Fumed Silica Market

Fumed Silica Market Outlook (2022-2032)

The global fumed silica market is anticipated to be valued at US$ 1.3 billion in 2022 and expand at a CAGR of 5% to reach a market size of US$ 2.1 billion by the end of 2032.

Sales of fumed silica accounted for nearly 23% share of the global specialty silica market at the end of 2021. The paints & coatings industry’s long-term trade relations with and market players will ensure continuous revenue generation over the years to come.

Report Attributes	Details
Fumed Silica Market Size (2022E)	US$ 1.3 Billion
Specialty Silica (Parent Market)	US$ 5.8 Billion
Top Three Countries’ Market Share	~43.2%
Forecasted Market Value (2032F)	US$ 2.1 Billion
Global Market Growth Rate (2022-2032)	5% CAGR
North America Market Share (2022)	~29.6%
North America Market Value (2022)	US$ 384.2 Million
Europe Market Growth Market Share (2022)	~18.2%
Market Share of Top 5 Companies	~22%
Key Companies Profiled	BASF SE Berry Global Inc. CI Takiron Exxon Mobil Corporation Dow Inc. RPC Group PLC RKW Group Trioplast Industries AB Achilles Corporation Ab Rani Plast Oy.

Comprehensive Analysis of Market’s Growth Influencing Elements

Fumed silica has a wide scope of application in both, matured and budding markets, which supports its sales growth. Ongoing case studies and investments in R&D will lead to new growth opportunities across propelling industries in the world.

The evolving market lures new entrants to establish themselves and grow. This is a threat to existing major players operating in the global market. To remain competitive in the market, companies are adopting ground-breaking strategies to gain traction.

• Evonik is a market leader in terms of suppliers, followed by companies such as Cabot Corporation and Wacker Chemie AG.

Market Projections :

• Short-Term Growth Factors: Augmenting utilization and integration of fumed silica in the construction industry to positively impact market growth from 2022 to 2025.
• Medium-Term Growth Determining Drivers: Asia Pacific and North America anticipated to witness high demand on the back of booming end-use applications, coupled with favorable government initiatives, during 2025-2028.
• Approach to Ensure Long-Term Growth: Innovation and R&D will create new growth opportunities for market players from 2028 to 2032.

According to Fact.MR, a market research and competitive intelligence provider, the global market for fumed silica is projected to exhibit growth at 5% CAGR through 2032.

What Trends are Being Witnessed in the Market for Fumed Silica?

“Silicone Rubber Driving Industry Growth”

Fumed silica is used as an anti-sedimentation agent during silicone production. It improves storage process ability and stability, comes with a wide hardness range, and provides chemical weather resistance and other beneficial electrical properties.

Owing to these features, its demand in the market is increasing in silicone rubber applications. Silicone rubber enjoys high importance in several sectors, including electronics, construction, adhesives, and sealants, among others.

Moreover, due to its conductive properties, silicone rubber is witnessing an increase in demand from the automotive sector where its use indirectly helps improve fuel efficiency and reduce emissions. Growth of automobile, electronics, construction, adhesive, and sealant sectors will positively affect the sales of fumed silica.

“R&D - Rejuvenating Factor for the Market”

For every industry, research and development always lightens the way towards new opportunities. Similarly, product innovation ensures companies have an advantage over competitors, which also raises the area to rejuvenate mature businesses and compete in new markets. Hence, ongoing research and case studies are creating immense growth opportunities in the market.

Additionally, the fumed silica industry is exploring its application area across various verticals. Paint and coating demand across advancing technologies and its hardware maintain a high growth trajectory for the market.

“Government Policies Bottling Up Market Progress”

Governments and associations across the world have laid down strict regulations and mandates associated with the use of fumed silica.

For illustration:

• The Food and Drug Administration (FDA) has prohibited fumed silica utilization for the production of food and related products. Producers can use it as a food additive, though in small quantities that do not surpass 2% of the weight of the food.
• The Occupational Safety and Health Administration (OSHA) executes a criterion for this. This criterion is defined as a permissible exposure limit (PEL), Fumed silica’s utmost quantity that an employee can be exposed to for an 8-hour shift is presently 80 mg/m3 or %SiO2 or 20 mppcf. The standard may vary with the change in its amount or percentage. For its pure form, the standard is 0.8 mg/m3.
• Silica is a perilous substance and is governed by Chapter 4 of the 2017 Occupational Health and Safety Regulations on Hazardous Substances. Under the law, an employer is required to recognize hazards, get rid of or control any risk, give employees knowledge & training, monitor the atmosphere, and keep records. The exposure standards for the three types of crystalline silica-cristobalite, tridymite, and quartz-have been updated by the National Occupational Health and Safety Commission (NOHSC-now SafeWork Australia).

These rules and requirements have forced fumed silica manufacturers to use innovative methods and maintain a secure workplace. This can then result in reduced profit margins and potentially limit market expansion to some extent.

“Introduction of Greener Manufacturing Processes Keeping Market Growth in Check”

Prominent manufacturers across the world prefer conventional methods, i.e., flame pyrolysis of silicon tetrachloride with hydrogen and oxygen. These production processes are capital-intensive and also require relatively more energy for production. However, in developed regions, governments and industries are focusing on sustainable development and increasing the use of eco-friendly products.

For instance :

• SioTex Corporation, a U.S.-based firm, developed a greener alternative for the production of fumed silica, in which rice hulls are used as the raw material. This production process uses less energy as compared to the conventional process, with no involvement of toxic reactants.

This is produced from such a process that has the potential to replace the traditionally produced form, posing a significant challenge for the market, and, in turn, for manufacturers. Since many manufacturers would need to update their manufacturing facilities as per standards and sustainability requirements, additional costs would need to be incurred.

Country-wise Insights

Why is Germany a Top Country in Terms of Fumed Silica Demand?

Fumed silica is primarily employed in industrial and automotive coatings to retain rheological factors, as an anti-settling agent, as a thixotroping agent, and to support the interception of rust and corrosion. Hence, the proliferating electric vehicles market across Europe, especially in Germany, is supplementing the demand for fumed silica.

For instance :

• Electric car sales persisted to grow in 2021 by more than 65% year-on-year to 2.3 million units, after the bang of 2020 in Europe. Germany remains the largest EV seller. Among the new cars sold in Germany, electric cars hold 25% share of overall sales, which is expected to only increase going ahead.

Germany delivers some of the most elevated sponsorships in Europe. Hence, the fumed silica market has a high growth opportunity across Germany. The Germany market is currently estimated at US$ 67.2 million and is expected to expand at a CAGR of 4.4% over the decade.

Why is Fumed Silica Consumption High in China?

China is witnessing high growth in the electronics and construction sectors, which ensures proliferating growth opportunities for the fumed silica market as well.

For instance :

• According to data from the International Trade Administration, China is the world’s largest construction market and is estimated to grow at an annual average rate of 8.6% from 2022 to 2030.

Fumed silica is used in cement, concrete, and other construction material production due to its outstanding properties. Thus, China provides high revenue growth opportunities for the industry.

China accounts for 28.3% of East Asia’s market share. The China market is valued at US$ 367.2 million in 2022.

Category-wise Insights

What Allows Hydrophilic Fumed Silica to Dominate the Landscape?

According to this study, the hydrophilic segment accounts for a major market share. It is manufactured by hydrolyzing volatile chlorosilanes in an oxyhydrogen flame. It is water soluble and easy to soak completely in it. At high temperatures, this silica exhibits superior insulating qualities.

The use of HFS in non-polar resin systems is significant. It is used in non-polar solvents such as xylene, mineral spirits, and styrene to thicken and reinforce silicone as well as act as a glidant for food and industrial powders.

In such formulations where shelf stability is not a priority, the hydrophilic form sees high adoption. Since it comes at a low cost, hydrophilic is used in a wide range of applications. Additionally, even at low temperatures, it has excellent insulating qualities and high chemical purity.

Further, to improve the dispersion properties of adhesives, the hydrophilic form is used for boat construction. It is an effective anti-caking agent due to its property to absorb the surface water of particles.

How is Fumed Silica Used in the Healthcare and Pharmaceutical Sectors?

Healthcare and pharmaceutical industries are considered evergreen and highly evolving industries and offer immense opportunities for fumed silica sales growth. In the pharmaceutical industry, the manufacturing of capsules and tablets is a major challenging factor; however, fumed silica helps enhance properties to make the method much easier.

Fumed silica has a wide application; for instance, for tablet production, it acts as an anticaking agent, and it also serves as an adsorbent. It’s also used as a glidant or disintegrator to enable the powder to flow freely when tablets are processed. The FDA has recognized this as a safe component.

Fumed silica demand is estimated to grow rapidly across Europe due to its application in the medical industry. In Europe, huge investments are being recorded in the pharmaceutical industry and technological advancements are boosting the market. Such measures are driving the sales of fumed silica and providing high-profit margin opportunities for market players.

Competitive Dashboard

Major manufacturers of fumed silica are Evonik Industries AG, Cabot Corp., Dow Chemicals, Wacker Chemie AG, Tokuyama Corporation, OCI Company Ltd., Orisil, and Kemitura A/S.

The growth of end-use industries such as construction, automotive, polymer & plastics, and paints & coatings has created an upsurge in demand for fumed silica, owing to which, prominent manufacturers are focused on the expansion of their production capacity. Furthermore, digital presence also contributes to sales growth and brand recognition.

• In October 2021, Evonik established its new fumed silica plant in China in a joint venture with Wynca. The produced fumed silica is operated under the brand name AEROSIL.
• In June 2021, Evonik Industries AG has signed a purchase agreement to acquire privately-owned technology-driven company Infinitec Activos.
• In May 2021, Cabot Oil & Gas Corp. merged with Cimarex Energy in an all-stock deal that values the combined company at US$ 17 billion.

Fact.MR has provided detailed information about the price points of key manufacturers of fumed silica positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Fumed Silica Industry Research

• By Product Type :

  • Hydrophilic Fumed Silica
  • Hydrophobic Fumed Silica

• By Application :

  • Silicone Rubber
  • Paints & Coatings
  • Unsaturated Polyester Resins
  • Adhesives & Sealants
  • Healthcare & Personal Care
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA