Tire Rubber Sector to Become the Fastest-growing Market for Specialty Silicas

Demand for specialty silicas in the US is forecast to grow 4.7 percent per annum to $2.1 billion in 2019, according to U.S.-based market researcher Freedonia Group.

Gains are expected to be strong by historical standards, though moderating slightly from the robust post-recession growth of the 2009- 2014 recovery period. Demand will benefit as silicas gain wider appeal through changing market trends, such as increased usage in tires, or by an improvement in certain segments of the economy, particularly the housing and construction industry. Advances will be limited, however, by market maturity in a number of products, including toothpaste and cat litter.

Demand for specific silica products is closely tied to the outlook for key enduse industries.Demand for silica gel, which finds application in a variety of paint and coatings, will see its most significant gains on the back of a strong rebound in building and construction spending, said Larry Catsonis, an analyst with Freedonia Group.

As resource conservation trends make their way into the tire industry, silica is finding greater use as a filler and reinforcement agent in tires, offering improved fuel economy over conventional tires. Precipitated silica will remain the leading segment of the specialty silica market in both volume and value terms.

This silica type is expected to be the fastest growing specialty silica product through 2019, promoted by robust gains in the large tire rubber sector as well as coatings and inks. Overall market value will benefit from the ongoing development of more expensive and higher-performance precipitated silicas, such as highly dispersible grades for tire reinforcement.

Among specialty silica markets, the rubber market is forecast to expand at the most rapid pace through 2019, further increasing its position as the major outlet for specialty silicas.

Though advances in US rubber consumption will slow as domestic production of motor vehicles and other manufactured goods face weak growth, in the tire rubber segment precipitated silica will find higher usage and increased loadings in low rollingresistance tires.

Cosmetics and toiletries represent the next largest market for specialty silicas in both volume and value terms through 2019. As the most widely used products, precipitated silicas will take up over 80% market share.