North America And Australia Silica Market Size, Share & Trends Analysis Report By Application (Oil & Gas, Glass, Foundry Sand, Rubber, Oral Care), By Region (Australia, North America)- Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

The North America and Australia Silica market size was valued at US$ 7.68 billion in 2021 and is expected to hit US$ 18.42 billion by 2030, growing at a compound annual growth rate (CAGR) of 12.4% from 2022 to 2030.

Key Takeaways:

• The oil & gas segment held the largest revenue share in 2021 owing to the increasing number of rigs in North America and growing investments in the Australian oil & gas industry
• A rise in raw material, energy, and transportation costs during the COVID-19 pandemic impacted final product prices
• For instance, in August 2021, PQ Corp. announced new prices for its silica products in the U.S. and Canada. The company along with its subsidiary National Silicates declared a price hike of 10–12% for its products
• Companies in Australia are making efforts to increase the production of silica. For instance, in September 2021, VRX silica started the processing of its second silica sands project at Arrowsmith, Western Australia. The company is currently awaiting environmental approval for its advanced Arrowsmith North project
• The market in Australia was estimated at 2,867.0 kilotons in 2021. The high market growth is on account of development in the application industries, such as glass and foundry, in the country

Growth Factors:

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.

Report Scope of the North America And Australia Silica Market

Application Insights

Based on applications, oil & gas accounted for the largest revenue share of more than 34.1% in 2021. Natural gas and oil are typically produced through unconventional means using horizontal drilling and hydraulic fracturing to release trapped oil or gas. Silica plays an essential role in the completion of unconventional oil and natural gas wells, specifically in hydraulic fracturing techniques. In October 2021, North America’s rig count reached 700 including 351 additional rigs compared to the previous year, as the rig count has almost doubled in both U.S. and Canada. The governments in the region are making efforts to promote the development of the unconventional oil & gas industry owing to the region’s inclination toward a clean energy strategy. This, in turn, is anticipated to augment the market growth over the coming years.

Foundry sand is one of the fastest-growing application segments of the market. Silica is used in foundry sand owing to its high melting point as compared to other alloys for mixing with a binder to produce a mold that can hold the molten metal for casting. According to the American Foundry Society, metal casting is one of the essential sectors in the U.S. manufacturing industry and was valued at USD 45.3 billion in 2021. Factors, such as accuracy, high precision, shorter cycle time, and surface finish, are expected to contribute to the growing demand for metal casting. For instance, in September 2021, Tesla, Inc. introduced casting machines for developing chassis components. Thus, the growth of the metal casting industry is expected to benefit the foundry sand demand, eventually propelling the consumption of silica.

Regional Insights

Based on region, North America is anticipated to register a CAGR of 11.2%, in terms of revenue, over the forecast period. North America was the second-largest regional market in 2021 across the globe. Factors, such as a significant rise in the number of R&D projects and rapid technological developments, are expected to boost the demand for silica in the region over the forecast period. Growing investments in application industries are benefiting market growth. For instance, in February 2021, Bridgestone, ARLANXEO, and Solvay launched TECHSYN, a new tire technology platform. This new platform helps merge chemically optimized synthetic rubber with tailor-made silica to deliver high-quality performance with no trade-offs.

Furthermore, the market growth is high in Australia as well on account of development in application industries, such as glass and foundry. Also, Australia was among the top three silica exporters in 2020 owing to several silica sand projects that are in production or progressing through the exploration and development process, controlled by ASX-listed companies. The glass and foundry industry together represent around 66% of the total consumption of silica in the country. The demand for glass is mainly driven by the construction sector along with container glass. For instance, according to the International Wine and Spirit Record, bottled wine accounted for 35.0% of Australia’s alcohol consumption in 2021, propelling the demand for glass bottles and enabling manufacturers to increase their production.

Key Companies & Market Share Insights

The market is highly competitive owing to the presence of numerous established players. Companies are focusing on R&D activities to widen their silica product offerings and their application scope within various end-use industries. The companies are also carrying out various acquisition, expansion, and partnership strategies to stay abreast of the competition. This is expected to benefit the market growth. For instance, in November 2021, Nouryon announced its plans to expand the production capacity for its colloidal silica products at its manufacturing facility in Wisconsin, U.S. Changing consumption habits due to increased marketing activities by major players is further supporting the companies to expand their production capacities. For instance, in October 2019, Wacker Chemie AG built a new plant for producing pyrogenic silica at its site in Tennessee, U.S.Some of the prominent players in the North America and Australia silica market include:

• Elkem ASA
• Evonik Industries AG
• Nouryon
• PPG Industries, Inc.
• PQ Corporation
• Saint-Gobain
• Solvay
• U.S. Silica
• W. R. Grace & Co.-Conn.
• Wacker Chemie AG

Segments Covered in the Report

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects. Further, this research study investigates market size, production, consumption and its development trends at North America And Australia for the period of 2017 to 2030

• By Application Outlook
• Oil & Gas
• Glass
• Foundry Sand
• Rubber
• Agrochemicals
• Oral Care
• Food
• Desiccants
• Paints & Coatings
• Others
• Regional Outlook
• North America

• U.S.
• Canada
• Australia

Key Points Covered in North America And Australia Silica Market Study:

• Growth of North America And Australia Silica in 2022
• Market Estimates and Forecasts (2017-2030)
• Brand Share and Market Share Analysis
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise
• Competition Mapping and Benchmarking
• Recommendation on Key Winning Strategies
• COVID-19 Impact on Demand for North America And Australia Silica and How to Navigate
• Key Product Innovations and Regulatory Climate
• North America And Australia Silica Consumption Analysis
• North America And Australia Silica Production Analysis
• North America And Australia Silica and Management