World demand for specialty silicas -- which include precipitated silica, fumed silica, silica gel and silica sol -- will rise 6.3 percent per year to 2.7 million metric tons in 2014. Gains will be driven by a rise in world manufacturing activity, particularly in key silica markets such as tires, rubber, chemicals and agricultural products. These and other trends, including market share and product segmentation, are presented in World Specialty Silicas, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Precipitated silica, which accounted for 70 percent of world specialty silica demand in 2009, will remain the dominant product type through the forecast period. Precipitated silica will also be the fastest-growing silica product, driven by a strong rebound in the rubber market and increasing utilization in tires as a partial replacement for carbon black. Fumed silica gains will be fueled by a rebound in the production of silicone rubber, which accounts for a large portion of demand. Silica sol is expected to continue to see favorable opportunities in paper coatings, while also increasing its share of the semiconductor polishing market.
Rubber is the largest market for specialty silicas, and will account for 45 percent of total demand in 2014. The increasing penetration of “green” tires, which use precipitated silica to lower rolling resistance and improve motor vehicle fuel economy, will bolster demand. Silicas will also see strong gains in demand in the chemicals market, as more of these products employ silica additives to improve their processability and performance. Demand in food and feed applications will be driven by an increase in processed food and beverage production, especially in the developing world.
Specialty silica demand in the Asia/Pacific region will advance at the fastest pace through 2014, rising nearly nine percent per year to account for half of total world demand. Gains will be fueled by continued double-digit demand growth in China, the world’s largest single market for silica. North America and Western Europe will experience silica demand growth well below the world average, although each will see an acceleration from the sluggish gains of the 2004-2009 period. Silica demand in all other regional markets, including Central and South America, Eastern Europe and the Africa/Mideast region, will post gains moderately higher than the world average, but from a small 2009 base.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
