The global High Purity Silica Market is estimated to be valued at US$ 7.50 Bn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
High purity silica or fumed silica is a white, fluffy powder produced by the hydrolysis of chlorosilanes. It is composed of microscopic droplets of amorphous silicon dioxide. It has a unique structure made of aggregates of fused primary particles that form as the liquid silicon condenses and oxidizes rapidly in the flame. High purity silica products possess exceptional purity, high porosity, opacity and flowability that enables their use in various applications including electronics, coatings, pharmaceuticals and other industries. It is widely used as filler in sealants, adhesives, paints and coatings owing to its ability to reinforce materials and improve their strength, durability, and water resistance.
Market key trends:
The growing consumer electronics industry is the major factor driving growth of the high purity silica market. High purity silica finds extensive application in semiconductor wafers, LEDs and various other electronic components and devices owing to its insulating properties, high purity and ability to absorb moisture. According to Coherent Market Insights analysis, the global consumer electronics market was valued at over US$ 1.5 trillion in 2022 and is projected to grow at a CAGR of over 5% during the forecast period. Additionally, increasing use of high purity silica in lithium-ion batteries as a conductivity enhancer and thickener is also expected to fuel the market growth over the coming years.
Threat of new entrants: Low, as significant initial investments are required to set up manufacturing facilities and R&D centers. In addition, established players enjoy economies of scale and brand Loyalty.
Bargaining power of buyers: Moderate to high, as buyers have a wide range of suppliers to choose from. Buyers can negotiate on price and demand better quality products and services.
Bargaining power of suppliers: Moderate, as few suppliers control the raw materials supply globally. However, accessibility to raw materials also influences suppliers’ bargaining power.
Threat of new substitutes: Low, as no direct replacement exists for high purity silica. However, continuous research is underway to develop cost-effective substitutes.
Competitive rivalry: High, as the market consists of well-established global and regional vendors investing in R&D and expanding production facilities to meet rising demand. Price wars and new product launches further intensifies competition.
The global high purity silica market is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand from microelectronics and solar photovoltaics industries. The demand for high-purity materials in the production of microchips, LEDs, and solar photovoltaic cells is driving the high purity silica market.
Regional analysis: Asia Pacific dominates the global market and is expected to grow at the fastest rate during the forecast period due to increasing demand from electronic sectors in developing nations like China, Taiwan, Japan, and South Korea. China is the largest producer and consumer of high purity silica globally.
Key players operating in the high purity silica market are Wacker Chemie, Evonik Industries, Cabot Corporation, Solvay SA, PPG Industries, Madhu Silica, Fuji Silysia Chemical, Tosoh Silica Corporation, Oriental Silicas Corporation. Key players are focusing on expanding their production capacities and addressing the growing needs of end-use industries. For instance, in 2022, Evonik invested Rs. 1000 Cr to double its precipitated silica production capacity in India to cater to the growing rubber and tire industry.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it