Markets and Markets (M&M) anticipates that the global fumed silica market size is projected to grow from USD 1.3 billion in 2021 to USD 1.6 billion by 2026, at a CAGR of 5.1% from 2021 to 2026.
The market is projected to grow in accordance with the increase in the demand for fumed silica for numerous applications, particularly for building & construction applications across the globe. Furthermore, the fumed silica market has witnessed a significant increase in demand, owing to its anti-settling, sag resistance, adhesion improvement, free-flow improvement, heat stability, and various other performance functionalities.
Hydrophilic Segment to Lead Market
The hydrophilic segment accounted for the largest market share in the fumed silica market. The hydrophilic nature of fumed silica is the result of the attached hydroxyl groups on the silica atom at the particle surface, owing to which the product is capable of hydrogen bonding, helping it to disperse in water. Hydrophilic fumed silica helps in increasing the adhesion properties. It also absorbs water off the surface of the particle hence is best suited as an anti-caking agent.
The UPR & composites segment is expected to grow at the highest CAGR from 2021 to 2026. It is witnessing high growth owing to increasing resin applications in various industry verticals, technological advancement, and their growing demand in developing regions.
Building & construction, pipes & tanks, and automotive applications use UPR extensively for making fiber reinforced plastics (FRP). They are also widely used in thermosetting resins with better product performance in comparison to epoxy, vinyl ester, acrylics, amides, and alkyd resins. Various properties associated with UPR include relative ease of manufacturing, cost-effectiveness, ease of processing, and their ability to be readily modified for specific use.
Highest Growth in APAC Region
The building & construction end-use industry accounted for the largest share for fumed silica in 2020, in terms of value and volume. Increasing construction activities, coupled with rapid urbanization and industrialization in emerging economies, are leading to the rise in demand for fumed silica in the building & construction industry.
The APAC region is projected to lead the fumed silica market in terms of both value and volume from 2021 to 2026. This region is witnessing the highest growth rate due to the rapid economic expansion. According to the IMF, China and India are among the fastest-growing economies globally. India is expected to overtake China with the highest growth rate, thus driving the global economy. The rising disposable income of people, shifting of manufacturing facilities from developed regions, such as North America and Europe, and rapidly growing industrial sectors are expected to drive the market in APAC.
Source: Markets and Markets