Silicones Market Forecasts to 2028 – Global Analysis By Product (Fluids, Gels, Resins and Elastomers), End User (Aerospace, Automotive, Construction, Electronics, Energy and Other End Users) and By Geography

Silicones Market Forecasts to 2028 – Global Analysis By Product (Fluids, Gels, Resins and Elastomers), End User (Aerospace, Automotive, Construction, Electronics, Energy and Other End Users) and By Geography

According to Stratistics MRC, the Global Silicones Market is accounted for $17.83 billion in 2022 and is expected to reach $30.57 billion by 2028 growing at a CAGR of 9.4% during the forecast period. The term ""silicone"" refers to a polymer made from siloxane that is employed in the production of synthetic rubber and lubricants. They are distinguished by their hydrophobicity, thermal stability, and physiological inertness. Dental impression materials and surgical implants are both made with silicone, which is used extensively in the medical sector. This expansion can be primarily attributed to the rise in automotive vehicle demand across numerous global industries. According to statistics, in the upcoming years, increased demand from the healthcare sector is predicted to become the most popular growth interest globally.

According to ZVEI Dia Elektroindustrie, China's electronics industry was valued at about USD 2,430 million in 2020, and it is forecasted to register 11% and 8% Y-o-Y in 2021 and 2022, thus providing immense opportunities for the silicone market.

Market Dynamics:

Driver:

The electronics industry is driving the demand for silicone

Due to its excellent thermal conductivity, capacity to withstand both high and low temperatures, and flame-retardant characteristics, silicone is becoming more and more useful in a range of electronic applications. Silicone is primarily used in electronics, semiconductor applications, heater wires, refrigerator wires, ignition wires, highly sensitive circuits, and electronics parts. Silicone's use in electrical circuits gives surfaces that protect screens for computers, televisions, aircraft displays, and other electronic devices from heat, dust, and other contaminants strong insulation properties.

Restraint:

Fluctuating of raw material prices

The price volatility of energy and raw materials is the main issue facing the global silicone market. The energy costs in European nations have increased as a result of the Russia-Ukraine conflict, which has further increased the cost of producing silicones. The profit margins of manufacturers of silicone are decreased by the sharp rise in the cost of raw materials like silicon metal and methyl chloride. The cost of all silicone products ultimately rises as a result.

Opportunity:

Growing automobile sector

Silicone is used in the rapidly expanding automotive industry as a lubricant for brake components and in the insulation of spark plug wires to stop sparks and misfires. Engine gaskets for automobiles are made from silicone sheets, and air bag sealants are made from silicone rubber. Automotive silicones contribute to lighter overall vehicles, which improve fuel economy and reduce harmful emissions. The demand for automotive silicones may be driven by rising auto production combined with strict environmental regulations for harmful emissions.

Threat:

Stringent government regulations

Regulatory agencies in nations like the UK, Canada, the US, and many European countries regulate the use of a select few silicone products, particularly in the personal care & consumer product and medical & healthcare industries. Two silicone products, cyclosiloxanes D4 and D5, have their use restricted by the European Chemicals Agency (ECHA) and the UK Competent Authorities. Before going on sale, all medical-grade silicones must receive regulatory body approval. Only silicones that have received USP Class V and VI approval are regarded as being of medical grade in the medical and healthcare sectors. The expansion of the silicone market will be constrained as a result of these strict regulatory policies.

Covid-19 Impact

The supply chain for the global silicones market has been impacted by COVID-19. The automotive industry's production declined significantly as a result of lockdowns and the closing of international borders, which had an impact on consumer demand for silicone. The global closure of numerous businesses and industries had an impact on the demand for silicone. Additionally, it is anticipated that suppliers of airbag fabrics and automobiles will reduce their financial investments in automotive silicone R&D. However, a further increase in demand from the healthcare, personal care, and consumer products sectors has boosted the demand for silicones during this time due to rising awareness of health and hygiene.

The industrial processes segment is expected to be the largest during the forecast period

The industrial processes segment dominated the market and accounted for over 25.0% of total revenue, and it is anticipated to remain dominant throughout the forecast period. Silicones are widely used in many industrial processes for a variety of purposes, including as lubricants and antifoaming agents in offshore drilling and paper production, industrial coatings, and paint additives by providing various components with improved durability, thermal resistance, and resistance to corrosion and chemicals. Furthermore, silicone is used in paints and coatings to boost performance and lower maintenance costs for industrial infrastructure and machinery.

The elastomers segment is expected to have the highest CAGR during the forecast period

During the forecast period, the elastomers segment is anticipated to experience the highest growth rate. With a market share of 36% in 2021, the elastomer segment dominated the industry. The market is anticipated to expand as silicone elastomers are used more frequently in various industrial applications. Undergarments, athletic equipment, food storage containers, footwear, medical devices, and implants are just a few of the countless products made with silicone elastomers. Silicone elastomers are also used to make sealants.

Region with largest share:

Over the projection period, it is anticipated that the Asia Pacific region will hold the largest market share due to the expanding demand for electronics in China, India, Japan, and South Korea. In 2022, the Asia Pacific region dominated the market and generated more than 44.0% of global market revenue. Silicone production in the region is expected to increase as a result of market players moving their manufacturing operations from North America and Europe to Asia Pacific due to factors like affordable labor, simple access to raw materials, and increased market penetration opportunities in sectors like construction, electronics, transportation, industrial processes, personal care and consumer products, energy, and healthcare.

Region with highest CAGR:

Owing to the growing construction industry and projects in several economies, including the UK and Germany, the European region is expected to witness the highest growth rate. Germany is the center of Europe's automotive manufacturing industry. France, Italy, and the UK will increase market demand. The market is also expected to grow as a result of silicone's expanding use in cosmetic implants in the healthcare industry. Additionally, Europe is one of the biggest markets for personal care and cosmetics in the world. Cosmetics Europe estimates that the retail sales of cosmetics and personal care products in Europe were around USD 83 billion in 2021 and are increasing rapidly. This factor offers new opportunities for silicone business expansion in this area in the near future.

Key players in the market

Some of the key players profiled in the Silicones Market include AbbVie Inc., BRB International B.V., CHT Group, Dow Chemical Company, DyStar Singapore Pte Ltd, Elkem ASA, Evonik Industries AG, Hoshine Silicon Industry Co. Ltd, Hutchinson, Illinois Tool Works Inc., Jiangsu Mingzhu Silicone Rubber Material Co. Ltd, Kaneka Corporation, KCC Corporation, Kemira Oyj, Mitsubishi Chemical Holdings Corporation, Momentive Performance Materials Inc., Shin-Etsu Chemical Co.LTD., Wacker Chemie AG, Wynca Group and Zhejiang Sucon Silicone Co. Ltd.

Key Developments:

In February 2023, BRB Silicones launches specialty silicones BRB SF 1802 for Car Care. BRB SF 1802 is a low viscosity amino alkyl functional polydimethylsiloxane. It is a curable and non-reactive amino silicone which, compared to its reactive counterparts, exhibits increased storage stability. BRB SF 1802 is designed for use in Car Care applications; however, it can also be used in Home Care formulations.

In October 2022, Elkem ASA announced the opening of their new specialized facility located on Timberland court. The new facility is spread over 18,000 sq. ft. and will produce high-purity medical silicone materials to meet the MedTech and Pharma market requirements.

In April 2022, Shin-Etsu Chemical Co., Ltd., announced the development of a new thermal interface silicone rubber sheet series for applications in components of electric vehicles (EV). These thermal interface silicone materials can be used as heat dissipation measures for component parts of electric cars for which high voltage requirements are increasing.

Products Covered:
• Electronic Intelligence (ELINT)
• Communications Intelligence (COMINT)

End Users Covered:
• Aerospace
• Automotive
• Construction
• Electronics
• Energy
• Industrial Processes
• Medical & Healthcare
• Personal Care & Consumer goods
• Transportation
• Other End Users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements