According to BlueQuark Research & Consulting, the Indian Colloidal Silica Market is estimated to be 21.42 Kilo tons in 2022 and forecasted to reach 28.25 kilotons by 2027 with a CAGR of 5.80%. The factors such as increasing demand for colloidal silica in the manufacturing industry, increasing demand from the electronics industry, and increasing demand from the building and construction industry are anticipated to boost the demand for colloidal silica in the forecast period. However, high fluctuation in the raw materials prices of Colloidal Silica is likely to obstruct the Indian colloidal silica market's growth. 

Increasing Demand for Colloidal Silica in the Manufacturing Industry

• The manufacturing sector has emerged as one of the high growth sectors in India with the potential to reach USD 1 Trillion by 2025, with an aim to create nearly 100 million new jobs in the sector by 2022. The overall manufacturing GVA at current prices was estimated at USD 97.41 Billion in the first quarter of FY22.
• According to the government of India, the country has the potential to become a global manufacturing hub by 2030, adding more than USD 500 billion annually to the global economy.
• The overall index stood at 134.0 as of July 2021, with the rise in the index heavily supported by growth in the production of natural gas, steel, cement, fertilizers, coal, refinery products, and electricity.
• In July 2021, natural gas output increased by 18.9%, coal 18.7%, petroleum refinery production 6.7%, fertilizers 0.5%, steel 9.3%, cement 21.8% and electricity 9.0%.
• Further, merchandise exports from select industries, including engineering, petroleum products, gems & jewelry, drugs & pharmaceuticals, and chemicals, stood at USD 151.96 Billion between April 2021 and October 2021
• According to the Department for Promotion of Industry and Internal Trade, cumulative FDI inflows in the manufacturing subsectors amounted to USD 100.35 billion between April 2000 and June 2021.
• As stated by the National Manufacturing Competitiveness Council (NMMC), the manufacturing sector is set to contribute 25 percent to the GDP by 2025, compared to the current share of 16 percent.
• Electronic motherboards demand in India is expected to grow by over six folds to reach USD 81.5 Billion by 2026, according to Manufacturers‘ Association for Information Technology report.  Between FY21 and FY26, India is expected to generate cumulative export revenue of USD 101 billion owing to electronic sales.
• According to the Indian Brand Equity Forum, 5G industry revenue in India is anticipated at nearly USD 17 billion by 2030, with the manufacturing sector being one of the key contributors, being USD 3.74 billion.

Foundry remains the largest and fastest-growing segment

• India is the world's second-largest manufacturer of castings. The Indian foundry industry manufactures a wide range of metal castings and cast components for use in sectors such as power, automotive, defense, railroads, machine tools, agricultural machinery, tractor, earth-moving and mining machinery, and electrical machinery, and oil and natural gas. The car industry is a significant user of the country's castings.
• The Foundry Industry generates around USD 19 billion in revenue, with approximately USD 3.1 billion in exports. Grey iron castings, on the other hand, account for around 68 percent of all castings produced. There are around 4600 units, with 90 percent of them being MSMEs. International Quality Accreditation is held by about 1500 units.
• Casting output in India reached 11.49 million metric tonnes, accounting for 11 to 12 percent of global production. Each foundry cluster is often renowned for serving a certain end-use market. The Rajkot cluster, for example, specializes in automotive/textile, machine tools, pumps/valves, and diesel engine castings. According to projections from top institutes, India's GDP would grow at a rate of more than 7.5 percent year on year. The Indian foundry sector employs 2 million people directly and indirectly, primarily from the socially and economically disadvantaged.
• The new manufacturing policy calls for a 25% rise in manufacturing's proportion of GDP from 15% to 25% over the next ten years, as well as the creation of 10 million new jobs.
• The foundry market in India has the potential to develop by USD 13.08 billion between 2020 and 2024, CAGR of above 10%. In the worldwide foundry market, India is one of the major countries. This is related to the increased need for metal casting in the automobile industry. Since 2010, the Indian auto components business has been steadily growing, and this trend is expected to continue during the projected period.
• The demand for lightweight automobiles has boosted the usage of non-ferrous metals in their manufacturing, boosting India's foundry business. The automotive segment's rise in the foundry market share in India will be faster than the market's growth in other segments.
• Foundries are investing in new technology and equipment to meet India's growing demand for metal castings. Low power usage, increased production efficiency, enhanced capacity utilization, and a high-profit margin are all advantages of such technological advancements.

Market share Analysis

• Indian colloidal Silica market was found to be partially fragmented with the top two players accounting for a considerable share of the market.
• Major players in the market include Dr.Khan Industrial Consultants Pvt. Ltd. (DKIC), Visa Chemical Industries, Sahajanand Industries, Shivkrupa Chemicals, HN Chem and Silex Industries. Other significant players in the market include Gujarat Silicon Private Limited, Sol-Gel Film Private Limited, Sterling Chemicals, Patalia Chem Industries, Vizag Chemicals, Nouryon etc,