Market Overview and Growth Highlights 2018-2027
The rising awareness of the sustainable materials which have reduced carbon footprint and thereby significantly reduced the impact on the environment has led to the increased adoption and application of precipitated silica, which is an eco-friendly substitute of carbon black. In 2019, the Asia Pacific precipitated silica market accounted for a market value of USD 921.6 million and is expected to grow at a CAGR of 10.3%, over the forecast period of 2021-2027. The rapidly increasing demand for precipitated silica from end-use sectors including automotive and construction in the Asia Pacific region has created potential opportunities for the new entrants in the market. In addition, rapid industrialization and urbanization in tandem with increasing disposable income of the consumers are also expected to propel the market growth. Lastly, the presence of several prominent market players has also significantly contributed towards the expansion of the market in the Asia Pacific region.
Technological innovation concerning the formulation of advanced precipitated silica for high-performance in end-use applications has also strengthened the market growth. Several manufacturers are engaged in continuous product innovations and have promoted research and development activities for the development of advanced specialty chemicals. This factor is also anticipated to contribute towards the expansion of the market in the Asia Pacific region.
Market Segmentation Synopsis
The APAC precipitated silica market is segmented on the basis of application into tires, footwears, silicon rubber, food & feed, coatings, paints & inks, adhesives & sealants, battery separators, synthetic paper and others, out of which, the tire segment is anticipated to grow at a CAGR 10.9% over the forecast period and reach USD 607.8 million by the end of 2027. Precipitated silica is used in tire compounds in combination with carbon black. It is also used as a key filler in tires in order to enhance tear resistance, tensile strength, cut growth and adhesion properties. Presently, all the global manufacturers of tires are focusing on increasing the silica content in tires to enhance their performance. Moreover, precipitated silica is considered highly safe owing to its better wet grip property. This factor is further anticipated to increase the application of precipitated silica in the making of tires, which in turn is anticipated to fuel the market growth during the forecast period. CLICK TO DOWNLOAD SAMPLE REPORT
By End- User
The APAC precipitated silica market is segmented on the basis of end user into automobile, food & beverage industry, personal care, agriculture, electronics and others, out of which, the automobile sector is estimated to account for USD 340.2 Million by the end of 2020. Precipitated silica is mostly used in the making of automotive tires in the automobile industry. It is used to improve the grip of tires while simultaneously reducing their rolling resistance. Additionally, it is also used in tires of heavy vehicles in order to improve their tear resistance. Increasing demand for motor vehicles in countries such as China, India and Japan, is anticipated to positively influence the market growth. The rapidly growing automotive sector in Asia Pacific has further created lucrative opportunities for the new entrants in the precipitated silica market.
Market Drivers & Challenges
Rapidly Increasing Demand for Precipitated Silica from Rubber & Tire Industry
The application of precipitated silica in the production of industrial rubber goods, primarily in the manufacturing of tires is absolutely necessary. Precipitated silica acts as an inorganic filler in tires which results in the lowering of rolling resistance and improving tire handling and traction. Growth in the Asia Pacific automotive sector on the back of increasing production and sales is anticipated to have a positive effect on the tire industry. This, in turn, is anticipated to positively influence the growth of precipitated silica market during the forecast period.
Rising Demand for Precipitated Silica from End-Use Sectors
Demand for precipitated silica in end-use sectors such as coatings & construction, food & beverage, agriculture, and electronics has showcased a significant increase over the past few years. Precipitated silica has been increasingly adopted in the coatings & construction sector to reduce gloss in paints, coatings, varnishes, and lacquers. Besides, it also provides better stir capability and lower viscosity to the paints and coatings. Moreover, continuous developments pertaining to the formulation of advanced modified synthetic amorphous precipitated silica by various manufacturers have also positively influenced the market growth. In recent years, the application of precipitated silica in the manufacturing of rubber shoe soles is becoming increasingly popular. A wide array of grades of precipitated silica is used for footwear applications, which enhances the durability, abrasion resistance, and stiffness of the footwear. Moreover, it also improves the shelf life and provides a better color effect to the colored as well as semi-transparent shoe soles.
Threat of Substitute
One of the key substitutes of precipitated silica is carbon black. Carbon black produced by incomplete combustion of heavy petroleum products including coal tar and ethylene cracking tar is extensively used as a reinforcing agent in tire production and manufacturing of various other rubber products. Availability of carbon black is a major limiting factor expected to restrain the market growth. Moreover, the price volatility of few raw materials used in the manufacturing of precipitated silica is another crucial factor, which is projected to hinder the market growth over the forecast period.
Top Featured Companies Dominating the Market
Some of the affluent leaders in the APAC Precipitated Silicon Market are Tata Chemicals Ltd., Anten Chemical Co. Ltd., Jinsha Precipitated Silica Manufacturing Co., Ltd., Brisil, Shanxi Tond Chemical Co., Ltd., Dalian Fuchang Chemical Co., Ltd., PPG Industries Inc., EVONIK, Solvay and others.