FUMED SILICA MARKET ANALYSIS

The global fumed silica market size was valued at USD 1.10 Bn in 2021 and is anticipated to witness a compound annual growth rate (CAGR) of 5.67 % from 2022 to 2030. The fumed silica market is expected to grow over the coming years, owing to its unique properties and multiple applications. Growth is expected to be accelerated by rising construction spending and increasing demand for this material. The market growth is led by the silicone elastomers segment, which is expected to be the fastest growing segment. The silicone elastomers are used in a number of applications, including electronic devices, household goods, cooking products, and medical devices. Furthermore, growing disposable income and consumer spending are further expected to drive the market growth over forecast timeframe.

Figure 1. Global Fumed Silica Market, By Region

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Global Fumed Silica Market: Regional Insights

Regionally, Asia Pacific is expected to dominate the global fumed silica market over the forecast period owing to the growing adhesive and sealant market in China. According to China Adhesives and Tape Industry Association, the adhesive market in China grew by 7.5%, in terms of volume, to reach 7.887 million metric ton in 2017, from 2016, with further growth through 2018 and 2019. High demand for adhesive and sealant from wide range of industries is driving regional market growth.

North America is expected to witness fastest growth in the global market over the forecast period owing to the growing demand for paints and coatings, sealants, plastics and composites in the region. Rapid growth of construction sector in region is again expected to favor the regional market growth.

Global Fumed Silica Market Drivers:

Growing demand from personal care applications in Asia Pacific region due to growing population is driving growth of the fumed silica market. It is used to enhance free flow of beauty products and offer anti-cracking properties in cosmetic powders. Moreover, it is also used as replacement for microplastics in cosmetics and personal care products.

Rising demand from paints and coatings industry is again projected to augment market growth over the forecast period. It is used as a thixotropic agent in paints and coatings applications to offer resistance against rust and corrosion. It is mostly used as anti-setting or suspension agent for pigments and fillers. Majorly it is used as zinc dust paints and anti-corrosion paints.

Global Fumed Silica Market Opportunities:

Increasing production of plastics worldwide is expected to offer significant growth opportunities for major players in the region. According to the Plastics Europe Market Research Group (PEMRG), the global plastic production reached 350 million metric ton in 2017, from 335 million metric ton in 2016, wherein Asia was the major manufacturer and constituted 50% of global market share, with China alone contributing to 30% in APAC, followed by Europe and NAFTA.

Expanding food &beverage sector is expected to present lucrative growth opportunities in the near future. According to the Invest India, India’s food processing sector is one of the largest in the world and its output is expected to reach $535 bn by 2025-26.

Global Fumed Silica Market Trends:

Rapid urbanization and industrialization is acting as a major trend for this market. Moreover, increasing disposable income of consumers is also expected to shape the market growth of fumed silica. Growing expenditure on healthcare products is further projected to foster the market growth.

Growing electronic industry due to increasing trend of digitalization worldwide is positively impacting the market growth. According to the India Brand Equity Foundation, The Indian appliances and consumer electronics industry stood at US$ 9.84 billion in 2021, and is expected to more than double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025. Electronics hardware production in the country stood at US$ 63.39 billion in 2021.

Global Fumed Silica Market Restraints:

Increasing use of precipitated silica as a substitute is expected to hinder the market growth. For instance, it is used in softener, filler, and performance enhancer in rubber and plastics. It is also used as cleaning, thickening, and polishing agent in toothpastes for oral health care. In food processing and pharmaceutical it used as anti-caking, thickening agent, absorbent to convert liquids into powders.

Development of biogenic fumed silica is again expected to restrict the market growth. Biogenic fumed silica is an ecofriendly alternative to high grade silica.

Figure 2. Global Fumed Silica Market, By Product Type

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Global Fumed Silica Market Segmentation:

The global fumed silica market report is segmented into Product Type, Application, and Region

Based on Product Type, the market is segmented into Hydrophilic Fumed Silica and Hydrophobic Fumed Silica. Out of which, Hydrophilic Fumed Silica is expected to dominate the global market over the forecast period and this is attributed to the growing demand from coatings, paints, electronics, and optical fibers industries.

Hydrophobic Fumed Silica segment is also expected to witness significant growth in the near future and this is owing to the growing demand from industrial and automotive coatings.

Based on Application, the market is segmented into Silicone Rubber, Plastics and Composites, Food and Beverages, Paints and Coatings, Adhesives and Sealants, Pharmaceutical, Personal Care, Chemicals and Fertilizers, and Other Applications. Out of which, Plastics and Composites is expected to dominate the global market over the forecast period and this is attributed to the increasing use of fumed silica for improving mechanical properties of plastics.

Paints and Coatings segment is also expected to witness significant growth in the near future owing to the increasing use of fumed silica as a thixotropic agent. According to the Coherent Market Insights analysis, the paints and coatings industry in India is expected to value at INR 500 billion in 2019, and is expected to reach INR 700 billion by 2021-22. Indian paint and coatings producers also added significant production capacities in 2018.

Global Fumed Silica Market: Key Developments

In June 2019, Evonik started its schedule for its new plant complex in Antwerp for the production of fumed silica.

In September 2018, Evonik decided to expand its hydrophobic fumed silica capacities at its facility in Rheinfelden (Germany). The group decided to invest an amount in the low double-digit EUR million range to expand its Rheinfelden facility, which further processes hydrophilic silica to a hydrophobic variety.

In August 2018, Evonik Industries and Wynca decided to form a joint venture in which Evonik will hold 60% of share of the new company and will produce fumed silica marketed under the name Aerosil.

Global Fumed Silica Market: Key Companies Insights

The global fumed silica market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global fumed silica market are Applied Material Solutions Inc., Cabot Corporation, Chifeng Shengsen Silicon Technology Development Co. Ltd, China-Henan Huamei Chemical Co. Ltd, Dalian, Fuchang Chemical Co. Ltd, Dongyue Group Co. Ltd, Evonik Industries, Gelest Inc., Heraeus Holding, Kemitura AS, OCI Company Ltd, Tokuyama Corporation, and Wacker Chemie AG

*Definition: Fumed Silica is a synthetic mineral composed of silicon dioxide. It is used in a variety of applications as a thickening agent. It has a high abrasive property and is also light-defusing. It is also used in personal care products. The production process for fumed silica involves the addition of sulfuric acid and sodium silicate solutions to water. The resulting precipitates are porous and have an average diameter of five to fifty nanometers. They are used as absorbents for various types of liquids. Some of them are hydrophilic while others are hydrophobic.