Global specialty silicas market to reach $6.9 bn

Developing markets, such as China and India, and improved economic climate in developed countries are likely to drive the global specialty silicas market in the next few years. The global demand for specialty silicas, which include precipitated silica, silica gel, silica sol, and fumed silica, is forecast to grow 5% per year through 2018 to 2.9 million metric tonnes, valued at $6.9 billion, according to a new study, World Specialty Silicas, by Freedonia Group Inc, a Cleveland-based market research firm.This will represent an acceleration from the pace of the 2008-2013 period, as continued economic advances in developing countries such as China and India will bolster gains in demand for specialty silicas.
 
Consumption of specialty silicas will also benefit from improved manufacturing levels in a stronger economic climate in the developed countries of North America and Europe.Increased use of silica in tyre treads will further promote growth in specialty silicas demand in these regions.
 
According to Freedonia study, rubber is the largest market for specialty silicas and is also projected to be the fastest growing through 2018.Tyre rubber represents the largest portion of the rubber market and the single largest application for specialty silicas worldwide. Elliot Woo, Analyst, Freedonia, said, “Rising adoption of green and high performance tyre technologies - which use precipitated silica in tyre treads to improve properties such as rolling resistance and traction - has led to increased use of specialty silicas in this market.”
 
Several countries, including Japan, South Korea, and those in the EU, have introduced tyre labelling regulations in recent years, incentivising consumers to purchase higher-end fuel efficient tyres.Similar regulations could be adopted in the near future in countries like Brazil and the US.
 
The Asia/Pacific region held the largest share of the global specialty silicas market in 2013 and is expected to post the fastest growth through 2018.This is primarily due to the performance of the sizable Chinese market, which will account for 58% of the regional total in 2018.In contrast, a below average performance is expected in Japan, reflecting the maturity of silica consuming industries in that country.
 
Central and South America and the Africa/Mideast region will both post solid growth in demand for specialty silicas through 2018, driven by economic advances in developing countries.Eastern Europe will also see fast growth, bolstered by strong gains in export-oriented manufacturing industries.Market maturity will lead to below average growth in North America and Western Europe, although these regions will still see improvements relative to the 2008-2013 period, reflecting a stronger economic environment.