Fumed Silica Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Fumed Silica Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Fumed Silica Market is expected to register a CAGR of over 5% during the forecast period.

The market was negatively impacted by COVID-19 in 2020. Construction activities and automotive manufacturing activities were on a temporary halt due to the pandemic scenario, which had minimized the demand for additives used in the formulation of these end-user industry products such as adhesives, paints, coatings, plastics, and composites, in turn, negatively impacted the market demand for fumed silica. However, the market retained its growth trajectory in 2022 due to all the industries' resumed production processes.

Key Highlights

• Over the short term, the surging demand for fumed silica used in the products of the personal care segment, such as toothpaste, creams, and others, is expected to drive the market's growth.
• The development of biogenic fumed silica and precipitated silica as a substitute for fumed silica is anticipated to hinder the market's growth.
• Emerging applications of fumed silica in various industries are likely to act as an opportunity.
• Asia-Pacific dominated the global market, with the largest consumption from countries such as China and India.

Fumed Silica Market Trends

Increasing Demand from the Adhesive and Sealants Segment

• In the adhesives and sealants, fumed silica is used to increase the product viscosity, improve anti-settling properties during storage, control the extrusion properties during the application, and impart anti-sag properties during cure. The additive can also act as a reinforcing agent to improve the physical properties, especially the tear strength of the cured sealant.
• Further, adhesives and sealants are applied in the construction industry, where they can be used for carpet laying, countertop lamination, drywall lamination, ceramic tile adhesion, air conditioning setup, and others. The revenue of the global construction industry is expected to grow steadily over the next few years and reach USD 4.4 trillion by 2030.
• Moreover, in the construction industry, fumed silica adhesives and sealants are used in structural glazing and weatherproofing while contributing to the energy efficiency of buildings. They also help improve in-shop productivity, reduce material waste, extend building a life, and reduce lifecycle costs.
• According to the Institution of Civil Engineers, China, India, and the United States are expected to account for almost 60% of all global growth in the construction sector by 2025, thus increasing the market growth of fumed silica in the industry.
• The United States was among the top construction markets globally, and per the United States Census Bureau, in 2021, construction in the United States was valued at USD 1.58 trillion, accounting for around 4.3% of the total GDP of the country.
• In Europe, manufacturers of the do-it-yourself (DIY) adhesives market have switched to clear packaging, where the opaque reinforcing aids additives used for rheology control and reinforcement are replaced by fumed silica, which closely matches its refractive index with transparent polymers.
• Treated fumed silica provides significantly more adhesive strength. It has lower specific gravity than calcium carbonate and contributes far less to adhesive weight, which can benefit applications where adhesive weight is a concern, such as automotive manufacturing.
• The automotive industry is one of the major consumers of adhesives and sealants. The applications include sealing heat exchanger tubes, gearbox and sump cover gasketing, bonding interior dashboards, and others. According to OICA, in 2022, global vehicle production reached 85.02 million units, with an increase of 6% from the previous year’s production of 80.20 million units.
• Therefore, the factors above are expected to impact the fumed silica market in the coming years significantly.

Asia-Pacific Region to Dominate the Demand

• Asia-Pacific dominated the market with a more than 45% share, with the largest consumption in countries such as China and India.
• The manufacture of silicone adhesives begins by isolating silica from silicon. Silica can be found in its pure form in some minerals. Silicone adhesives are widely used due to their excellent elastomeric properties, extended temperature range, resistance to the effects of fuels, and low shrinkage and shear stress.
• Asia-Pacific countries, such as China, India, and Vietnam, have been registering strong growth in construction activities, which is expected to drive the consumption of fumed silica in the region over the forecast period.
• China contributes to more than 50% of the total share of Asia-Pacific in the adhesives and sealants market. The country is also the largest producer of paints and coatings in the Asia-Pacific region.
• China is the world’s largest silicon producer, with a production volume of six million metric tons in 2022. Russia was the second largest producer of this metalloid in the world, which produced 640,000 metric tons in the same year. The total global production of silicon in 2022 stood at 8.8 million metric tons.
• Furthermore, the pharmaceutical industry in India is the major consumer of fumed silica, used as a high-purity excipient and multi-functional additive. The country is the largest provider of generic drugs globally, with 40% of generic demand in the United States and 25% of all medicine in the United Kingdom.
• Fumed silica is used in many demanding adhesive applications, from the building, construction, and automotive to packaging. Huge demand in the adhesives and sealants sector is expected to drive the country’s fumed silica market.
• In the construction industry, fumed silica is used in adhesives, sealants, coatings, and plastics. China is experiencing massive growth in its construction sector. According to the National Bureau of Statistics of China, in 2021, the construction output in China will be valued at approximately USD 4.29 trillion.
• Adhesives, sealants, paints, and coatings are also finding their application in the automotive industry. The Chinese automotive manufacturing industry is the largest in the world. However, the industry witnessed a slowdown in recent years, wherein production and sales declined. According to the China Association of Automobile Manufacturers (CAAM), automotive sales in China will grow to 26.86 million units in 2022.
• The factors above are expected to increase the demand for fumed silica in the Asia-Pacific region over the forecast period.

Fumed Silica Industry Overview

The Fumed Silica Market is majorly consolidated in nature, with the top five players accounting for a significant share. The major companies include Evonik Industries AG, Cabot Corporation, Wacker Chemie AG, Tokuyama Corporation, and OCI COMPANY Ltd, among others.

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