North America And Australia Silica Market Growth & Trends
The North America and Australia silica market size is expected to reach USD 16.52 billion by 2028, according to a new report by Grand View Research, Inc., expanding at a CAGR of 11.0% over the forecast period. The market growth is attributed to the rising product demand in various applications including oil & gas, rubber, foundry, glass, agrochemicals, and others. Commercial silica sand obtained through mining mainly finds use in oil & gas, glass, and foundry sand. Specialty silica is extracted through wet and thermal processes and includes precipitated, fumed, and colloidal silica along with silica gel and fused gel. These products undergo different processes and find applications in rubber, agrochemicals, oral care, food, desiccants, paints & coatings, and other applications.
Based on application, the market is segmented into oil & gas, glass, foundry, rubber, agrochemicals, oral care, food, desiccants, paints & coatings, and others. The product demand in the oil & gas industry is expected to increase on account of the rising hydraulic fracturing activities. In addition, high demand for glass products owing to the growth in construction activities and increasing beverages consumption will further drive the market. Moreover, the market is expected to witness lucrative growth opportunities in the rubber industry. Highly dispersible silica is used in green tire production, which further enhances the performance parameters of the tire in terms of fuel efficiency and safety, without affecting the durability of the tire.
This is driving the consumption of silica in countries in North America moving toward high production of green tires. With the outbreak of COVID-19, the production of silica sand was severely impacted as the demand from end-use industries declined significantly in 2020. For example, W. R. Grace & Co.-Conn sales in 2020 decreased by 11.7% as compared to 2019. However, with recovery in the economy and increasing demand from industries, such as oil & gas, glass, rubber, and foundry, the production is expected to increase during the forecast period. The growing demand and low production led to a surge in prices in 2021. For example, in November 2021, U.S. Silica Holdings Inc. announced raise in price for its products in the range of 6% to 14% starting from February 2022.
The price increase is part of the company’s plan to curb losses due to a significant and continuous rise in labor, transportation, materials, and manufacturing costs. The market is highly competitive owing to the presence of numerous players and rising product demand from application industries. For instance, in December 2021, Canadian Premium Sand Inc. (CPS) announced to set up its first solar glass manufacturing facility in North America. The company chose the City of Selkirk, Manitoba as the location due to its proximity to a high-grade silica sand quarry.
North America And Australia Silica Market Report Highlights
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