10.27.21
Grand View Research recently published a report, “Silicone Market Size, Share & Trends Analysis Report By Product (Fluids, Gels, Resins, Elastomers), By End-use (Electronics, Transportation, Construction), By Region, And Segment Forecasts, 2021 – 2028.”
Report Overview
The global silicone market size is valued at $4.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 4.3% from 2021 to 2028. The growing demand for silicone in various end-user industries including construction, personal care, industrial process, and consumer goods is expected to drive market growth. Properties like chemical stability, versatility and high resistance to temperature are expected to drive the demand for silicone in the aforementioned end-user industries. Additionally, expanding use of silicone-based products in the evolving market such as electronics, renewable energy and electric vehicles is expected to boost up the demand for silicone over the forecast period.
Based on grades, silicones are divided into three categories, namely medical-grade, food-grade and industrial grade. Price variations in these grades majorly depend on the type of process involved in the manufacturing, types of catalysts and additives used for enhancing various properties, and several government regulations on the raw materials and final product usage.
According to Grand View’s research, the rising demand for specialized products across end-use industries, coupled with the increasing intervention of government regulatory bodies across the value chain i.e., raw material, manufacturing process, distribution of various grades of silicone products to their end-use applications, is expected to impact variation in the prices of silicone in various end-use industries in the forecast period.
The increasing demand for lightweight automobile parts and growing research and development activities to develop new and innovative products are expected to propel overall industrial growth over the forecast period. Lightweight materials are progressively being used to reduce automobile weight, which results in decreasing the overall fuel consumption. High thermal stability associated with silicone fluids is estimated to boost industrial growth in the years to come.
The growing application of silicone in textiles, paper, leather packaging, labels and airbags is expected to propel the demand for silicone over the forecast period. In these applications, silicone is used as a solvent, adhesive, wetting agent and anti-foaming agent. Silicones in the textiles industry are used in numerous processes during fabric manufacturing, including the production of yarns as well as on the finished product. Silicones provide lubrication, foam control, and softening to the yarn or fabric. In addition, they are used as hydrophobic coatings on the finished product. Increasing use of conductive silicone rubber in anti-slip processing for textile manufacturing, on account of its good electrical and chemical resistance properties, is expected to have a positive impact on the segment growth over the forecast period.
Growing demand for apparel is expected to result in increased consumption of silicone for application in various stages of fabric processing. Moreover, increasing demand for technical textiles, on account of their use in a broad range of applications including chemical, manufacturing, and medical, is expected to augment the demand for silicone in textiles end-use over the forecast period.
End-use Insights
The industrial process segment led the silicone market and accounted for the largest revenue share of more than 25.0% in 2020. Increasing demand for silicone as lubricants in offshore drilling, industrial coatings (paint additives), and antifoaming is anticipated to boost the demand for silicone over the predicted period.
In paints and coatings, silicone is used to enhance performance by providing various components with increased durability and resistance to chemicals, corrosion, and thermal resistance, thus reducing maintenance costs or unplanned maintenance for industrial infrastructure and machinery.
In terms of revenue, construction is the second major application segment and expected to witness a CAGR of 4.0% from 2021 to 2028. Silicones are extensively used in the building and construction industry due to their moisture resistance high strength and properties. Silicones are used for residential and commercial constructions, including glass, concrete, marble, aluminum, steel, and polymers. Rising population coupled with rapidly growing urbanization, and industrial growth have resulted in the increasing need for construction and infrastructure development across the world. For instance, in 2019, China planned to invest around USD 142.0 billion in 26 infrastructure projects. These factors are expected to substantially boost the demand for silicones in construction end-use over the predicted period.
Product Insights
The elastomers segment led the market and accounted for the largest revenue share of more than 41.0% in 2020. Silicone elastomers are vulcanized silicone-based polymers that are made with a combination of linear polymers, crosslinker, reinforcing agents, and a catalyst. Based on the type of basic straight-chain molecule and the processing temperature, these elastomers have been further characterized as Room Temperature Vulcanization (RTV), Liquid Silicone Rubber (LSR), and High-Temperature Vulcanizing (HTV). The growing demand for lightweight automobile parts as they help to improve fuel efficiency and reduce emissions is expected to drive the demand for elastomers in the market over the forecast period.
The rising penetration of HTV silicone elastomers in the electric vehicle industry has increased considerably over the past few years owing to their lightweight, robust performance, high resistance to corrosion, and efficiency. Besides, HTV silicone elastomers components also offer durability, improved vehicle economy, and help in extending the life of electric vehicles. This is expected to fuel the demand for HTV silicone elastomers in electric vehicles, especially for passenger and commercial vehicles over the forecast period.
The fluids segment is the second-largest segment and is expected to witness a revenue-based CAGR of 4.2% from 2021 to 2028. Silicone fluids are clear, odorless, and transparent liquids and offer excellent thermos-oxidative resistance in operations between -60 degrees and +300 degrees. In addition, these products possess superior shear stability, minimum volatility, low surface tension, and induce optimum water repellency. The rising demand for cosmetics owing to growing awareness regarding personal care coupled with growing consumption of the product in paints and coatings as additives is expected to fuel the demand over the forecast period.
Regional Insights
Asia Pacific dominated the market and accounted for the largest revenue share of over 44.0% in 2020. The large market share of the region is attributed to the presence of several large-, medium-, and small-sized market players in the region. The shifting of production facilities by market players from Europe and North America to Asia, owing to the factors such as greater availability of raw materials, cheap labor, and more market penetration opportunities in end-use industries such as transportation, construction, industrial process, personal care, and consumer products, electronics, healthcare, and energy, is expected to propel the regional production of silicone over the forecast period.
Europe was the second-largest market in 2020 and it is expected to witness a revenue-based CAGR of 3.4% from 2021 to 2028. The expanding construction sector in various countries including the U.K., Germany, Spain, France, and Russia is expected to augment the product demand over the forecast period. Increased funding from the EU coupled with the supportive measures (such as tax breaks, incentives, and subsidies) undertaken by several governments is expected to boost the growth of the construction sector in the region. Furthermore, the growing adoption of silicone in the healthcare sector for aesthetic implants and in the renewable energy sector for applications in solar panels and windmill is expected to boost the market growth over the forecast period.
However, lockdown imposed by various governments across the globe to contain the spread of COVID-19 has led to a decline in the consumption of silicone. End-use industries, such as automotive and construction, are witnessing a sharp decline, in terms of demand and production, owing to the several restrictions on movement and operations imposed by the government. However, with the ease of the lockdown, the production is expected to resume and demand for silicone is expected to grow again.
Key Companies & Market Share Insights
The market is significantly fragmented in nature with the presence of big manufacturing players across the globe. The market player competes mainly on the basis of technology used for the production of silicone and the quality of products. Key market players are inclined towards adopting marketing strategies such as mergers and acquisitions, new and innovative products along with production capacity expansions are some of the popular strategies adopted by a majority of the market players operating in the market.
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