Consumer Demand Rise for Green Tires

The automotive sector across the world, particularly in the Asia Pacific region, has experienced considerable growth over the past few years. Although the sales of automotive vehicles are likely to oscillate in North America and Europe, owing to the evolving market landscape and stringent environment safety guidelines, the precipitated silica market in the Asia Pacific region is expected to provide fertile grounds for expansion of the automotive sector. The growth of the automotive sector across the world is projected to provide an impetus for growth of the precipitated silica market, as the demand continues to move in the upward trajectory. The adoption of precipitated silica to manufacture rubber tires is a major factor that is likely to drive the precipitated silica market during the forecast period.

The consistent demand for precipitated silica from the rubber industry to manufacture silicone rubber, industrial rubber, footwear, etc., is a leading factor that is likely to propel the precipitated silica market. While market players are expected to tap into opportunities in the different end-use sectors, mergers & acquisitions, along with optimizing the production chain are anticipated to remain the primary focus for market participants. Due to continual pressure by regulatory bodies to enhance environmental safety, the demand for green tires is growing at a noteworthy pace, which in turn is expected to accelerate the market in the upcoming years. At the back of these factors, the global precipitated silica market is expected to attain a market value of ~US$ 5 Bn by the end of 2027.

precipitated silica market infographic

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Advancements in Rubber Chemistry and Technology to Accelerate Demand for Precipitated Silica Market

Over the past decade, owing to notable advancements in rubber chemistry and technology, a broad range of inorganic fillers is increasingly being manufactured. Precipitated calcium carbonates, clay, and precipitated silica have garnered significant popularity and are primarily being used in rubber and automotive sectors. In recent years, the production of environment-friendly and low-pollution tires that are also known as green tires has increased at a consistent pace due to which, carbon black is gradually being replaced by high-dispersion precipitated silica– a trend that is set to continue during the forecast period, as the demand for precipitated silica is on the rise. Several tire companies are gradually leaning toward the use of precipitated silica to launch of new variations of green tires.

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As more number of consumers continue to demand green tires worldwide, owing to the safety, comfort, energy saving, and environmental protection properties, the precipitated silica market is also expected to witness considerable growth. In addition, as automotive companies are largely focused on catering to fulfilling requirements, including rolling resistance and wet traction particularly in the passenger car segment across the European Union, the demand for precipitated silica to manufacture green tires is expected to reach new frontiers during the forecast period.

Companies Focus on Expanding Production, Enhancing Market Presence via Inorganic Strategies

Within the current precipitated silica market, market players are increasingly focusing on strengthening their foothold in the domestic as well as the international market through inorganic growth strategies. However, a number of tier-one companies is expected to expand their production capacities to cater to the surge in demand from various end-use industries. For instance, in December 2019, collaboration between the Chinese company Wynka and Evonik reached a new milestone when an announcement was made that revealed the construction of a new silica plant, which is scheduled to be completed by 2021. The new plant is expected to produce fumed silica to cater to the growing demand for coatings, paints, silicones, gel batteries, and adhesives in China.

In July 2018, the CIECH Group announced that the company is likely to increase its production capacity of sodium silicate– a key material that is used to produce precipitated silica.

Sales Likely to Drop amidst COVID-19 Pandemic; Market Players to Address Supply Chain Challenges

The advent of the novel COVID-19 pandemic has strongly impacted the growth of an array of industrial sectors. As governments across the world continue to combat the virus, trade activities, logistics restrictions, and other guidelines are some of the factors that are expected to affect the supply of precipitated silica in 2020. In addition, as the demand for precipitated silica from end-use sectors is projected to decline particularly in 2020. Due to the COVID-19 pandemic, companies operating in the current precipitated silica market landscape are expected to evaluate their potential growth strategies and focus on optimizing their production operations. While addressing the supply side challenges in the short-term is likely to remain the key area of focus, companies are anticipated to identify various pockets of opportunities in other industrial sectors to minimize losses.

precipitated silica market segmentation

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Analysts’ Viewpoint

The global precipitated silica market is expected to grow at a moderate CAGR of ~4% during the forecast period. The surge in demand for precipitated silica from the rubber, personal care, and agro-chemicals sector, among others, is anticipated to remain the primary factor that is likely to boost market growth during the assessment period. Market players should focus on product diversification, optimizing their production operations, and improving the quality of products to gain a competitive edge in the current precipitated silica market landscape. While industry players are projected to evaluate the potential impact of the COVID-19 pandemic on their growth prospects, value addition, and product diversification are expected to remain the key area of focus in the upcoming years.  

Precipitated Silica Market: Overview

  • Precipitated silica is an amorphous form of silica, which is produced by precipitation of silicon dioxide, commonly known as silica (SiO2). Feedstock used in the manufacturing of precipitated silica includes hydrochloric acid, sulfuric acid, silica sand, and sodium silicate. Precipitated silica is used as an additive in various industries such as personal care, rubber, food & feed, and paints & coatings.

Expanding Cosmetics & Personal Care Industry to Drive Precipitated Silica Market

  • The global cosmetics & personal care industry has witnessed rapid growth over the last few years, due to changing lifestyle, increased disposable income, and risen awareness about skin care across the globe
  • Precipitated silica is used in cosmetics and personal care products, due to its ability to serve as a suspending agent, anti-caking agent, bulking agent, abrasive, and opacifying agent. It is usually employed as an absorbent powder in cosmetics, due to its ability to absorb moisture and sweat. Furthermore, precipitated silica is largely used in compact powders, blushes, and sunscreens, due to its amorphous nature and improvement in spread-ability that it offers.
  • Thus, growth of the global cosmetics & personal care industry is projected to augment the global precipitated silica market during the forecast period

Availability of Substitutes to Hamper Precipitated Silica Market

  • Carbon black is used as a reinforcing agent in tires and in several types of conveyor wheels, wiper blades, boots, and pads. However, a recent trend indicates that tire manufacturers are replacing carbon black with precipitated silica, owing to eco-friendly nature and high performance of the latter.

Production of Precipitated Silica from Rice Husk to Offer Lucrative Opportunities

  • Rice husk (RH) is one of the most widely available agricultural wastes in rice-producing countries across the world. It is largely available in Southeast Asia due to large rice production.
  • Rice husk is produced after milling of rice. It contains approximately 80%–90% of silica. The rate of recovery of precipitated silica from rice husk ash is 90%–95% if the conversion efficiency is over 70%. Thus, rice husk ash is one of the most economical feedstocks that can be used for production of precipitated silica.
  • Low capital investments, ease availability of raw materials, and high profitability in producing silica from rice husk ash are anticipated to create immense opportunities for precipitated silica producers during the forecast period

Recent Developments, Expansions, Acquisitions, and New Contracts in Precipitated Silica Market

  • On March 1, 2019, PPG Industries, Inc. signed an agreement with Whitford Worldwide Company, a global manufacturer that specializes in nonstick and low-friction coatings used in consumer products and industrial applications. Whitford Worldwide Company is a privately held company headquartered in Elverson, Pennsylvania (the U.S.). The company specializes in the manufacture of wear-resistant, low-friction coatings used in industries such as construction, energy, aerospace, and automotive. The company runs 10 production facilities, which are located in Elverson, Pennsylvania and Fostoria, Ohio (both in the U.S.); Tuas, Singapore; Guelph, Canada; Sao Paulo, Brazil; Runcorn, the U.K.; Brescia, Italy; Jiangmen and Zhuhai, both in China; and Bengaluru, India.
  • In February 2019, W. R. Grace & Co. started construction of a new colloidal silica facility at its R&D center and manufacturing facility in Worms, Germany. This move would allow the company’s technology platforms to increase the capacity for production of the LUDOX range of colloidal silica products and to add flexibility to the company’s global manufacturing network. The expansion is expected to be accomplished by the second quarter of 2020.

Asia Pacific to Dominate Precipitated Silica Market

  • Asia Pacific dominated the global precipitated silica market in 2018. This trend is expected to continue during the forecast period, due to surge in the demand for tires in the automobile sector in the region. China constituted a leading share of the precipitated silica market in the region in 2018, due to the constant demand for rubber in the tire industry in the country.
  • North America is estimated to be a highly attractive region of the global precipitated silica market during the forecast period. Growth of the market in the region can be primarily ascribed to the expansion of the personal care industry as well as the rubber industry in North America. Furthermore, rising demand for energy-efficient tires is also anticipated to propel the market in the region during the forecast period.
  • The precipitated silica market in Europe is anticipated to expand at a rapid pace during the forecast period. Introduction of regulations on tire-labelling and growing efforts by manufacturers to optimize vehicle fuel efficiency and improve rolling resistance are expected to boost the precipitated silica market in Europe during the forecast period.

Highly Competitive Precipitated Silica Market

  • The global precipitated silica market is highly competitive, with the presence of a large number of players operating at domestic as well as international levels
  • Key players operating in the global precipitated silica market are 
    • Oryzasil Silicas Naturais
    • Madhu Silica Pvt. Ltd
    • Agile Nobel, Inc
    • Tata Chemicals Ltd.
    • Oriental Silicas Corporation
    • Brisil
    • Solvay S.A.
    • PPG Industries
    • W. R. Grace & Co.
    • Evonik Industries AG

Precipitated Silica Market – Scope of the Report

The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global precipitated silica market to accurately gauge its future growth potential. The study presents detailed information about important drivers, restraints, and trends that are creating a landscape for future growth of the global precipitated silica market in order to identify growth avenues for market stakeholders. The report also provides insightful information about how the global precipitated silica market would expand during the forecast period i.e. 2019–2027.

The report offers intricate dynamics about different aspects of the global precipitated silica market, which aids companies operating in the market in making strategic business decisions. TMR’s study also elaborates on significant changes that are anticipated to configure growth of the global precipitated silica market during the forecast period. It also includes an assessment of key indicators that highlight growth prospects for the global precipitated silica market and estimate statistics related to market growth in terms of value (US$ Mn) and volume (kilo tons).

This study covers a detailed segmentation of the global precipitated silica market, along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the global precipitated silica market, wherein various development, expansion and winning strategies practiced and implemented by these players have been presented in detail.

Key Questions Answered in TMR’s Report on Precipitated Silica Market

The report provides detailed information about the global precipitated silica market on the basis of comprehensive research on various factors that are playing a key role in promoting the growth of the market. Information mentioned in the report answers path-breaking questions about companies that are currently operating in the global precipitated silica market and are looking for innovative methods to create a unique benchmark in the market, so as to help them design successful strategies and make target-driven decisions.

  • Which application segment of the global precipitated silica market would emerge as a major revenue generator during the forecast period?
  • How are key market players successfully earning revenues in the competitive global precipitated silica market?
  • What would be the Y-o-Y growth trend of the global precipitated silica market between 2019 and 2027?
  • What are the winning imperatives of leading players operating in the global precipitated silica market?

Research Methodology – Precipitated Silica Market

The research methodology adopted by analysts for compiling the report on the global precipitated silica market is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts of the global precipitated silica market.

During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. On the basis of the data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the global precipitated silica market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the global precipitated silica market.

Precipitated Silica Market – Segmentation

TMR’s research study assesses the global precipitated silica market based on application and region. This report presents extensive market dynamics and growth trends associated with different segments of the global market and how they are influencing the growth prospects for the global precipitated silica market.

Application

Rubber

Personal Care

Agrochemicals

Others

Region

North America

Latin America

Europe

Asia Pacific

Middle East & Africa

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Precipitated Silica Market

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