PRECIPITATED SILICA MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)
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.
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Rising demand from electronics industryThe 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.
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Market Challenges: The volatility in raw material pricesThe global precipitated silica market is facing challenges such as volatility in raw material prices and environmental regulations around the globe. Factors like fluctuating prices of key raw materials like rice hulls and isopropanol, which are used in the manufacturing of precipitated silica are affecting the costs and profitability of manufacturers. Various environment protection agencies have established stringent standards on the use of precipitated silica in industries such as rubber and agriculture in order to reduce pollution.
Market Opportunities: Increasing demand from rising economies
The market presents opportunities stemming from the growing demand of precipitated silica in industries such as tires, plant nutrition, animal feed, oral care, and food. Rising demand from the tire industry due to precipitated silica's widespread usage in manufacturing radial tires is creating room for growth. Increasing demand from emerging economies also offers scope for expanding geographical footprints.
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Insights Grade: The dominance of the rubber industryIn terms of grade, rubber grade contributes 46.2% share of the global precipitated silica market owing to the large-scale demand from the rubber industry. Rubber grade precipitated silica is specially treated to enhance its reinforcing properties when added to rubber compounds. It is primarily used as a reinforcing filler and thickening agent in the production of tires, mechanical rubber goods, hoses and belts. The rubber industry consumes over 60% of the total precipitated silica produced globally. Factors, such as rising vehicle production and sales, growing aircraft, and shipbuilding activities and expansion of the tire re-treading business have stimulated rubber product demand in recent years. This, in turn, has substantially increased the uptake of rubber grade precipitated silica. Its ability to enhance tire performance characteristics such as rolling resistance, wear resistance and traction has further augmented its importance in the rubber industry.
Insights, Application: Increasing demand for rubber applications in the precipitated silica market
In terms of application, rubber contributes 36.3% share of the global precipitated silica market. The increasing demand for rubber applications in the precipitated silica market is driven by several factors that highlight the importance of precipitated silica in enhancing the performance and properties of rubber compounds. Precipitated silica, a fine-particle form of silica, is used as a reinforcing filler in rubber compounds, particularly in the tire industry.
Insights, End-use Industry: Automotive remains the dominant end-user industry due to consumption in tire manufacturing
In terms of end-use industry, automotive grabs 38.3% share in the global precipitated silica market attributed to extensive application of rubber grade precipitated silica in tire manufacturing. Annually Bns of tires are produced across the globe for new vehicles and replacement market. Precipitated silica is the primary reinforcement filler preferred by tire-makers to enhance wet traction, rolling resistance and wear resistance of tires.
Its effectiveness at low loadings, reinforcing properties, and ability to replace carbon black have cemented automotive as its major consumption area. Additionally, precipitated silica also finds scope in non-tire automotive rubber components such as hoses, belts, engine mounts and suspension bushings where durable performance is key.
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North America has been the dominant region in the global precipitated silica market for many years along with 37.9% market share. The region accounts for the largest market share due to strong demand from rubber and tire industry, which is the major end-use segment for precipitated silica. U.S. is the powerhouse of automotive industry with presence of leading tire manufacturers. This has ensured steady supply of quality precipitated silica. In addition, availability of raw materials and technological advancements have allowed precipitated silica producers to cater to diverse industrial needs. The trade relations and close-knit supply chain networks in North America have created an efficient regional precipitated silica market.
The Asia Pacific region has emerged as the fastest growing market for precipitated silica globally. Rapid industrialization and automotive production growth in China and India and their rising exports have boosted the precipitated silica demand. The regional tire manufacturers are aggressively expanding their production capacities to cater to the domestic automobile demands as well as international markets. This is creating huge opportunities for precipitated silica suppliers. Further, several multinational tire companies have established or expanded their manufacturing base in Asia driven by availability of resources and labor at competitive costs. This has provided the necessary platform for precipitated silica market to flourish. Countries like Indonesia and Malaysia with their natural resource advantages have also emerged as key exporters bolstering regional precipitated silica trade. The APAC market is projected to surpass other regions given the industrial growth patterns and recovering economies in the area.
Precipitated Silica Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 3.25 Bn |
| Historical Data for: | 2019 To 2023 | Forecast Period: | 2024 To 2031 |
| Forecast Period 2024 to 2031 CAGR: | 5% | 2031 Value Projection: | US$ 4.56 Bn |
| Geographies covered: |
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| Companies covered: |
Evonik Industries AG, Oriental Silicas Corporation, Huber Engineered Materials, PPG Industries, Inc, MLA Group, Solvay S.A, Anmol Chemicals Group, Supersil Chemicals (I) Pvt. Ltd, Anten Chemical Co. Ltd., PQ Corporation, W.R. Grace & Co., Madhu Silica Pvt. Ltd., QUECHEN, AMS Applied Material Solutions, Covia Holdings LLC., Denka Company Limited |
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| Restraints & Challenges: |
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*Definition: The global precipitated silica market involves the manufacturing and sales of precipitated silica. Precipitated silica is a high-purity form of silicon dioxide found in the powder or granular form, produced by chemical precipitation from solution. It is used as a thickening, reinforcing, or absorbent material in many industrial applications including rubber, oral care products, foods, coatings, plastic, and others.
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