Low Iron Silica Sand Market Size (2024 - 2030)

The market for low iron silica sand reached a valuation of USD 5.89 billion in 2023 and is anticipated to attain USD 9.52 billion by 2030. Projections indicate a compound annual growth rate (CAGR) of 7.1% during the forecast period spanning 2024 to 2030.

LOW IRON SILICA SAND

Industry Overview:

The low iron silica sand sector has witnessed consistent growth in recent years, attributed to the expanding end-use industries. With its diverse applications, low iron silica finds utility across multiple sectors, serving as a fundamental raw material. The burgeoning consumer expenditure in secondary markets has fueled the demand for silica, a trend further augmented by the rising adoption of electric vehicle (EV) technology. Given concerns over depleting fossil fuel reserves, escalating pollution levels, and the resultant climate change impacts, organizations worldwide are increasingly prioritizing alternative fuel solutions, such as EVs. This shift is underscored by heightened consumer awareness regarding environmental issues, prompting a preference for eco-friendly products and services. Consequently, the surge in EV adoption has propelled the demand for high-quality tires, a significant portion of which utilize low iron silica sand, thereby driving market growth.

COVID-19 Impact:

The COVID-19 pandemic disrupted low iron silica sand manufacturing operations due to supply chain disruptions and labor shortages. Global efforts to contain the virus necessitated temporary shutdowns of manufacturing facilities, leading to workforce quarantines and production halts. Consequently, the market experienced a downturn during the pandemic; however, post-lockdown restrictions, recovery and growth have been observed.

MARKET DRIVERS

Expansion of the paints and coatings sector fuels growth in the low iron silica sand market.

The increasing construction activities, particularly in the housing and real estate segments, have spurred demand for paints and coatings. Low iron silica sand serves as a key raw material in this industry, enhancing product quality and longevity. Rising disposable incomes have empowered individuals to invest in homeownership, resulting in heightened demand for home decor products, including paints and coatings, thereby propelling growth in the low iron silica sand market.

Growth in the oral care sector drives demand for low-iron silica sand.

Low iron silica is integral to toothpaste and toothpowder formulations, facilitating superior dental hygiene. Increased awareness about oral health has driven market penetration in this sector, particularly in developing and underdeveloped regions. Consequently, there has been a notable uptick in the demand for low iron silica sand as a crucial raw material for toothpaste manufacturing, contributing significantly to market growth.

MARKET RESTRAINTS

Strict government regulations hamper growth in the low iron silica sand market.

Stringent governmental policies targeting silica manufacturing operations aim to mitigate environmental pollution. The industry's waste disposal practices, particularly into water bodies, have raised concerns over aquatic life preservation. Consequently, regulatory measures limiting silica production have emerged, impeding market growth.

The introduction of green manufacturing techniques constrains the low iron silica sand market.

The adoption of green manufacturing practices, while beneficial for environmental sustainability, presents challenges for smaller manufacturing enterprises due to their capital-intensive nature. Developed nations are swiftly embracing these technologies, supported by significant investments and governmental incentives such as subsidies and production-linked incentive schemes. However, the rapid integration of green manufacturing methods poses a barrier to market expansion, particularly for smaller players.

Segmentation of the Low Iron Silica Sand Market – By Technological Classification

• Hydrophilic Fumed Silica
• Hydrophobic Fumed Silica

The Low Iron Silica Sand Market can be categorized based on technology into two primary divisions: hydrophilic fumed silica and hydrophobic fumed silica. Hydrophilic fumed silica serves as an anti-setting and thickening agent, whereas hydrophobic fumed silica finds applications in coatings, paints, adhesives, gels, etc. Silica demonstrates adept adsorption properties, enabling it to absorb moisture from the surroundings, thus rendering it useful for drying purposes.

Segmentation of the Low Iron Silica Sand Market – By End-User Industry

• Silicone Rubber
• Paints & Coatings
• Unsaturated Polyester Resins
• Adhesives & Sealants
• Healthcare & Personal Care
• Others

Low Iron Silica Sand finds utility across various industries. Regarding end-user industries, it is employed in Silicone Rubber, Paints & Coatings, Unsaturated Polyester Resins, Adhesives & Sealants, Healthcare & Personal Care, among others. Silica plays a pivotal role in the production of high-quality rubber, notably in the manufacturing of durable and long-lasting tire rubber. In paints and coatings, silica aids in maintaining product quality, while in healthcare applications, it is utilized in capsule and tablet production for anti-caking purposes, along with its properties as a glidant and adsorbent.

Segmentation of the Low Iron Silica Sand Market – By Geographical Region

• North America
• Europe
• Asia-Pacific
• Rest of the World
• Middle East and Africa

The European market has witnessed substantial growth in the Low Iron Silica Sand Market, attributed to the surge in electric vehicle (EV) manufacturing. The increased adoption of EVs has driven demand for silica rubber tires, essential for tire durability and longevity. Asia-Pacific emerges as the fastest-growing region, propelled by governmental initiatives promoting production and growth within the region.

Key players in the Low Iron Silica Sand Market include:

• Elkem
• Evonik Industries AG
• Oriental and Silicas Corporation

These companies boast extensive experience in the market, which is characterized by intense competition and high entry barriers due to its capital-intensive nature. Recent challenges, such as oil price fluctuations, have impacted supply chain dynamics, leading to increased production costs.

Recent Developments in the Low Iron Silica Sand Market:

• In October 2021, Evonik established a joint venture with Wynca to inaugurate a new silica plant in China under the brand name AEROSIL.
• In June 2021, Evonik finalized a purchase agreement to acquire InfinitecActivos, a privately owned company.
• In May 2021, Cabot Oil & Gas Corp. entered into a merger agreement with Cimarex Energy, resulting in a combined company valuation of USD 17 billion.