Silicone Sealants Market - SIZE, SHARE, COVID-19 IMPACT and FORECASTS UP TO 2028

Silicone Sealants Market - SIZE, SHARE, COVID-19 IMPACT and FORECASTS UP TO 2028

The Silicone Sealants Market is expected to register a CAGR of 6.47% in the forecast period.

COVID-19 negatively impacted the market as all the industries halted their manufacturing processes. Lockdowns, social distances, and trade sanctions triggered massive disruptions to global supply chain networks. The construction industry witnessed a decline due to the halt in activities. However, the condition is recovered in 2021, which is expected to benefit the market during the forecast period.

• The factors driving the market growth for silicone sealants are the rising demand from the construction sector and the growing trend of lightweight vehicles.
• However, on the flip side, the government's stringent regulations over environmental concerns are expected to hinder market growth.
• The increasing worldwide demand for HVAC provides an opportunity for the market to grow.
• Asia-Pacific is expected to dominate the global market due to rapid urbanization and industrialization, leading to a massive demand for silicone sealants from countries such as China, Japan, and India.

• Silicone sealants are gel-like substances in liquid form that are considered versatile products and are used in a wide range of applications in different industries. In the construction industry, silicone sealants are widely used for their applications, such as waterproofing, weather sealing, and crack sealing.
• According to the Institution of Civil Engineers, the global construction market is likely to reach USD 8 trillion by 2030, mainly driven by the countries such as the United States, China, and India.
• According to Global Silicones Council, an estimated volume of 673,000 tons of silicone products are sold to the construction sector each year, enormous volumes sold among other sectors such as automotive, paints & coatings, and others.
• Silicone sealants are widely used in the automotive industry because they can effectively apply to glass, metal, plastic, and painted surfaces. Silicone sealants possess features such as extreme weather resistance, durability, and long-lasting. It is due to these reasons they are used in engines and car gaskets.
• According to OICA, in 2021, global vehicle production reached 80.1 million units, an increase of 4% from the previous year's production of 77.6 million units. Increasing vehicle production owing to consumers' growing needs is a crucial factor for driving market growth.
• Silicone sealants are widely used in electronics and electrical equipment manufacturing. They are used for sealing sensors and cables. According to JEITA (Japan Electronics and Information Technology Industries Association), in November 2022, the total production of the electronics industry reached USD 7,098.34 million. In December 2022, Japan exported electronics worth USD 8,395.45 million.
• Silicone resin-based sealants are used in the healthcare industry for assembling and sealing medical device parts. The increase in healthcare investments worldwide is expected to increase demand during the forecast period.
• According to the European Automobile Manufacturers Association (ACEA), Automotive production in Europe is expected to reach 19.2 million units by 2027 from 16.3 million units in 2021.
• All the developments above are expected to boost the demand for silicone sealants over the forecast period.

• Silicone sealants are consumed across the globe due to their strong sealing properties. These sealants' main application areas include the building, construction, and automotive industry.
• According to the US Census Bureau, in 2022, the completed authorized privately-owned housing units reached 16,647 thousand in the United States. As a result, silicone sealants consumption witnessed a growth of 8.33% in 2022 compared to 2021.
• Silicone sealants are consumed mainly in the building and construction industry. The area covered with residential and non-residential buildings reached 41.7 billion sq ft in 2022, 6.15% more than in 2021. As a result, silicone sealants consumption also witnessed a growth of 8.33% in 2022 compared to 2021.
• Asia-Pacific accounts for the highest consumption of silicone sealants due to the rising building, construction, and automotive industries. About 45% of the total construction investment in the world came from this region in 2022.
• China includes the most extensive building market worldwide, making up 20% of all construction investments globally. The country alone is expected to spend nearly USD 13 trillion on buildings by 2030.​
• Moreover, according to the National Development and Reform Commission of China, the Chinese government approved 26 infrastructure projects at an estimated investment of about USD 142 billion, which will be completed by the end of 2023.
• The Chinese automotive manufacturing industry is the largest in the world. However, the industry witnessed a slowdown in recent years, wherein production and sales declined. According to the China Association of Automobile Manufacturers (CAAM), automotive sales in China fell 8.4% yoy to 2.56 million units in December 2022. In contrast, for 2022, the sales grew to 26.86 million units.
• In 2022, India contributed about USD 640 billion to the construction industry due to government initiatives in infrastructure development and affordable housing, such as housing to all, smart city plans, and others. The growing construction activities in the country are driving the demand for silicones, which, in turn, may drive the silicone sealants market over the forecast period.
• Owing to all these factors, the market for silicone sealants will likely grow worldwide during the forecast period.

The Silicone Sealants Market is fragmented, with the top five companies occupying 34.65%. The major players in this market are Chengdu Guibao Science and Technology Co., Ltd., Dow, Henkel AG & Co. KGaA, Sika AG, and Soudal Holding N.V. (sorted alphabetically).

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