Colloidal Silica Market: Overview
The market size for colloidal silica was USD 726.5 million in 2021, projected to grow at a CAGR of 3.7 percent during the forecast period. Sales in the market are boosted by the increasing adoption of colloidal silica solutions in chemical mechanical planarization (CMP) slurries used in the electronics and semiconductor industries as polishing agents. There is also wide use for these fine particles in various other industries, including textiles, ceramics, foundries, papermaking, coatings, and refractory materials. Liquid colloidal silica is very pore permeable and large in surface area, so these properties make it ideal for a variety of applications. As a result of these features, it is widely used in the industries mentioned above. It is used as a rheological additive to regulate personal care products' flowability.
Increasing R&D activities by market players to create cutting-edge colloidal silica filler products with adjustable chemical and physical properties is expected to boost growth. Globally, there will be a high demand for colloidal silica due to the increasing adoption of electronic products. American households commonly use around 28 electronic products on average, including personal computers, televisions, and mobile phones, according to the Environmental Protection Agency (EPA). The chemical is extensively used in this industry to manufacture tires that roll more smoothly. The market is expected to grow as innovative tires with hydrophobic colloidal silica are continuously developed to improve vehicle handling and mileage. Nokian Tyres introduced green Step concept tires in January 2022. There are 93% renewable or recycled materials in it. According to the company, in 2030, 50% of the raw materials used in this tire will be recycled. This indicates that introducing such green tires in various parts of the world will bode well for the market.
In developing many pharmaceutical tablets, such as paracetamol and animal pharmaceuticals, colloidal silica liquid is used as an active chemical ingredient. This can make it possible to maintain the stability of sensitive active pharmaceutical ingredients (APIs). Tablet makers increasingly use colloidal silica liquid as an absorbent, anti-caking agent, disintegrant, and glidant to ensure the hassle-free flow of powder throughout the manufacturing process. Many companies are expected to launch novel products in the pharmaceutical industry to take advantage of untapped opportunities.
Colloidal Silica Market: COVID-19 Impact
In the first few quarters of this year, various governments implemented lockdowns and travel bans due to the COVID-19 pandemic, which caused business shutdowns. The shutdown of North America, Europe, and Asia Pacific manufacturing plants disrupted global supply chains, manufacturing schedules, and goods sales. Early in the pandemic, supply chains and production schedules were seriously disrupted in the chemicals & materials industry. Furthermore, several companies have announced that deliveries of their products may be delayed in 2020, as well as a slump in sales in the near future. Many European, Asian, and North American countries imposed travel bans on international travel, forcing enterprises to suspend international collaborations and partnerships. As a result, the growth of various markets related to the chemical and materials industries slowed in 2020 and early 2021, including colloidal silica.
Colloidal Silica Market: Drivers
Increasing Investment in Casting Industry to Drive Market Growth
As a result of consistent innovation in this field, investment casting is growing globally. Asian investment casting foundries account for more than 75% of all investment casting foundries. In addition to castings for industrial gas turbines, defense, and aerospace, we also manufacture high-value castings. Investment casting has also grown in popularity due to the growing demand for power generation. Similar growth trends have been observed in the global investment casting market. Despite the severe consequences of the COVID-19 pandemic, the aerospace industry is expected to recover steadily during the forecast period. Investing in casting is a major application for colloidal silica, and its growth is expected to contribute to its market progress.
Growing Use in Construction Industry Driving Market Growth
Concrete and cement are strengthened and durable with colloidal silica, which is widely used in the construction industry. Colloidal silica is used in floor coatings to prevent scratches and increase friction to reduce slippage. In the construction industry, colloidal silica's superior properties like permeability, pore water reduction, and rheological properties enhance its use. Colloidal silica in concrete enhances cement hydration, reduces chemical attack resistance, and accelerates cement dissolution. In the construction industry, increased investment in renewable energy infrastructure and a decreasing cost of renewable energy is expected to drive growth.
Furthermore, the demand for green buildings will increase in cement, concrete, and other products used in the construction sector, including paints and coatings, because of the growing green building movement. As of 2020, the global construction industry was valued at USD 10.70 trillion, which will continue to grow significantly in 2021. According to Oxford Economics, the global construction output is expected to reach USD 15.20 trillion by 2030, representing a growth of 42%.
Colloidal Silica Market: Restraints
High Raw Material Costs to Hamper Market Growth
Among the major concerns of the market players is the high price volatility of the raw materials used to manufacture colloidal silica. Further, due to the COVID-19 pandemic, the textile industry in the region has declined, resulting in a decline in demand for colloidal silica. In addition to labor costs, weather, and demand and supply, fluctuations in raw material prices adversely affect market growth.
Colloidal Silica Market: Segment Overview
Alkaline Colloidal Silica to Dominate the Market due to its End-Use Application
Colloid silica is obtained by polymerizing silica nuclei from silicate solutions in an alkaline environment to create nanometer-sized silica sols. Paints, coatings, building materials, cleaning products, and inks are the major industries that use alkaline colloidal silica. In the paint, coatings, and ink industry, alkaline colloidal silica has abrasion and scratch resistance, adhesion, anti-blocking, and antisoiling properties used in paint, cool roof coatings, silicate paint, and wood coatings. The building & construction industry applies alkaline colloidal silica as adhesives. As well as hard surface cleaning, colloidal silica is used as a wetting and antisoil agent in the cleaning industry.
With Increased Demand for Construction, Building & Construction Category Dominated the Market
In the forecast period, the building & construction segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. The key element influencing the segment's growth is the demand for colloidal silica in floor coatings to prevent scratches and increase friction to reduce slippage. Census Bureau data show that American construction output reached USD 1,591.67 billion in 2021, an increase of 8.3% over USD 1,469.15 billion in 2020. Due to the increasing construction activities, the country's market will experience strong growth soon.
Colloidal Silica Market: Regional Landscape
The Asia Pacific to Dominate the Market due to Increasing End-Use Industries
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. The total construction work in Asia and the Pacific will reach USD 7.4 trillion by 2030, an increase of over 50% between 2020 and 2030. China dominates the construction industry in the Asia-Pacific region. In addition, China's growing construction market and manufacturing activities in the oil and gas sectors will increase the demand for paints and coatings. Colloidal silica is expected to increase in demand due to an increasing trend for high-tech coatings such as cationic electrocoating, which protect metal parts from corrosion. In the coming years, the electronics industry will be driven by the increasing demand for consumer electronics such as personal computers, mobile phones, and televisions. As infrastructure and real estate projects increase in demand, India's construction industry is expected to grow. In the fiscal year 2021, infrastructure activities accounted for over 13% of the country's Foreign Direct Investments (FDIs). The Indian government also allocated USD 32.02 billion to transportation infrastructure in the union budget 2021.
Global Colloidal Silica Market: Competitive Landscape
In March 2019, Previously AkzoNobel Specialty Chemicals, Nouryon (formerly AkzoNobel Specialty Chemicals) expanded its colloidal silica business in Sweden. An expansion at the Bohus site in Sweden has increased the company's capacity to produce surface-modified colloidal silica. Moreover, in February 2019, W. R. Grace & Co. world-class manufacturing and research center in Worms, Germany, started constructing a novel colloidal silica plant.
Few of the players in the colloidal silica market include Akzo Nobel N.V (Nouryon Holding BV), Merck KGaA, ADEKA Corporation, Allied High Tech Products, Inc., Nissan Chemical Corporation, The Dow Chemical Company, Cabot Corporation, Evonik Industries AG, Fuso Chemical Co., Ltd., W. R. Grace & Co.-Conn, NYACOL Nano Technologies Inc., REMET, Ecolab Inc., Chemiewerk Bad Köstritz GmbH, Guangdong Well-Silicasol Co., Ltd., Qingdao Haiyang Chemical Co., Ltd., Jinan Yinfeng Silicon Products Co., Ltd., Sterling Chemicals, and Makall Group.
Regional Classification of the Global Colloidal Silica Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability
Key Elements Included In The Study: Global Colloidal Silica Market
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