Specialty silica is a key ingredient in the production of rubber products where it finds application in the production of industrial belts, tires, footwear, and others. It is also used as an additive in food and oral care products. Moreover, silica also find application in paints & coatings, personal care products, cosmetics, electronic components. In cosmetics product it act as a glossy agent in the formulation and as a clarification agent in the removal of impurities from beer in the food &beverage industry. Furthermore, in plastic industry it is used as an anti-blocking agent during the polymerization process in order to avoid sticking of a polymer layer with each other.

The global specialty silica market was estimated to account for US$ 6.2 billion in terms of revenue in 2018 and is predicted to grow at a CAGR of 6.0% during the forecast period (2019 to 2027).

Drivers

Rising demand for specialty silica in the production of the tire from the automotive industry is predominantly fueling the market growth of specialty silica. Specialty silica, we used as a filler in tires, which reduces the rolling resistance and also keep a complete grip on the road. According to the Coherent Market Insights analysis, 7.5% reduction in fuel consumption and up to 18 meters shorter braking distance has been reported after using high-performance HDS grade silica in automotive tires. Various rules and regulations have been implemented to promote the usage of silica as filler in automobile tire as it helps to increase the fuel economy of vehicles.

Market Opportunities

Increasing focus of manufacturer on increasing production facility for specialty silica is expected to offer immense growth opportunity to the market over the forecast timeframe. For instance, in February 2019, Grace, a producer of specialty silica, has begun construction of a new colloidal silica plant at its European flagship manufacturing and R&D center in Worms, Germany. This investment is to support growing demand and increasing the technical requirements of customers. The new plant is meant to broaden the company's technology platforms and increase capacity for the supplier's Ludox portfolio of colloidal silica products,

Market Restraints

The introduction of greener alternatives to conventional specialty silica products is expected to hinder the market growth of silica. Many companies around the globe produce specialty silica products by using conventional methods, i.e. reaction of an alkaline silicate solution with mineral acid for precipitated silica and these production plants require high capital in nature and is energy-intensive process. For this manufacturer have developed a greener alternative for the production of fumed silica and this process have the potential to replace the traditionally produced silica. This factor is expected to hamper the market growth of specialty silica market.

Key Takeaways

On the basis of application, rubber segment dominated the global specialty silica market in 2018 with a 61.5% of market share in terms of revenue, followed by plastics and inks & coatings, respectively. Specialty silica is predominantly used as a performance additive during the production of rubber products.

Market Trends

Growing focus of manufacturer in direct tie-ups with end-user industries in order to maintain their continuous supply flow is gaining traction in the market, which is expected to propel the market growth over the forecast period. For instance, in May 2015, PPG Industries entered into a contract with Goodyear Tire & Rubber Company for the supply of its Agilon performance silica for production of high performance and energy-efficient tires. Thus, growing such tie-ups among manufacturer and end-user is anticipated to foster the market growth of specialty silica. 

Growing adoption of growth strategy by major players in order to expand their presence in the market is projected to foster the market growth of specialty silica. For instance, in April 2018, Tata Chemicals announced the completion of the acquisition of the silica business from Allied Silica. The company had entered into a business transfer agreement with Allied Silica Limited to acquire their business of precipitated silica for a consideration of up to US$ 18.9 million. Therefore, the rising adoption of such growth strategy among major vendors will favor the market growth over the forecast period.

Competitive Section

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.                                                                                                       

Few Recent Developments

Evonik Industries AG 

  • In October 2015, Evonik Industries AG has opened its expanded facilities in Ako, Japan, where the company will produce its Sipernat and Carplex lines of specialty silica. The investment represents a roughly 50% increase in Evonik’s Japanese production capacity for specialty silica, which the specialty chemicals company manufactures through DSL Japan Co., Ltd. (DSL). Evonik maintains a 51% share in DSL, a joint venture with the Shionogi & Co., Ltd. in Japan.
  • In October 2018, Evonik Industries is expanding its capacities for refinement of fumed silica in Rheinfelden (Germany). The Group will invest an amount in the low double-digit million euro range to expand its Rheinfelden facility, which further processes hydrophilic silica to a hydrophobic variety.
  • In December 2019, The Evonik Wynca Silicon Material joint venture (JV) comprising Evonik and Wynca has begun the construction of a new fumed silica plant at the Zhenjiang New Material Industry Park in Zhenjiang, Jiangsu Province, China.

Market Taxonomy

By Product Type

  • Precipitated
  • Fumed
  • Fused
  • Silica Gel
  • Colloidal

By Application

  • Rubber
  • Plastics
  • Ink & Coatings
  • Electrical & Electronics
  • Agriculture & Feed
  • Food & Beverage 
  • Personal Care 
  • Others

By Region

  • North America
  • Latin America
  • Europe
  • Asia-pacific
  • Middle East & Africa

About Coherent Market Insights:

Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.

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