The intensely competitive vendor dynamics for the global market for sodium silicate features a large number of manufacturers spread across a number of regional markets. So as to gain a stronger hold on the market, companies are focusing on strategic collaborations with promising players operating in regional markets that feature good growth opportunities, observes Transparency Market Research in a recent report. As a result, there has been a significant rise in mergers and acquisitions. R&D activities have also witnessed a vast rise in the market in the past few years, focused at the development of products suited for a new set of applications.
The vast rise in production volumes in the past few years have led to a demand-supply gap, which has negatively impacted the profit margins of companies as companies are required to lower down costs of their products to survive in the market. This factor has also restricted the entry of new players in the market. Some of the leading companies in the market are CIECH Group, PQ Corporation, Silmaco NV, Evonik Industries AG, and BASF SE.
According to the report, the global sodium silicate market will exhibit a lackluster CAGR of 1.92% from 2016 to 2025. At this pace, the market is expected to rise from a valuation of US$4.9 bn in 2016 to a revenue opportunity of US$5.81 bn by 2025.
Asia Pacific to Remain Most Lucrative Regional Market
Of the key applications of sodium silicate, the segment of silica manufacturing presently accounts for the dominant share of the market and is the most lucrative application for the global sodium silicate market. In 2016, the segment held a nearly 26.8% of the overall market, followed by the detergent segment, which accounted for a relatively much lower 15% of the market in the said year.
Geographically, the market in Asia Pacific accounted for nearly 54% of the market in 2016, exhibiting a clear dominance, thanks to the vast production capacity of China. The high uptake of the compound in the production detergents, a variety of catalysts and chemicals, and construction materials in the region also make it one of the leading regional markets for sodium silicate.
Rising Global Demand for Detergents and Cleaning Agents to Drive Market
One of the key factors driving the global sodium silicate market remains its use in the production of a number of products in the construction, chemicals, and cleaning products industries. The rising demand for environment-friendly binding agents in the construction industry and the increased uptake of green tires in the automotive sector are also expected to prove to be highly beneficial for the global sodium silicate market in the next few years.
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The market is also driven due to factors such as increased disposable incomes of people in developing economies and changing preferences regarding cleaning agents and detergents. Sodium silicate allows the maintenance of effective pH levels during cleaning activities. Thus the detergency of the cleaning product as well as the effectiveness of surfactants and soaps is improved. These benefits have made the use of sodium silicate highly popular in cleaning products and detergents, the demand for which has massively increased globally in the past few years. Moreover, the steady expansion of the waste water treatment and agriculture sectors in emerging economies across Asia Pacific, Africa, and Latin America is also expected to have a positive impact on the development of the global sodium silicate market.