Asia Pacific Fumed Silica Market size exceeded USD 697 million in 2020 and is predicted to grow at 6.5% CAGR between 2021 and 2027. Favorable trends associated with the construction sector and the positive outlook of the unsaturated polyester resin industry will propel the market growth.

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Fumed silica is manufactured from quartz sand vaporized at 3,000°C in an electric arc or from flame pyrolysis of silicon tetrachloride. It is used as an anticaking and thickening agent in powders. It is used in cosmetics, light abrasive products, paints & coatings, adhesives, unsaturated polyester resins, and printing inks. Additionally, nanoparticles of fumed silica have potential use as an anti-aging coating in asphalt roadways.

Fumed silica has been witnessing a strong demand from several manufacturing industries. It is owing to the superior properties possessed by the compound. Rheology modifier, thickening agent, viscosity controller, anti-setting agent, and thixotropic agent are some of the characteristics of fumed silica, rendering it a highly demanded material for daily use products. Some of the major applications of the product include pharmaceuticals, adhesives & sealants, cosmetics, paints & coatings, and elastomers.

Additionally, the increasing consumption of fumed silica in unsaturated polyester resins is further catalyzing the market growth. Fumed silica is used to improve the thixotropic behavior and thickening properties of these resins to provide a required control over the viscosity and acts as an anti-settling agent. Fumed silica-infused unsaturated polyester resins are widely used for lamination resins, gel coats, and bonding pastes, among others. Moreover, the increasing demand for UPR from industries including consumer goods, automobiles, marine, and construction sectors will significantly drive the market expansion.

However, the COVID-19 health crisis had a severe toll on the fumed silica market growth. In order to contain the novel coronavirus, governments of several nations imposed harsh lockdowns, which disrupted the regional and global economic activities. Numerous manufacturers had to observe a period of inactivity and ceased manufacturing operations. Cumulatively, these factors led to the downfall of the market revenue in Asia Pacific and the product consumption observed a decline of over 3%.

Asia Pacific Market, By Product

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The hydrophilic fumed silica segment value was around USD 375 million in 2020 as manufacturing process of hydrophilic fumed silica makes it a cost-effective product and hence, is highly demanded from various end-use industries. The hydrophilic fumed silica is capable of completely dispersing into the water or soaked by water. Even at elevated temperatures, the superior characteristics of the product allow it to maintain high insulation potential. Hydrophilic fumed silica is a favorable choice for products with low shelf life concerns and finds extensive usage in the non-polar resin system. In addition, this grade of fumed silica is used for silicone reinforcing and thickening as a gradient for industrial powders.

Asia Pacific Market, By Application

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Among these application sectors, the paints, coating & inks segment is likely to reflect a CAGR of over 7% during the forecast timeframe. The addition of fumed silica to these products offers several benefits and helps in achieving the desired characteristics in end products.

It improves the sag resistance in coatings and averts the settling of heavy pigments. Also, fumed silica enhances the energy dissipation characteristics of the surface and safeguards it against scratches. Since it is of critical importance to prevent the transmission of water from the surface to the substrate below it, hydrophobic fumed silica is highly in demand from the inks, paints & coatings industries. The inclusion of fumed silica in coatings provides them the ability to prevent run-offs from vertical surfaces. Besides, it also delivers anti-corrosion properties to paints & coatings.

Competitive Industry Landscape

Some of the key Asia Pacific fumed silica market participants include Evonik Industries AG, Cabot Corporation, Wacker Chemie AG, OCI Company Ltd., Tokuyama Corporation, Hubei Xingrui Silicon Materials Co., Ltd., Henan Xunyu Chemical Co., Ltd., China-Henan Huamei Chemical Co., Ltd., Dongyue GroupCabot Sanmar Limited, Simcoa Operations Pty Ltd., Kaleido Chemie Pvt. Ltd., and Prakash Chemicals Pvt. Ltd.

These players are engaged in several strategic developments to reinforce their market position and gain more share in the industry. The key trends include mergers, acquisitions, joint ventures, and production capacity expansion, among others. For instance, Tokuyama Corporation transferred a plant to Tokuyama Chemicals (Zhejiang) to expand its fumed silica business in China and the other Asian markets.