The environmental silica market is estimated to be valued at US$ 2.45 Bn in 2023 and is expected to exhibit a CAGR of 9.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Environmental silica refers to silica sand or silicon dioxide that is mined from surface sand deposits or underground quartzite deposits. It is utilized in various industrial applications including glassmaking, hydraulic fracturing, foundry casting, abrasives, construction, and water filtration. The product offers high strength and hardness along with durability, making it ideal for construction applications. The rising construction activities are increasing the demand for environmental silica.

Market key trends:
One of the major trends driving the growth of environmental silica market is increasing demand from the construction industry. Environmental silica or silica sand is one of the primary raw materials used in the production of glass, cement, concretes, and other construction materials. With rapid urbanization and infrastructural development projects across regions, the demand for construction materials is surging. According to the Global Construction 2030 report, the global construction output is projected to grow by 85% to $15.5 trillion worldwide by 2030. This significant growth in the construction sector is augmenting the consumption of environmental silica. Also, growing demand from various industrial applications including hydraulic fracturing and filtration is further supporting the market growth over the forecast period.

Porter’s Analysis

Threat of new entrants: The environmental silica market requires high initial capital investments for mining and processing silica sand and ores. Therefore, the threat of new entrants is relatively low.

Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, unique properties of silica provide some negotiating power to producers.

Bargaining power of suppliers: Producers source silica sand from few suppliers, providing them with considerable power over price and supply negotiations. However, silica is widely available limiting the extent of their bargaining power.

Threat of new substitutes: Substitutes like iron ore provide competition. However, silica’s unique chemical and physical properties restrict viable substitutes.

Competitive rivalry: The market is dominated by few large players intensifying competition.

SWOT Analysis

Strengths: Silica's wide applications and unique properties. Established supply chains of major players.

Weaknesses: Market heavily dependent on construction industry cycles. Environmental regulations add to production costs.

Opportunities: Increasing demand from diverse industries like electronics and personal care. Potential in developing regions.

Threats: Volatility in raw material prices. Stringent mining regulations can impact supply.

Key Takeaways

The Global Environmental Silica Market Size is expected to witness high growth, exhibiting CAGR of 9.8% over the forecast period, due to increasing construction activities worldwide. The market size for 2023 is estimated to reach US$ 2.45 Bn. properties of silica in construction applications like construction aggregates, cement, and ceramics will drive the demand.

Regionally, Asia Pacific dominates the global environmental silica market and is expected to grow at the fastest rate owing to rapid urbanization and infrastructure development projects in countries such as China and India. North America is another major regional market supported by revival of shale gas and oil exploration activities.

Key players operating in the environmental silica market are U.S. Silica Holdings Inc., Sibelco Group, Fairmount Santrol Holdings Inc., Emerge Energy Services LP, Badger Mining Corporation, Covia Holdings Corporation, Preferred Sands LLC, Hi-Crush Partners LP, SCR-Sibelco N.V., Pattison Sand Company. Major players are focusing on capacity expansion plans and strategic mergers & acquisitions to gain market share and diversify their product portfolios.