Demand for Specialty Silica to reach $1.7 Billion in 2013

US specialty silica demand is projected to increase 3.7 percent per year to $1.7 billion in 2013, led by healthy advances in the large precipitated silica segment.  Overall volume gains are forecast to accelerate from the pace of the 2003-2008 period, benefiting from an expected rebound in nondurable goods output through 2013.  Advances in market value will be limited by a significant moderation in specialty silica pricing.  These and other trends, including market share and product segmentation, are presented in Specialty Silicas, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Precipitated silica accounts for the largest share of specialty silica demand in both volume and value terms.  This silica type will also constitute the fastest-growing segment of the market, aided by above-average gains in its primary market -- tire rubber.  Increasing use of precipitated silica as a replacement for carbon black in tire reinforcement applications in the US will offer significant opportunities for growth. 

Fumed silica represents the second largest product type in value terms, owing to its higher price relative to other silica types.  Demand for fumed silica is expected to be healthy, benefiting from gains in small volume markets such as plastics, adhesives and sealants, cosmetics and toiletries, and food and beverages.  However, growth in the large electronics market -- where fumed silica finds use in chemical mechanical planarization slurries -- will slow significantly from the pace of the previous decade, restrained by changes in electronics technology, competition from nonsilica materials and greater electronics production in Asia.

The rubber industry is projected to remain the largest specialty silica market through 2013.  All types of silica are used in rubber applications, but demand is dominated by precipitated silica, with fumed and fused types also accounting for appreciable shares of demand.  Above-average advances will reflect greater use of precipitated silica in the production of “green” tires, which offer increased fuel efficiency and enhanced performance relative to conventional carbon black tires.  The cosmetics and toiletries market, which represents the second largest market in value terms, will also advance at an above-average pace through 2013. 

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.