For several years, the Fumed Silica Market had incessantly faced the limitation of using two separate systems for carrying out dispersion and wetting. These were responsible for negatively impacting fumed silica production by extending the amount of time required for cleaning and processing. In a breakthrough experiment conducted by several key players of the fumed silica market, a single step for easy dispensing of the product has emerged by combining the dissolver and bead mill. Eliminating additional installment of the milling system has helped key market players in acquiring financial savings that were initially being spent on unnecessary production setups. This innovation is being increasingly adopted by fumed silica producers and manufacturers all across the world for not only the financial savings it is providing, but the chemical accuracy that has sustained despite the change in procedure. The main company that has benefitted from this innovative development is Evonik Resources Efficiency GmbH which has improved the efficiency of production of fumed silica compounds sold under the names Aersosil, Acematt, Tego, Surfynol, Dynol, and others. In the year 2018, owing to its high application in the automotive and industrial coatings industry, the fumed silica market earned a global revenue of $1.7 million. Furthermore, during the forecast period of 2019-2025, the market will experience growth at a CAGR of 6.4%.
Fumed silica is known for its rheological property and is often used in industries as a universal thickening agent. It has a thixotropic effect on industrial solvents, thus elevating its demand in several end user industries. On the basis of application, the market can be segmented into adhesives and sealants, paints and coatings, food and beverages, composites, pharmaceuticals, personal care, printing and packaging, greases and lubricants, and others. With a consistently rising demand for construction in the APAC region, paints and coatings industry has emerged as the most promising segment for the fumed silica market. During the forecast period of 2019-2025, this segment will experience growth with a CAGR of 6.5%.
APAC Region Taking The Lead in Silicon and Fumed Silica Production
A major part of the composition of the Earth’s crust consists of silicon. After oxygen, this factor has made it the second most abundant element found on this planet. However, only certain countries have been able to capitalize on the abundance of silicon and have engaged in mass production. APAC region has taken the lead in production of silicon, silicon dioxide and derivative compounds such as fumed silica. In the past decade, China has emerged as a global leader in the production of silicon. According to the Observatory of Economic Complexity by Massachusetts Institute of Technology, amongst the top three countries that export silicon in the world, China and Japan take the first and the third spot. As per their sources, China exported silicon dioxide worth $613 million in 2018, which is equivalent to 22% of the total amount exported worldwide. In 2018, Evonik took a major step to extend its fumed silica production facilities. A joint venture was signed between Evonik and Chinese company Wynca to open a completely new production facility in the Zhenjiang, a city in the Jiangsu province of China. Under the market name AEROSIL, both the companies agreed to produce fumed silica which can also be used for non-combustible insulation materials.
Key market players have also left no stone unturned in capitalizing on the manufacturing capabilities of Asian countries pertaining to silicon compounds. In Japan for example, where the annual silicon dioxide exports stood at $271 million, key market players have initialized and implemented several expansion projects. In 2016, in order to meet the rising demand for its AEROSIL fumed silica, Evonik Industries opened a new production plant in Yokkaichi, Japan. This was carried out under the company name Nippon Aerosil Co Ltd which is a joint venture between Mitsubishi Materials and Evonik Industries. Japan majorly exported the fumed silica produced in this plant to countries that needed the product for automotive coating. Coatings made out of it are scratch resistant and can be used on windshields and other automotive parts.
These factors have helped APAC region in becoming the geographical leader of the fumed silica market. In 2018, the region held a 37% share out of the total revenue earned by the market globally.
Fumed Silica Market Impacted By Rising Demand From Cosmetics Industry
The cosmetics industry is counted as one of the largest industries that will continue to earn a humongous amount of revenue in the upcoming years. Many factors contribute to the constant fuelling of cosmetics industry growth, the primary ones being anxiety related to appearance, and an increase in disposable income. Given a chance, most people would like to enhance their appearance as has been proven by multiple surveys. According to a 2018 survey conducted by RiverMend Health in the United States of America, approximately 79% of Americans have reported feeling completely unhappy with their appearance. Additionally, variations across preferences based on appearance also exist which also impacts the cosmetics industry. Certain sections of the population might gravitate more towards a high usage of make-up, while another could be attracted towards basic or less make-up. These factors have influenced the cosmetics industry with a growing number of companies experimenting in customizable makeup with a wide range suited for all skin tones and preferences. In order to achieve this chemically, key companies of the cosmetics industry have solicited the use of fumed silica. Ever since the introduction of diverse marketing campaigns carried out by cosmetic players, and a growing number of women getting added to the working class, the sale of fumed silica has elevated multifold. Fumed silica is used as a thickening agent in nearly all fluid based cosmetics. Evonik Industries, for example, one of the most prominent key market players consistently fuelling the growth of the fumed silica market have developed AEROSIL fumed silica that is being sold for adding in nail polish. The silica helps in adjusting the rheological behavior of the fluid and enhances application on the nails. Evoniks has also manufactured SIPERNAT that improves the homogeneity of lipsticks and prevents them from migrating out of the lips, thus enhancing its thixotropic property.
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Major Players Of The Market
Companies that hold major shares in the fumed silica market have attained this with consistent production and innovation in technological processes for mass producing fumed silica. These companies include Applied Material Solutions, Inc., Cabot Corporation, Chiefeng Shengsen Silicon Technology Development Co. Ltd., China-Henan Huamei Chemical Co. Ltd., China National Bluestar (Group) Co. Ltd., Dalian Fuchang Chemical Co, Ltd. Dongyue Group Co. Ltd, Evonik Industries, Fuji Silysia Chemical Ltd., Gelest, Inc., Guangzhou Henan High-Industry Co, Ltd., Heraeus Quarglas GmbH & Co. Kg, and Kemitura.
In 2017, Cabot Corporation and Evonik Industries, two of the major key players of this market, decided to initiate separate joint ventures in order to expand the production of fumed silica. Cabot Corporation entered in a joint venture with Inner Mongolia Hengyecheng Silicone to commence a new fumed silica plant in Wuhai. Evonik, on the other hand, publicly announced to expand the capacity of its silica production site in Belgium. Both of these facilities will become fully operational by 2019.
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