Silica Market

Market Overview

The global silica market size was valued at 468.40 million tons in 2022. It is projected to reach 818.64 million tons by 2031, expanding at a compound annual growth rate (CAGR) of 6.40% during the forecast period (2023–2021).

Silica, commonly known as silicon dioxide, combines silicon and oxygen found in the earth's crust. Today, silica can be utilized in a variety of contexts. Silica sand is used to make Portland cement, mortar, and concrete; sandstone is used to build structures and roadways. The silica market is projected to rise due to the demand for precipitated silica from various end users and the quickly developing construction industry. On the other hand, it is anticipated that alternative product rivalry will impede market expansion. The market under study is expected to see new opportunities as green tires continue to expand in popularity and electric and self-driving vehicles are used more widely. Covia Holdings Corporation, US Silica, and Sibelco are a few of the market's top competitors.

Highlights

• The amorphous segment is the major contributor to the market by type.
• The building and construction segment is the major contributor to the market by end-user industry.
• Asia-Pacific is the most significant revenue contributor by region.

Market Dynamics

Global Silica Market Drivers

Expanding Construction Activities

Many different types of building and construction materials are made from silica sand. For excellent durability and structural integrity, whole-grain silica is used in flooring, mortars, specialty cement, roofing shingles, asphalt mixtures, skid-resistant surfaces, and other industrial products. The demand for silica sand has increased along with rising construction activity worldwide. Egypt is getting ready to develop a new capital city that would give Cairo a breath of fresh air, which is choked by its expanding population and strain on current infrastructure.

According to the Department of Trade, Industry, and Competition of the Republic of South Africa, South African households have invested more heavily in furniture and built-in home units. This trend was particularly apparent during COVID lockdowns, when people spent more time at home. In the seven months before February 2021, year-over-year retail sales of home furnishings and appliances climbed by an average of 9.9% per month.

Global Silica Market Restraint

Competition from Many Replacements

Several industries use silica sand as a critical raw material, including frac sand, glass production, foundry and metal casting, construction, ceramics, and refractories. Frac sand accounts for the lion's share of this use. Different items might be used in place of silica sand for other services. Ceramic proppants compete with frac sand in oil and gas applications and are the primary replacement. For instance, the demand for ceramic proppants is rising due to their superior qualities over frac sand and other proppants, such as resistance to higher pressure. Although ceramic proppants are more expensive, several producers are switching to them for hydraulic fracturing applications.

In the coming years, the demand for ceramic proppants is anticipated to increase as R&D activity on ceramic proppants grows. One of the main variables affecting the production of wells is scale buildup, which prevents the free flow of shale from the channels. Much research is being done on ceramic proppants to minimize or reduce scale buildup during production, which can function at high pressures and temperatures along with other properties.

Global Silica Market Opportunities

Rising Demand for Precipitated Silica for Various End-Uses

Amorphous silicon dioxide created synthetically in the form of precipitated silica is derived from quartz sand. It is extensively used in the food industry for both human and animal use because it is non-toxic and has no impact on the aroma, flavor, or color of the product to which it is added. The World Health Organization (WHO) and the European Food Safety Authority (EFSA) acknowledge it as a safe additive. All powdered and granular ingredients prone to absorbing water and clumping in human food products are used as an addition. Due to its excellent compatibility with salts, spices, coffee, and a range of other foods, it is used as an anti-caking agent.

Consumption of processed foods has increased significantly over time due to evolving consumer habits, urbanization, and demographic changes. The Ministry of Commerce and Industry reports that in the first eight months of 2021, India's exports of processed food and agricultural products climbed by more than 13%. Precipitated silica ensures that micro-granulated products do not lump together or cause blockages or accumulate dust or powder in the dispensers, allowing them to mingle with other ingredients like vitamins, medications, and other dry nutrients in any ratio. To give the automated animal feeding process more control and minimize product losses, it aids in managing the flow of feed given to the animals in this fashion.

Regional Analysis

The global silica market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to exhibit a CAGR of 8.40% during the forecast period. The public and private sectors' increased focus on affordable housing will expand the residential construction industry. China is actively encouraging and enacting a continuous urbanization process, with a goal urbanization rate of 70% by 2030. The need for more living space in urban areas as a result of urbanization and middle-class urban dwellers' desire to improve their living conditions may have a significant impact on the housing market, leading to an increase in residential construction throughout the nation, which is likely to have a positive effect on the market throughout the country.

North America is anticipated to exhibit a CAGR of 6.05% over the projection period. The US electronics market is the biggest in the world regarding volume, making it one of the critical prospective growth areas for the industry under investigation. Due to the use of cutting-edge technology, increased R&D facilities, and growing consumer demand, it is also anticipated to continue to be the largest market throughout the expected period. The National Glass Association predicts that the need for glass in industrial and packaging will eventually increase the demand for raw materials. The United States glass industry is projected to be supported by the strong demand from industrial applications.

The United Kingdom is the largest European market for high-end consumer electronics items, with over 18,000 UK-based electronics companies. The Department for International Trade estimates that the UK's electronics industry contributes GBP 16 billion annually to the national economy. The nation presently controls 40% of Europe's market for available electronics design. Electronic components, RFID, optoelectronics, and integrated circuits (ICs) are the current areas of industry expertise.

Some of South America's most significant electronics manufacturing facilities are in Brazil. The nation's customers are more cautious when purchasing expensive goods, and this tendency is anticipated to last for the foreseeable future. Despite the difficult circumstances, Samsung and LG are solidifying their positions as the top electronics manufacturers, showing high market potential. The second-largest industry in Argentina is electronics. The electronics industry is constantly evolving and modernizing to keep up with the rising needs of local and worldwide markets. Argentina is one of the few countries producing large quantities of household goods like refrigerators and coolers.

Segmental Analysis

The global silica market is segmented by type and end-user industry.

The global market is bifurcated based on type into amorphous and crystalline.

The amorphous segment is the major contributor to the market and is estimated to exhibit a CAGR of 6.60% during the forecast period. In the industrial sector, amorphous silica is made in many forms, including silica gels, precipitated silica, fumed silica, and colloidal silica. The process of vapor-phase hydrolysis is used to create fumed silica, also called pyrogenic silica. Fumed silica can be created by the high-temperature hydrolysis of silicon tetrachloride (sicl4) in an O2(N2)/H2 (oxygen, nitrogen, or hydrogen) flame. Fumed silica acts as reinforcement to increase the toughness of certain materials, enabling their usage in a wider variety of applications. Pyrogenic (fumed) silica is used as a thickening and thixotropic agent in various organic systems, including unsaturated polyesters, coatings, paint, printing inks, glue, sealant, etc.

Hard and crystalline quartz is a silica-based substance. With each oxygen being shared between two tetrahedra, the atoms create a continuous framework of silicon-oxygen tetrahedra with the formula SiO4. Quartz is the common mineral in the earth's continental crust after feldspar. In its finest form, quartz is clear or white, but imperfections in the atomic lattice can occasionally cause the color to change to purple, pink, brown, black, grey, green, orange, yellow, blue, or red. It comes in various forms and dimensions, each with unique uses. Tridymite is a high-temperature polymorph of silica that appears as tiny tabular, white, or colorless pseudo-hexagonal crystals or scales in felsic volcanic rocks. Rocks contain a mineral called tridymite, which is not employed in the industry.

Based on the end-user industry, the global market is bifurcated into building and construction, shale oil and gas, glass manufacturing, water treatment, and other end-user industries.

The building and construction segment is the major contributor to the market and is estimated to exhibit a CAGR of 6.90% during the forecast period. One of the main ingredients in many building and construction goods is silica. Whole-grain silica is used in flooring, mortars, specialized cement, roofing shingles, asphalt mixes, skid-resistant surfaces, and other industrial materials for increased tensile strength and structural integrity. Additionally, most silica sand, which has a high percentage of silica (greater than 95% SiO2), is utilized as construction aggregates in the building sector. The primary sources of silica sand production are poorly cemented sandstones and loosely consolidated sand deposits. 

Another significant end-user of silica is the oil and gas sector. There has been an increase in silica demand on a global scale due to increased oil and gas production and development. In oil and gas, particularly silica sand grade or fracturing sand. It is employed in the process of recovering oil and gas. Fracturing sand is poured into suitable deep holes to prop open rock fractures and increase natural gas or oil flow rate. Round, entire grain deposits are used in this specialty application to increase permeability and stop formation cuts from entering the excellent bore. The silica's hardness and overall structural integrity provide the requisite crush resistance to the high pressures present in wells up to 2,450 m deep. 

Silica is a crucial component used as a refractory in manufacturing glass. In essence, only two forms of silica are frequently employed in glass refractories. The first is crystallized silica, made entirely of quartz crystals. Bricks are created by crushing, sorting, and pressing this material. The quartz will change into tridymite and cristobalite at high temperatures. Tridymite has the lowest thermal expansion of any crystalline form of silica up to 600 °C, making it the most suitable for use in bricks. These bricks offer strong creep resistance and good mechanical strength at the operating temperature. Hence, they are utilized in the melter crown of the glass furnace. As a result, there is no chance of glass contamination.

Significant amounts of silica are also utilized as water filters. Given that it holds back precipitates containing contaminants, it is a very effective filter medium. Pool filters and sewage treatment systems both employ silica sand. For the successful operation of filter beds to remove pollutants from potable water and wastewater, uniform particle morphologies and grain size distributions are essential. Since it is chemically inert, silica will not decompose or react when it comes into touch with acids, pollutants, volatile organic compounds, or solvents. By extending the permeability zone surrounding the excellent screen and inhibiting the intrusion of tiny particles from the formation, silica gravel is used as a packing material in deep-water wells to maximize yield from the aquifer. 

Production of paints and coatings also makes use of silica. Silica serves as an excellent, reasonably priced extender in paints and coatings. Silica is desired for its chemical inertness, which enables good acid, chemical, and heat resistance, as in other applications. The hardness of silica enhances abrasion resistance in paints in addition to its chemical inertness. Industrial sand with a grain size of a few microns is used in paint formulation to improve the durability and aesthetic appeal of architectural and industrial paints and coatings. Critical performance qualities like brightness and reflectivity, color uniformity, and oil absorption are all contributed by high-purity silica. Silica fillers enhance hue retention, toughness, and resistance to grime, mildew, cracking, and weathering in architectural paints.

Recent Developments

• January 2023- Solvay launched bio-circular silica in Europe, with expansion plans in North America.