India Precipitated Silica Market Size, Share & Trends Analysis Report By Application (Rubber, Agrochemicals, Oral Care, Food Industry), Competitive Landscape, And Segment Forecasts, 2019 - 2025

Report Overview

India precipitated silica market size was valued at USD 46.8 million in 2017. It is likely to post a CAGR of 6.5% during the forecast period. Strong product demand in the food industry, owing to its anti-caking and super absorption properties, has helped the market gain momentum over the past few years.

Increasing use of precipitated silica in the rubber industry for the production of micro sheets, rice rollers, thermoplastic rubber, PVC sheets, and shoe soles is poised to propel the market. Surging use of the product in transmission and conveyor belts, primarily for improvement of tear strength and increase in elastomer compound reinforcement, is projected to spur the growth of the market over the forecast period.

Sodium silicate and sulfuric acid are key raw materials used in the manufacturing of precipitated silica. The supply of sulfuric acid is anticipated to be higher in Asia Pacific, with the region being the largest supplier owing to the extensive presence of base smelters. Increasing prices of sodium silicate due to rising energy and transportation costs are estimated to negatively impact product prices.

Capacity expansions by existing players are resulting in a decline in product prices. The product has witnessed a further reduction in prices in the past couple of years, due to overproduction by Chinese players. Increasing raw material prices and declining final product costs are affecting the profit margins of industry players.

Industry players emphasize capacity expansions to lower manufacturing costs through large scale manufacturing. The industry is expected to experience a threat of new entrants, which is likely to further augment market competition, thereby lowering product prices over the forecast period.

Precipitated silica industry is highly competitive in terms of pricing as product cost and quality are two parameters, which influence the buyer’s decision. Manufacturers are focusing on the usage of alternative raw material sources such as rice husk ash to reduce the production cost in a bid to increase market share in India.

The prices of precipitated silica slightly vary across various commercial grades and manufacturers. Rubber grade dominates the market owing to a high demand in tires, shoes, and other industrial rubber products. Raw material prices and operational costs are among crucial parameters that determine the value of precipitated silica in the industry.

Application Insights

Rubber emerged as the largest application segment in 2017. It is poised to reach USD 44.1 million by 2025. Growing product demand in manufacturing tires, particularly for heavy vehicles and trucks, to improve adhesion between the rubber tire and metallic reinforcements is projected to drive the market.

Precipitated silica is widely used in agrochemicals as dispersing, wetting, and grinding aid to improve suspension behavior in liquids. Furthermore, the product is also used as a diluent and carrier due to its excellent properties, including superior compatibility with toxicants and higher absorption of toxicants, which is slated to have a positive influence on the growth of the market.

Rising awareness regarding oral hygiene in India is anticipated to favorably impact product demand from the oral care industry. Precipitated silica is broadly used as a thickening and cleaning agent in oral care applications, especially toothpaste, to provide effective cleaning and polishing performance.

Increasing use of food-grade precipitated silica in food applications, owing to its free-flowing properties for safe processing, coupled with its use to increase the shelf-life stability of the food, is anticipated to bolster the growth of India precipitated silica market over the forecast period. The product is used extensively in the production of edible salts, garlic powder, and onion powder as an anti-caking agent.

Precipitated silica is used extensively in coatings, wherein the product acts as anti-settling, matting, thickening, and thixotropic agents. The use of the product as a matting agent helps reduce the gloss of varied products such as varnishes & inks, paints & coatings, and lacquers, which thereby provides the better stir-in capability and lesser viscosity leading to higher adoption.

The product is extensively used in coatings as an anti-settling, matting, thickening, and thixotropic agent and to provide enhanced efficiency in medium polar and non-polar solvents. It is also used in coil coatings and aluminum extrusion coatings to reduce gloss. Spiraling use of the product in fire extinguishing powders to ensure humidity protection is estimated to stoke the growth of the market in the country.

Key Companies & Market Share Insights

The market is highly competitive owing to the presence of a few manufacturers with high production capacities. These players are well established with a strong financial base and maintain strategic relationships with end-users. Market players are engaged in manufacturing customized products, due to the high variance in product requirements.

The market in the country exhibits increased integration of players across the value chain. Major players, including Evonik Industries and W. R. Grace & Co., are engaged in raw material production, product manufacturing, and distribution. In addition, companies including PQ Corporation and PPF Industries are involved throughout the value chain from raw material supply to product consumption.

India Precipitated Silica Market Report Scope

Segments Covered in the Report

This report forecasts revenue and volume growth at country level and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented India precipitated silica market report on the basis of application:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Rubber

  • Agrochemicals

  • Oral Care

  • Food Industry

  • Others