North America And Australia Silica Industry Overview
The North America and Australia silica market size is expected to reach USD 16.52 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 11.0% over the forecast period. The market growth is attributed to the rising product demand in various applications including oil gas, rubber, foundry, glass, agrochemicals, and others. Commercial silica sand obtained through mining mainly finds use in oil gas, glass, and foundry sand. Specialty silica is extracted through wet and thermal processes and includes precipitated, fumed, and colloidal silica along with silica gel and fused gel. These products undergo different processes and find applications in rubber, agrochemicals, oral care, food, desiccants, paints coatings, and other applications.
Based on application, the market is segmented into oil gas, glass, foundry, rubber, agrochemicals, oral care, food, desiccants, paints coatings, and others. The product demand in the oil gas industry is expected to increase on account of the rising hydraulic fracturing activities. In addition, high demand for glass products owing to the growth in construction activities and increasing beverages consumption will further drive the market. Moreover, the market is expected to witness lucrative growth opportunities in the rubber industry. Highly dispersible silica is used in green tire production, which further enhances the performance parameters of the tire in terms of fuel efficiency and safety, without affecting the durability of the tire.
This is driving the consumption of silica in countries in North America moving toward high production of green tires. With the outbreak of COVID-19, the production of silica sand was severely impacted as the demand from end-use industries declined significantly in 2020. For example, W. R. Grace Co.-Conn sales in 2020 decreased by 11.7% as compared to 2019. However, with recovery in the economy and increasing demand from industries, such as oil gas, glass, rubber, and foundry, the production is expected to increase during the forecast period. The growing demand and low production led to a surge in prices in 2021. For example, in November 2021, U.S. Silica Holdings Inc. announced raise in price for its products in the range of 6% to 14% starting from February 2022.
The price increase is part of the company’s plan to curb losses due to a significant and continuous rise in labor, transportation, materials, and manufacturing costs. The market is highly competitive owing to the presence of numerous players and rising product demand from application industries. For instance, in December 2021, Canadian Premium Sand Inc. (CPS) announced to set up its first solar glass manufacturing facility in North America. The company chose the City of Selkirk, Manitoba as the location due to its proximity to a high-grade silica sand quarry.
North America And Australia Silica Market Segmentation
Grand View Research has segmented the North America and Australia silica market on the basis of application and region:
Based on the Application, the market is segmented into Oil Gas, Glass, Foundry Sand, Rubber, Agrochemicals, Oral Care, Food, Desiccants, Paints Coatings, and Others.
- Based on applications, oil gas accounted for the largest revenue share of more than 33.0% in 2020. Natural gas and oil are typically produced through unconventional means using horizontal drilling and hydraulic fracturing to release trapped oil or gas. Silica plays an essential role in the completion of unconventional oil and natural gas wells, specifically in hydraulic fracturing techniques.
- According to the American Foundry Society, metal casting is one of the essential sectors in the U.S. manufacturing industry and was valued at USD 44.3 billion in 2020. Factors, such as accuracy, high precision, shorter cycle time, and surface finish, are expected to contribute to the growing demand for metal casting. For instance, in September 2020, Tesla, Inc. introduced casting machines for developing chassis components. Thus, the growth of the metal castingindustry is expected to benefit the foundry sand demand, eventually propelling the consumption of silica.
Key Companies Market Share Insights
The market is highly competitive owing to the presence of numerous established players. Companies are focusing on RD activities to widen their silica product offerings and their application scope within various end-use industries. The companies are also carrying out various acquisition, expansion, and partnership strategies to stay abreast of the competition. This is expected to benefit the market growth. For instance, in November 2021, Nouryon announced its plans to expand the production capacity for its colloidal silica products at its manufacturing facility in Wisconsin, U.S. Changing consumption habits due to increased marketing activities by major players is further supporting the companies to expand their production capacities. For instance, in October 2019, Wacker Chemie AG built a new plant for producing pyrogenic silica at its site in Tennessee, U.S.Some of the prominent players in the North America and Australia silica market include:
- Elkem ASA
- Evonik Industries AG
- Nouryon
- PPG Industries, Inc.
- PQ Corporation
- Saint-Gobain
- Solvay
- S. Silica
- R. Grace Co.-Conn.
- Wacker Chemie AG
Order a free sample PDF of the North America And Australia Silica Market Intelligence Study, published by Grand View Research.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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