Market Trends of Silica Industry
This section covers the major market trends shaping the Silica Market according to our research experts:
Increasing Demand from the Building and Construction Industry
- Silica is one of the primary components in various building and construction products. For improved durability and structural integrity, whole-grain silica is used in flooring, mortars, specialty cement, roofing shingles, asphalt mixtures, skid-resistant surfaces, and other industrial materials.
- The Asia-Pacific region is dominating construction activities across the world. The area is registering a fast recovery after the COVID-19 impact, due to increasing construction in China, India, Japan, and Indonesia, among others. China is investing USD 1.43 trillion in significant construction projects in the next five years till 2025.
- According to the US Census Bureau and the US Department of Housing and Urban Development, privately-owned residential units permitted by building permits totaled 1,873,000 in December 2021, a seasonally adjusted annual rate of 1,873,000.
- Building output increased by 3.3% in the eurozone and 3.8% in the EU in July 2021 compared to July 2020. In November 2021, construction output increased by 0.5% in the euro and 1.3% in the EU compared to November 2020.
- The Egyptian government plans to relocate to a vast "New Administrative Capital" 30 miles east of Cairo by the end of 2022. The new capital is being built to relieve Cairo's overcrowding, reduce traffic congestion, and provide the country with modern infrastructure. The USD 45 billion projects will include a new airport, government offices, residential areas, business districts, and green spaces.
- All the above factors will likely propel the demand for silica sand during the forecast years.
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Asia-Pacific Region Expected to Dominate the Market
- The Asia-Pacific region is expected to be the dominant market in silica consumption, as China and India dominate the market for the end-user industries, such as building and construction, electronics, and glass manufacturing.
- China's building industry is expanding at a rapid pace. China's construction production is estimated to be worth CNY 29.31 trillion in 2021, according to the National Bureau of Statistics of China.
- China plans to invest USD 1.43 trillion in key construction projects for five years till 2025. The Shanghai plan, according to the National Development and Reform Commission (NDRC), calls for a total investment of USD 38.7 billion over the next three years. Guangzhou, on the other hand, signed 16 new infrastructure projects for USD 8.09 billion.
- Over the next seven years, India is expected to invest over USD 1.3 trillion in housing, with 60 million new homes being built. In 2024, the rate of affordable housing availability is predicted to increase by roughly 70%.
- The Japanese construction industry is predicted to boom as the country prepares to host the World Expo in Osaka, Japan, in 2025. The Yaesu redevelopment project, which includes a 61-story, 390-meter tall office tower, is scheduled to be completed in 2023 and 2027, respectively.
- Due to all the above-mentioned factors, the Asia-Pacific region is expected to dominate the market during the forecast period.
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