The colloidal silica market is projected to reach US$ 1,121.22 million by 2028 from US$ 757.80 million in 2021; it is expected to grow at a CAGR of 5.8% during 2021-2028.

Major market players are consistently working on developing specialized forms of colloidal silica to suit various applications. For instance, Evonik Silica offers a specifically granulated hydrophilic fumed silica called AEROPERL. The material has applications in thermal isolation. The chemical's high purity and inert nature make it ideal for other applications, such as agriculture and catalysts. The material is also a good filler and carrier for personal care products. Key market players develop colloidal silica as per the requirement for tailored functionalities. The most prominent trend in the colloidal silica market is the increasing efficiency in high demanding applications, including high value-added applications. Novel engineered systems and materials fulfill the high-performance requirements. The increasing number of product innovations in the market of global colloidal silica by key players is propelling the market growth.

Based on application, the colloidal silica market is segmented into pulp and paper, building and construction, paints and coatings, electronics and semiconductors, pharmaceuticals, investment casting, and others. The others segment accounted for the largest share and is expected to grow at the highest rate during the forecast period. Colloidal silica is highly used in beverages such as winemaking or beer production. Colloidal silica enables more dense sediments in low volume than bentonite and gives a faster flocculation reaction. The colloidal silica used in wine and must-wine making applications must meet the International Oenological Codex standards. While in wine and must-wine making, colloidal silica is used in addition to gelatin or other vegan alternatives. Moreovercolloidal silica is used to improve flocculation in beer production. Colloidal silica also helps wines and juices taste better and last longer on the shelf. Colloidal silica helps improve clarity due to maximum removal of undesirable haze constituents and removal of tannin and protein components. Colloidal silica is also used to improve wine's color stability and shelf life. Thus, colloidal silica is used in numerous applications for improved functionality, which is driving the segment growth.

Based on region, the colloidal silica market is segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). In 2020, North America held the largest share of the market; however, Asia Pacific is estimated to register the highest CAGR in the market during the forecast period. The Asia-Pacific (APAC) is subsegmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. The demand for semiconductors is consistently growing, which was evident in 2020 when the demand reached very high, leading to a shortage of semiconductors. Therefore, to meet the demand for semiconductors, many manufacturers in Asia Pacific are scaling up production levels which are expected to benefit the colloidal silica market. Moreover, China published Made in China 2025 Plan, which describes achieving 70% self-sufficiency in semiconductors by 2025. As a result, National Integrated Circuits Industry Development Investment Fund was established with state-backed financing. Such initiatives are aiding the semiconductor industry's growth, leading to a higher demand for colloidal silica.

Nouryon; Nissan Chemical Corporation; inan Yinfeng Silicon Products Co., Ltd.; FUSO CHEMICAL CO., LTD.; Zhejiang Yuda Chemical Co.,Ltd.; CABOT CORPORATION; Evonik Industries AG; MERCK KGaA; The Dow Chemical Company; and Ecolab are among the players operating in the colloidal silica market. These companies provide a wide range of product portfolios for the market. The companies have their presence in the developing regions, which provides lucrative opportunities for colloidal silica market growth. The market players are developing high-quality and innovative products to meet the customer's requirements.

The overall colloidal silica market size has been derived using both primary and secondary source. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data, as well as to gain analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the colloidal silica market.