Global Precipitated Silica Market: Manufacturers Ride on the Auto Industry Boom, Says TMR
A diverse competitive landscape shows a majority share taken up by its three leaders – Evonik Industries AG, PPG Industries, Inc., and Solvay – for the year 2014. These three leaders in 2014 had collectively grabbed close to 57% of the market. It should, however, be noted that a large portion of the global precipitated silica market is still being held by a scattered number of regional players that cannot/do not want to expand rapidly.
According to a research report released by Transparency Market Research, the global precipitated silica market is currently taking up a greater importance in the automotive industry and manufacturers in the global precipitated silica market are well aware of the demand surge. The global precipitated silica market is expected to expand at a CAGR of 5.8% within a forecast period from 2015 to 2023, in terms of revenue. This revenue is expected to reach US$3.5 bn by the end of 2023. The report pegs the market value to reach US$2.3 bn by the end of 2016. The rubber industry has been the key application segment for the global precipitated silica market. By 2023, the rubber industry is expected to consume 63.3% of the global volume of precipitated silica.
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APAC Dominates Precipitated Silica Production Charts
By the end of 2023, Asia Pacific is expected to take up 52.5% of the global precipitated silica market in terms of volume. This majority share is attributed to the presence of a large number of manufacturers in the region, paired with the booming automotive industry. Asia Pacific is also expected to lead the global precipitated silica market in terms of CAGR from 2015 to 2023. China has a key role to play in the APAC consumption rate of precipitated silica due to its extremely promising automotive industry growth rate.
Automotive Industry Delighted in Reducing Rolling Resistance by One Thirds
“One of the primary drivers of the global precipitated silica market at the moment is its amazing potential to reduce rolling resistance for automobile tires. Instead of conventional fillers, researchers found that using precipitated silica can help decrease rolling resistance by as much as a third of its value when using conventional tire fillers. This spells big news for the automotive industry, especially players looking to cater to a fuel-conservative and environment-conscious consumer pool,” states a TMR analyst.
The automotive industry is in the eye of the storm that is the current fight over fuel prices and the reduction of pollution. Vehicles are the key reason for high urban pollution and consumers are demanding more eco-friendly options. The emergence of electric and hybrid cars is one such example of manufacturers aiming for a smaller carbon footprint. Additionally, developments such as the use of precipitated silica can double up these efforts and further reduce fuel consumption and the pollution created.
Production Energy Costs Could be Too High for Some Precipitated Silica Manufacturers
The consequence of bolstered demand for precipitated silica as a filler in rubber tires is a staggering increase in production volume. Although the demand for precipitated silica is expected to continue increasing over the coming years, the production rate could potentially be stifled by issues such as complications in the procurement of raw materials by manufacturers. Large scale production of precipitated silica requires greater volumes of fuel to achieve suitable temperatures within large environments. This volume is far greater than the proportionate increase in fuel required to precipitated silica produced ratio and is stopping several small and medium sized manufacturers from expanding their production rates.
Browse The Full Precipitated Silica Market Report At : http://www.transparencymarketresearch.com/precipitated-silica-market.html
“These players could start looking to alternative methods for manufacture of precipitated silica, or methods to reduce fuel consumption, as they could prove to be cheaper. One example being researched is the use of rice husk ash to produce precipitated silica at temperatures lower than the conventional 120 degrees Celsius. The reduced temperature requirement can be just the thing a lot of manufacturers need to expand production capacities,” adds the analyst.
The information presented in this review is based on a Transparency Market Research report, titled, “Precipitated Silica Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 – 2023.”
Key segments of the Global Precipitated Silica Market
Precipitated SilicaMarket – Application Analysis
Others (coatings, etc.)
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