With low price sensitivity characterizing the temperament of the global precipitated silica market, the leading players are competing on the basis of product differentiation, states a new research report by Transparency Market Research (TMR). However, with the revision of emission norms, the rivalry between these players is likely to remain moderate in the near future.
In 2014, the top four participants, namely, Evonik Industries AG, PPG Industries Inc., Solvay, and Oriental Silicas Corp., held approximately 57% of the overall market. Over the coming years, the leading vendors of precipitated silica are likely to engage into strategic partnerships in a bid to improve their product portfolios and expand their reach across various regions, reports the research study.
As per TMR’s estimations, the global market for precipitated silica was worth US$2.22 bn in 2015. Expanding at a healthy CAGR of 5.50% over the period from 2015 to 2023 the opportunity in this market is expected to increase to US$3.48 bn by the end of the forecast period.
Rubber, agrochemicals, and personal care products have surfaced as the key application areas for precipitated silica across the world. Among these, the rubber segment has been the main contributor to this market and this scenario is anticipated to remain so in the years to come, states the market report.
Asia Pacific to Maintain Dominance over Global Precipitated Silica Market
In terms of the regional spread of the worldwide market for precipitated silica, Asia Pacific has emerged as the leading region and it is expected to retain its position through 2023, thanks to the significant rise in the automotive, and especially the tire industries. By the end of the forecast period, Asia Pacific is projected account for 52.5% of the overall revenue generated in the global market. With a considerably high production of tires, China has become the key manufacturer as well as consumer of precipitated silica in this region.
Among other regional markets, North America is predicted to acquire the second position in terms of the consumption of precipitated silica in the near future, owing to the continual expansion in the personal care and the automotive industries in this region. With the augmenting demand for precipitated silica from the rubber and the personal care industries, Europe will be following North America closely in the near future, notes the research study.
Increasing Demand for Energy Efficient Products in Automotive Industry Boosts Market’s Growth
“The main factor behind the growth of the global market for precipitated silica is the augmenting demand for energy efficient products in the automotive industry,” says a TMR analyst. The deteriorating air quality has compelled automobile manufacturers to focus on alternatives, which can help in reducing emission level in vehicles. Since, tires filled with precipitated silica allow swift vehicle movement, reducing fuel consumption, its demand is increasing remarkably. Apart from this, the growth in the toothpaste industry is also propelling this market considerably across the world, states the research report.