Global Fumed Silica Market Prospects, Outlook and Growth Analysis

Posted by Arslan on December 19th, 2018

Evonik Industries AG, a German manufacturer of fumed silica, accounts for nearly one-third market share. Evonik is investing heavily in expanding its fumed silica capacities worldwide to establish a strong presence in the international markets.

Evonik recently announced its plans to expand its fumed silica capacities in Antwerp, Belgium to be in line with its strategy to solidify its position in the European fumed silica market. The company also revealed its plan to expand its hydrophobic fumed silica production in Rheinfelden, Germany by 20% in response to burgeoning demand for specialty silica varieties.

Evonik also announced that it has agreed to form a joint venture with a Chinese chemical company – the Wynca group; the new facility planned in China is projected to manufacture 8,000 metric tons of fumed silica annually.

Other leading manufacturers in the fumed silica market, such as Cabot Corp and Wacker Chemie AG collectively hold over 40% revenue share in the market. Captive consumption of fumed silica is likely to continue complementing the incremental growth of top manufacturers in the fumed silica market.

Ongoing US-China Trade War Makes a Significant Impact on China’s Growth in the Fumed Silica Market

The full-blown trade war between the U.S. and China, the world’s two largest markets for fumed silica, is influencing the prospects of the global market for fumed silica as many industrial applications of fumed silica, including adhesives, bore a significant impact.

China’s retaliation to the U.S. plans to take the trade war to a fever pitch has resulted in Chinese government levying heavy tariffs on U.S.-made products, including adhesives, which is one of the most common applications of fumed silica. Additionally, U.S. tariffs on Chinese aluminum and steel products have facilitated a shift from metal to composite/plastic in motor vehicle manufacturing, which is making a huge, albeit indirect, impact on the demand for adhesives.

As the U.S. holds a substantial share in China’s imports of adhesives, the effect of potential tariff escalation on U.S. adhesives and sealants may impinge on the U.S. fumed silica market growth in the upcoming years.

Growing Applications of Fumed Silica in Silicone Rubber Create Potential for Demand Upsurge

The silicone rubber industry is witnessing extensive growth as it finds versatile applications in various industrial sectors, such as sports, automotive, healthcare, and medical appliances. Manufacturers in the fumed silica market are aiming to capitalize on the increasing growth of the silicone rubber industry, by improving characteristics of silicone rubber, such as chemical inertness, purity, and high durability with the use of fumed silica.

By adopting advanced manufacturing technologies, players in the fumed silica market are exhibiting superior characteristics of fumed silica that can further enhance mechanical properties, tear resistance, and tensile strength of silicone rubber. Fumed silica market players are recognizing the growth potential of the silicone rubber industry and modifying their manufacturing strategies to capture lucrative sales opportunities in the coming future.

Competitive Landscape

The fumed silica market report covers profiles of key participants to cover important aspects of competitive environment in the fumed silica market. Thorough and insightful information about market players, including key financials, and product portfolio, along with information about new technologies adopted and new product launches by market players, is covered in the fumed silica market report.

Market players featured in the report include Cabot Corp, Evonik Industries AG, Wacker Chemie AG, DowDuPont Inc., Tokuyama Corporation, OCI Company Ltd., Orisil, Kemitura A/S, Chiefeng Shengsen Silicon Technology Development Co., Ltd, Gelest Inc., and Henan Xunyu Chemical Co., Ltd.

Key Developments

A mounting number of players in the fumed silica market are eyeing the lucrative opportunities in the Chinese market for fumed silica, which is outpacing the growth of other regional markets.

Cabot Corp formed a joint venture with Inner Mongolia Hengyecheng Silicone Co., Ltd. increase fumed silica production in China. The companies have invested over US$ 60 million in the new fumed silica production capacity to establish a strong position in the rapidly expanding market for fumed silica in China. The Cobot Corp has also invested over US$ 80 million in its new fumed silica capacity in Kentucky, USA, which is adjacent to silicone monomers plant of Dow Corning, an American supplier of silicone products.

Another popular trend in the fumed silica market is that a majority of market players, such as Wacker Chemie AG, Evonik Industries AG, and Cabot Corp., have increased the prices of fumed silica due to a rise in raw materials and transportation prices.

Research Methodology

A holistic approach and unique methodology is followed while conducting a thorough research about the fumed silica market to conclude the growth prospects of the market during 2018-2028. Accurate conclusions about the future growth of the fumed silica market mentioned in the report are drawn by carrying out secondary and primary research on the current growth avenues in the fumed silica market.

Historical and recent data obtained at the end of the comprehensive secondary research about the fumed silica market is combined with the information gained through primary market research, which involves all the leading stakeholders, including manufacturers and distributors, in the fumed silica market.

Fumed Silica Market Report is available for Purchase @ https://www.factmr.com/checkout/2301/S