Increasing Demand from the Glass Manufacturing Industry and Rise in Construction Activities as a Result of Consistent Economic Growth is Influencing Silica Sand Demand. Silica Sand Market size is forecast to reach US$24.5 billion by 2026, after growing at a CAGR of 5% during 2021-2026.
The Silica Sand market is growing at a significant rate during the forecast period, owning to increasing demand form the glass manufacturing industry and continuous infrastructure growth. Silica sand is the chief ingredient of all types of regular and specialty lenses. It is the primary determinant of color, clarity, and strength because it provides the required SiO2 (silicon dioxide) component for glass formulation. Flat glass for buildings and automobiles, as well as container glass for foods and drinks and tableware, are all made with industrial sand. Ground silica is needed for the production of fiber glass insulation and reinforcing glass fibers in its pulverized form. Test tubes and other scientific instruments, incandescent and fluorescent lamps, and television and computer CRT displays are all examples of specialty glass applications. The rising demand for flat glass and fiberglass from the rapidly growing electronics and construction sectors in Asia's emerging economies, especially India and China, is expected to boost the market for silica sand in this application segment. According to the National Bureau of Statistics of China, China's annual plate glass output volume in 2019 was about 926.7 million weight cases. Domestic consumption in the country reached 895 million weight cases in the same year, and is expected to rise during the forecast period. Furthermore, the use of specialty glass in the reputable electronics sector in developing countries such as South Korea and Japan is expected to aid the growth of the glass manufacturing industry, potentially increasing silica sand production.
According to National Institute Sand Association (NISA), the production of glass requires a variety of different commodities, silica represents over 70% of its final weight. Silica sand provides the essential silicon dioxide required for glass formulation, hence it is the primary component in all types of standard and specialty glass. According to the United States Department of Agriculture (USDA), the Australia’s food, beverage, and grocery sectors account for US$126 billion in 2019 a rise of 3% over the previous year. Hence the usage of silica sand in the glass manufacturing employed in F&B packaging is contributing to the growth rate. Furthermore, Nippon Electric Glass (Malaysia) announced its plan to expand production capacity of glass tubing for pharmaceutical use at its Shah Alam, Selangor facility. This expansion involves investment of $48.49M. In February 2020, Piramal glass announced to invest $42M investments towards expansion in India to expand its manufacturing lines. In September 2020, Fuayo glass announced an investment of $45M in the expansion of its manufacturing facility in US. These expansions are expected to create opportunities for silica sand market.
Asia Pacific is anticipated to emerge as a major player in the global market over the forecast period driven by continuous infrastructure growth in developing countries such as China, India and so on. The construction work of four-lane Bridge including approaches over River Brahmaputra between Dhubri on North Bank in Assam and Phulbari on South Bank in Meghalaya is being taken up by India with a loan assistance from Japan International Cooperation Agency (JICA). The construction period is 7 years and 9 months and the projected date of completion is in the year 2026-27. Bangladesh through India-Japan Development Cooperation is planning to enhance the connectivity by way of four-laning of road, reconstruction of bridges on the Ramgarh to Baraiyarhat stretch, and by constructing the Jamuna Railway Bridge over the Januma River. In addition, China started an initiative One Belt, One Road for forging infrastructure and facilities networks by building efficient transport routes connecting major seaports along the belt and road. Furthermore, in 2019, the Chinese government allocated 1.9 billion dollars to 13 public housing projects and $142 billion to 26 infrastructure projects. India also expects to invest US$ 1.4 trillion on infrastructure over the next five years, according to the India Brand Equity Foundation (IBEF). In addition, in India, construction project like "100 smart cities" is influencing silica sand demand.
However, COVID-19 has negatively impacted the Silica Sand market in 2020 with the halt in the production across various countries. The global lockdowns to curb the virus have led to the decrease in manufacturing sectors including automotive, consumer electronics, chemicals and so on, which significantly resulted in the decline of market. Adding to this, the development of new COVID strains in countries such as US, UK, Nigeria and so on during end of 2020 to the beginning of 2021 is further resulting in the lockdown and impacting the manufacturing sector thereby constraining the market growth rate.
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Silica Sand Market Growth Drivers:
India is Expected to Lead the Asia-Pacific Market in Terms of Growth:
India is expected to lead Asia-Pacific market growth. Sand, along with marble, clay, and other minor minerals, is listed as a minor mineral by the Indian Ministry of Mines. In India, minor minerals account for about 12% of the overall mining industry. Silica sand is used in India for a variety of purposes, including glass forming in foundries, chemical processing, construction, and paints. In terms of sales and business growth opportunities, India is a major player in the global construction market. In terms of purchasing power parity, India is the world's tenth-largest economy and the third-largest. As a result, demand for commercial buildings, shopping malls, stadiums, high-rise buildings, and hotels has increased in India, boosting demand for silica sand. The country's construction industry grew at a rate of about 7.1 percent in 2019 and was expected to continue growing at a high rate throughout the forecast period (before COVID-19). Furthermore, as the country's service sector, especially financial and IT services, has grown at an exponential rate, so has the construction of commercial offices. In the residential sector, the government is promoting large-scale projects in the coming years. By 2022, the government's "Housing for All" plan aims to build over 20 million affordable homes for the urban poor. Residential building will benefit significantly as a result, accounting for a third of the industry's overall value by 2023. According to the Indian Minerals Yearbook, silica sand production in 2019 is expected to be around 8621.6 million metric tons. Because of the increasing construction and foundry industries in India, the silica sand market is expected to expand at a healthy pace.
The Major Players in this Market Include
The major companies in the Silica Sand market include Sibelco, Mitsubishi Corporation, U.S. Silica Holdings Inc., JFE Holdings Inc., Covia Holdings Corporation, and others. These industry players are involved in various strategic initiatives to expand their presence. As the end-use industry players are expanding their operations. For instance, in March 2021, O-I announced to invest approximately $75 million in glass manufacturing expansion at its Zipaquirá, Colombia facility. In March 2019, GM has announced to expand two factories in Sao Paulo, Brazil, over the next five years with an investment of $2.7bn. In September 2019, Toyota Motor Corporation has announced to expand its facility in Brazil with a huge investment of $190M to increase production. These expansions are creating opportunities for silica sand players to expand their market size.
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