamel, fillings, and other oral hardware. Therefore, the rising launch of new silica products is expected to foster market growth.
• Rising investment by major players in improving the production of silica is expected to offer potential growth opportunities to the market of specialty silica. For instance, in April 2019, BASF announced to invest mid-range double-digit euro million sums in the modernization of its silica plant at the Düsseldorf-Holthausen site. The investment is earmarked for the modernization and enhancement of existing facilities in the later years to come. Such rising investment is projected to fuel the market growth of specialty silica over the forecast timeframe.

Figure 2. Global Speciality Silica Market, By Region, 2022

To learn more about this report, request sample copy

Global Specialty Silica Market - Market Trends

• Rising application of silica for coatings application and for that manufacturers are offering new silica, especially for the coating industry is gaining traction in the market and is expected to propel the market growth in the year to come. For instance, in March 2019, DKSH’s Business Unit Performance Materials, ingredients, and specialty chemicals distributor, announced the expansion of Evonik’s performance range of silica for use in coatings and ink applications to Indonesia, Thailand, the Philippines, Singapore, Myanmar, and Cambodia.
• Growing usage of specialty silica in animal feed as an additive is expected to propel the market growth of specialty silica over the forecast period. Also, the rising demand for silica from the personal care and cosmetic industry is again expected to propel the market growth of specialty silica. Moreover, the rising application of silica in the food & beverage industry is further anticipated to foster the market growth of specialty silica over the forecast timeframe.

On the basis of product type, in 2022, precipitated silica accounted for the largest market share of 73.20% in terms of revenue, followed by fumed silica and colloidal silica, respectively. Because of its widespread use in PVC sheets, where it aids in pigment dispersion and tensile strength. The most widely used specialty silica in the rubber industry is precipitated silica. The substance functions as a reinforcing agent, increasing wear and tear resistance.

Throughout the forecast period, the colloidal silica product segment is likely to have the biggest market share in the specialty silica market. This is primarily due to rising demand for end-use applications such as catalysts, paper and textile applications, tobacco treatment, rubber, ceramics, and pharmaceuticals, which are likely to drive colloidal silica demand over the forecast period.

Global Specialty Silica Market - Regional Insights

Asia Pacific dominated the specialty silica market and held a revenue share of more than 49.30% in 2022. Growing economic growth in the region's emerging countries is projected to have a significant influence on growing tire production. Furthermore, the coatings sector is expected to expand as a result of growing construction activity in the region. Product demand is driving leading market players to increase their manufacturing facilities. For example, Evonik Wynca (Zhenjiang) Silicon Material began operations in October 2021, making it Evonik's first fumed silica facility in China. Evonik intends to position itself by establishing a worldwide supply chain for its Chinese and Asian customers.

In terms of revenue, North America accounted for the second-largest share in 2022. The region's countries are investing in the construction of affordable housing, which is likely to drive demand for inks and coatings.

Global Specialty Silica Market - Recent Developments

• In November 2021, Nouryon announced the expansion of its Levasil colloidal silica manufacturing plant in the U.S. The plant expansion is aimed to meet the increasing demand from the packaging and construction industry. Nouryon Holding B.V. doing business as Nouryon provides specialty chemical products. The company offers cellulosic, salt, organic peroxides, chloralkali, bleaching chemicals, expandable microspheres, and surfactants, as well as paper, plastics, building materials, food, pharmaceuticals, and personal care products. Nouryon serves customers in the Netherlands.
• In October 2021, Evonik Wynca Silicon Material started its fumed silica plant, which is the company's first fumed silica plant in China. It aims at positioning the company by building a global supply chain for its customers in China and overall Asia.
• In 2020, Evonik Wynca launched two new specialty silica products, namely ACEMATT 3400 and ACEMATT 3600, which are designed for use in various coatings applications.
• In 2015, Solvay acquired New Jersey-based Cytec Industries Inc. to enhance its market position in the specialty chemicals and advanced materials business. Solvay SA (Solvay) is a chemical manufacturing company. It manufactures and distributes specialty polymers, essential chemicals, and chemical materials among others.

Global Specialty Silica Market - Key Players

Key players active in the global specialty silica market are Solvay SA, Huber Engineered Materials, Madhu Silica Pvt. Ltd. (MSPL), Evonik Industries AG, PPG Industries, Inc., Akzo Nobel NV, Cabot Corporation, Wacker Chemie AG, Nalco Holding Company, and Qingdao Makall Group Inc.

*Definition: Specialty silica which contains silicon dioxide as its major ingredient is used as an additive in the formulation process of various products and components in wide industry segments like electronics, automotive, personal care products, rubber, paints, food, healthcare, inks, coatings, etc.