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May 3, 2016
By: Catherine Diamon
World demand for specialty silicas is forecast to rise 5.0 percent per year to 3.5 million metric tons in 2020, valued at $8.8 billion. The tire rubber market will grow the fastest and account for the largest share of gains. Tire manufacturers are increasingly incorporating precipitated silica into their products in order to improve fuel efficiency and performance. Outside of the tire market, use of specialty silicas in most applications is mature, and demand will be driven by broader manufacturing trends. The fastest gains for specialty silicas will occur in industrializing countries in Asia. These and other trends are presented in World Specialty Silicas, a new study from The Freedonia Group, a Cleveland-based industry research firm. The Asia/Pacific region accounts for the largest share of the global specialty silicas market, representing 48 percent of the total in 2015. China alone accounted for over half of regional demand. “The Asia/Pacific region dominates global rubber production, and as a result many countries in the region are major consumers of specialty silicas,” notes analyst Elliott Woo. Increased demand for silica in tires will drive growth in demand in developed nations like Japan and South Korea. Broader manufacturing growth will support strong gains in demand for specialty silicas in developing countries throughout the region. Demand for specialty silicas in North America and Western Europe is projected to advance at below average rates through 2020. Sluggish manufacturing growth and market maturity will constrain advances for specialty silicas in many applications. However, the tire rubber market will provide some gains in these regions. Consumption of specialty silicas in Eastern Europe, Central and South America, and the Africa/Mideast region is modest, with these regions collectively accounting for 16 percent of the global total in 2015. Of these regions, the Africa/Mideast region is expected to post the fastest growth, but it will remain the smallest regional market for specialty silicas.
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