Silica Sand Market- By Purity, By Silica Sand, By Application, By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030.

Silica Sand Market Overview

Silica Sand Market is forecast to reach US$29.78 billion by 2030, after growing at a CAGR of 5% during 2024-2030. The Silica Sand Market refers to the global trade and consumption of silica sand, a granular material composed of finely divided quartz and other minerals. Silica sand is primarily used in various industrial applications, including glassmaking, foundry casting, construction, abrasives, ceramics, filtration, and hydraulic fracturing (fracking) in the oil and gas industry. It is valued for its high purity, strength, and chemical inertness. The Silica Sand Market is influenced by rising demand from the glass manufacturing industry. Silica sand provides the essential silicon dioxide required for glass formulation; hence it is the primary component in all standards and specialty glass. Moreover, rising demand from the glass and foundry sectors is a pivotal driver for market growth. These industries require silica sand for various applications, including glass production and metal casting. As demand surges, the Silica Sand Market experiences significant momentum, fueled by the essential role it plays in meeting the needs of these vital sectors. For instance, according to the UK Department for Business and Trade, The UK government aims to boost annual research and development investment to $27.87 billion by 2024-25, while top food manufacturers collectively spend $1140.02 million yearly. In addition, the German government and top automakers reaffirm the aim for 15 million electric vehicles on German roads by 2030, emphasizing a commitment to sustainable transportation. Such initiatives and investments are driving the demand for the glass thereby contributing to the market growth rate.

The silica sand market is experiencing several significant trends driven by its diverse applications across various industries. The construction sector remains a major consumer of silica sand, particularly for glass production and hydraulic fracturing (fracking) in the oil and gas industry. The demand for high-purity silica sand in the manufacturing of flat glass and fiberglass is increasing, driven by the construction and automotive industries. Technological advancements in extraction and processing techniques are improving the quality and consistency of silica sand, making it suitable for specialized applications like electronics and solar panels. The push towards sustainable and environmentally-friendly practices is also influencing the market, with companies seeking to reduce their ecological footprint through improved mining practices and efficient resource management. Additionally, the growing demand for silica sand in water filtration and the development of new applications in the fields of nanotechnology and 3D printing are contributing to market expansion. The global market is also witnessing increased investments and strategic partnerships aimed at enhancing production capacity and meeting the rising demand.

Market Snapshot:

Silica Sand Market Report Coverage

The report: “Silica Sand Market– Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Silica Sand Industry. 

By Purity: 94% to 95.9%, 96% to 97.9%, 98% to 98.9%, and Above 99%.

By Silica Sand: Wet Sand, Dry Sand, Frac Sand, Filter Sand, Coated Sand, and others.

By Application: Glass Manufacturing (Flat Glass, Fiberglass Insulation, Specialty Glass, Container Glass & Others), Chemical Production (Sodium Silicate, Silicon Gels, Silicon Tetrachloride & Others), Foundry (Ferrous Foundry, Nonferrous Foundry), Construction (Cement, Asphalt Mixtures, Mortar & Others), Paints & Coatings (Architectural Paints & Coatings, Industrial Paints & Coatings), Ceramics & Refractories (Tableware, Sanitaryware, Floor and Wall Tiles), Filtration and Water Production (Drinking Water, Wastewater), Oil & Gas Recovery and others.

By Geography: North America (USA., Mexico, and Canada), Europe (U.K, Germany, Italy, France, Netherlands, Belgium, Russia, Spain, and Rest of Europe), APAC (China, South Korea, Japan, India, Australia & New Zealand, Indonesia, Taiwan, Malaysia Rest of APAC), South America (Brazil, Argentina, Colombia, Chile, Rest of South America) and RoW (Middle East (Saudi Arabia, U.A.E, Israel, Rest of the Middle East), Africa (South Africa, Nigeria, Rest of Africa)).

Key Takeaways

• North America, dominates the global Silica Sand Market, owing to increased construction activities and various government initiatives such as the U.S. General Services Administration (GSA), which allocated $2 billion for over 150 construction projects nationwide, promoting low-embodied carbon (LEC) materials under the Biden-Harris Administration's Investing in America agenda. This initiative supports job creation, addresses climate change, and boosts the market for cleaner construction materials like asphalt, concrete, glass, and steel in 2023.
• The significant growth in the construction sector is contributing to the demand for silica sand. The European Construction Sector plan involves a EUR 165.0 billion investment until 2030 in housing and transport infrastructure, including additional funds for cross-border projects as per the European Commission.
• Although COVID-19 has significantly resulted in the pause of production capacity in the manufacturing industries, resulting in the decline of the Economy, the market is set to recover with the vaccine rollout in various countries.

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Silica Sand Market Segment Analysis – By Purity 

Above 99% purity held the largest share in the Silica Sand Market in 2023 and is forecasted to grow at a CAGR of 5.4% during the forecast period. Silica sand with a purity of 99.5% is used in the glass industry. Commercial glass is made by fusing silica sand (Si02), limestone (CaC03), and soda ash (NC03) at 1,100°C. The typical composition is 75% silica, 10% lime, and 15% soda ash. The sand should be uniform in grain size and contain at least 99.5% silica. The reduction of impurities in silica sand to a degree appropriate for the manufacture of acceptable solar-grade silicon for photovoltaic applications using photothermal treatment. This method attracts impurities to the surface of silica grains, where they can be easily removed by dissolving them partially in an acid mixture. The inductively coupled plasma atomic emission spectrometry (ICP– AES) method was used to analyze the silica collected. Al, K, Fe, Na, Ca, Mg, and B were the most common impurities found in silica sand. Almost all significant impurities were effectively eliminated in the new goods. Indeed, according to ICP–AES characterization, the purity degree ranges from 99.76 to 99.96%, with an average impurity removal efficiency of 83.33%. 

Silica Sand Market Segment Analysis – By Silica Sand

Wet silica dominated the Silica Sand Market in 2023 and is expected to grow at a CAGR of 5.4% during the forecast period. Wet Silica Sand is used as a high-quality sand source for the glass industry because of its high silica content (SiO2). Wet silica sand is primarily used in construction, the glass industry, golf courses, and other applications. Because of the constant demand in the construction industry, wet silica sand with specific grain dimensions and composition characteristics is an excellent option for destination markets. In addition, the sand created by wet silica sand has the properties listed for golf course construction and maintenance. Wet silica sand of this kind has long been used on the best golf courses in and around the Portuguese and Spanish peninsulas. It's used on the green, tee, bunkers, and access paths, among other places.

Silica Sand Market Segment Analysis – By Application

Glass manufacturing application dominated the Silica Sand Market in 2020 and is poised to grow at a CAGR of 4.7% during the forecast period. According to National Institute Sand Association (NISA), the production of glass requires a variety of different commodities, silica represents over 70% of its final weight. Flat glass, fiberglass insulation, specialty glass, container glass and others are considered under this segment. Flat glass is widely used in automotive and construction applications, container glass is used in food and beverages and tableware applications and so on. The significant growth in the investments and expansions with the growing demand from these sectors is set to boost the market growth rate during the forecast period 2024-2030. 

Silica Sand Market Segment Analysis – By Geography 

North America dominated the Silica Sand Market with a share of approximately 48% in 2023 and is anticipated to grow at a CAGR of 6.3% through the forecast period. Silica sand is the main component in various chemicals such as sodium silicate, silicon tetrachloride, and silicon gels. These chemicals are majorly used in the production of a wide range of materials from household to industrial cleaners, fiber optics, and to remove impurities from cooking oil and brewed beverages. Adding to this, the growing investments and expansions in the fiber optic manufacturing sector with rising demand from the 5G rollout are set to escalate the market growth rate. For instance, The Biden-Harris Administration launches the $1.5 billion Public Wireless Supply Chain Innovation Fund, investing in open and interoperable networks to boost wireless innovation, competition, and supply chain resilience. This initiative aims to strengthen U.S. leadership in 5G and next-gen wireless technology. This marks a significant leap forward in connectivity, promising transformative opportunities for diverse sectors. Furthermore, The American Public Transportation Association (APTA), In 2022, heavy rail, light rail, and commuter rail collectively constituted 46% of all transit trips, aligning with historical trends. Remarkably, heavy rail saw a 36.55% increase, light rail experienced a 37.85% rise, and commuter rail achieved a substantial 51.82% increase in ridership over the year. Furthermore, in 2022, The Biden-Harris Administration allocates $660 million for states to address orphaned oil and gas wells, fostering economic growth and environmental protection. This funding, part of the bipartisan Infrastructure Law, this will further complement Silica Sand Market growth.

Silica Sand Market Drivers

Construction is on the Rise as a Result of Consistent Economic Growth

Silica sand is the primary structural component in a wide variety of building and construction products. Silica sand is used in flooring compounds, mortars, specialty cement, stucco, roofing shingles, skid-resistant surfaces, and asphalt mixtures for binding. Moreover, ground silica performs ads durability and anti-corrosion and weathering properties in epoxy-based compounds, sealants, and caulks. The significant growth in initiatives such as smart cities in countries such as India, the US, and so on is set to boost the demand for silica sand. In February 2023, the Indian government allocated approximately $2.67 billion (USD) to metro projects nationwide in the Union Budget 2023-24. This includes equity investment of $645 million, subordinate debt of $191 million, and pass-through assistance of $1.82 billion, is further expected to boost business growth. Furthermore, the United States is seeing significant investment in residential development, which is projected to continue shortly. According to the US Census Bureau, the Construction spending in December 2023 reached a seasonally adjusted annual rate of $2,096.0 billion, up 0.9% from November and 13.9% from December 2022. The total construction value for 2023 was $1,978.7 billion, a 7.0% increase from 2022's $1,848.7 billion. Mexico is also experiencing high housing demand, which has resulted in significant construction expenditure. For example, the Inter-American Development Bank (IDB) granted the Mexican company Procsa a local currency financing program worth up to 150 million Mexican pesos ($7.8 million) in January 2019 to fund land acquisition, development, and commercialization of housing for low- and middle-income families in the country. The construction market is expected to be driven by rapid growth in investments in renewable power generation capacity over the forecast period. A large number of power generation companies, especially in the United States and Europe countries, are investing in renewable energy sources. For example, in 2023, EDF emerged as the global leader in investing and producing on-demand, consistently accessible carbon-free electricity, constituting 434TW, equivalent to 93% of its power output. With a remarkable carbon intensity of 37gCO2/kWh, it marked a 26% reduction from its 2022 levels. Additionally, as of February 2022, Australian wind turbines annually receive over $500,000 in subsidies via Renewable Energy Certificates. The approval and funding for renewable energy projects are typically swift, facilitated, and subsidized. This is expected to increase demand for construction company services, propelling the market forward during the forecast era. As a result, the expansion of building projects and investments is propelling the Silica Sand Market forward.

Demand for Glass Manufacturing

A significant driver in the silica sand market is the increasing demand from the glass manufacturing industry. In the construction sector, silica sand is a crucial ingredient in concrete, mortar, and asphalt, essential for building infrastructure, residential, and commercial projects. The rapid urbanization and industrialization in emerging economies are driving construction activities, thereby boosting the demand for silica sand. This is also driving demand for glass used in construction buildings. In the glass manufacturing industry, high-purity silica sand is a critical raw material for producing various types of glass, including flat glass, container glass, and specialty glass used in automotive, construction and solar panel industries. The growing emphasis on energy-efficient buildings and renewable energy sources like solar power is further fueling the demand for high-quality silica sand, making the construction and glass manufacturing sectors pivotal in driving the growth of the silica sand market.

Silica Sand Market Challenges

The Cost of Silica Sand, as Well as Investments and Transportation, are Limiting Market Development

The cost of silica sand extraction and processing can be significant, especially if high-quality silica sand is required for specific applications such as glass manufacturing or hydraulic fracturing (fracking). Factors influencing the cost include mining techniques, processing methods, and transportation expenses. In 2022, industrial sand and gravel consumption rose due to heightened demand for frac sand, driving prices up. Imports remained steady at 350,000 tons. Frac sand prices surged by 185% in 2022 to $40-$45/tonne due to import constraints from Russia amid the Ukraine conflict, driving up costs., but has risen to over $70 per ton during times of scarcity. Spending money on oil is challenging. Sand is heavy, and because of its value, transporting and processing it is expensive and difficult. Traders are unable to buy or sell futures contracts tied to coal, just as they are unable to buy or sell futures contracts tied to other items such as soybeans or gasoline. As a result, shareholders interested in increasing their sand exposure should look for investments in sand-related businesses. However, government regulations on the use of silica, fluctuations in raw material supply, and product cost instability are expected to limit demand growth in the coming years. Illegal sand mining and the production of sand-free construction goods can also stymie global market growth. 

Silica Sand Market Industry Outlook

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Silica Sand Market. The key players in the Silica Sand Market include Sibelco, Hi-Crush Inc., U.S. Silica Holdings Inc., JFE Holdings Inc., Mitsubishi Corporation, Covia Holdings LLC, Badger Mining Corporation, PUM Group, Quarzwerke GmbH, Chem Source Egypt, among others.

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Acquisitions/Technology Launches

• In July 2022, Sibelco expands its footprint by acquiring Echasa S.A., a silica sand mining company operating in Northern Spain. The acquisition includes the Laminoria quarry near Vitoria, strategically located 160 kilometers from Sibelco's nearest silica quarry in Arija. The acquisition expands Sibelco's customer reach and silica sand reserves in Western Europe, complementing its existing operations in the region.
• In April 2022, Source Energy Services Ltd. has finalized a transaction with Canadian Silica Industries Inc. and Contractor’s Leasing Corp., acquiring operations, distribution, and sales responsibilities for domestic frac sand from CSI’s Peace River facility. This adds 400,000 metric tonnes of production capacity, enhances offerings, and fosters production efficiencies through consolidation.