- The glass manufacturing application segment market is expected to greatly benefit from the growing demand for flat glass and fiber glass from the fast-growing automotive and construction industries in Asia’s emerging economies, especially India and China. In the forecast period, this is expected to drive the sector.
- Illegal sand extraction and sand-free building materials production are likely to hamper the growth of the sector.
- Increasing hydraulic fracking operations (in the future, due to increased shale gas and shale oil production activities are expected to serve as a market opportunity.
By Application – Segment Analysis
Glass production is the largest application market of industrial silica sand and the leading glass manufacturing industry in India and China is serving as the main drivers of increasing demand. In the Asia Pacific region, Silica sand is also used in foundries and manufacturing that are growing industries. In the hydraulic fracturing industry, there is also significant demand for silica sand as a proppant. Over the past few years, the rapid development of the shale oil and gas industry has been a key factor in increasing demand. Fracturing or fracturing hydraulically requires removing oil and gas from the bed rock and using up to 10,000 tons of silica per pipe. This has contributed to a sharp increase in the oil and gas segment’s market for silica sand.
Geography – Segment Analysis
In 2019, the Asia / Pacific region, backed by the powerful Chinese market, will remain the growing global user of industrial oil. The world’s largest massive glass industry in China will continue to fuel industrial sand use for window production, digital monitor screens, photovoltaic plates, and other flat glass items. The container glass industry in the country will push more sales of silica sand, supported by increased production of glass bottles, particularly in the alcoholic beverage market. Foundry operation in India will progress at a healthy pace, spurring sand mold development to produce vehicle, wind turbine, machine tool, and other metal casting forms. Indonesia witnessed the strong growth in production of silica sand through 2019, backed by rapid progress in the output of glass products and metal casting, combined with increased hydraulic fracturing operations.
Drivers – Silica Sand Market
- Increasing Demand from the Glass Industry leads the market growth.
The glass manufacturing industry was one of the international silica sand market’s major end-user sectors. Silica sand is an inevitable part of the glass industry and accounts for more than 50% of all the raw materials used in glass manufacturing. The product sees use in a number of glass types, including bottles, fiberglass, plain and specialized glass. The bottle sub-segment was the highest use in the glass manufacturing application segment, preceded by the flat glass and fiber glass sub-segments. The market in this application segment is expected to greatly benefit from the growing demand for flat glass and fiber glass from the fast-growing automotive and construction industries in Asia’s emerging economies, especially India and China. In addition, the use of specialty glass in the respectable electronics market in developed countries, such as South Korea and Japan, is projected to further support the growth of the glass manufacturing industry, which may, in effect, raise the region’s demand for silica sand. During the forecast period, all of the above listed variables are expected to drive the global market.
Challenges – Silica Sand Market
- Cost, investments and transportation of silica sand is constraining the market growth.
Over the past decade, sand and gravel prices have risen significantly from around $7 per metric ton in 2007 to $9 in 2018. Specialty sands produce much higher prices: frac sand, which is used to extract oil by hydraulic fracturing, has cost around $26 per ton in 2018, but has soared over $70 per ton in periods of short supply. It’s difficult to spend in oil. The weight of Sand due to its value makes transporting and processing costly and difficult. As with other products, such as soybeans or gasoline, traders are also unable to buy or sell futures contracts tied to coal. As a result, shareholders involved in expanding their sand exposure need to search for investments in sand production-related companies.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Silica Sand market. In 2019, the market of Silica Sand has been consolidated by the top five players accounting for xx% of the share. Major players in the Silica Sand Market are Chongqing Changjiang River Moulding Material (Group) Co. Ltd, Covia Holdings Corporation, Sibelco, U.S. SILICA, Mitsubishi Corporation, and Tochu Corporation, among others.
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