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Precipitated Silica Market Currently Growing at a CAGR of 5.8 Percent, Says Beroe Inc

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News provided by

Beroe Inc.

10 Oct, 2019, 13:15 GMT

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RALEIGH, North Carolina, Oct. 10, 2019 /PRNewswire/ -- The global precipitated silica market capacity is currently estimated to be 3.23 million MT, with market demand of 2.9 million MT according to Beroe Inc., a procurement intelligence firm. The market is predominantly driven by the rubber and tire industry, which together constitute more than 60 percent of the downstream demand.

The rising need for eco-friendly alternatives in the automotive industry will fuel the adoption of "Green Tires" in North America and the Asia Pacific region. New tire labeling regulations in the EU, Japan, Brazil, and South Korea are also expected to propel precipitated silica demand. The use of precipitated silica in tire treads is expected to significantly reduce carbon dioxide emission by 45 million MTPA in the US alone.

https://www.beroeinc.com/category-intelligence/precipitated-silica-market/

Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com

The major downstream driver for the precipitated silica industry will continue to be the tires and rubber industry for the next few years, owing to the growing need to reduce pollution and greenhouse gas emission. Demand from other rubber applications (non-tire) in manufacturing conveyor and transmission belts, rice rollers, PVC sheets, shoe soles is also expected to be on the higher side. While the demand for precipitated silica has been growing at a steady pace, the capacity additions have been slow to change, posing a challenge to the growth of the market.

Apart from rubber, other downstream applications of precipitated silica have been gaining in popularity, such as its use as anti-caking and free-flowing in agrochemical and other industrial applications, and its applications in the toothpaste market, as increasing awareness about oral hygiene is expected to fuel the demand from this industry. The use of precipitated silica is projected to grow at a CAGR of 12 percent in the next few years.

Key Findings:

  • The current installed capacity of precipitated silica is more than sufficient to meet the downstream demand. Most of the major players have been adding capacities in recent years to cater to the rising need from the end-use segments
  • Most of the capacity additions are taking place in the Highly Dispersible Silica (HDS) segment, which goes into tires. Evonik is the only company, which has added capacities in the dental grade silicas segment.
  • The demand for sodium silicate is expected to grow at a CAGR of 2.5 percent for the next few years, owing to the saturation of certain downstream industries, like paper & pulp, adhesives, and detergents in developed regions, like North America and Europe.
  • The production of precipitated silica feedstock sulfuric acid will always be sufficient to meet downstream demand, as the industry usually operates at a healthy capacity utilization rate. The key downstream driver will continue to be the fertilizer industry for the next few years.
  • PPG Industries (not into oral care) is also planning to increase its precipitated silica production capacity at its Delfzijl, Netherlands manufacturing plant by more than 15,000 tons per year and its Lake Charles, Louisiana plant by more than 10,000 MTPA.

The research methodology adopted for the report included:

  • Experts with twenty years of domain experience
  • Interaction with buyers
  • Inputs from supply chain partners

Precipitated silica occupies a significant 30 percent of sodium silicate's downstream demand and is one of the major downstream drivers followed by detergents. The largest direct application of sodium silicate is in detergents and paper pulp contributing to around 22 percent and 13 percent, respectively. Nearly, 51 percent of sodium silicate demand is estimated to be arising from the specialty silica segment, which is growing rapidly, owing to strong demand from its derivatives, like precipitated silica, zeolite, and colloidal silica.

The report also includes:

Market Analysis:

  • Precipitated Silica – Global Market Analysis
  • Precipitated Silica – Current Industry Trends and New Technologies

Feedstock Analysis:

  • Sodium Silicate – Global Market Analysis
  • Sodium Silicate – Demand by Downstream Applications
  • Sulfuric Acid – Global Market Analysis

Supplier Analysis:

  • Precipitated Silica Supplier Mapping (Oral & Fabric Care)
  • Precipitated Silica Supplier Profiling

Duties and VAT Summary:

  • Duties and VAT Summary

About Beroe Inc.:

Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.

To learn more about Beroe Inc., please visit: http://www.beroeinc.com

Media Contact:
Debobrata Hembram
debobrata.hembram@beroe-inc.com

Logo: https://mma.prnewswire.com/media/777512/Beroe_Logo.jpg

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