Fumed Silica Is Expected To Witness High Growth Owing To Rising Demand From Adhesives Industry
Fumed Silica Market
Fumed silica, also known as pyrogenic silica, is a type of synthetic amorphous
silicon dioxide produced in an electric arc reactor by hydrolysis of silicon
tetrachloride. It has a fluffy and light consistency similar to snow and has a
specific surface area ranging from 50 to 380 m2/g. Fumed silica is widely used
as a reinforcement and rheology additive in adhesives, sealants, coatings,
inks, and lubricants owing to its high absorptive and reinforcing properties.
The increasing demand from the adhesives industry is expected to be the prime
driver of the global fumed silica market over the forecast period.
The
global Fumed Silica Market is
estimated to be valued at Us$ 3.5
Billion in 2023 and is expected to exhibit a CAGR Of 10.% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent
Market Insights.
Market Opportunity:
The
rising demand from the adhesives industry represents a key opportunity for the
growth of the global fumed silica market over the forecast period. Fumed silica
provides crucial properties to adhesives such as thixotropy, viscosity
stabilizing, abrasion resistance, and UV stability. It is extensively used in
adhesive formulations for applications like automotive, woodworking, packaging,
construction, footwear, and sportswear. The growth of the global adhesives
market driven by high uptake across several end-use industries will directly
contribute to the increased consumption of fumed silica over the forecast
period. Advancements in adhesive technologies and diversification into new
application areas are further expected to augment the demand for fumed silica
from the adhesives industry, thereby acting as a high-impact rendering
opportunity for the players in the global market during 2024-2031.
Porter's Analysis
Threat of new entrants: The threat of new entrants is low as fumed silica
production needs huge investment and the infrastructure required for production
is capital intensive. It also requires stringent governmental norms for
production.
Bargaining power of buyers: The bargaining power of buyers is moderate as the
market is fragmented with presence of many players. However, buyers can
negotiate on price to some extent as fumed silica has applications across many
industries.
Bargaining power of suppliers: The bargaining power of suppliers is low due to
availability of substitute materials. Suppliers depend on a few buyers for
selling their products.
Threat of new substitutes: The threat of new substitutes is moderate as there
are substitute products available in the market like precipitated silica,
silicates, etc. However, fumed silica offers better transparency and
dispersibility.
Competitive rivalry: The competitive rivalry is high due to presence of many
domestic and international players competing on pricing and product quality.
SWOT Analysis
Strength: Fumed silica offers properties like better transparency, gloss,
abrasion resistance and dispersibility. It has wide applications across
industries like paints & coatings, electronics, construction, etc.
Weakness: Manufacturing process of fumed silica is capital intensive.
Transportation of hazardous raw materials increases production cost.
Opportunity: Growing paints & coatings industry especially in Asia Pacific
provides growth opportunities. Increasing use of fumed silica in electronics
and semiconductor industry will boost market growth.
Threats: Substitutes like precipitated silica act as a threat. Stringent
environmental regulations regarding emissions during production can hamper
market growth.
Key Takeaways
The Global Fumed Silica Market Demand is expected to witness high growth during
the forecast period of 2024 to 2031.
Regional
analysis:
Asia
Pacific holds the major share of over 40% of global fumed silica market in
2020. China is the largest producer and consumer of fumed silica. Expanding end
use industries such as coatings, unsaturated polyester resins, and elastomer in
China, India, Indonesia, and Malaysia are fueling the market growth.
Key players operating in the fumed silica market are Cabot Corporation, Wacker
Chemie AG, Evonik Industries, Tokuyama Corporation, Guangzhou GBS High-Industry
Co., Ltd, China-Henan Huamei Chemical Co., Ltd., Orisil, and Kemitura A/S.
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