Silicone Market by Type (Elastomers, Fluids, Resins, Gels, and Others), and End-User (Building & Construction, Transportation, Personal Care & Consumer Goods, Energy, Electrical & Electronics, Paper, Textile, and Others)- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

The global Silicone market gathered revenue around USD 15.2 Billion in 2021 and market is set to grow USD 21.5 Billion by the end of 2030 and is estimated to expand at a modest CAGR of 5.3% during the prediction period 2021 to 2030.

Key Takeaways:

• In North America, the market was valued at USD 3.16 billion in 2021 in terms of revenue and is estimated to witness a revenue-based CAGR of 3.9% from 2021 to 2030. The rising use of enhanced technology such as 4K Ultra HD and smart home is estimated to drive the market in the region over the forecast period

• The elastomers segment accounted for the prominent revenue share of 41.9% in 2021 and is estimated to maintain its ascendancy over the forecast period owing to rising demand for lightweight automobile vehicles

• The fluids segment is the second-largest product segment and is expected to expand at a healthy revenue-based CAGR of 6.2% over the forecast period owing to its properties like low surface tension, shear stability, and excellent thermos-oxidative resistance

• Fluctuating raw material prices of methanol is expected to pose a challenge for the market players to achieve economies of scale and profitability

Growth Factors:

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.

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 over 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 the aforementioned 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.

Report Coverage

End-use Insights

The industrial process segment led the silicone market and accounted for the largest revenue share of more than 26.0% in 2021. 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 6.0% from 2022 to 2030. 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 42.1% in 2021. 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 5.2% from 2022 to 2030. 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 45.0% in 2021. 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 2021 and it is expected to witness a revenue-based CAGR of 4.9% from 2022 to 2030. 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.

For instance, in August 2020, Wacker Chemie AG extended a partnership with H.M. Royal, a distributor of specialty chemicals and ingredients, for the distribution of SILPURAN, a Liquid Silicone Rubber (LSR) and High Consistency Rubber (HCR), specifically designed for medical application. This partnership will enable the company to cater to the medical industry more efficiently. Some of the prominent players in the silicone market include:

• Shin-Etsu Chemical Co., Ltd.
• Wacker Chemie AG
• Evonik Industries AG
• Elkay Chemicals Pvt. Ltd.
• Supreme Silicones
• Dow Inc.
• KCC Corporation
• Elkem ASA
• Silchem Inc.
• Specialty Silicone Products, Inc.

Unravelling the Critical Segments

This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects including product type, application/end-user, and region. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for period 2017 to 2027 and covers subsequent region in its scope:

Market Segments

• By Type
  • High temperature vulcanized
  • Liquid silicone rubber
  • Room temperature vulcanized
  • Straight silicone fluids
  • Modified silicone fluids
  • Methyl silicone resins
  • Phenyl silicone resins
  • Others
• Elastomers
• Fluids
• Resins
• Gels
• Others
• By End User
• Building & Construction
• Transportation
• Personal Care & Consumer Goods
• Energy
• Electricals & Electronics
• Paper
• Textile
• Others

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Highlights of the Report:

• Market Penetration: Comprehensive information on the product portfolios of the top players in the market.
• Product Development/Innovation: Detailed insights on the upcoming technologies, R&D activities, and product launches in the market
• Competitive Assessment: In-depth assessment of the market strategies, geographic and business segments of the leading players in the market
• Market Development: Comprehensive information about emerging markets. This report analyzes the market for various segments across geographies
• Market Diversification: Exhaustive information about new products, untapped geographies, recent developments, and investments in the market

Research Methodology

In the study, a unique research methodology is utilized to conduct extensive research on the growth of the Silicone market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the conclusions.

Secondary resources referred to by analysts during the production of the Silicone market study are as follows - statistics from government organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of this report as a primary resource.

Comprehensive information acquired from primary and secondary resources acts as a validation from companies in the market, and makes the projections on the growth prospects of the Silicone markets more accurate and reliable.

Secondary Research

It involves company databases such as Hoover's: This assists us recognize financial information, structure of the market participants and industry competitive landscape.

The secondary research sources referred in the process are as follows:

• Governmental bodies, and organizations creating economic policies
• National and international social welfare institutions
• Company websites, financial reports and SEC filings, broker and investor reports
• Related patent and regulatory databases
• Statistical databases and market reports
• Corporate Presentations, news, press release, and specification sheet of Manufacturers

Primary Research

Primary research includes face-to face interviews, online surveys, and telephonic interviews.

• Means of primary research: Email interactions, telephonic discussions and Questionnaire based research etc.
• In order to validate our research findings and analysis we conduct primary interviews of key industry participants. Insights from primary respondents help in validating the secondary research findings. It also develops Research Team’s expertise and market understanding.

Industry participants involved in this research study include:

• CEOs, VPs, market intelligence managers
• Procuring and national sales managers technical personnel, distributors and resellers
• Research analysts and key opinion leaders from various domains

Key Points Covered in Silicone market Study:

• Growth of Silicone in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Silicone and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Silicone Consumption Analysis
•  Silicone Production Analysis
•  Silicone and Management