Global demand to rise 6.3% annually through 2014
World demand for specialty silicas -- which include precipitated silica, fumed silica, silica gel and silica sol -- will rise 6.3 percent per year to 2.7 million metric tons in 2014. This pace of growth represents an acceleration from the 2004- 2009 period, in which silica demand was hampered by a global economic recession. Gains will be driven by a rise in world manufacturing activity, particularly in key silica markets such as tires, rubber, chemicals and agricultural products. Additionally, demand will benefit from the rising levels of silica use in developing economies such as China and India, as the industrial sectors in these countries increase their utilization of silica as an additive or processing aid in manufactured goods. However, gains will be limited to some extent by market maturity in the US and Western Europe, particularly in applications such as toothpaste abrasives, pesticides and refractories.
Precipitated silica to remain dominant product type, and grow the fastest
Precipitated silica, which accounted for 70 percent of world specialty silica demand in 2009, will remain the leading product type through the forecast period. Precipitated silica will also be the fastest-growing silica product, driven by a strong rebound in the rubber market and increasing utilization in tires as a partial replacement for carbon black. Chemical applications, including coatings, inks and catalysts, will also be an area of growth for precipitated silica. Fumed silica gains will be fueled by a rebound in the production of silicone rubber, which accounts for a large portion of the fumed silica market. Silica gel, which is used in a wide variety of markets, including chemicals, food and beverages, and packaging, will benefit from increasing manufacturing activity overall. Silica sol is expected to continue to see favorable opportunities in paper coatings, while also increasing its share of the semiconductor polishing market.
Rebound in rubber industry, "green" tires to boost key rubber additives market
Rubber additives will continue to be the largest market for specialty silicas through 2014, accounting for 45 percent of total demand. A strong turnaround in the world rubber industry, which was hard-hit by the 2008-2009 economic recession, will benefit silica demand. Additionally, the increasing penetration of "green" tires, which use precipitated silica to lower rolling resistance and improve motor vehicle fuel economy, will bolster demand. Chemical markets for silicas will also see strong gains in demand, as more of these products employ silica additives to improve their processability and performance. Demand in food and feed applications will be driven by an increase in processed food and beverage production, especially in the developing world. Industrial processing markets will benefit from the continued rise in demand for silicas in semiconductor polishing slurries, although the slower-growing refractory market will limit gains. Silicas in cosmetics and toiletries will also see more limited gains, as the use of silica in toothpaste is becoming increasingly mature.
Study coverage
This new industry study presents historical demand data (1999, 2004 and 2009) plus forecasts for 2014 and 2019 by product, market, world region and for 14 countries. The study also considers key market environment factors, evaluates company market share and profiles 32 global industry players.
Source: http://www.reportlinker.com