India Precipitated Silica Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 4.00 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Precipitated Silica Market Analysis
The Indian precipitated silica market is estimated to reach 149.58 kilotons by the end of this year and is projected to reach 183.30 kilotons in the next five years, registering a CAGR of 4.15% during the forecast period.
Covid-19 negatively impacted the precipitated silica market with nationwide lockdowns and worldwide disruption in manufacturing activities and supply chains. The need for precipitated silica products decreased as COVID-19 instances rose. However, since restrictions were removed, the industry has been recovering.
- A major factor driving the market studied is the increasing demand from the automotive sector. Additionally, demand from the cosmetic industry is likely to favor the market's growth.
- On the flip side, the stringent environmental regulations and availability of substitute products such as carbon black will negatively affect the growth of the precipitated silica market during the forecast period.
- The rising demand from rubber, agrochemicals, and oral care industries will likely provide new growth opportunities for the market.
- The automotive industry is expected to dominate the market during the forecast period due to an increase in domestic manufacturing and demand.
India Precipitated Silica Market Trends
Automotive Industry to Dominate the Market
- Precipitated Silica is widely used as a reinforcing filler in tires. It helps improve tire traction, grip, and overall performance by enhancing wear resistance and wet grips. The tire market is expanding due to increasing vehicle production and demand. As a result, the demand for precipitated silica is also growing.
- According to the Automotive Tyre Manufacturers Association, 41 tire-producing companies in India have over 62 manufacturing plants. At AMTA Partners' Summit 2023, the association stated that tire exports from India increased by 50% in FY22 and will likely close the ongoing financial year with nearly 15% growth.
- In the period of April-December FY23, the exports were INR 17,816 crore (~USD 2.17 billion), an increase of 15% as against INR 15,507 crore (~USD 1.89 billion) in the same period a year ago. The main reason for the growth of the Indian tire industry is the consistent supply chain during the pandemic and current geo-political concerns.
- Moreover, the tire industry in India has completed an investment of over INR 35,000 crore (~USD 4.26 billion) in new capacity creation and debottlenecking in the last three years to meet the growing needs.
- The country is also focusing on achieving self-sufficiency in rubber production. More than 1.65 crore rubber plants have been planted in the Northeastern states under the North East Mission of Tyre Industry for Rubber Augmentation (NE-MI-TRA). The project envisages developing 2,00,000 hectares of rubber plantation in northeastern states and West Bengal over a period of 5 years, involving an outlay of INR 1,110 crore (~USD 0.14 billion).
- The Indian automobile industry's growth and performance have significant implications for the demand and usage of precipitated silica. The industry's expansion signifies increased production and sales of vehicles, which directly influences the need for various automotive components, including tires, coatings, and adhesives, where precipitated silica finds extensive application.
- According to the Society of Indian Automobile Manufacturers (SIAM), passenger vehicle production in the country reached 45,78,639 units in 2022-23 from 36,50,698 units in 2021-22, an increase of around 25.41%.
- Similarly, commercial vehicle sales in the country reached 10,35,626 units in 2022-23 from 8,05,527 units in 2021-22, a massive increase of around 28.56%. The rising logistics and passenger transportation industries are driving up demand for commercial vehicles.
- In December 2022, the total production of passenger vehicles, three-wheelers, two-wheelers, and quadricycles was 1,557,238 units.
- The above facts and factors suggest a positive correlation between the growth of the Indian automobile industry, the tire industry, and the demand for precipitated silica.
Growth in Electronics Industry
- In electronics, precipitated silica is used in display devices, watches, semiconductors, and cameras to absorb moisture in products. It is also utilized in adhesives and sealants used in the electronics industry. It acts as a reinforcing filler, improving the strength and resistance to moisture, temperature, and mechanical stresses.
- Moreover, precipitated silica is a key component of battery separators used in lead-acid batteries. Precipitated silica enables microporous battery separators with good electrolyte wettability and low electrical resistance, which are critical to battery performance.
- India Brand Equity Foundation projects growth of the Indian electronics manufacturing industry to reach USD 520 billion by 2025 signifies substantial market potential. Electronic products, such as consumer electronics, telecommunications equipment, and automotive electronics, often utilize precipitated silica for various applications, including semiconductors.
- India's position as one of the largest consumer electronics markets in the Asia Pacific Region further enhances the prospects for precipitated silica. As the demand for electronic products is expected to rise to USD 400 billion by 2025, the need for high-quality materials like precipitated silica will also increase.
- The government's initiatives, such as 'Digital India' and 'Make in India', have promoted electronics manufacturing and created a favorable business environment. The simplified process of setting up manufacturing units in India, supported by policies like the FDI Policy for electronics manufacturing, encourages both domestic and foreign investments. This will establish more electronics manufacturing facilities, increasing the demand for precipitated silica as an essential material in electronic component production.
- The government's commitment to reaching USD 300 billion worth of electronics manufacturing and exports by 2025-26 demonstrates its dedication to fostering the industry's growth. This commitment aligns with the goal of making electronics goods amongst India's top-ranking exports by 2026.
- The Union Budget 2023-24 has allocated INR 16,549 crore (USD 2 billion) for the Ministry of Electronics and Information Technology, which is nearly 40% higher annually. The budget for FY23 allocated INR 14,300 crore (USD 1.73 billion) for the IT ministry.
- The projected growth of the Indian electronics manufacturing industry, supported by government initiatives, policies, and increased budget allocations, presents promising opportunities for precipitated silica.
India Precipitated Silica Industry Overview
The Indian precipitated silica market is consolidated. Some major companies (in no particular order) include Madhu Silica Pvt. Ltd, Tata Chemicals Ltd, Solvay, Ralington Pharma, and MLA Group of Industries.
India Precipitated Silica Market Leaders
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Madhu Silica Pvt. Ltd.
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Tata Chemicals Ltd.
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Solvay
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Ralington Pharma
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MLA Group of Industries
*Disclaimer: Major Players sorted in no particular order
India Precipitated Silica Market News
- Jul 2023: PPG Industries Inc. announced the release of new research demonstrating energy savings and other manufacturing benefits for tire makers using PPG Agilon performance silica technology. PPG Agilon precipitated silica is chemically modified, enabling tire makers to eliminate a manufacturing step required in conventional technology.
- Aug 2022: Markan Global Enterprises announced to add precipitated silicas to its product portfolio. Markan Global Enterprises partnered with Madhu Silica Pvt. Ltd to provide precipitated silica at a competitive price.
Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions And Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
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4.1 Drivers
- 4.1.1 Increasing Demand from Automotive Industry
- 4.1.2 Growing Cosmetics Industry
- 4.1.3 Increasing Investments in the Electronics Sector
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4.2 Restraints
- 4.2.1 Stringent Environmental Regulations
- 4.2.2 Availability of Substitute
- 4.3 Industry Value-Chain Analysis
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4.4 Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitute Products and Services
- 4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
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5.1 End-user Industry
- 5.1.1 Agriculture
- 5.1.2 Cosmetics
- 5.1.3 Automotive
- 5.1.4 Electronics
- 5.1.5 Other End-user Industries
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Market Share (%)**/Ranking Analysis
- 6.3 Strategies Adopted by Leading Players
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6.4 Company Profiles
- 6.4.1 AksharChem (India) Limited
- 6.4.2 JAY DINESH CHEMICALS
- 6.4.3 Madhu Silica Pvt. Ltd.
- 6.4.4 MLA Group of Industries
- 6.4.5 PCIPL
- 6.4.6 PPG Industries, Inc
- 6.4.7 Ralington Pharma
- 6.4.8 Regoj Chemical Industries
- 6.4.9 Solvay
- 6.4.10 Supersil Chemicals (I) Pvt. Ltd
- 6.4.11 Tata Chemicals Ltd.
- 6.4.12 Tirupati Chemical Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
- 7.1 Rising Demand from Rubber, Agrochemicals, and Oral Care Industries
- 7.2 Other Opportunities
India Precipitated Silica Industry Segmentation
Precipitated silica is a form of amorphous silica that is produced through a chemical process called precipitation. It consists of finely divided particles with high surface area and porosity. Precipitated silica is commonly used as a filler and reinforcing agent in various products, including rubber, plastics, paints, coatings, adhesives, and cosmetics. It helps improve mechanical properties, such as strength and abrasion resistance and provides benefits, such as enhanced flow, increased viscosity control, and improved texture.
The India Precipitated Silica is segmented by End-user Industry (Agriculture, Cosmetics, Automotive, Electronics, and Other End-user Industries). The report offers market size and forecasts for India Precipitated Silica in volume (Kilo Tons) for all the above segments.
| End-user Industry | Agriculture |
| Cosmetics | |
| Automotive | |
| Electronics | |
| Other End-user Industries |
Frequently Asked Questions
What is the current India Precipitated Silica Market size?
The India Precipitated Silica Market is projected to register a CAGR of greater than 4% during the forecast period (2024-2029)
Who are the key players in India Precipitated Silica Market?
Madhu Silica Pvt. Ltd., Tata Chemicals Ltd., Solvay, Ralington Pharma and MLA Group of Industries are the major companies operating in the India Precipitated Silica Market.
What years does this India Precipitated Silica Market cover?
The report covers the India Precipitated Silica Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Precipitated Silica Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Precipitated Silica Industry Report
Statistics for the 2024 India Precipitated Silica market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Precipitated Silica analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
