Market Overview and Growth Highlights 2018 – 2027
Colloidal silica is a dispersion of silicon dioxide particles wherein the particle size ranges from 1 to 100 nm. It is used in numerous applications ranging from electronics and semiconductors to paints & coatings and the automotive industry. Colloidal silica is a suspension mixture of spherical and fine amorphous silica particles. It is mainly non-porous and in liquid phase. The mixture is also highly hydrophilic in terms of the chemical properties and has applications across numerous industries.
In 2019, the Asia Pacific colloidal silica market accounted for a market value of USD 333.0 million and is expected to grow at a CAGR of 6.5%, over the forecast period of 2021-2027 on the back of rising demand for colloidal silica in the construction sector and also from other end-use industries. The APAC region is also home to some of the world's fastest growing economies, including China, India, Bangladesh, and Southeast Asian countries. The evolution of electronics, pharmaceutical, construction, automotive, and other industries has further strengthened the overall economic growth of the region in tandem with the business opportunities in different sectors. In 2020, China recorded the largest colloidal silica market size with a value of USD 165.3 million. This was followed by Japan and India with a recorded value of USD 32 million and USD 20.4 million respectively. Overall, the entire Asia Pacific region recorded a market value of USD 302 million in 2020.
Market Segmentation Synopsis
By Product
On the basis of product, the Asia Pacific colloidal silica market can be segmented into alkaline, acidic, modified, and ordinary colloidal silica. Out of these the segment alkaline colloidal silica recorded a market value of USD 145 million and a market share of 43.54% for the year 2019. It is amongst the commonly used grade of colloidal silica on account of its diverse range of applications in metallographic polishing, semiconductor wafers, and fine polishing of silicon wafers. These alkaline grades are typically produced via a chemical reaction with silicon hydroxide or ammonium hydroxide, thereby receiving a negative charge and thus are often also termed as anionic grades.
By Application
On the basis of application, the Asia Pacific colloidal silica market can be segmented into investment casting, industrial catalysts, textiles & fabrics, refractories, beverage industry, electronic industry, paints & coatings, and others. Among these, the market held by investment casting is the largest in the Asia Pacific region, recording a share of 21.6% in the year 2019. Colloidal silica is the preferred binder in casting of moulds for various high-quality metals and alloys. In addition, to improve the investment casting process, colloidal silica offers several advantages including greater mould intricacy and can withstand temperatures of 1500C with little shrinkage. It also offers good resistance to thermal shock. CLICK TO DOWNLOAD SAMPLE REPORT
By End-Use Industry
On the basis of end-use industry, the market is segmented into automotive, textile, electronics, food & beverages, and others. Out of these, the automotive segment is expected to hold a significant share of the market as colloidal silica has various applications in this sector. Colloidal silica is applied as a coating on the surfaces of different automotive parts. Additionally, colloidal silica is inert and does not react with the base material, making it an ideal coating material. Moreover, the colloidal silica acts as a co-binder and aids in increasing the surface temperature, hardness, and resistance properties of the resulting surface. Increasing motor vehicle demand and production across different countries in the region has further strengthened the colloidal silica market's growth. Countries like China, South Korea, and India are presently witnessing significant growth in the automotive sector, which is further anticipated to generate massive demand for the product.
Market Drivers & Challenges
Increasing Adoption of Colloidal Silica in the Construction Sector
The rapidly increasing demand for paints & coatings from the construction sector is anticipated to drive the colloidal silica market's growth in the forthcoming years. Construction companies utilize colloidal silica for increased durability and strength in cementing operations and ground consolidation. Additionally, it is an essential element for the oilfield industry for advanced cementing & drilling operations. East Asia is currently the primary market for colloidal silica, which is attributed to the rapidly developing economy, which has led to the resurgence in the construction sector. The rapidly growing construction industry has raised the demand for coating and paints which is further anticipated to contribute to the growth of the colloidal silica market.
Rising Demand from End-Use Industries
Rapidly increasing demand for colloidal silica from large end-use industries such as automotive, textile, and electronics is another major factor anticipated to influence the colloidal silica market growth positively. Additionally, colloidal silica is extensively used as a rheological additive in various personal care products. Colloidal silica is also used as an additive in the food & beverage sector, which is further projected to create a surge in demand for the product. Increasing adoption of colloidal silica in the automotive sector, coupled with the rising demand for consumer electronics is projected to influence the market growth during the forecast period.
Challenges
Stringent Regulations & Policies
A wide range of raw materials, including alkali metal hydroxide and alkali silicate solution, are used to prepare colloidal silica. Volatility concerning these materials' prices is a major challenge expected to limit the growth of the market in the forthcoming years. Additionally, on account of the standalone nature of the product, colloidal silica is confined to cyclical end-use industries, which is further expected to limit the growth of the market. Besides, the scattered availability of few raw materials coupled with decreasing production of the same in some is also projected to impact the market growth negatively. Lastly, stringent regulations concerning the application of colloidal silica is another major factor expected to impede the market growth.
Top Featured Companies Dominating the Market
Some of the prominent industry leaders in the Asia Pacific colloidal silica market are Nissan Chemical Corporation, FUSO CHEMICAL CO., LTD., Bee Chems, YOUNG IL CHEMICAL CO., LTD., Zhejiang Yuda Chemical Co.,Ltd., Jinan Yinfeng Silicon Products Co., Ltd., Guangdong Well-Silicasol Co., Ltd., DKIC and Sahajanand Industries.
