Gains will be bolstered by continued economic advances in developing countries, and by improved manufacturing levels and increased use of silica in tire treads in developed countries.
Global demand for specialty silicas -- which include precipitated silica, silica gel, silica sol, and fumed silica -- is forecast to grow 5.0 percent per year through 2018 to 2.9 million metric tons, valued at $6.9 billion. This will represent an acceleration from the pace of the 2008-2013 period, as continued economic advances in developing countries such as China and India will bolster gains in demand for specialty silicas. Consumption of specialty silicas will also benefit from improved manufacturing levels in a stronger economic climate in the developed countries of North America and Europe. Increased use of silica in tire treads will further promote growth in specialty silicas demand in these regions.
Rubber is the largest market for specialty silicas and is also projected to be the fastest growing through 2018. Tire rubber represents the largest portion of the rubber market and the single largest application for specialty silicas worldwide. Rising adoption of green and high performance tire technologies -- which use precipitated silica in tire treads to improve properties such as rolling resistance and traction -- has led to increased use of specialty silicas in this market. Several countries, including Japan, South Korea, and those in the EU, have recently introduced tire labeling regulations that tout higher-end fuel efficient tires. Similar laws could soon be adopted in countries like Brazil and the US.
Growth in demand for specialty silicas will benefit from a combination of economic advances in developing countries and rebounding manufacturing activity in developed countries. Increased consumer spending will boost demand for specialty silicas in the food and feed market and the cosmetics and toiletries market, while rising manufacturing output will fuel specialty silicas demand in markets such as industrial processing and chemicals. Although solid gains for specialty silicas are expected in all major markets, the pace of growth will be constrained by market maturity in developed countries.
Precipitated silica will remain the dominant product through 2018 based on its use in tire rubber, where it accounts for the entirety of specialty silicas demand. Because of the strong gains expected in this market, precipitated silica is forecast to be the fastest growing specialty silica product through 2018. Silica gel is projected to post the slowest advances, reflecting its use in relatively mature applications such as food and beverages and cat litter. Silica sol will benefit from gains in manufacturing applications such as refractories and textiles. Demand for fumed silica will be supported by solid growth in non-tire rubber demand.
This study analyzes the 2.3 million metric ton world specialty silica industry. It presents historical demand data for 2003, 2008 and 2013, and forecasts for 2018 and 2023 by product (precipitated silica, silica gel, silica sol, fumed silica), market (e.g., tire rubber, non-tire rubber, chemicals, food and feed, cosmetics and toiletries, industrial processing), world region, and for 16 countries.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 32 industry players, including Evonik Industries, WR Grace and Solvay.