The global precipitated silica market features a high degree of competition among key manufacturers. Strategic acquisitions, joint ventures, and mergers are some of the commonly adopted growth strategies by key market participants to expand their product portfolio, observes Transparency Market Research (TMR) in a new study. Some of the prominent companies operating in the market are Solvay, Evonik Industries AG, and PPG Industries Inc.
The easy availability of raw materials and relatively low capital requirement are attracting new players to venture into the market. “The rising demand for precipitated silica from the rubber industry is rendering the market more lucrative for new entrants,” says TMR’s lead analyst. The global precipitated silica market had a valuation of US$2.35 bn in 2016 and is estimated to reach US$3.49 bn by the end of 2023, expanding at a CAGR of 5.5% between 2015 and 2023.
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Asia Pacific to Witness Strong Demand for Silica Precipitate through 2023
On the basis of application, rubber will continue to be the leading segment until 2023, accounting for 63.6% of the overall market revenue. The increasing usage of precipitated silica to provide reinforcement to the tires is supplementing the growth of the segment. The segment is anticipated to make inroads in the shares of other segments, exhibiting a noteworthy CAGR during the review period.
Based on geography, Asia Pacific will continue to dominate the market until 2023, commanding 52.5% of the overall market revenue. The growth of the region can be attributed the robust growth of the automotive sector and rising awareness for oral hygiene. Owing to these factors, the region is poised to rise at a CAGR higher than any other region during the same period.
Growing Need for Eco-friendly Alternatives in Automotive Sector Creates Upswing in Demand for Precipitated Silica
The increasing levels of pollution and the subsequent deterioration of the air quality is leading to multiple regions across the world implementing strict emission norms. These norms are compelling participants in the global automotive industry to look for eco-friendly options that will help them in cutting down emissions through their manufactured automobiles. In these attempts, there is a growing emphasis on reducing rolling resistance. “Shifting towards a combination of precipitated silica and other materials for reinforcing filler in passenger tire treads can produce a nearly one-third reduction in rolling resistance and 6% increase in fuel efficiency of vehicles,” says TMR analyst. Therefore, the burgeoning demand for environment-friendly alternatives in the automotive industry is augmenting the global precipitated silica market.
Moreover, the rising awareness regarding oral hygiene in emerging countries of Asia Pacific and Latin America is creating a staggering volume of demand for toothpaste. Since precipitated silica is used as a thickening agent in toothpaste, the factor is impacting the growth of the market positively.
High Cost of Production Restricts Precipitated Silica Market from Realizing Full Potential
A major bottleneck in the growth of the global market for precipitated silica is the high energy cost involved in its production. Extraction of precipitated silica from silica sand and sodium silicate involves extremely high temperatures of nearly 1,400o C. The high quantities of fuel required to generate such high temperatures are adversely affecting the cost-effectiveness of precipitated silica.
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Nevertheless, the advent of new techniques such as extraction from rice husk ash, which can be carried out at much lower temperatures, is anticipated to reflect positively upon the future of the global market. Moreover, the paper industry is offering highly lucrative growth opportunities to the market.
The review is based on the findings of a TMR report titled, “Precipitated Silica Market (Application - Rubber, Personal Care, and Agrochemicals) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015-2023.”
The key segments of the global precipitated silica market are -
Global Precipitated Silica Market, by Application
- Personal Care
Global Precipitated Silica Market, by Region
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
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