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Colloidal Silica Market Size Worth US$ 1,121.22Mn, Globally, by 2028 at 5.8% CAGR - Exclusive Report by The Insight Partners

The Colloidal Silica Market size was valued at US$ 757.80Mn in 2021 to US$ 1,121.22Mn by 2028; it is estimated to grow at a CAGR of 5.8% from 2021 to 2028.

/EIN News/ -- New York, May 20, 2022 (GLOBE NEWSWIRE) -- The Insight Partners published the latest research study on Colloidal Silica Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Product Type (Alkaline, Acidic, Modified, and Ordinary), Application (Pulp and Paper, Building and Construction, Paints and Coatings, Electronics and Semiconductors, Pharmaceuticals, Investment Casting, and Others), and Geography. Colloidal silica is a dispersion of amorphous silicon dioxide particles in water. It is widely used across pulp and paper, pharmaceuticals, and electronics industries, among others.

The bonds formed by colloidal silica during the chemical processing are thermally stable and chemically inert. The substance is a highly used catalyst in many industries for product formation. Colloidal silica is used as a binder in the investment casting industry. Its other applications, such as flocculation and surface modification, are also driving the consumption of colloidal silica.

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Report Coverage Details
Market Size Value in US$ 757.80 Million in 2021
Market Size Value by US$ 1,121.22 Million by 2028
Growth rate CAGR of 5.8% from 2021-2028
Forecast Period 2021-2028
Base Year 2021
No. of Pages 220
No. Tables 111
No. of Charts & Figures 78
Historical data available Yes
Segments covered Product Type, and Application
Regional scope North America; Europe; Asia Pacific; Latin America; MEA
Country scope US, UK, Canada, Germany, France, Italy, Australia, Russia, China, Japan, South Korea, Saudi Arabia, Brazil, Argentina
Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Colloidal Silica Market: Competitive Landscape and Key Developments

Nouryon; Nissan Chemical Corporation; inan Yinfeng Silicon Products Co., Ltd.; FUSO CHEMICAL CO., LTD.; Zhejiang Yuda Chemical Co.,Ltd.; CABOT CORPORATION; Evonik Industries AG; MERCK KGaA; The Dow Chemical Company; and Ecolab are among the prominent players operating in the global colloidal silica market.

Colloidal silica is mainly used in matte papers for ink-jet printing. The properties of colloidal silica, such as high internal porosity, hydrophilicity, and surface area, allow easy ink diffusion over the layer of coating. Moreover, colloidal silica helps improve the opacity and brightness of paper. The component is mainly used only in coating function and not in the papermaking process as it results in a surge in the cost of production. However, colloidal silica may be used as a filler in paper manufacturing as the component aids with enhanced mechanical properties, such as internal and tensile bonding, without affecting its brightness or roughness.

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The colloidal silica market in North America is driven by the growing use of hydrophobic colloidal silica in the automotive industry across the region. As per the data of the International Organization of Motor Vehicle Manufacturers (OICA), in 2021, North America manufactured ~18.61 million new vehicles, recording the growth of 4% compared to the previous year. Colloidal silica is extensively used in the manufacturing of tires with lower resistance to rolling, thereby enhancing vehicle handling and mileage.

In 2020, Asia Pacific accounted for the largest share of the market. Colloidal silica (silica sol) is used in industries such as textile, papermaking, coatings, refractory, ceramics, and foundries. The consumption of colloidal silica is growing rapidly in pulp and paper mills, and paints and coatings applications, among others. Asia Pacific has a well-established paints and coatings industry. As per American Coatings Association, the paints and coatings industry in Asia Pacific is poised to grow at a CAGR of 4.4%, in terms of volume, and 5.3%, in terms of value, during 2018–2023. As Asia Pacific consists of developing economies with GDP growing at an aggressive rate, the paints & coatings industry in the region is expected to witness massive growth during the forecast period, which would benefit the colloidal silica market growth in the region.

Colloidal silica is a highly versatile material used to enhance the properties of many products from various industries such as building & construction, food & beverages, and pulp & paper. Colloidal silica is used for enhancing oxygen barrier properties, improving ink absorption, and forming strong hydrogen and ionic bonds with fibrous and granular material in binder applications. These bonds are chemically inert and thermally stable, making them especially useful for insulation boards, catalysts, specialty coatings, vacuum-formed refractories, and investment casting slurries.

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Colloidal Silica Market: Segmental Overview

Based on product type, the colloidal silica market is segmented into alkaline, acidic, modified, and ordinary. In 2020, the alkaline segment accounted for the largest market share. Based on application, the colloidal silica market is segmented into pulp and paper, building and construction, paints and coatings, electronics and semiconductors, pharmaceuticals, investment casting, and others. In 2020, the others segment accounted for the largest market share.

Growth of Investment Casting Industry Boost Colloidal Silica Market Growth

The investment casting business in the world is growing with the development of novel investment casting applications due to consistent innovation in the field. More than 75% of investment casting foundries are located in Asia. These include high-value castings made for industrial gas turbines, defense, and aerospace. The growing demand for power generation also contributes to the proliferation of the market for investment casting. Similar growth trends have been observed in the global investment casting market. Although the aerospace industry suffered severe consequences of the COVID-19 pandemic, it is expected to recover steadily during the forecast period. As investment casting is one of the major applications of colloidal silica, the growth of this market is expected to contribute to the progress of the colloidal silica market.

Colloidal silica adheres well to many surfaces via hydrogen and ionic bonding. The silica particles in colloidal silica increase friction coefficient when applied to the surface, making it suitable for use in industrial and architectural coatings, polishing slurries, flooring, and paper and cardboard. Colloidal silica is utilized for flocculants application due to its availability in various grades with cationic and anionic sol charges.

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The pulp and paper segment is the fastest growing segment in the global colloidal silica market during the forecasted period. Colloidal silica is used in matte papers for ink-jet printing. Furthermore, colloidal silica helps improve the opacity and brightness of paper.

Asia Pacific is estimated to register the fastest CAGR in the global colloidal silica market over the forecast period. The growth of the colloidal silica market in Asia-Pacific is driven by rising demand for colloidal silica from various end-use industries such as pulp & paper, building & construction, food & beverages, and pharmaceuticals.

In 2020, Asia-Pacific accounted for the largest share in the global colloidal silica market. Steady growth in the population coupled with the growth in industrialization in the countries increases colloidal silica usage in manufacturing industries. China is highly developing country with large scale manufacturing and industrialization which, in turn creates lucrative opportunities for the colloidal silica market in the region. Further, growing dominance as well as higher production rate of automotive, and the easy availability of raw materials boost the growth of the colloidal silica market in Asia-Pacific.

Impact of COVID-19 Pandemic on Colloidal Silica Market

The COVID-19 pandemic affected economies and industries in various countries due to lockdown and travel bans enacted by various governments in early 2020, which led to business shutdowns in the first few quarters of this year. The shutdown of manufacturing plants in leading countries in North America, Europe, and Asia Pacific disturbed the global supply chains, manufacturing and delivery schedules, and goods sales. The chemicals & materials industry suffered serious disruptions in supply chains and production schedules in the initial phases of the pandemic. Further, various companies announced possible delays in product deliveries and a slump in future sales of their products in 2020. Bans imposed by various countries in Europe, Asia, and North America on international travel compelled enterprises to temporarily suspend their collaboration and partnership plans. All these factors hampered the chemical and materials industry growth in 2020 and early 2021, thereby restraining the growth of various markets related to this industry, including the colloidal silica business.

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In 2021, Asia Pacific held the largest share of the global colloidal silica market. China is leading consumer of colloidal silica across the world. In China, the colloidal silica production industry is among the fastest-growing ones. The growing industrialization in this region, coupled with rise in government initiatives for foreign investments, has fueled the consumption of colloidal silica extensively.

The alkaline segment held the largest market share. Alkaline colloidal silica is known for its efficiency and high binding strength as compared to other product type. It is mostly preferred product type due to its wide variety of application in industries such as paints & coatings, building & construction, and etc.

The others segment held the largest share of the market in 2021. The others segment includes personal care, food and beverage, etc. The colloidal silica is used as the rheological additive in the personal care industry, improving flocculation in food and beverage processing, and to increase the stability and shelf life of beverages.

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