North America And Australia Silica Market Size, Share & Trends Analysis Report By Application (Oil & Gas, Glass, Foundry Sand, Rubber, Oral Care), By Region (Australia, North America), And Segment Forecasts, 2021 - 2028

Report Overview

The North America and Australia silica market size was valued at USD 7.18 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 11.0% from 2021 to 2028. Increasing investments in the oil & gas industry coupled with the rising use of foundry sand are propelling the market growth. For instance, in November 2021, Australia approved a USD 12 billion LNG investment where Woodside Petroleum will supply LNG for at least 20 years. Such investments are anticipated to propel market growth as commercial silica is widely used in the oil & gas industry due to its chemical composition, inertness, hardness, purity, and resistance to high temperatures. In 2020, the U.S. was ranked as the world’s leading producer and consumer of industrial sand and gravel.

Its high demand is attributed to the high quality and advanced processing techniques used for its various grades to meet the specifications of different industries. With well-established rubber, glass, foundry, agrochemicals, paints & coatings, oil & gas, and chemical industries in the U.S., the product demand in these applications is in high volumes. However, industrial sand and gravel, especially crystalline silica, continue to face challenges with respect to safety and health regulations and environmental restrictions.

The rubber industry is a key consumer of specialty silica and holds significant importance across various end-use industries including defense, automotive, construction, healthcare, agriculture, and others. Specialty silica finds application in the manufacture of tires, industrial rubber, silicone rubber, and footwear. Manufacturers operating in the tire industry are placing their strategic bets on new product launches to stay ahead in the competition. For instance, in December 2021, the Goodyear Tire & Rubber Company launched the new ElectricDrive GT green tires in North America, tuned for Electric Vehicles (EVs). Such developments are anticipated to have a positive influence on the demand for silica in the rubber industry over the forecast period.

Application Insights

Based on applications, oil & gas accounted for the largest revenue share of more than 33.0% in 2020. Natural gas and oil are typically produced through unconventional means using horizontal drilling and hydraulic fracturing to release trapped oil or gas. Silica plays an essential role in the completion of unconventional oil and natural gas wells, specifically in hydraulic fracturing techniques. In October 2021, North America’s rig count reached 700 including 351 additional rigs compared to the previous year, as the rig count has almost doubled in both U.S. and Canada. The governments in the region are making efforts to promote the development of the unconventional oil & gas industry owing to the region’s inclination toward a clean energy strategy. This, in turn, is anticipated to augment the market growth over the coming years.

Foundry sand is one of the fastest-growing application segments of the market. Silica is used in foundry sand owing to its high melting point as compared to other alloys for mixing with a binder to produce a mold that can hold the molten metal for casting. According to the American Foundry Society, metal casting is one of the essential sectors in the U.S. manufacturing industry and was valued at USD 44.3 billion in 2020. Factors, such as accuracy, high precision, shorter cycle time, and surface finish, are expected to contribute to the growing demand for metal casting. For instance, in September 2020, Tesla, Inc. introduced casting machines for developing chassis components. Thus, the growth of the metal casting industry is expected to benefit the foundry sand demand, eventually propelling the consumption of silica.

Regional Insights

Based on region, North America is anticipated to register a CAGR of 11.1%, in terms of revenue, over the forecast period. North America was the second-largest regional market in 2020 across the globe. Factors, such as a significant rise in the number of R&D projects and rapid technological developments, are expected to boost the demand for silica in the region over the forecast period. Growing investments in application industries are benefiting market growth. For instance, in February 2021, Bridgestone, ARLANXEO, and Solvay launched TECHSYN, a new tire technology platform. This new platform helps merge chemically optimized synthetic rubber with tailor-made silica to deliver high-quality performance with no trade-offs.

Furthermore, the market growth is high in Australia as well on account of development in application industries, such as glass and foundry. Also, Australia was among the top three silica exporters in 2020 owing to several silica sand projects that are in production or progressing through the exploration and development process, controlled by ASX-listed companies. The glass and foundry industry together represent around 65% of the total consumption of silica in the country. The demand for glass is mainly driven by the construction sector along with container glass. For instance, according to the International Wine and Spirit Record, bottled wine accounted for 34.0% of Australia’s alcohol consumption in 2020, propelling the demand for glass bottles and enabling manufacturers to increase their production.

Key Companies & Market Share Insights

The market is highly competitive owing to the presence of numerous established players. Companies are focusing on R&D activities to widen their silica product offerings and their application scope within various end-use industries. The companies are also carrying out various acquisition, expansion, and partnership strategies to stay abreast of the competition. This is expected to benefit the market growth. For instance, in November 2021, Nouryon announced its plans to expand the production capacity for its colloidal silica products at its manufacturing facility in Wisconsin, U.S. Changing consumption habits due to increased marketing activities by major players is further supporting the companies to expand their production capacities. For instance, in October 2019, Wacker Chemie AG built a new plant for producing pyrogenic silica at its site in Tennessee, U.S.Some of the prominent players in the North America and Australia silica market include:

• Elkem ASA

• Evonik Industries AG

• Nouryon

• PPG Industries, Inc.

• PQ Corporation

• Saint-Gobain

• Solvay

• U.S. Silica

• W. R. Grace & Co.-Conn.

• Wacker Chemie AG

North America And Australia Silica Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the North America and Australia silica market report on the basis of application and region:

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • Oil & Gas

  • Glass

  • Foundry Sand

  • Rubber

  • Agrochemicals

  • Oral Care

  • Food

  • Desiccants

  • Paints & Coatings

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Australia