Precipitated Silica Market Size, Share & Trends Analysis Report By Application (Rubber, Agrochemicals, Oral care, Food), By Region (North America, Europe, Asia Pacific, CSA, MEA), And Segment Forecasts, 2020 - 2025

Report Overview

The global precipitated silica market size was valued at USD 2.11 billion in 2019 and is expected to expand at a CAGR of 7.9% over the forecast period. Rising demand from rubber, agrochemicals, and oral care industries is the major factor driving the growth of the industry.

Tires is the largest application of precipitated silica. Therefore, the market is significantly driven by the dynamics of the global automotive market. Rising disposable income in Asia Pacific has led to the huge production of automobiles in the region. Asia Pacific is the biggest manufacturer of automobiles in the world with an estimated production of 53.5 million units in 2017. This makes Asia Pacific a significant market for precipitated silica.

When combined with tire rubbers, precipitated silica helps improves the tire grip while simultaneously decreasing its rolling resistance. Therefore, tires manufactured with this product reduces the fuel consumption of an automobile by as much as 7%. Such tires are called green tires. Consumption of the product in green tires is twice that of in normal tires. The share of green tires was estimated at 15.0% in 2011 and extended to 45.0% in 2018. This positive trend of green tires is anticipated to continue owing to supportive government regulations for green tires.

Carbon black is one of the major substitutes of the product and acts as a restraint for the market growth. Carbon black is also used as a reinforcing agent in tires, and in multiple types of boots, pads, wiper blades, and conveyor wheels. However, the recent trend indicates tire manufacturers replacing carbon black with precipitated silica on account of eco-friendly benefits and stronger performance delivered by the latter.

Precipitated Silica Market Trends

Precipitated silica is being increasingly utilized in the rubber and tire industry owing to its beneficial physical properties such as abrasion resistance, tensile strength, and flex fatigue. This, in turn, is projected to boost the market growth. Moreover, precipitated silica has profound use in rubber & tire applications, particularly in trucks and heavy equipment vehicles, as it is known to improve the adhesion and tear resistance between the rubber tire and metallic reinforcements.

Demand for precipitated silica for fuel-efficient tires is expected to propel aligning to continued reduction in automotive fuel consumption along with an inclination towards vehicle electrification. Governments across the world are creating policies to push the usage of fuel-efficient tires. For instance, in May 2022, the Indian government announced that they are going to bring a new star rating rule to the tire industry. Tires are expected to be rated on the basis of their ability to save fuel, prevent skidding, and ensure safety.

A significant rise in the production of EVs is expected to provide a lucrative opportunity for the precipitated silica market. The global EV sales reached 2million across the world, in the first quarter of 2022. The growth in the demand for EVs is expected to have a positive impact on the precipitated silica market. For instance, in January 2022, Honda Motor Investment Co Ltd announced that Dongfeng Honda Automobile Co Ltd will build a new EV production plant in Hubei Province, China. The production at this plant will begin in 2024 and it will produce 120,000 units annually. Similarly, in November 2021, Volkswagen announced its plans to build a state-of-the-art EV factory in Wolfsburg, Germany

Carbon black is one of the major substitutes for the precipitated silica and acts as a key restraint for the market growth. It is used as a reinforcing agent in tires, and in various products such as pads, boots, wiper blades, and conveyor wheels. However, precipitated silica is providing eco-friendlier benefits and stronger performance than carbon black.

Tire companies are investing to develop new tires, which are made of entirely sustainable materials and more fuel-efficient. For instance, in 2020, Goodyear pledged to develop a new tire made entirely of sustainable material. The company also pledged to develop sustainable carbon black, which is expected to generate fewer carbon emissions and stronger performance.

Application Insights

Rubber led the precipitated silica market share in 2019. The product is extensively used in the rubber industry, particularly as a reinforcement filler in tires. Tire manufacturers are currently focused on increasing green tire production owing to increasing pressure on vehicle makers to meet rising fuel-economy targets and reduce vehicle emissions. This is anticipated to propel the product demand in the forthcoming years. Non-tire applications of the product include silicone rubber, footwear soles, and industrial rubber.

Agrochemicals application is forecasted to register a CAGR of 7.3% over the forecast period. Precipitated silica is used in liquid agrochemicals to provide visco-elastic properties. It is utilized rheology modifier and as an anti-settling additive. It prevents the agglomeration of active ingredients in liquid formulations to avoid sedimentation. In addition, the product is used as a process aid, free-flowing aid, milling aid, and anti-cracking aid in solid agrochemicals.

Growing awareness regarding oral hygiene across the globe is expected to stimulate product demand, especially from the toothpaste industry. Precipitated silica is used in the manufacturing of transparent and medicated toothpaste, wherein it acts as a cleaning, polishing, and whitening agent. Rising consumer awareness regarding healthy lifestyle, wellness, and hygiene is expected to propel the product demand in oral care application over the forecast period.

Other applications include paints and coatings, defoamers, plastics, and adhesives and sealants. The product is extensively utilized in paints and coatings, wherein it acts as anti-settling, matting, thickening, and thixotropic agents. The silica grade of products for paints and coatings is utilized to provide enhanced efficiency in medium polar and non-polar solvents.

Regional Insights

The Asia Pacific held the largest revenue share of 43.4% in 2018 and it is expected to maintain this dominance over the forecast period. The massive industrialization, increasing production of automotive tires, and huge construction spending in the region are expected to drive the product demand.

China was the largest consumer of precipitated silica in 2018 and the country is expected to remain the dominant consumer across the forecast period. Factors such as growing investment in EVs and increasing demand for the product in various industries such as rubber, oral care, and food is driving the market growth in the country.

North America was the second-largest contributor with a revenue share in 2019. The rising demand for tires is significantly driving rubber applications in the region. Tire shipments for electric passenger cars and trucks in the region are poised to register significant growth over the next few years. This is anticipated to propel the product demand in North America.

Growing production of heavy commercial vehicles in the U.S. auto industry has led to rising demand for advanced and high efficient rubber tires, which is expected to have a positive influence on precipitated silica demand in the tire industry. For instance, in September 2021, Ford Motor Company announced plans to set up two new campuses in Tennessee and Kentucky, for the production of the electric F-Series trucks and batteries. These campuses will be environmentally and technologically advanced and the products are intended to power the future electric Ford and Lincoln vehicles. The production from these plants will begin in 2025.

Key Companies & Market Share Insights

Key market players include Evonik Industries, W.R. Grace & Co., Huber Engineered Materials, Solvay SA, PPG Industries Incorporated, Tosoh Silica Corporation, Madhu Silica Pvt. Ltd, and PQ Corporation. Capacity extension is the key strategy adopted by the companies to cater to the product demand and to gain greater market share.

Companies are extending their existing manufacturing capacities or setting up new plants to cater to the demand from tire manufactures. For instance, in October 2018, Evonik Industries invested about USD 120 million and started a precipitated silica plant for the tire industry in South Carolina, U.S. Moreover, in October 2016, PPG completed the project of expanding the precipitated silica production capacity at Delfzijl, Netherlands to meet the growing global demand.

Precipitated Silica Market Report Scope

Global Precipitated Silica Market Segmentation

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

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

  • Rubber

  • Agrochemicals

  • Oral care

  • Food

  • Others

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

  • North America

    • The U.S

    • Canada

  • Europe

    • U.K.

    • Germany

    • Spain

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

    • Brazil

  • Middle East & Africa

    • Saudi Arabia

    • United Arab Emirates

    • South Africa